7 Best Small Business Lines of Credit (LOC) of 2026

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Features	Accepts a wide range of credit scores Quick online application Funding as quick as 24 hours

A small business line of credit (LOC) gives your business access to the on-demand funds it needs to grow or cover cash flow gaps and everyday expenses. More flexible than a small business loan and usually less expensive than a credit card, LOCs are a great way to make sure you’re prepared for whatever unexpected short-term costs come your way.

Personalized, fast funding

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• Required time in business: 12+ months
• Required annual revenue: $180k+
• Min credit score: 550+

Best for small businesses

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• Required time in business: 6+ months
• Required monthly revenue: $8k+
• Min credit score: 520+

Easy, fast funding options

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• Required time in business: 1+ years
• Required annual revenue: $120k+
• Min credit score: 580+

Best small business lines of credit

• Best for online business loans: Fundera business loans
• Best for comparing lenders: Lendzi
• Best for fast access to funds: Rapid Finance small business loans
• Best for minimal fees: Bluevine business lines of credit
• Best for multiple LOC options: U.S. Bank business loans
• Best for fair credit: OnDeck business lines of credit
• Best for larger credit lines: Clarify Capital

Finder Score	Loan amount	Loan term	APR
Best for online business loans
9.5 Excellent Fundera business loans	9.5 Excellent	$2,500 to $750,000	6 to 24 months	Generally 7% to 25%	Go to site View details Compare product selection Compare	loading	Why we like it Fundera by NerdWallet is a business loan marketplace that connects small business owners with multiple lenders through a single application. The platform offers access to term loans, SBA loans, lines of credit, equipment financing and more, with loan amounts ranging from $2,500 to $5 million. With a quick online application using only a soft credit check, Fundera has helped over 77,000 small businesses secure more than $5.4 billion in funding. The platform provides dedicated loan specialists for personalized guidance, and funding can be as fast as one business day. Pros & cons Pros Free service Single application connects you with multiple lenders Soft credit check won't impact credit score Fast funding possible within 24 hours Cons Rates and fees aren't disclosed upfront Not a direct lender, terms set by partners Limited network compared to larger marketplaces
Best for comparing lenders
9.5 Excellent Lendzi	9.5 Excellent	$2,000 to $250,000	6 to 36 months	Starts at 6.20%	Go to site View details Compare product selection Compare	loading	Why we like it Lendzi is a highly rated business loans marketplace with more than 60 lending partners. It allows you to check rates and terms from multiple lenders that offer business lines of credit to find the best deal for your situation. While it doesn't reveal specific requirements to qualify for business loans, it doesn't have a minimum credit score requirement, so there are solutions for borrowers with less-than-perfect credit. It also offers the potential for fast funding and the opportunity to talk to a loan specialist — rather than applying online — if you need someone to guide you through your options. Pros & cons Pros Compare multiple lenders with one application Options for poor credit In-house loan specialists available Cons Requirements to qualify not listed Doesn't disclose rate and term ranges Full list of partners not available
Best for fast access to funds
7.5 Great Rapid Finance small business loans	7.5 Great	$5,001 to $250,000	3 to 18 months	Undisclosed	Go to site View details Compare product selection Compare	loading	Why we like it Rapid Finance automatically provides a prepaid Mastercard to eligible customers who have a small business line of credit with the company. This gives borrowers almost instant access to funds without having to wait for ACH withdrawals to go through, which can take up to three business days. Rapid Finance offers LOCs up to $250,000 with loan terms of three to 18 months. But it doesn't list the rates or fees on its website, and it may require weekly or daily repayments in some cases. Pros & cons Pros Faster access to funds with prepaid card LOCs up to $250,000 Flexible loan terms Cons Doesn't disclose rates and fees Could require daily repayments Loan term could change after each draw
Best for minimal fees
