Best Business Lines of Credit for 2024

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Written by Randa Kriss
Lead Writer
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Edited by Sally Lauckner
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Fact Checked

Compare our picks for the best business lines of credit and learn how to choose the right option for your needs.

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

The 7 best business lines of credit

ProductMax Loan AmountMin CreditMin Time In BusinessMin Annual RevenueLearn more
SBA CAPLines of credit

SBA CAPLines of credit

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$5,000,000 650 0 months Undisclosed 
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Bluevine - Line of credit

Bluevine - Line of credit

NerdWallet Rating 
5.0
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$250,000 625 12 months $120,000 
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Headway Capital - Line of credit

Headway Capital - Line of credit

NerdWallet Rating 
4.7
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$100,000 625 6 months $50,000 
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Backd Business Line of Credit

Backd Business Line of Credit

NerdWallet Rating 
4.6
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$750,000 600 12 months $300,000 
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OnDeck - Line of credit

OnDeck - Line of credit

NerdWallet Rating 
5.0
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$100,000 625 12 months $100,000 
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Bank of America Cash Secured Line of credit

Bank of America Cash Secured Line of credit

NerdWallet Rating 
4.7
Undisclosed 670 6 months $50,000 
Wells Fargo BusinessLine® Line of Credit

Wells Fargo BusinessLine® Line of Credit

NerdWallet Rating 
5.0
$150,000 680 24 months Undisclosed 

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A closer look at our top business lines of credit

SBA CAPLines of credit

Best for large funding amounts
SBA CAPLines of credit
U.S. Small Business Administration

SBA CAPLines of credit

Max Loan Amount  

$5,000,000

Read Review
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If you’re looking for a large business loan, you might consider the SBA CAPLines program. These lines of credit are available up to $5 million. In fact, nearly 70% of CAPLines issued in fiscal year 2024 had funding amounts of greater than $500,000

U.S. Small Business Administration. 7(a) & 504 Summary Report.
. These SBA lines of credit also have low interest rates and terms of up to 10 years. To qualify, you'll likely need to be an established business with good credit, as well as meet SBA loan requirements.

  • For-profit U.S. business.

  • Unable to access credit on reasonable terms from nongovernment sources.

  • Financial qualifications determined by individual lender.

Pros

Line of credit options for seasonal, working capital, building and contracting needs.

Large maximum borrowing amounts.

Competitive interest rates and repayment terms.

Cons

Typically requires good credit and multiple years in business.

Slow to fund.

Collateral and/or down payment may be required.

Bluevine

Best for fast funding
Bluevine - Line of credit
Bluevine

Bluevine - Line of credit

NerdWallet Rating  
5.0
Max Loan Amount  

$250,000

Read Review
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With Bluevine, you can submit a simple line of credit application online and receive a decision in as little as five minutes. Once you’re approved and you make a draw on your credit line, you can get your funds in as fast as 24 hours — or even quicker if you pay for a wire transfer or have a Bluevine business checking account.

  • Minimum credit score: 625.

  • Minimum time in business: 12 months.

  • Minimum annual revenue: $120000.

  • No bankruptcies in the past year.

Pros

Cash can be available within 12 to 24 hours.

Can be used to build business credit.

Low minimum credit score requirement.

Cons

Requires weekly payments.

Not available in North Dakota, South Dakota or Nevada.

Rates can be high compared to traditional lenders.

Headway Capital

Best for startups
Headway Capital - Line of credit
Headway Capital

Headway Capital - Line of credit

NerdWallet Rating  
4.7
Max Loan Amount  

$100,000

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Headway Capital offers a fast and flexible business line of credit in amounts up to $100000. To qualify, you only need a minimum of 6 months in operation — making it a good option for startups. Startups can use this line of credit to cover ongoing working capital needs as they establish and grow their businesses. This credit line can also be a worthwhile option for low-revenue companies, as you only need a minimum annual revenue of $50000 to qualify.

  • Minimum credit score: 625.

  • Minimum time in business: 6 months.

  • Minimum annual revenue: $50000.

Pros

Flexible qualification requirements.

No prepayment penalties.

Funds available by next business day after approval.

Cons

Most borrowers are subject to a 2% draw fee.

Not available in all U.S. states.

