Lender | Best for | Max loan amount▼ | Min. credit score▼ | APR range | Max term length▼ |
---|---|---|---|---|---|
Bank of America 5.0/5.0 | Bank business lines of credit | See review | 700 | See review | See review |
U.S. Small Business Administration | SBA lines of credit | $5,000,000 | 650 | 11.50-15.00% | 10 years |
OnDeck 5.0/5.0 | Easy business lines of credit | $100,000 | 625 | 35.90-84.90% | 2 years |
Headway Capital 5.0/5.0 | Startups | $100,000 | 625 | 35.00-80.00% | See review |
Bluevine 5.0/5.0 | Fast funding | $250,000 | 625 | 20.00-50.00% | 6 months |
Chase | Secured business lines of credit | $500,000 | 700 | See review | See review |
Wells Fargo 5.0/5.0 | Unsecured business lines of credit | $150,000 | 680 | 10.25-18.25% | See review |
Fundbox 5.0/5.0 | Bad credit | $150,000 | 600 | 36.00-99.00% | 6 months |
American Express Business Blueprint™ 5.0/5.0 | American Express customers | $250,000 | 660 | See review | 2 years |
Best for
Bank business lines of credit
Bank of America offers business lines of credit in amounts of $10,000 or more that are well-suited for borrowers with strong credit.
Bank of America Business Advantage Unsecured Line of Credit
Max loan
Undisclosed
Min. Credit score
700
Best for
SBA lines of credit
The SBA CAPLines program offers four credit line options that can be used for a variety of business purposes.
SBA CAPLines of credit
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
Best for
Easy business lines of credit
OnDeck offers business lines of credit of up to $100,000 with a streamlined application process and fast funding times.
OnDeck - Line of credit
Max loan
$100,000
Min. Credit score
625
Apr range
35.90-84.90%
Best for
Startups
Headway Capital offers fast funding up to $100,000 for borrowers with at least six months in business.
Headway Capital - Line of credit
Max loan
$100,000
Min. Credit score
625
Apr range
35.00-80.00%
Best for
Fast funding
Bluevine offers a business line of credit of up to $250,000 and can fund applications in as little as 24 hours.
Bluevine - Line of credit
Max loan
$250,000
Min. Credit score
625
Apr range
20.00-50.00%
Best for
Secured business lines of credit
Chase’s business line of credit offers up to $500,000 with a five-year revolving term. You will need to provide collateral to secure your credit line.
Chase - Business line of credit
Max loan
$500,000
Min. Credit score
700
Best for
Unsecured business lines of credit
Wells Fargo offers business lines of credit of up to $150,000 and doesn’t require physical collateral. Borrowers will be required to sign a personal guarantee, however.
Wells Fargo BusinessLine® Line of Credit
Max loan
$150,000
Min. Credit score
680
Apr range
10.25-18.25%
Best for
Bad credit
Fundbox offers quick funding of up to $150,000 for borrowers with a credit score of 600 or higher.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
Best for
American Express customers
Existing American Express customers can use their accounts to find out if they prequalify for this business line of credit.
American Express® Business Line of Credit
Max loan
$250,000
Min. Credit score
660
How to choose the right business line of credit
- Maximum funding amount. If you think you need a large credit limit, bank or SBA lenders may be a better option — but will require you to meet strict qualifications. 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. Bank and SBA lines of credit will likely offer the best business line of credit rates, ranging from 10% to 19%. Online lenders may have higher rates, but will fund more quickly, with flexible qualification requirements. Also consider whether a lender offers fixed or variable rates.
- 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.
Business line of credit calculator
When you draw from a business line of credit, you only pay interest on the funds that you borrow. You then repay the funds over time, based on a schedule set by your lender.
Enter a withdrawal amount, repayment term and annual interest rate to estimate your monthly payment, total interest costs and the total amount repaid.
What is a business line of credit?
How does a business line of credit work?
- Credit limit. Business lines of credit typically have higher credit limits than business credit cards.
- Functionality. Whereas credit cards are used for purchases, business lines of credit provide actual cash in your bank account when you make a draw. You can get cash from a credit card, but you’ll be charged a cash advance fee to do so.
- Rewards. Business lines of credit don’t usually include rewards, whereas business credit cards often offer rewards or cash back for spending. Rewards are typically related to business expenses.
- Interest rates. Business lines of credit generally offer lower interest rates than credit cards. Business credit cards, however, may include a 0% interest promotion, which allows you to pay no interest on your balance for a specific period after signing up for the card. Lines of credit don’t offer this feature.
Business line of credit rates and fees
- Origination fee. Fee charged to process your application. May be charged as a flat fee (e.g. $150) or a percentage of the line amount (e.g. 0.5% of the line amount).
- Account maintenance fee. Monthly or annual fee associated with managing your account and keeping your business line of credit active. Also may be charged as a flat fee or a percentage of the line amount.
- Draw fee. Fee charged each time you draw on your credit line. This fee is charged as a percentage (typically up to 2%) of the draw amount.
- Inactivity fee. A lender may charge this flat fee if you don’t draw from your line of credit within a specified period of time. Fee amount typically depends on the terms of your agreement.
Minimum APR | Maximum APR | |
---|---|---|
Bank of America Business Advantage Unsecured Line of Credit | 10.00%. | Undisclosed. |
Bluevine - Line of credit | 20 %. | 50 %. |
Chase Business Line of Credit | Variable rate based on the prime rate; specifics undisclosed. | Variable rate based on the prime rate; specifics undisclosed. |
Fundbox - Line of credit | 36 %. | 99 %. |
Headway Capital - Line of credit | 35 %. | 80 %. |
OnDeck - Line of credit | 35.9 %. | 84.9 %. |
SBA CAPLines of credit | 11.5 %. | 15 %. |
Wells Fargo BusinessLine® Line of Credit | 10.25 %. | 18.25 %. |
Pros and cons of business lines of credit
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.
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.
Where to get a business line of credit
How to apply for a business line of credit
1. Evaluate your financing needs
2. Review business line of credit requirements
3. Research and compare lenders
4. Gather required documents and apply
- Personal and business tax returns.
- Personal and business bank statements.
- Business financial statements (e.g., profit and loss statement or a balance sheet).
Frequently asked questions
🏦 Curious about SBA loans?
Here’s an overview of how SBA loans work, the types of SBA loans that are available, what each loan type can be used for and how to get SBA financing for your small business.
How Fundera by NerdWallet works
Getting a business loan can be challenging, and several factors — cost, speed, repayment schedule — can play a role in deciding which product is right for you. Let us help you through the process.
1. Fill out one simple application
Answer a few questions about your business to get personalized lending options. It’s free and won’t impact your credit score.
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3. Get your loan
If the lender approves you, you’ll sign closing documents in order to receive funds. Some lenders can approve and fund loans within one business day.