The Best Business Lines of Credit for 2021

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Our business lines of credit reviews are the result of over 40 hours of research on 50+ business lines of credit companies from across the web. These reviews and our business lines of credit guide help small businesses and startups find the best business lines of credit for their business.

The Best Business Lines of Credit Companies of 2021

Best Business Lines of Credit Badge

How We Chose the Best Business Lines of Credit

Your choices for business lines of credit are plentiful. To help you make an informed decision, we’ve analyzed the top offerings with an emphasis on three very important features. We looked at the funding requirements, fees, and funding details of each company to help you compare and contrast lines of credit for your business.

Funding Requirements

To get a credit line for your business, you must demonstrate creditworthiness and the ability to pay your debt in a timely manner. Lenders review a variety of criteria to make these determinations. They also set conditions for the businesses they offer credit to, based on the company’s credit and financial situation.

These qualifying requirements are important for evaluating whether you would be eligible for a business line of credit with these lenders and which financial institution’s requirements offer the best chance of approval. Some examples include a minimum credit score, minimum number of years in business, minimum annual revenue, and whether there is a collateral requirement.

Fees

Lenders typically attach fees to their business line of credit offerings. Annual fees, late fees, over-the-limit fees, foreign transaction fees, cash advance fees, and draw fees are some common costs you may encounter. Compare the type and amount of fees you may be required to pay to assess which company’s business lines of credit have the best terms for your situation.

Funding Details

Finally, after approval for a business line of credit, financial institutions issue the funds in a variety of ways. They may provide the funds via check, online transfer, or either way. It’s also important to know how much of your total funding you can initially access and how long it takes. Review these funding details to see which lender best suits your needs.

The 14 Best Business Lines of Credit for 2021

Bank of America

Bank-of-America Logo
Bank of America is an established big bank lender that has been in business for more than a century. It offers both secured and unsecured business lines of credit starting at $10,000, and there is no set maximum on its secured credit lines.

Businesses need good credit to qualify for an unsecured loan from BOA and no lower than a 670 FICO score, with $100,000 in annual revenue for unsecured business lines of credit and $250,000 for secured lines. The business must be under the same ownership for at least two years prior to the application date. Funds are available by online transfer in about two to seven days. No interest is charged until you use the funds.

You can’t apply for a business line of credit with BOA online. Applications are only processed in person or over the phone. An established relationship with the bank can improve your credit line terms, especially if you’ve had a loan with them in good standing before. Lengthy loan terms give businesses ample time to pay.

Credit AmountsLoan TermsInterest RatesTime to Fund
Unsecured BLOC: From $10,000
Secured BLOC: From $25,000
12-60 months for unsecured BLOCs
Up to 48 months for BLOCs secured by business assets
Up to 72 months for BLOCs secured by CDs
Revolving loan terms with annual renewal
Starting at 3.8%>2-7 days
>Visit Bank of America for more details

Pros & Cons of Bank of America Business Lines of Credit
ProsCons
>Low interest rate
>670 required FICO score for unsecured business lines of credit is lower than most big bank lenders
>No cash advance fees
>$150 loan origination fee for business lines of credit up to $100,000; $250 for higher amounts up to $25,000; 0.5% fee for credit line amounts above $250,000
>Requirement to be in business 2 years excludes younger businesses and start-ups

BlueVine

BlueVine
Founded in 2013, BlueVine has already issued $9 billion in funding and provided banking services to more than 200,000 small businesses. For companies that have been in business for at least three years and generate lots of revenue, this lending institution is a quick way to access funds through a business line of credit. BlueVine doesn’t provide business credit lines to businesses in Nevada, North Dakota, South Dakota, or Vermont.

BlueVine funds business line of credit amounts up to $500,000. A minimum 650 credit score is necessary, and your business must generate at least $40,000 in revenue each month.

