Article
Best Business Lines of Credit in 2026: Compare Rates & Terms
Find the best business line of credit for your company. We compared 10 top lenders including Bluevine, Fundbox, and OnDeck to help you access flexible working capital with competitive rates and terms.
A business line of credit provides flexible, revolving access to working capital—borrow what you need, when you need it, and only pay interest on what you use. Whether you need to manage cash flow gaps, purchase inventory, or cover unexpected expenses, the right line of credit can be a financial lifeline for your business.
Our team analyzed the 10 best business lines of credit for 2026, comparing rates, credit limits, qualification requirements, and funding speed from both online lenders and traditional banks. Here’s what we found.
Quick Comparison
| Lender | Best For | Credit Limit | Starting Rate | Rating |
|---|---|---|---|---|
| 1. Bluevine Line of Credit | Best Overall Business Line of Credit | $1,000 - $250,000 | 7.80% simple interest | ★4.9/5 |
| 2. Fundbox Line of Credit | Best for Startups & New Businesses | Up to $150,000 | 4.66% for 12 weeks | ★4.8/5 |
| 3. American Express Business Blueprint | Best for Amex Cardholders | $2,000 - $250,000 | Varies by creditworthiness | ★4.7/5 |
| 4. Wells Fargo BusinessLine | Best Traditional Bank Option | $5,000 - $150,000 | Prime + 1.75% to Prime + 9.75% | ★4.6/5 |
| 5. OnDeck Line of Credit | Best for Fast Funding | $6,000 - $200,000 | 39.60% APR | ★4.5/5 |
| 6. Bank of America Business Advantage | Best for BofA Relationship Customers | $10,000+ | 8.50% (rate discount available) | ★4.5/5 |
| 7. Chase Business Line of Credit | Best for Larger Credit Needs | $10,000 - $500,000+ | Prime + margin (0.4%-1.2% discount available) | ★4.4/5 |
| 8. Headway Capital True Line | Best for Flexible Repayment Terms | Up to $100,000 | 3.30% monthly (non-compounding) | ★4.3/5 |
| 9. Lendio Marketplace | Best for Comparing Multiple Offers | Varies by lender | Varies by lender partner | ★4.2/5 |
| 10. SmartBiz Business Line of Credit | Best for SBA Loan Specialists | Up to $150,000 | 15.31% - 35.31% APR | ★4.1/5 |
Our Top Picks in Detail
Bluevine Line of Credit
Bluevine offers the best overall business line of credit with competitive rates starting at 7.80% simple interest and credit limits up to $250,000. The unsecured line requires no collateral and can fund same-day to a Bluevine Business Checking account. With flexible repayment terms up to 12 months and no prepayment penalties, Bluevine is ideal for established small businesses needing reliable working capital.
Pros
- ✓Low starting rate of 7.80% simple interest
- ✓High credit limits up to $250,000
- ✓Same-day funding to Bluevine checking account
- ✓No collateral required (unsecured)
- ✓No early repayment penalties
Cons
- ✗Maximum rates not disclosed until application
- ✗Requires 12 months in business
- ✗Must be LLC or corporation structure
Fundbox Line of Credit
Fundbox stands out as the best option for startups and newer businesses, requiring just 3 months in operation and $30,000 in annual revenue. With rates starting at 4.66% for 12-week terms and approval in minutes, Fundbox makes working capital accessible to businesses that might not qualify elsewhere. The weekly fee structure is transparent with no hidden costs.
Pros
- ✓Only 3 months in business required
- ✓Low minimum revenue of $30,000/year
- ✓Competitive weekly fee structure
- ✓No application, origination, or prepayment fees
- ✓Fast approval in minutes
Cons
- ✗Lower maximum credit limit ($150,000)
- ✗Shorter repayment terms (12-24 weeks)
- ✗Weekly fee structure instead of traditional APR
American Express Business Blueprint
American Express Business Blueprint (formerly Kabbage) offers a unique structure where each draw from your line of credit has its own repayment schedule of 6, 12, 18, or 24 months. With credit lines from $2,000 to $250,000 and a relatively low revenue requirement of $36,000, it's an excellent choice for Amex customers and businesses with moderate credit profiles.