8.6 Great Bluevine business lines of credit	8.6 Great	Up to $250,000	Up to 12 months	As low as 7.8%	View details Compare product selection Compare	loading	Why we like it One of the drawbacks to a business line of credit is that it often comes with more fees than other loan options. But Bluevine's LOC doesn't charge many of the common fees, such as setup, subscription, maintenance and termination fees. It also offers low rates, starting at 7.8% on credit lines up to $250,000, and funding is possible within 24 hours. But it charges draw fees and only accepts LLCs and corporations. You'll also need to be in business for at least a year and have a credit score of 625 or more. Pros & cons Pros Charges minimal fees Rates start at 7.8% Unlimited withdrawals (subject to approval) Cons Charges draw fees Corporations and LLCs only Minimum 625 credit score
Best for multiple LOC options
Not scored yet U.S. Bank business loans	Not scored yet	$10,000 to $250,000		Prime + 3.49% to prime + 6.49%	View details Compare product selection Compare	loading	Why we like it U.S. Bank offers unsecured Cash Flow Manager LOCs up to $100,000 and secured lines up to $250,000, and it waives the annual fee if your credit limit is more than $50,000. You may also want to consider its Reserve Line for up to $5,000 in overdraft protection on your U.S. Bank business checking account, which can make for a handy emergency fund. But its lowest LOC is for $10,000 — which is higher than some — and it doesn't disclose rates and terms on its website. Plus, it may offer larger credit limits, but you'll need to make an appointment to find out more. Pros & cons Pros Offers secured and unsecured LOCs $5,000 overdraft protection available Annual fees waived for limits above $50,000 Cons Doesn't disclose rates and terms Some LOCs require annual fees Not all applications can be completed online
Best for fair credit
9.4 Excellent OnDeck business lines of credit	9.4 Excellent	$6,000 – $200,000 (line of credit); $5,000 – $400,000 (term loan)	12, 18 or 24 months	Not listed	View details Compare product selection Compare	loading	Why we like it OnDeck only requires a 625 credit score to qualify for a business line of credit, which is lower than some of its competitors. It's also open to companies with only one year in business and revenues as low as $100,000 annually. Its credit limits range from $6,000 to $200,000, with flexible loan terms from 12 to 24 months. But it may require a minimum draw at origination, its average rate is 57.1% and its highest loan amount is lower than much of the competition. Pros & cons Pros Fair credit accepted Lenient revenue and time in business requirements Flexible loan terms Cons Average rates are relatively high May require a minimum initial draw Highest credit limit is lower than some
Best for larger credit lines
Not scored yet Clarify Capital	Not scored yet	Up to $5 million	6 to 18 months	As low as 5%	View details Compare product selection Compare	loading	Why we like it While most lenders that offer LOCs top out at $250,000 to $500,000, Clarify Capital offers business lines of credit up to $5 million through its lending partners. Rates start as low as 5%, and it offers loan terms from six to 18 months. It also considers borrowers with credit scores as low as 550, and you only need six months in business, although you'll likely need better qualifications to qualify for the best rates and terms. Plus, it doesn't disclose additional fees, which are common for business LOCs. Pros & cons Pros Up to $5 million in funding Accepts poor credit No prepayment penalties Cons Lowest rates reserved for good to excellent credit Doesn't disclose LOC fees Longest loan term is 18 months

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Methodology: How we chose these lenders

Finder’s business loan experts analyzed dozens of lenders that provide small business lines of credit. We ultimately chose lenders that offer fast funding, competitive rates and terms, a variety of loan amounts and those that consider borrowers with a range of credit scores, annual revenues and time in business.

Some of the criteria we evaluate include:

• Interest rates
• Additional fees
• Loan amounts
• Loan terms
• Repayment plans
• Turnaround times
• Credit score requirements
• Time in business requirements
• Revenue requirements
• Reputation of the lender
• Better Business Bureau and Trustpilot reviews

Finder also maintains strict editorial integrity and independence. Our content and suggestions are fair, accurate and trustworthy, and our advertisers or partners don’t influence our opinions. To learn more, check out our editorial guidelines here.