Drawing funds is easy and flexible. After receiving an approval, you can transfer funds from your BlueVine dashboard to your bank account, typically in just five minutes to a few hours. The first draw must be between $5,000 and the total amount of your available credit. Subsequent draws need only be $500 or more. You pay back the withdrawn funds in either six or 12 months with monthly or weekly payments.

Credit AmountsLoan TermsInterest RatesTime to Fund
$250,0006 or 12 months4.8%>5 minutes
>Visit BlueVine for more details

Pros & Cons of BlueVine Business Lines of Credit
ProsCons
>Low monthly interest rate of 4.8%
>5-minute approvals
>Replenishing credit line
>Requires $40,000 monthly revenue
>High payment amounts due to short terms

Fundation

fundation
Fundation is an alternative lender, working with partner banks to offer lending solutions to businesses that may have difficulty obtaining business lines of credit from traditional lenders. Its partner banks include Fifth Third Bank, Citizens Bank, and Bank of the West.

This lender provides business lines of credit to approved, established companies with two years of operation and at least $100,000 in annual revenue. Only fair credit of 620 or higher may be necessary to qualify. Some of the fees associated with these business lines of credit may be steep, such as a $500 closing fee and a 2% draw fee. However, there is no early payment penalty or fee.

With credit lines up to $250,000, Fundation offers solutions to cash-strapped businesses. Once approved, you have access to the money in about 1 to 3 days. But collateral is required to access a business line of credit here. Fundation works with a limited range of business industries.

Credit AmountsLoan TermsInterest RatesTime to Fund
Up to $150,0003–24 months7.99%–29.99%>1-3 days
>Visit Fundation for more details

Pros & Cons of Fundation Business Lines of Credit
ProsCons
>Funds in 1 to 3 days
>620 minimum credit score required
>Low interest rate of 7.99% for businesses that can prove creditworthiness
>No unsecured loans available
>Interest rate may be as high as 29.99%
>$500 closing fee

Fundbox

Fundbox
Fundbox business lines of credit are a viable option for small businesses with less-than-great credit and limited revenue that need a quick, short-term funding solution. You can tap into up to $150,000 with an unsecured Fundbox business line of credit. But you have only 12 or 24 weeks to repay the withdrawn funds.

You must provide Fundbox with three months of business invoicing history through your business bank account or compatible accounting software. The effective annual interest rate ranges from 10.1% to 79.8%.

A simple, transparent application process gives you the information you need upfront. You can see what your payments will be before applying, and they are auto-debited from your bank after funding. You can also pay early with no penalty. This is helpful for companies that need operating capital right away as they wait for pending invoices to come in.

Credit AmountsLoan TermsInterest RatesTime to Fund
Up to $150,00012-week or 24-week term4.66% for 12-week term
8.99% for 24-week term
>5-7 days
>Visit Fundbox for more details

Pros & Cons of Fundbox Business Lines of Credit
ProsCons
>500 credit score
>Quick funding in 5 to 7 days
>Only minimum $50,000 annual revenue required
>Higher interest rates for bigger credit line amounts
>APRs are much higher than normal due to the short payback periods

Headway Capital

Headway-Capital
This online business lender is another of the nontraditional options for businesses seeking capital. With credit lines starting at $5,000, quick two- to seven-day funding, and flexible credit score requirements, Headway Capital is an attractive choice for small, young businesses. One year of operation is required.

Headway Capital doesn’t rely on a minimum credit score for eligibility. Instead, the lender reviews various criteria and documents to determine creditworthiness. Those include business type and industry, profit and loss statements, corporate and personal tax returns, and business bank account statements. A hard credit pull isn’t performed until after you sign your contract.

Repayment term lengths span 12, 18, or 24 months. Interest rates vary based upon individual business information, but they start at 3.3% with a 2% draw fee in most states. Weekly or monthly payments are available. Once approved, you can access your funds online. No collateral is required.