Pros
- ✓Low minimum revenue requirement ($36,000)
- ✓Flexible repayment terms per draw
- ✓Trusted American Express brand
- ✓Integration with Amex business ecosystem
- ✓Each draw has its own repayment schedule
Cons
- ✗Higher minimum credit score (660+)
- ✗Rates vary widely by creditworthiness
- ✗Must make fixed payments on each draw
Wells Fargo BusinessLine
Wells Fargo BusinessLine provides traditional banking reliability with revolving credit lines from $5,000 to $150,000. Rates range from Prime + 1.75% to Prime + 9.75% (current Prime: 6.75%), making effective rates around 8.5%-16.5%. The first year has no annual fee, and businesses benefit from Wells Fargo's extensive branch network and relationship banking services.
Pros
- ✓Established bank with branch network
- ✓No annual fee in first year
- ✓Competitive rates for qualified borrowers
- ✓Prime Line option for larger businesses
- ✓Relationship banking benefits
Cons
- ✗$95-$175 annual fee after first year
- ✗3% ATM/counter transaction fees
- ✗Higher credit score requirement (680)
- ✗Slower funding than online lenders
OnDeck Line of Credit
OnDeck specializes in fast funding with the ability to draw amounts from $1,000 to $10,000 and receive funds in just minutes. While the APR is higher than some competitors (starting at 39.60%), the speed and convenience make it valuable for businesses needing immediate access to working capital. OnDeck also reports to business credit bureaus, helping build your business credit.
Pros
- ✓Instant draws in minutes ($1,000-$10,000)
- ✓Unsecured - no collateral required
- ✓Reports to business credit bureaus
- ✓No bankruptcy in last 2 years required
- ✓$20 maintenance fee waived with $5,000 draw
Cons
- ✗Higher APR starting at 39.60%
- ✗Requires $100,000 annual revenue
- ✗Average APR can be 57.10%
Bank of America Business Advantage
Bank of America offers competitive business lines of credit starting at 8.50%, with additional rate discounts of 0.25%-0.75% for Preferred Rewards for Business members. The unsecured line starts at $10,000, while secured lines begin at $25,000. With 2 years in business and $100,000 annual revenue required, it's best suited for established businesses with existing BofA relationships.
Pros
- ✓Competitive 8.50% starting rate
- ✓0.25%-0.75% rate discount for Preferred Rewards members
- ✓Unsecured options from $10,000
- ✓No cash advance fees on secured lines
- ✓Established bank reputation
Cons
- ✗Requires 2 years in business
- ✗$100,000 minimum annual revenue
- ✗Best rates require Preferred Rewards status
Chase Business Line of Credit
Chase Business Line of Credit is designed for established businesses needing larger credit lines from $10,000 to $500,000 or more. The secured line features a 5-year draw period followed by a 5-year repayment period, with potential renewal. Businesses with significant Chase deposit balances can earn rate discounts of 0.4%-1.2% through the Relationship Pricing Program.
Pros
- ✓High credit limits up to $500,000+
- ✓5-year draw period with renewal option
- ✓0.4%-1.2% rate discount with qualifying deposits
- ✓Commercial line option over $500,000
- ✓Relationship Pricing Program benefits
Cons
- ✗Only offers secured lines (no unsecured)
- ✗Annual fee up to $750
- ✗Requires 2 years in business
- ✗20%+ owners must guarantee debt
Headway Capital True Line
Headway Capital specializes in business lines of credit with monthly non-compounding interest rates starting at 3.30%. With just 6 months in business and $50,000 annual revenue required, it's accessible to newer businesses. The unsecured line goes up to $50,000, while secured lines reach $100,000. Note that a 2% draw fee applies, and service is unavailable in 9 states.
Pros
- ✓Low monthly rate of 3.30% (non-compounding)
- ✓Only 6 months in business required
- ✓Low revenue requirement ($50,000/year)
- ✓No prepayment penalties
- ✓Secured option up to $100,000
Cons
- ✗2% draw fee in most states
- ✗Not available in 9 states
- ✗Unsecured limit only $50,000
Lendio Marketplace
Lendio is a lending marketplace that connects businesses with over 75 lenders through a single application. This increases your chances of approval and lets you compare multiple offers for business lines of credit. With a minimum 600 credit score and $50,000 annual revenue, you can receive multiple tailored offers within hours and access funds in as little as 24 hours.