Backd

Best for bad credit
Backd Business Line of Credit
Backd

Backd Business Line of Credit

NerdWallet Rating  
4.6
Max Loan Amount  

$750,000

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Backd can be a good line of credit option for borrowers with lower credit scores. The lender accepts a minimum credit score of 600, the lowest requirement on our list. Backd business lines of credit are available in amounts up to $750000 with repayment terms of 6 or 12 months. You can get approved in as little as 24 hours and funds will be deposited in your account within 24 to 48 hours.

  • Minimum credit score: 600.

  • Minimum time in business: 12 months.

  • Minimum annual revenue: $300000.

Pros

Fast access to funds.

Simple application with minimal documentation required.

Large maximum funding amounts.

Accessible to startups and borrowers with bad credit.

Cons

High annual revenue requirement.

Requires weekly repayment.

Charges a draw fee.

Interest rates can be high compared with traditional lenders.

OnDeck

Best for unsecured lines of credit
OnDeck - Line of credit
OnDeck

OnDeck - Line of credit

NerdWallet Rating  
5.0
Max Loan Amount  

$100,000

Read Review
Apply now

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OnDeck offers business lines of credit of up to $100000 with repayment terms of 12, 18 or 24 months. The lender doesn’t ask you to pledge any physical collateral nor does it take out a UCC lien on your business assets. OnDeck can be a good option if you don’t have sufficient assets to use to secure financing — or if you don’t want to put your business assets at risk.

  • Minimum credit score: 625.

  • Minimum time in business: 12 months.

  • Minimum annual revenue: $100000.

  • No bankruptcies in the past two years.

Pros

Fast access to working capital.

Accepts borrowers with a minimum credit score of 625.

Streamlined application process with minimal documentation required.

Can be used to build business credit.

Cons

Not available in North Dakota.

May require weekly payments.

Interest rates can be high compared with traditional lenders.

Bank of America

Best for secured lines of credit
Bank of America Cash Secured Line of credit
Bank of America

Bank of America Cash Secured Line of credit

NerdWallet Rating  
4.7
Min Credit  

670

Bank of America offers a secured line of credit backed by a cash deposit. The minimum deposit requirement is $1000. You can use your credit line for working capital and operational expenses. By making regular payments on your line of credit, you can establish a positive account history and build business credit. Responsible credit use can also help you transition into an unsecured line of credit.

  • Minimum time in business: 6 months.

  • Minimum annual revenue: $50000.

  • Bank of America checking or savings account required.

  • Minimum deposit of $1000.

Pros

Available to borrowers with at least six months in business.

No origination fee.

Responsible spending can help you graduate to an unsecured credit line.

Cons

Credit limit is based on the security deposit you provide.

Must have a Bank of America checking or savings account to apply.

Wells Fargo

Best for low interest rates
Wells Fargo BusinessLine® Line of Credit
Wells Fargo

Wells Fargo BusinessLine® Line of Credit

NerdWallet Rating  
5.0
Max Loan Amount  

$150,000

Wells Fargo offers a revolving business line of credit with the lowest starting interest rates of any option on our list. Credit lines are available up to $150000 with no collateral required. Wells Fargo also waives the annual fee for any new customers for the first year. To qualify, however, you’ll need to be an established business with good credit.

  • Minimum credit score: 680.

  • Minimum time in business: 24 months.

Pros

Bank line of credit with competitive interest rates.

Revolving credit line with no scheduled annual review.

No collateral required; no prepayment penalties.

Cons

Must be an established business with strong credit to qualify.

May take longer to fund than online lenders.

Annual fee and inactivity fees may apply.

What is a business line of credit?

A business line of credit allows you to borrow up to a certain limit and only pay interest on the money you borrow — similar to the way a credit card works. You then repay the funds over time, typically on a weekly or monthly schedule.

As you repay what you’ve borrowed, you can continue to draw on the line — provided your payments are on time and you don’t exceed your credit limit.


Types of business lines of credit

There are two types of business lines of credit: secured and unsecured.

Secured business line of credit

A secured business line of credit requires you to put up assets such as inventory or property as collateral. If you fail to pay back the credit line, your lender could seize your assets.

Because secured lines of credit help mitigate risk for the lender, these products often have more competitive rates and terms than unsecured options.

Unsecured business line of credit

An unsecured business line of credit doesn’t require physical collateral, but some lenders may still require a personal guarantee or a lien on your business’s assets.