Credit AmountsLoan TermsInterest RatesTime to Fund
$5,000-$100,00012, 18, or 24 monthsInterest rate and credit limit you are awarded may vary based on the information provided in your application. Interest does not compound.>2-7 days
>Visit Headway Capital for more details

Pros & Cons of Headway Capital Business Lines of Credit
ProsCons
>Only 1 year in business is required
>A minimum of $50,000 in yearly revenue qualifies
>Revolving credit line
>Not available in all states
>Maximum loan available is $100,000
>2% draw fee in some states

JP Morgan Chase

JP-Morgan-Chase
This traditional multinational financial services institution is the largest bank in the United States. Established businesses that need a large credit line of up to $500,000 may find the Chase business line of credit a good choice. However, its size and distinction allow Chase to be very discerning in its eligibility standards. The bank does not disclose some of its criteria, such as how many years you must be in business and a minimum revenue amount. But the minimum credit score it will consider is 680, and collateral is required.

With a penalizing annual fee for underutilized credit lines, businesses are advised to apply for only the amount they need. Chase charges a variable interest rate and allows businesses to choose their monthly payment date. Minimum payments are equal to the accrued interest plus 1% of your outstanding balance or $100, whichever is higher. A variable interest rate applies. Funding takes five to seven days, and businesses may receive their funds via check or online transfer.

Credit AmountsLoan TermsInterest RatesTime to Fund
$10,000-$500,00060 monthsVariable>2-7 days
>Visit JP Morgan Chase for more details

Pros & Cons of JP Morgan Chase Business Lines of Credit
ProsCons
>Renewable 5-year revolving loan
>Low monthly payments
>Funds available up to $500,000
>$150 or $250 annual fee for BLOC with utilization rates lower than 40%
>Requires collateral

Kabbage

Kabbage Logo
Kabbage is a fintech company that has funded $9 billion in loans and lines of credit to more than 220,000 small businesses in the United States. Kabbage funds business lines of credit in one to three days. The minimum credit score needed for eligibility is not available. But this nontraditional lender takes a more holistic approach to creditworthiness. Therefore, excellent credit may not be necessary if other business attributes are good.

Interest isn’t charged until the funds are accessed. So, young businesses thinking ahead can benefit from securing a Kabbage business line of credit before they need it. With credit lines up to $250,000, your business can use this revolving credit if you need operating capital quickly. You must be in business for a year to apply, with annual revenue of $50,000 or monthly business income of $4,200 for the three months prior to applying. Funds are transferred to your account online.

Credit AmountsLoan TermsInterest RatesTime to Fund
$250,00012–24 months1%-12% per month>24-72 hours
>Visit Kabbage for more details

Pros & Cons of Kabbage Business Lines of Credit
ProsCons
>Approval in as little as 10 minutes
>Funding in 24 to 72 hours
>Revolving BLOCs
>High interest rates
>Fee structure hinders early credit line payoff

Lendio

Lendio
Lendio is not a lender or a financial institution. It’s an online company that helps small businesses get funding through nontraditional financing avenues. Lendio has 75 lenders in its network that have funded 216,000 loans for small U.S. businesses, for a total of more than $10 billion in funding through the Lendio platform.

Using Lendio’s lender matchmaking service allows small, young businesses to borrow operating capital. Its partner lenders work with companies that have only been in business for as little as six months. Revenue of $50,000 or more is sufficient for some business line of credit approvals, and credit scores starting at 560 qualify.

Funding takes one to two weeks on average via online transfers. No collateral is required, but some of Lendio’s partner lenders require a personal guarantee.

Credit AmountsLoan TermsInterest RatesTime to Fund
$1,000-$500,0001–5 years8%-24%>1-2 weeks
>Visit Lendio for more details

Pros & Cons of Lendio Business Lines of Credit
ProsCons
>Up to $500,000 credit line
>Short and long-term repayment options
>No fees
>Funding may take up to 2 weeks
>High rates possible

Ondeck

OnDeck Logo
Eligibility for an OnDeck business line of credit isn’t very strict. Businesses need $100,000 in annual revenue, at least one year in business, and a business bank account. However, companies that meet the bare minimum requirements aren’t likely to get high credit amounts or the starting interest rate of 10.99%. Those businesses need to demonstrate strong creditworthiness and impressive financial stability. A former lending relationship with Ondeck is usually necessary.