Pros
- ✓Access to 75+ lenders with one application
- ✓Multiple offers to compare
- ✓Fast funding as quick as 24 hours
- ✓600 minimum credit score accepted
- ✓Free marketplace service
Cons
- ✗Rates and terms vary widely by lender
- ✗Not a direct lender
- ✗May receive multiple lender contacts
SmartBiz Business Line of Credit
SmartBiz is primarily known for SBA loans but also offers business lines of credit up to $150,000 through its lender network. As a marketplace, SmartBiz connects businesses with partner banks, with rates ranging from 15.31% to 35.31% APR. While the rates are higher than some direct lenders, businesses can access multiple financing options including term loans and SBA loans in one platform.
Pros
- ✓Specializes in SBA loans (also offers LOC)
- ✓Access to bank lender network
- ✓Lines of credit up to $150,000
- ✓Can also get term loans and SBA loans
- ✓Trusted SBA lending platform
Cons
- ✗Higher APR range (15.31%-35.31%)
- ✗Not a direct lender
- ✗650 minimum credit score
How We Evaluate Business Lines of Credit
Our expert team uses a comprehensive methodology to test and compare business lines of credit. Here’s what we evaluate:
Interest Rates & Fees
We analyze the true cost of borrowing:
- APR and simple interest rates: Understanding the actual cost of capital
- Fee structures: Draw fees, maintenance fees, annual fees, transaction fees
- Rate ranges: Starting rates vs. maximum rates for qualified borrowers
- Compounding vs. non-compounding: How interest accumulates over time
Credit Limits & Accessibility
We assess borrowing capacity and qualification requirements:
- Minimum and maximum limits: From $1,000 to $500,000+
- Secured vs. unsecured: Collateral requirements
- Credit score requirements: From 600 to 680+
- Time in business: From 3 months to 2 years
- Annual revenue minimums: From $30,000 to $100,000+
Funding Speed & User Experience
We evaluate the application and funding process:
- Application time: Minutes to days
- Approval speed: Instant to 1 week
- Funding timeline: Same-day to 7+ business days
- Draw flexibility: How quickly you can access additional funds
- Digital experience: Online platforms and mobile apps
Repayment Flexibility
We examine repayment terms and options:
- Draw periods: How long you can access the credit line
- Repayment terms: 12 weeks to 5+ years
- Prepayment penalties: Fees for early repayment
- Renewal options: Can you extend or renew the line?
- Payment frequency: Weekly, monthly, or flexible
Business Impact
We consider value-added features:
- Credit bureau reporting: Building business credit
- Relationship benefits: Rate discounts, fee waivers
- Customer support: Availability and quality
- Transparency: Clear terms and no hidden fees
Understanding Business Lines of Credit
A business line of credit works like a credit card—you’re approved for a maximum credit limit, and you can draw funds as needed up to that limit. You only pay interest on the amount you use, not the total credit line available.
How Business Lines of Credit Work
- Application: Apply online or in-person with financial documentation
- Approval: Lender approves you for a maximum credit limit
- Draw funds: Access money as needed up to your limit
- Repay: Make payments based on your drawn balance
- Reuse: As you repay, credit becomes available again
Types of Business Lines of Credit
Unsecured Lines of Credit
- No collateral required
- Lower credit limits ($1,000-$250,000)
- Higher interest rates
- Easier approval process
- Best for: Established businesses with good credit
Secured Lines of Credit
- Backed by business assets or cash deposits
- Higher credit limits (up to $500,000+)
- Lower interest rates
- More stringent requirements
- Best for: Businesses with valuable collateral
Revolving vs. Non-Revolving
- Revolving: Credit replenishes as you repay (most common)
- Non-Revolving: One-time use, like a term loan
Business Line of Credit vs. Business Loan
Understanding the difference helps you choose the right financing:
Business Line of Credit
- Revolving access to funds
- Borrow only what you need
- Pay interest only on drawn amounts
- Flexible for ongoing needs
- Generally higher interest rates
- Best for: Cash flow management, seasonal expenses, unexpected costs
Business Term Loan
- One-time lump sum
- Fixed repayment schedule
- Interest on entire loan amount
- Predictable monthly payments
- Generally lower interest rates
- Best for: Large purchases, expansion projects, equipment financing
What Credit Score Do You Need?