A personal guarantee gives a lender the right to go after your personal assets, like your house, if you default on a loan. A UCC lien is similar; a lender can seize your business assets if you haven’t repaid a loan.


Minimum requirements for a business line of credit

A note, a pencil, and a green credit card.
Credit score: 600 to 700Some online lenders will accept credit scores as low as 600, but traditional lenders will likely require strong credit. A higher credit score can help you qualify for the best rates and terms.
Sign with a "we are open" text.
Time in business: 6 months to 2 yearsMost traditional lenders will want to see at least two years in business. Online lenders are more likely to work with startups, provided they have a minimum of six months in operation.
One blue credit card with a green card behind it.
Annual revenue: $36,000 to $300,000Businesses with lower revenue may still qualify for a line of credit. To get bank or SBA funding, however, you'll likely need annual revenue upwards of $100,000.


Pros and cons of business lines of credit

Pros

Good option for working capital, short-term expenses and emergency funding needs.

Only pay interest on funds you draw, not the total credit limit.

May be easier to qualify for than traditional term loans.

Can be used to build business credit.

Cons

Not suitable for large purchases or investments.

May include a variety of fees that can add to overall cost.

Often have shorter repayment terms and lower funding amounts than traditional term loans.


How to compare business lines of credit

When trying to choose the best business line of credit for your needs, you’ll want to compare factors such as:

  • Maximum funding amount. If you think you need a large credit limit, bank or SBA lenders may be a better option. Keep in mind that many banks also offer commercial lines of credit, which are designed to meet the needs of mid-size, high-revenue businesses. 

  • Repayment schedule. Business lines of credit may require daily, weekly or monthly repayment. Consider your budget and cash flow to determine the type of repayment you can afford. 

  • Interest rates. Current business line of credit rates can range from 10% to 99% APR. In general, the stronger your credentials, the lower interest rates you’ll receive. Banks tend to offer more competitive business line of credit rates compared with online lenders. As you compare interest rates, consider whether a lender offers fixed or variable rates. A business line of credit calculator can help you estimate potential total costs.

  • Additional fees. Origination, draw and account maintenance fees can increase the overall cost of your business line of credit. You should make sure you understand any additional fees a lender charges and ask questions if the fees are unclear. You’ll also want to determine if the lender charges prepayment penalties for repaying early.

  • Funding speed. If you need business capital quickly, you may be able to get it from an online lender in just a few days. Although traditional lenders may take anywhere from days to weeks to provide funding, you’ll likely get a lower interest rate with these options.

  • Lender reputation. Reading online reviews or talking to other business owners can help you get a sense of what it may be like to work with a particular lender. Although there are many reputable online lenders, be wary of any company that offers “guaranteed approval” or makes similar promises that seem too good to be true.


Where to get a business line of credit

Banks and credit unions

Banks and credit unions typically offer the most competitive rates and terms on a business line of credit. To qualify, however, you’ll usually need to meet strict eligibility requirements, such as strong revenue, good credit and several years in business.

Compared to online lenders, banks and credit unions can also be more likely to require physical collateral to secure your credit line (especially for larger limits), as well as more likely to charge additional fees, such as annual or inactivity fees.

SBA lenders

Some banks and credit unions also offer SBA CAPLines of credit. These SBA lines of credit are part of the 7(a) program, offering funding up to $5 million. There are four different credit line options based on your industry and financing needs.

Although you’ll still need to meet strong qualifications to get an SBA line of credit, these products may be slightly easier to access than traditional bank credit lines. Like business bank loans, however, these SBA lines of credit require a detailed application process and will likely be slow to fund.

Online lenders

Online lenders are a good option for startup business lines of credit or bad credit borrowers as they generally have more flexible business line of credit requirements compared with banks and credit unions.

Online lenders typically have streamlined application processes and fewer fees, and may be able to issue small-business lines of credit in a matter of days. However, these lenders are also likely to charge higher interest rates than banks and may have lower credit limits.


How we chose the best business lines of credit

NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.

Our star ratings award points to lenders that offer small-business friendly features, including:

  • Transparency of rates and terms.

  • Flexible payment options.

  • Fast funding times.

  • Accessible customer service.

  • Reporting of payments to business credit bureaus.

  • Responsible lending practices.

We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.

NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.

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