Ondeck describes its typical business line of credit customer as one who has been in business more than three years with a $300,000 annual revenue and a personal FICO score of 650 or higher. Businesses must repay their funded amounts within 12 months via frequent daily or weekly payments. A good payment history can lead to higher credit limits over time.

Ondeck does not provide lending services in Nevada, North Dakota, or South Dakota. There are also a few excluded industries, such as adult entertainment, drug dispensaries, auto dealers, and firearms retailers. But it lends to businesses in more than 700 other industries.

Credit AmountsLoan TermsInterest RatesTime to Fund
$6,000-$100,00012 months10.99% and up>24 hours
>Visit Ondeck for more details

Pros & Cons of Ondeck Business Lines of Credit
ProsCons
>Only need a 600 credit score
>Funding is quick, typically 24 hours
>Automatic credit line increases
>Frequent multiple payments required, may be daily or weekly
>Unable to save with early repayment

PNC Bank

PNC-Bank
PNC is a large U.S. bank that operates in 21 states. Its business line of credit terms and features vary from state to state. Businesses seeking a credit line with PNC Bank must enter their state on the bank’s website to see state-specific terms, features, and offerings.

Businesses can get business credit lines between $20,000 and $100,000 with no collateral, though a personal guarantee is required in some jurisdictions. Larger loans up to $3,000,000, available in some states like Florida, require collateral in the form of non-real-estate business assets. Where permissible, PNC Bank charges a $175 annual fee for unsecured business lines of credit and an annual fee equal to 0.25% of the committed line amount on larger secured credit lines.

Interest rates on your line of credit are variable. They’re based on the Prime Rate plus a spread. Monthly minimum payments on secured credit lines only include interest. Businesses can make payments on the principal amount at any time.

Minimum business requirements for business line of credit eligibility include three years in business, at least $100,000 in annual revenue, and a business checking account. It need not be a PNC account.

Credit AmountsLoan TermsInterest RatesTime to Fund
Unsecured BLOC: $20,000–$100,000
Secured BLOC: $100,001-$3,000,000
36 monthsVariable, based on the Prime Rate>2-7 days
>Visit PNC Bank for more details

Pros & Cons of PNC Bank Business Lines of Credit
ProsCons
>Credit lines available that are suitable for small or large businesses
>Streamlined application process
>Funds can be accessed by phone, check, or online transfer
>Variable interest rate based on the Prime Rate
>Must be in business at least 3 years

StreetShares

StreetShares
This successful veteran-owned fintech company launched in 2014. StreetShares facilitates small-business loans and credit lines through partner financial institutions. It originally concentrated solely on offering digital financing solutions to veteran-owned small businesses via a peer-to-peer platform. StreetShares still helps vet-owned companies but has branched out to support funding for other small businesses as well.

You can apply for a business credit line starting at $2,000 and going up to $250,000. Repayment terms are short, from three months to three years depending upon the loan amount and other factors. Companies just starting out may have a better chance of accessing cash through a StreetShares line of credit since minimum requirements include six months of business operations, $25,000 in yearly business income, and a fair credit rating.

Payments are made via automatic weekly bank account debits, and there is no prepayment penalty. While borrowers with a 600 credit score may qualify, a 3.95% or 4.95% origination fee applies to offset risk. Late payments incur a $10 late fee, and failed payments also earn a $10 fee.