Business line of credit requirements vary by lender:
Excellent Credit (720+)
- Qualify for best rates and highest limits
- Access to traditional bank lines
- Potential rate discounts and relationship benefits
Good Credit (680-719)
- Qualify for most lenders
- Competitive rates from online lenders
- May need higher revenue or time in business
Fair Credit (625-679)
- Limited to online lenders like Bluevine, OnDeck, Headway
- Higher interest rates
- Lower credit limits
- May need stronger business financials
Poor Credit (600-624)
- Very limited options
- Fundbox and Lendio marketplace
- Highest rates and fees
- May need secured line or strong revenue
How to Choose the Best Business Line of Credit
Consider these factors when comparing lenders:
1. Calculate Total Cost
Look beyond the advertised rate:
- Starting rate vs. your actual rate
- Draw fees, maintenance fees, annual fees
- Early repayment penalties
- Transaction fees
2. Match Credit Limit to Needs
- Don’t overborrow—higher limits may mean higher fees
- Ensure the limit covers your actual needs
- Consider seasonal fluctuations
3. Evaluate Speed vs. Cost
- Faster funding often costs more
- Balance urgency with affordability
- Online lenders typically faster than banks
4. Check Qualification Requirements
- Don’t apply if you don’t meet minimums
- Multiple applications can hurt your credit
- Use pre-qualification when available
5. Read the Fine Print
- Understand all fees and penalties
- Check for rate change clauses
- Verify renewal terms
- Look for hidden costs
Frequently Asked Questions
What is a business line of credit?
A business line of credit is a flexible financing option that provides access to a preset amount of capital that you can draw from as needed. Unlike a term loan where you receive a lump sum upfront, you only borrow what you need from your available credit line and pay interest only on the amount you use. As you repay the borrowed amount, that credit becomes available again—similar to how a credit card works.
How much does a business line of credit cost?
Costs vary widely based on the lender, your creditworthiness, and business financials. Starting rates range from 3.30% monthly (non-compounding) to 39.60% APR or higher. Traditional banks like Wells Fargo offer Prime + 1.75% to 9.75% (effective 8.5%-16.5%), while online lenders like Bluevine start at 7.80% simple interest. Additionally, expect fees such as draw fees (1-3%), maintenance fees ($20-$100/month), and annual fees ($95-$750).
What do I need to qualify for a business line of credit?
Qualification requirements vary by lender but typically include: a minimum personal credit score (600-680+), time in business (3 months to 2 years), minimum annual revenue ($30,000-$120,000+), and basic business documentation (tax returns, bank statements, financial statements). Online lenders generally have more flexible requirements than traditional banks.
How fast can I get a business line of credit?
Funding speed varies significantly by lender. Online lenders like Bluevine and Fundbox can approve applications within minutes to hours and fund within 24 hours. Traditional banks like Wells Fargo, Bank of America, and Chase typically take 3-7 business days. OnDeck offers the fastest access to draws—once approved, you can draw funds and receive them in minutes.
Can I get a business line of credit with bad credit?
Yes, but options are limited. Lenders like Fundbox accept credit scores as low as 600, and Lendio’s marketplace can connect you with lenders willing to work with fair credit. However, you’ll face higher interest rates, lower credit limits, and may need to demonstrate strong revenue or provide collateral. Consider improving your credit score or exploring secured lines of credit if possible.
What’s the difference between secured and unsecured business lines of credit?
An unsecured business line of credit doesn’t require collateral, making it easier to obtain but typically featuring higher interest rates and lower credit limits ($1,000-$250,000). A secured business line of credit is backed by business assets, cash deposits, or real estate, offering higher credit limits (up to $500,000+) and lower interest rates, but puts your collateral at risk if you default.
How do I use a business line of credit responsibly?
To use a business line of credit responsibly: (1) Only borrow what you need and can afford to repay, (2) Make payments on time to avoid penalties and build business credit, (3) Use it for business expenses that generate revenue or manage cash flow—not to cover ongoing losses, (4) Monitor your utilization ratio (keep below 30% for best credit impact), and (5) Have a repayment plan before drawing funds.
Can a business line of credit help build business credit?
Yes, if the lender reports to business credit bureaus. OnDeck, for example, reports payment activity to business credit bureaus like Dun & Bradstreet, Experian Business, and Equifax Business. Consistently making on-time payments can improve your business credit score, making it easier to qualify for better financing terms in the future. Ask lenders about their credit bureau reporting policies before applying.