How to compare small business lines of credit

Consider these factors when choosing the best business line of credit for your company:

• Rates. Interest rates vary for business lines of credit. Be sure to compare multiple lenders to find the most competitive rates.
• Fees. Business lines of credit typically charge fees on top of interest, including annual, maintenance and draw fees, among others. To save money on your LOC, look for lenders that have minimal fees.
• Lender requirements. LOC lenders typically have minimum credit score, revenue and time in business requirements. Check to see if you meet the criteria before you apply.
• Turnaround times. Some lenders may be able to provide fast approval and funding on a business LOC — within one to two business days — but others could take up to two weeks.
• Loan terms. Lines of credit typically have loan terms of 24 months or less — and may require daily or weekly repayments. Check your budget to make sure you can manage the repayment schedule.

What is a small business line of credit and how does it work?

A business LOC is a type of working capital business loan that works a lot like a business credit card with one key difference: You receive the funds as cash. Business LOCs typically have a credit limit between $1,000 and $250,000, which you can withdraw from as needed. Some banks and online lenders even offer business credit lines up to $500K or in the millions.

In some cases, each withdrawal turns into a short-term loan, which you repay plus interest and fees. Or you may only be required to make a minimum monthly payment on the balance — similar to the way you pay off a credit card.

Most business credit lines are revolving, meaning the balance replenishes as you pay off your withdrawal. But, a few lenders offer nonrevolving LOCs, which can’t be reused after you pay it off.

After applying for a credit line, it may take a few weeks to get funding — usually up to two weeks, though unsecured LOCs typically have faster turnaround times. Online lenders tend to provide the quickest funding, some as soon as a day or two after getting approved.

Pros and cons of business lines of credit

Lines of credit can be highly beneficial to small businesses, but there are some highlights and drawbacks worth noting before you sign up.

Pros

• Low-cost emergency financing. LOCs offer a safety net for unexpected costs, helping you avoid expensive short-term loans.
• Pay on what you borrow. You only pay interest on what you use rather than taking out a larger term loan that could be more than you need.
• Less expensive than credit cards. You can often qualify for lower rates and fees than a credit card, helping you save on regular expenses.
• Cash not credit. LOCs offer cash for costs that you can’t throw on a credit card, like payroll, hiring contractors and paying rent or utilities.
• Build lender relationships. A LOC can help you develop a long-term relationship with a lender, which can lead to lower rates and loyalty discounts down the road — and build business credit.

Cons

• Lower amounts. Credit limits are often lower than term loans, making it less than ideal for a large, one-time expense.
• Minimum draw requirements. Minimum withdrawal requirements can force your business to borrow more than it needs.
• Extra fees. Business LOCs often have more fees than a term loan, such as draw fees, annual fees or maintenance fees.
• Variable rates. Variable interest rates are more common with lines of credit, and these typically increase when the economy is doing well and decrease during a downswing.

Compare other small business lines of credit

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Finder Score	Min. Amount	Max. Amount	APR	Requirements
Promoted 9.6 Excellent Lendio business loans	9.6 Excellent	$1,000	$10,000,000	Varies by lender	Operate business in US for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.	Submit one simple application to potentially get offers from a network of over 75 legit business lenders.	Go to siteView details Compare product selection Compare	loading
Promoted 9.5 Excellent Fundera business loans	9.5 Excellent	$2,500	$5,000,000	Varies by lender	$60,000+ of annual revenue, 600+ personal credit score, in business for 6+ months	Get connected with short-term funding, SBA loans, lines of credit and more.	Go to siteView details Compare product selection Compare	loading
Promoted 8.8 Great BusinessLoans.com	8.8 Great	$10,000	$3,000,000	Varies by lender	Must have been in business between 1 to 2 years, have a minimum revenue of $75,000 to $250,000 and have a minimum credit score of 500 to 650.	Complete a three-minute form to see loans that fit your business’s needs. Compare offers without a hard credit check.	Go to siteView details Compare product selection Compare	loading
9.6 Excellent Advance Funds Network	9.6 Excellent	$10,000	$5,000,000	Varies by lender	6 months in business, at least $10,000 in monthly revenue	A range of funding options for your business	Go to siteView details Compare product selection Compare	loading
8.9 Great Best Money	8.9 Great	$5,000	$5,000,000	Varies by lender	Depends on the lender	Apply in minutes. Get funded fast.	Go to siteView details Compare product selection Compare	loading
7.5 Great Rapid Finance small business loans	7.5 Great	$5,000	$1,000,000	Not stated	Not stated	Go to siteView details Compare product selection Compare	loading

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How we picked these

What is the Finder Score?

