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Get a business line of credit

Access cash when you need it to cover short-term expenses.

A line of credit gives your business access to a specific amount of funds that it can withdraw from as needed. Typically it takes between a few hours and a few days for a withdrawal to appear in your business bank account.

Most lenders require small businesses to be open for at least one year to qualify for a loan. Find out what options are available for your business by selecting information about your time in business, credit score and funding needs.

Name Product USFBL Filter Values Min. Amount Max. Amount APR Requirements
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.
BusinessLoans.com
Finder Score: 4.4 / 5: ★★★★★
BusinessLoans.com
$5,000
$3,000,000
Varies by loan type and 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.
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.
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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How to use a business credit line

You can use a business line of credit for any situation where you have a small, short-term expense or need emergency funding. Here are some common reasons businesses use a line of credit:

  • Hire new employees
  • Purchase inventory
  • Fund an ongoing construction project
  • Bridge cashflow gaps while waiting for clients to fill invoices
  • Fund payroll during an off season
  • Cover reopening costs
  • Pay for an unexpected expense

Business line of credit requirements

Most lenders require small businesses to be open for at least one year and have an annual revenue of at least $100,000 — at a minimum. Most also require business owners to have good credit, or a personal credit score of at least 670. And many look at cash flow, collateral and your history of paying off business debts.

And there are options for businesses that don’t meet the standard credit or time in business requirements. But it can be difficult to qualify for a business line of credit if your business is less than one year old. Startups that need help with short-term expenses might want to consider a microloan instead. And while you can get a business line of credit with fair credit, your options are limited if you have a credit score below 580.

Document requirements

While it varies depending on the lender, most ask to see bank statements, business and personal tax returns and financial statements. Financial statements often includes profit and loss statements, balance sheets and anything else that can verify your business’s cash flow, assets and current debts.

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.

Best business lines of credit

Our team reviewed over 220 business lenders before selecting these top picks for business lines of credit. We considered factors like interest rates, fees, credit limits and the time it takes to receive a withdrawal. We also made sure to include options available to businesses in different stages of growth and credit types.

Best for no paperwork

Fundbox lines of credit

4.2
★★★★★

Finder score

Read review
Loan amount$1,000 – $150,000
APRNot stated
Min. Credit Score600

Best for comparing credit lines

Lendio business loans

4.8
★★★★★

Finder score

Go to site Read review
Loan amount$1,000 – $10,000,000
APRVaries by lender
Min. Credit Score520

Best online business line of credit

Bluevine business lines of credit

4.3
★★★★★

Finder score

Read review
Loan amount$5,000 – $250,000
APRStarting at 7.8%
Min. Credit Score625

Bank business line of credit

Bank of America business loans

3.6
★★★★★

Finder score

Loan amount$10,000 – $100,000
APRStarting at 8.50%
Min. Credit Score700

Best for instant funding

OnDeck business lines of credit

4.7
★★★★★

Finder score

Read review
Loan amount$6,000 – $100,000
APR52.6% average APR
Min. Credit Score625

Secured vs. unsecured business lines of credit

Often, your business will have a choice between a secured line of credit and an unsecured line of credit.

A secured line of credit is backed by your business’s assets — often inventory, accounts receivable or a general lien on business assets. This means if you default on your line of credit, the lender can seize the collateral to make up for the loss.

An unsecured line of credit does not require collateral. However, many still require a personal guarantee from all small business owners with a 20% stake or more in the company — which is also a requirement for most secured credit lines. This means that the owners are responsible for paying the line of credit if the business can’t.

A secured line of credit often comes with lower rates and fees than an unsecured line of credit. And backing your credit line with collateral can help you qualify for a higher credit limit. However, unsecured credit lines often have a quicker turnaround time when you first apply.

Business line of credit vs. credit card

Business lines of credit and credit cards might be similar, but they serve different purposes. Generally, a business line of credit is better for expenses that take more than a month to pay off, while a credit card is better for small expenses that you can pay off quickly.

A business line of credit also gives your business access to cash, which can cover more expenses than a credit card. That’s why it’s useful when it comes to financing payroll, rent and utilities.

But a credit card can give you instant access to financing. While some lenders like Kabbage offer cards that you can swipe like a credit card, it often takes at least one day to receive a line of credit withdrawal.

Credit cards might have higher interest rates. But interest doesn’t apply if you pay off your balance in full each month. That’s not necessarily the case with a line of credit.

Business line of credit vs. loan

A small business line of credit and a term loan also serve different purposes. Generally, a line of credit is useful when you need to finance ongoing costs, while a term loan is better for large, one-off expenses.

Term loans are typically available in higher amounts and come with fixed interest rates. There are also more options for startups and borrowers with bad credit.

But you’ll need to apply again to receive additional funds. And in an emergency, term loans can take longer to receive than a line of credit. And lenders that promise a 24-hour turnaround are often more expensive than slower options.

Bottom line

A business line of credit can be a great asset to small business owners that regularly need access to funds. It’s a particularly great source of working capital for businesses struggling through an off season or an uncertain economy.

Compare even more options by using our business loan comparison tool.

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Editor

Anna Serio was a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY. See full bio

Anna's expertise
Anna has written 244 Finder guides across topics including:
  • Personal, business, student and car loans
  • Building credit
  • Paying off debt

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