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6 Best Startup Business Lines of Credit in 2024

Consider some of the best business lines of credit to meet your startup business financing needs.

A business line of credit can be a great way to finance your startup business, offering flexibility and a renewable funding source. But newer businesses may have a more difficult time meeting the criteria needed to qualify. Consider these lenders that offer business lines of credit to help you start or grow your new business.

6 Best startup business lines of credit

Best marketplace

Lendio business loans

4.8
★★★★★

Finder score

Go to site Read review
Loan amount$1,000 to $500,000
APRVaries by lender
Min. Credit Score 560

Best for fair revenues

American Express® Business Line of Credit

4.4
★★★★★

Finder score

Go to site Read review
Loan amount$2,000 – $250,000
APRN/A
Min. Credit Score660
The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.

All businesses are unique and are subject to review and approval.

American Express® Business Line of Credit offers two loan types, installment loans and single repayment loans for eligible borrowers. All loan term types, loan term lengths, and pricing are subject to eligibility requirements, application, and final approval. This article contains general information about the American Express® Business Line of Credit installment loan type only.

Best for fast application process

Bluevine business lines of credit

4.3
★★★★★

Finder score

Read review
Loan amountUp to $250,000
APRAs low as 7.8%
Min. Credit Score 625

Best for poor credit

Clarify Capital

Loan amountUp to $5 million
APRAs low as 5%
Min. Credit Score 550

Best for brand-new businesses

Guidant Financial business loans

4
★★★★★

Finder score

Loan amountUp to 80% of your account balance
APRAs low as 3%
Min. Credit Score None

Best for more established businesses

Idea Financial lines of credit

3.9
★★★★★

Finder score

Loan amountUp to $275,000
Min. Credit Score 650

Methodology: How we choose these lenders

Finder’s business loan experts analyzed dozens of lenders offering business lines of credit for startups and newer businesses. We ultimately chose lenders that offer more lenient requirements than traditional business loans and are willing to work with newer businesses and owners with, potentially, lower credit scores and less revenue.

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

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 startup business lines of credit

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

  • Rates. Interest rates can vary widely depending on the lender. Be sure to check with multiple lenders to find the best line of credit rates.
  • Fees. Most lenders that offer startup business lines of credit charge some types of fees, including origination, maintenance and draw fees. To save money, look for lenders that have minimal fees.
  • Lender requirements. To qualify for a business line of credit, lenders typically have minimum revenue and time in business requirements. Be sure you meet the criteria of lenders you’re interested in.
  • Turnaround times. Funding for business lines of credit is often quicker than for other loan types, but some lenders may take longer to give you access to credit.
  • Loan terms. Startup business lines of credit typically have shorter terms than other types of business loans — and may require weekly repayments — so make sure your budget can handle the repayment schedule.

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

A business line of credit is a revolving line of credit similar to a credit card. It gives you access to a set amount of funds, but you only pay interest on the money you use. Business lines of credit can be found at banks, credit unions or online lenders. These loans may be secured or unsecured LOCs, and some don’t require a personal guarantee.

When you get a business line of credit, you’ll be approved for a preset line of credit limit up to $500K or more. As you need funding, you can draw on those funds as often as needed, as long as you don’t exceed the limit. And, unlike other business loans, you only have to pay interest on the funds you use. And as you make payments, your funds are replenished.

Most business lines of credit lenders have flexible repayment terms. Typically, you only have to make interest payments during the draw period, although you also have the option to pay more, saving yourself on interest charges in the long run. Lines of credit generally have short loan terms of two years or less.

Pros and cons of startup business lines of credit

Consider the risks and rewards of a business line of credit before deciding if it’s the right type of financing for your business.

Pros

  • Only borrow what you need
  • Renewable access cash flow
  • Easier to qualify for than some business loans
  • Helps to build business credit

Cons

  • May include numerous fees
  • Interest rates may be higher than other loan options
  • Typically have short loan terms
  • Some require weekly repayments

Compare other startup business loans

Consider other lenders that offer loans for startup businesses.

Name Product USFBL Filter Values Min. Amount Max. Amount APR Requirements
Olympus Business Capital
Finder Score: 4.4 / 5: ★★★★★
Olympus Business Capital
$500
$250,000
Not stated
Been in business for 6 months registered with the state, active and open bank account in business name, have $10,000 of revenue each month
No credit needed. Funding up to $250,000 with a variety of finance options to best fit your business needs.
Go to site
Lendio business loans
Finder Score: 4.8 / 5: ★★★★★
Lendio business loans
$1,000
$10,000,000
Varies by lender
Operate business in US or Canada 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.
Fundera business loans
Finder Score: 4.9 / 5: ★★★★★
Fundera business loans
$2,500
$5,000,000
Varies based on lenders
$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.
Fora Financial business loans
Finder Score: 4.5 / 5: ★★★★★
Fora Financial business loans
$5,000
$1,500,000
Varies
6+ months in business, $25,000+ gross monthly sales, no open bankruptcies
Get qualified for funding in minutes for up to $1,500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.
National Funding business loans
Finder Score: 4.6 / 5: ★★★★★
National Funding business loans
$5,000
$500,000
Undisclosed
In business 6+ months and make at least $250,000 in annual sales. Other loan types have additional requirements.
Working capital loans and equipment financing, some high-risk industries may be eligible.
Go to site
American Express® Business Line of Credit
Finder Score: 4.4 / 5: ★★★★★
American Express® Business Line of Credit
$2,000
$250,000
N/A
Minimum FICO score of at least 660 at the time of application, have started your business at least a year ago, and an average monthly revenue of at least $3,000
Access lines of credit for your small business even if you aren't currently an Amex customer.
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Other types of business loans

If you want to look into other funding options, consider these alternative types of business financing.