Credit AmountsLoan TermsInterest RatesTime to Fund
$2,000-$250,0003–36 months7%-39%>24 hours-5 days
>Visit StreetShares for more details

Pros & Cons of StreetShares
ProsCons
>Minimum annual revenue only $25,000
>Funding in 1 to 5 days
>Funds available via online transfer
>Companies in business only 6 months qualify
>3.95%/4.95% credit line origination fee
>Collateral required
>Shorter repayment term lengths boost the effective interest rate

TD Bank

TD-Bank Logo
This is a large traditional U.S. financial institution and a subsidiary of Toronto-Dominion Bank headquartered in Toronto, Canada. Its business lines of credit require collateral via a personal guarantee.

Businesses need good credit to qualify for a TD business line of credit with at least a 680 credit score. They must also be in business no less than two years before applying. A minimum revenue amount is not disclosed. However, TD bank stipulates that borrowers must have a TD bank account with a minimum balance of $40,000.

Loans fund in seven days, but the application process is lengthy and involved. Once you are approved, you can transfer funds to your account online and write checks from your line of credit. Loan terms are only 30 to 60 months long. Interest-only payment options may help businesses budget during lean times and then make payments on the principal when invoices come in.

Credit AmountsLoan TermsInterest RatesTime to Fund
$25,000-$500,00030–60 monthsVariable rate: WSJ Prime Rate + 0.74%>7 days
>Visit TD Bank for more details

Pros & Cons of TD Bank
ProsCons
>Funds accessible via check and online transfer
>Interest-only payments available
>Online applications only available for credit lines up to $100,000
>BLOC requires a TD Bank account with at least $40,000

US Bank

US-Bank Logo
US Bank is a well-established financial institution that offers unsecured business lines of credit for amounts up to $100,000 with higher interest rates. It requires collateral in the form of business assets on loans above $100,000 and up to $250,000 but offers lower interest rates than unsecured lines. These limits are part of the bank’s Cash Flow Line of Credit program.

Companies that have been in operation for at least two years may apply. Minimum revenue and credit score qualifications are not disclosed, but the need for good to excellent credit and high revenue is likely. After approval, borrowers can access their credit lines with a Visa card, a convenience check, online bank transfers, and in person.

For large businesses seeking to purchase equipment, inventory, and other tangible business materials with a line of credit, US Bank has another program issuing up to $1,000,000 in available credit. There’s also a business equity line of credit program with a $500,000 credit line and up to five-year revolving credit terms.

Credit AmountsLoan TermsInterest RatesTime to Fund
Up to $250,00060 monthsUndisclosed>2-3 days
>Visit US Bank for more details

Pros & Cons of US Bank Business Lines of Credit
ProsCons
>Long 60-month long term
>Quick funding
>Online application process
>$150 annual fee on credit lines up to $50,000
>Collateral required

Wells Fargo

Wells-Fargo Logo
As a huge, multinational financial institution, Wells Fargo can offer multiple business line of credit programs. Businesses can get up to $100,000 with or without collateral. Unsecured loans have a higher variable interest rate starting at 1.75% + the Prime Rate. For its lowest secured line interest rates, the bank adds 1% to Prime. Higher rates take the spread to 9.75% on top of Prime. The Wells Fargo Prime Line of Credit program provides $100,000 to $500,000 with collateral.

Credit lines below $10,000 incur no annual fee. Higher lines are exempt from annual fees the first year. Thereafter, you pay $95 a year for lines between $10,000 and $25,000 and a $175 annual fee for higher credit lines.

Credit AmountsLoan TermsInterest RatesTime to Fund
Revolving credit: $5,000-$100,000
Secured BLOC: $100,000-$500,000
24 monthsPrime + 1.75%>10 days
>Visit Wells Fargo for more details

Pros & Cons of Wells Fargo Business Lines of Credit
ProsCons
>No annual fee in the first year
>Automatic enrollment in a free rewards program
>Unsecured loans available
>Variable interest rate, based on the prime rate
>3 different programs mean more variety and potential of meeting individual needs

What Are Business Lines of Credit?

A business line of credit is an established amount of funds that a lender provides to a business for access and use when the borrower needs it. The lender extends these funds as a credit line. The business must pay back the amount it uses with interest.

