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Best Business Lines of Credit of April 2025

Written by

Randa Kriss

Edited by

Sally Lauckner

Last updated on September 13, 2024

Fact checked and reviewed
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A business line of credit gives you access to a set amount of capital that you can draw from as needed. You only pay interest on the funds you draw.

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A business line of credit is a type of small-business loan that can be used for a variety of short-term needs, such as managing cash flow, buying inventory or covering payroll.
Compare our picks for the best business lines of credit and learn how to choose the right option for your needs.

Here are 8 of the best business lines of credit

LenderNerdWallet RatingMax loan amountMin. credit scoreNext steps

Wells Fargo BusinessLine® Line of Credit

Read Review
5.0/5

Best for Bank lines of credit

$150,000680
Read Review

SBA CAPLines of credit

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Best for SBA lines of credit

$5,000,000650

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Bluevine - Line of credit

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5.0/5

Best for Fast funding

$250,000625

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Headway Capital - Line of credit

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4.7/5

Best for Startups

$100,000625

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Fundbox - Line of credit

Read Review
4.9/5

Best for Bad credit

$150,000600
Read Review

OnDeck - Line of credit

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5.0/5

Best for Unsecured lines of credit

$100,000625

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Bank of America Business Advantage Cash Secured Line of Credit

Read Review
4.8/5

Best for Secured lines of credit

Undisclosed670
Read Review

American Express® Business Line of Credit*

Read Review
5.0/5

Best for Flexible repayment terms

$250,000660
Read Review

I'M INTERESTED IN:

Our pick for

Bank lines of credit

Wells Fargo offers business lines of credit with interest rates starting at 10.25%. This credit line is well suited for established companies with good credit.

Wells Fargo BusinessLine® Line of Credit

Read Review
Max loan amount
$150,000
Min. credit score
680
Est. APR
9.25-17.25%

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.

Wells Fargo BusinessLine® Line of Credit

NerdWallet rating 
5.0/5
Max loan amount
$150,000
Min. credit score
680
Est. APR
9.25-17.25%

Our pick for

SBA lines of credit

The SBA CAPLines program offers four credit line options that offer funding up to $5 million. These lines of credit can be used for working capital, seasonal expenses, construction costs and contract expenses.

SBA CAPLines of credit

Read Review

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Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%

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.

SBA CAPLines of credit

Max loan amount
$5,000,000
Min. credit score
650
Est. APR
10.50-14.00%

Our pick for

Fast funding

Bluevine offers a streamlined application process that can be completed in minutes. You may be able to access funding in as little as 24 hours.

Bluevine - Line of credit

Read Review

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Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%

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 with traditional lenders.
May fund quickly

Bluevine - Line of credit

NerdWallet rating 
5.0/5
Max loan amount
$250,000
Min. credit score
625
Est. APR
14.00-48.00%
May fund quickly

Our pick for

Startups

Headway Capital only requires that you have a minimum of six months in business to qualify for its line of credit.

Headway Capital - Line of credit

Read Review

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Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%

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.

Headway Capital - Line of credit

NerdWallet rating 
4.7/5
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.00-80.00%

Our pick for

Bad credit

You may be able to qualify for a line of credit from Fundbox with a personal credit score of 600 or higher.

Fundbox - Line of credit

Read Review
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%

Pros

  • Financing available within one business day after approval.
  • Simple application with minimal documentation required.
  • Low minimum credit score, time in business and annual revenue requirements.
  • No prepayment penalties, account maintenance fees or inactivity fees.

Cons

  • Rates are high compared with traditional banks.
  • Weekly repayments required over a short term (maximum of 24 weeks).
May fund quickly

Fundbox - Line of credit

NerdWallet rating 
4.9/5
Max loan amount
$150,000
Min. credit score
600
Est. APR
36.00-99.00%
May fund quickly

Our pick for

Unsecured lines of credit

OnDeck offers business lines of credit of up to $100,000. You don’t need to put up physical collateral to qualify.

OnDeck - Line of credit

Read Review

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Max loan amount
$100,000
Min. credit score
625
Est. APR
35.90-84.90%

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 frequent weekly payments.
  • Interest rates can be high compared with traditional lenders.
May fund quickly

OnDeck - Line of credit

NerdWallet rating 
5.0/5
Max loan amount
$100,000
Min. credit score
625
Est. APR
35.90-84.90%
May fund quickly

Our pick for

Secured lines of credit

Companies with at least six months in operation can use Bank of America’s cash secured line of credit to build business credit.

Bank of America Business Advantage Cash Secured Line of Credit

Read Review
Max loan amount
Undisclosed
Min. credit score
670

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.

Bank of America Business Advantage Cash Secured Line of Credit

NerdWallet rating 
4.8/5
Max loan amount
Undisclosed
Min. credit score
670

Our pick for

Flexible repayment terms

American Express offers lines of credit with six, 12- 18-, or 24-month term options. Repayments are made on a monthly basis.

American Express® Business Line of Credit*

Read Review
Max loan amount
$250,000
Min. credit score
660

Pros

  • Streamlined application process with minimal paperwork.
  • Financing from $2,000 to $250,000 available.
  • Accepts borrowers with a minimum FICO score of at least 660 at the time of application.
  • Monthly repayment schedule (as opposed to daily or weekly).
  • No prepayment penalties, account maintenance fees or draw fees.

Cons

  • Must have online checking or PayPal account to verify cash flow.
  • Complex monthly fee structure makes it difficult to compare costs to other lenders.

American Express® Business Line of Credit*

NerdWallet rating 
5.0/5
Max loan amount
$250,000
Min. credit score
660

How Much Do You Need?

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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.
Green circle with upward chart.
Annual revenue: $36,000 to $250,000Businesses 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.

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.
The SBA Working Capital Pilot program also offers lines of credit. These products offer greater flexibility than CAPLines and a unique guarantee fee structure that benefits short-term financing.
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.

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.
Last updated on September 13, 2024

Methodology

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.

Wondering if you qualify?

It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.

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