TypeTypical loan amountsTypical term lengthsBest for
SBA Loans$13,000 to $5 millionUp to 25 yearsEstablished businesses with decent credit that don’t qualify for other types of funding
Equipment financingUp to 100% of the cost of the equipment3 to 10 yearsBusinesses that need heavy equipment or other expensive machinery
Term loansUp to $2 million1 to 10 yearsBusinesses with good credit looking for large loan amounts and predictable monthly payments
Microloans$500 to $50,000Up to 6 yearsStartup businesses or women- or minority-owned firms
Invoice factoring70% to 90% of unpaid invoices1 to 3 monthsB2B companies with a lot of outstanding invoices
Invoice financing70% to 80% of unpaid invoices1 to 3 monthsB2B companies with a lot of outstanding invoices
Merchant cash advance$5,000 to $200,0003 to 12 monthsRetail businesses or others that have a lot of credit card sales

How to qualify for startup business lines of credit

Most lenders that offer startup business lines of credit are usually focused on your credit score, how long you’ve been in business and how much revenue you take in.

  • Time in business. Lenders generally want to see that you’ve been in business for at least six months, although some may require two or more years in business to qualify.
  • Revenue. Monthly or annual minimum revenue requirements can vary significantly by lender and affect the size of your credit line. You’ll usually need at least $10,000 in monthly revenue, although some lenders — like American Express — require an average monthly revenue of at least $3,000.
  • Credit score. You’ll most likely need a minimum score of 600 or higher, but some lenders may consider lower scores.
  • Business bank account. Most lenders require you to have an open and active business checking account. They may want to verify your banking activity, use it to deposit funds or take out automatic repayments.

Some lenders offering no doc lines of credit may require less paperwork or be able to access your financial information by connecting to your bank account.

How to apply for a startup business line of credit

The exact process to get a startup business line of credit may vary depending on the lender, but the basic steps are similar:

  1. Decide how much you need. Define your plans for the credit line and how much you think you’ll need.
  2. Assess your budget. Figure out how much you can afford in repayments, keeping in mind that some lenders may require weekly or bi-weekly payments.
  3. Check your credit. Checking your credit score before applying for any type of business financing can help guide you toward lenders that accept borrowers in your credit range. You can also make sure your credit report is accurate.
  4. Compare lenders. It’s always a smart move to compare rates, fees and loan terms from multiple lenders so you can find the best deal.
  5. Research requirements. Check out lender requirements before you apply to make sure you qualify. For example, if you’ve only been in business for six months, you’ll need to find lenders that consider new businesses.
  6. Gather your documents. Find out which documents you’ll need to submit so you’re prepared to apply.
  7. Apply. Once you’re ready, choose a lender and follow the instructions to apply for your line of credit, submitting any required documents.

Alternatives to business lines of credit

If you don’t qualify for a business line of credit or just want to explore your options, consider these alternatives:

  • Business credit card. Credit limits for business credit cards aren’t normally as high as lines of credit, but they may be easier to qualify for.
  • Personal line of credit. If you don’t have the necessary requirements for a business line of credit, you may qualify for a personal line of credit instead.
  • Personal loan. Many business owners fund their companies with personal loans, which are generally easier to qualify for than business lines of credit.
  • Home equity line of credit (HELOC). If you own your home, you may want to look into a HELOC, a line of credit that borrows against your home’s equity. Or, you could get a home equity loan that also uses your home as collateral but provides the funds in a lump sum.
  • Personal credit cards. Rates are high for credit cards, and credit limits are typically lower than business lines of credit. But, if you qualify for a card with a 0% introductory rate, you could fund your business with interest-free financing for up to 18 months or more.

Frequently asked questions

Can startups get a line of credit?

It can be more difficult to qualify for a line of credit when you’re a newer business. But, some lenders are willing to work with those that haven’t been operating for very long and may have more lenient revenue and time-in-business requirements.

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

Credit score requirements can vary widely, although most lenders require a credit score of at least 600 to qualify. But some lenders accept lower scores.

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

If your business hasn’t opened yet, you may need to consider alternative lending sources, such as lenders that offer portfolio loans, which use your retirement funds as collateral for a line of credit. Or, you could check with your bank about opening up a personal line of credit to fund your new business.

Megan B. Shepherd's headshot
To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.
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Written by

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

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