The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.

Read the full breakdown

Types of business loans

Here are other types of business loans to consider.

How to qualify for small business lines of credit

Many lenders look at your business’s cash flow and your history of paying off business debts. Base requirements for a small business LOC typically are:

• At least six months to one year in business
• Annual revenue of at least $100,000
• A personal credit score of 670

Many lenders rely on your personal credit score when you apply. But some might ask to see a business credit report — especially if you’re applying for a larger line of credit from a bank. Even if a lender considers your business credit score, you typically need good personal credit, or a score over 670, to qualify. Getting business loans with fair credit is possible, but your line of credit options are limited with a credit score below 580.

How to apply for an LOC

Applying for a small business line of credit may vary by lender, but here are the basic steps to follow.

1. Decide what you need. The credit limit you qualify for will ultimately depend on your qualifications, but you should know roughly how much you need before accepting an offer.
2. Assess your budget. Calculate how much you can afford to repay the loan, keeping in mind that LOCs typically have short terms and some lenders may require weekly or even daily payments.
3. Research lender requirements. Most lenders have minimum credit, revenue and time-in-business requirements — look for lenders with criteria you can meet.
4. Compare lenders. Once you’ve narrowed your search, compare rates, fees and loan terms to find the best deal based on your qualifications.
5. Prepare your documents. Get a list of the documents you need to submit so you have everything ready for your loan application.
6. Apply. Follow the instructions to fill out your loan application and submit any required documents. Some lenders may give you a decision the same day you apply.
7. Review and sign. If approved, review the terms before you sign, paying careful attention to rates, fees and loan terms.

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Alternatives to small business lines of credit

If you don’t think you’ll qualify for a business line of credit or just want to consider all your options, consider the alternatives.

• Business credit card. It’s typically easier to qualify for a business credit card than an LOC, but loan amounts are usually smaller.
• Personal line of credit. If you don’t qualify for a business LOC, you may want to consider a personal line of credit instead.
• Home equity line of credit (HELOC). Homeowners may be able to qualify for a HELOC, which is a line of credit backed by your home’s equity. Another option is a home equity loan, which offers a lump sum payment rather than a credit line.
• Personal loan. Many owners use a personal loan to finance business expenses, which may be easier to qualify for than a business loan, but you’ll need good credit to get the most competitive rates.

Frequently asked questions

What is the minimum credit score for a business line of credit?

Some lenders may accept credit scores as low as 550 to qualify for a line of credit, but a score of 670 or higher helps you get the most competitive rates.

What is the average line of credit for a small business?

Lenders typically offer credit lines from $5,000 to $250,000, although some go as high as $500,000 or even into the millions.

Can I get a business line of credit to start a business?

Probably not. Lenders that offer business LOCs typically have minimum revenue requirements to qualify, so if you don’t have money coming in yet, you probably won’t be approved. However, you could try applying for a business credit card, a personal loan or a personal line of credit to get your business off the ground.

To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd and reviewed by Anna Serio, a member of Finder's Editorial Review Board.

Written by

Lacey Stark

Writer

Lacey Stark is a freelance personal finance writer for Finder, specializing in banking, loans, investing, estate planning, and more. She has 20 years of experience writing and editing for magazines, newspapers, and online publications. A word nerd from childhood, Lacey officially got her start reporting on live sporting events and moved on to cover topics such as construction, technology, and travel before finding her niche in personal finance. Originally from New England, she received her bachelor’s degree from the University of Denver and completed a postgraduate journalism program at Metropolitan State University also in Denver. She currently lives in Chicagoland with her dog Chunk and likes to read and play golf. See full bio