Business Line of Credit: Find the Best One For You

Small Business, Small Business Loans
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A business line of credit provides flexibility that a regular business loan doesn’t. With a business line of credit, you can borrow up to a certain limit — say, $100,000 — and pay interest only on the money borrowed. You then draw and repay funds as you wish, as long as you don’t exceed your credit limit.

Need to manage cash flow? Buy inventory? Pay for a surprise expense? Then a business line of credit makes sense.

For all your options:

Here are our recommendations for business lines of credit online, based on maximum credit limit:

Business line of credit up to $100,000

StreetShares, Fundbox and OnDeck offer business lines of credit up to $100,000 for short-term financing needs.

fundbox
  • Loan amount: $1,000 to $100,000
  • APR: 15% to 59%
  • Loan term: 12 weeks
  • Funding time: As fast as next business day
  • Read our Fundbox review
Apply now At Fundbox

 

Fundbox is a solid option if your company is getting started, as you can qualify after just six months in business. The company has no minimum credit score requirements and requires at least $25,000 in revenue, plus a minimum of six months in business. 

If you want lower rates, StreetShares is a better option but you need at least a year in business to qualify. Like Fundbox, the lender requires a minimum $25,000 annual revenue. An important caveat: Your maximum credit limit cannot exceed 20% of your annual business revenue. For example, a business with $100,000 in annual revenue could be approved for up to $20,000.

OnDeck is a good option if you want funding fast. You can get financing as quickly as 24 hours. You need a minimum 600 credit score, with at least one year of business history and $100,000 revenue.

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OnDeck_logo_2017
  • Loan amount: Up to $100,000
  • APR: 14% to 40%
  • Loan term: Repaid weekly for up to six months
  • Funding time: As quickly as 24 hours but typically a few days
  • Read our OnDeck review
Apply now at OnDeck
StreetShares-e1459274893272
  • Loan amount: $5,000 to $100,000
  • APR: 9% to 40%
  • Loan term: Three to 36 months
  • Funding time: One to five days
  • Read our StreetShares review
Apply now at StreetShares

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Business line of credit up to $150,000

Kabbage offers fast funding for borrowers with less than perfect credit.

Kabbage_Logo_150x40
  • Loan amount: $2,000 to $150,000
  • APR: 24% to 99%
  • Loan term: Six or 12 months
  • Funding time: A few minutes to several days
  • Read our Kabbage review
Apply now at Kabbage

Kabbage works best if you need fast funding for short-term needs and if you don’t have the best credit. The lender doesn’t require a minimum credit score for borrowers, although most have at least 500, according to the company. Your business needs a minimum of $50,000 in annual revenue and one year in operation to qualify. Kabbage has higher annual percentage rates than other options.

BlueVine is a better option if you want lower rates. Qualifying will likely be tougher than Kabbage, however, as the lender requires a minimum credit score of 600 and at least $120,000 in annual revenue.

bluevine-e1431706679103
  • Loan amount: $6,000 to $150,000
  • APR: 16% to 62%
  • Loan term: Six or 12 months months
  • Funding time: As fast as 12 hours
  • Read our BlueVine review
Apply now at BlueVine

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Business line of credit up to $300,000

Lending Club offers high credit limits and low rates.

LendingClub-box
  • Loan amount: $5,000 to $300,000
  • APR: 8% to 35%
  • Loan term: Repaid up to 25 months
  • Approval time: Less than a week for funding
  • Read our Lending Club review
Apply now at Lending Club

Lending Club offers high credit limits and low APRs.

To qualify, you’ll need a minimum personal credit score of 600, plus at least $75,000 in annual revenue and two years of business history.


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Business line of credit: Summary of options

 

bluevine

fundbox

Street Shares

kabbage

ondeck

lending_club_logo_new-249x47

Best for

Young businesses

Best for

Young businesses

Best for

Smaller purchases

Best for

Fast funding

Best for

Fast funding

Best for

Lowest rates

Loan details

Loan amount

$6,000 - $150,000




APR

16% - 62%

Loan amount

$1,000 - $100,000




APR

15% - 59%

Loan amount

$2,000 - $100,000




APR

9% - 40%

Loan amount

$2,000 - $150,000




APR

24% - 99%

Loan amount

$5,000 - $100,000




APR

14% - 40%

Loan amount

$5,000 - $300,000




APR

8% - 35%

Minimum qualifications

Personal credit score

600
 




Annual revenue

$120,000




Time in business

6 months

Personal credit score

None
 




Annual revenue

$25,000




Time in business

6 months

Personal credit score

600
 




Annual revenue

$25,000




Time in business

1 year

Personal credit score

No minimum





Annual revenue

$50,000




Time in business

1 year

Personal credit score

600
 




Annual revenue

$100,000




Time in business

1 year

Personal credit score

600
 




Annual revenue

$75,000




Time in business

2 years

Apply now at BlueVine
Apply now at Fundbox
Apply now at StreetShares
Apply now at Kabbage
Apply now at OnDeck
Apply now at Lending Club

FIND AND COMPARE SMALL-BUSINESS FINANCING

To size up other types of small-business financing, check out NerdWallet’s loan comparison tool. We gauged lender trustworthiness, market scope and user experience, among other factors, and arranged them by categories that include your revenue and how long you’ve been in business.

Steve Nicastro is a staff writer at NerdWallet, a personal finance website. Email: Steven.N@nerdwallet.com. Twitter: @StevenNicastro.

Updated Sept. 22, 2017.