You don’t have to use the entire line of credit all at once or at all. Instead, the funds are available to you until you need them or until the loan term expires, whichever comes first. Desirable credit line programs don’t incur charges until you withdraw money from the credit line. But some programs include extra costs for setting up the line, whether you use it or not. Some basic types of business lines of credit are:

  • Secured:Collateral is required to guarantee the credit line in case of default. These lines of credit typically have lower interest rates.
  • Unsecured: No collateral is needed. Lenders take on a higher risk, though, so they charge higher fees and interest rates. The loan term may be shorter, too.
  • Revolving/Replenishing:With a revolving credit line, as you pay back the money you borrowed, your available credit is replenished. Most lines of credit are revolving.
  • Non-revolving: Your funds don’t replenish as you repay the lender. You continue to have a credit line only until you have borrowed against the full amount of credit extended to you.

Benefits of Business Lines of Credit

Business lines of credit provide access to funding for enhanced cash flow, operating expenses, inventory and equipment needs, and other business financing requirements. Choose a line of credit to enjoy these benefits:

  • Quick funding:Funds are available when you need them for easy access to working capital.
  • Cost-effective:No interest accrues until you withdraw the funds, unlike installment loans.
  • Beneficial relationships: You establish a history with a lender, which can be valuable in the future.
  • Credit building: These loans help establish good business credit.
  • Potentially better terms:When you shop around knowledgeably, you may be able to access lower costs and interest rates than with a business credit card or term loan.
  • Flexible payment options: They let you pay more when you’re in the black and smaller payments when business is slow.
  • Cash advances: It’s easier and less expensive to get a cash advance from a business line of credit than from a business credit card.

When possible, establish a line of credit before your business needs it. With a sound financial background, you’re eligible for credit lines with preferable terms. Should you then need to boost your cash flow in the future, you have quick, easy access to funds with desirable repayment terms.

Must-Have Features for Business Lines of Credit

When choosing a business line of credit, compare lending terms, available credit line amounts, associated costs and fees, funding details, and the eligibility requirements. These features are essential when assessing a business line of credit program.

  • Interest rates: Low fixed rates are preferable. But don’t be fooled by short-term loans that boost the stated rate to exorbitant levels.
  • Approval difficulty:Learn what the lender is looking for before applying.  No need to take the credit file hit if you don’t meet its criteria.
  • Payment structures and loan terms: Give yourself enough time to repay what you borrow. Short three- and six-month repayment terms and automatic weekly debits can get you in hot water.
  • Costs and fees: Look for credit lines with no draw fees, cash advance fees, or setup fees.
  • Funding timeframe: If you need capital right away, opt for a lender with easy online applications, short approval times, and rapid funding. Most traditional banks take longer.
  • Collateral:You may prefer an unsecured loan, but compare the terms between a secured loan and an unsecured loan. As long as you’re not leveraging too much of your business, it may make sense to choose a secured loan with better rates, lower costs, and longer repayment terms.

The Cost of Business Lines of Credit

From closing fees to annual fees to interest rates, the associated costs of a business line of credit can add up. Interest rates may range from lower than 4% to as high as 80%, depending on the repayment terms. Annual fees, origination fees, and draw fees can run into hundreds of dollars for large credit lines. With respect to fees and costs, if you can avoid them, do so. But not to the detriment of paying for it elsewhere, such as on your interest rate payments. Just be aware and compare.

Occasionally, lenders run special promotions. They may defer the interest on your line of credit if you meet certain conditions. Lines that come with annual fees sometimes waive the fee the first year. If you need funds right away and you realistically expect enough business income to repay the credit in time, these special offers can be well worth it.

When no specials are available, compare the costs, rates, and fees across the board to determine where you’re likely to spend more. You may also consider reviewing line of credit programs with the financial institution where you do your business banking. A preestablished relationship may net you better terms than with other lenders.

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