Best business lines of credit in December 2024

Written by
TJ Porter
Edited by
Emily Maracle
Reviewed by
Kenneth Chavis IV
Dec 10, 2024
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A business line of credit can provide much-needed capital for a small business owner's short-term expenses. It can help cover seasonal costs, payroll, emergencies, cash flow issues and more.

Take a look at our picks for the best business lines of credit. Our options include secured and unsecured lines of credit with high loan amounts, low interest rates and fast funding. We even have something if you're still in your startup phase or have bad credit. We'll also help you learn more about small business lines of credit work, how they differ from typical loans and whether they’re the right fit for you.

 
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4.4
Bankrate Review
Loan amount
$10k- $500K
Term: 4 - 24 months
Interest rate
Factor Rates Starting at 1.1%
Fastest funding
1 business day
Apply nowArrow Right

on partner site

Best for business line of credit

4.7
Bankrate Review
Loan amount
$5k- $500K
Term: 12 - 120 months
Interest rate
6.00- 19.99%
APR
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

BEST FOR HIGH LOAN LIMITS

4.6
Bankrate Review
Loan amount
$5k- $750K
Term: 6 - 12 months
Interest rate
Starting at 30.00% APR
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Best for established businesses

4.4
Bankrate Review
Loan amount
$5k- $250K
Term: 6 - 12 months
Interest rate
Starting at 7.80%
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

BEST FOR SHORT-TERM LINES OF CREDIT

4.6
Bankrate Review
Loan amount
$6k- $100K
Term: 12 - 24 months
Interest rate
Starting at 35.90% APR
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Best for secured line of credit

4.3
Bankrate Review
Loan amount
$2k- $250K
Interest rate
N/A
Fastest funding
Not disclosed
Apply nowArrow Right

on BusinessLoans.com

BEST FOR FAST FUNDING

4.5
Bankrate Review
Loan amount
$1k- $150K
Term: 3 - 6 months
Interest rate
Starting at 4.66%
Weekly fee
Fastest funding
1 business day
Apply nowArrow Right

on BusinessLoans.com

Best for low interest

4.3
Bankrate Review
Loan amount
Starting at $1,000
Interest rate
Starting at 9.00%
Fastest funding
1 business day

Best for unsecured lines of credit

4.2
Bankrate Review
Loan amount
$5k- $150K
Interest rate
Starting at 9.75%
Fastest funding
Not disclosed
On This Page

Compare the best business lines of credit in December 2024

Compare the best business lines of credit we mentioned above, their features and what they’re best for side by side so that you can determine which option fits the needs of your business.

LENDER BEST FOR MIN. FICO CREDIT SCORE LOAN AMOUNT MIN. TIME IN BUSINESS
Flexible lines of credit 580 $1,000 to $500,000 6 months
Established businesses 625 Up to $250,000 12 months
Secured line of credit Minimum FICO score of at least 660* at the time of application $2,000 to $250,000 Must have started your business at least a year ago
Fast funding 600 Up to $150,000 3 months
High loan limits 600 $10,000 to $750,000 12 months
Short-term lines of credit 625 $6,000 to $100,000 12 months
Low interest 700 $1,000 and up 6 months
Unsecured lines of credit 680 $5,000 to $150,000 Under 24 months

A closer look at our top business lines of credit

The best business lines of credit offer a wide range of credit limits, lenient eligibility requirements, no draw fees and fast funding. Here we take a closer look at the lenders above and what features they offer with their business lines of credit.

Fundible: Best for flexible lines of credit

Overview: Fundible is an online lender that offers business lines of credit up to $500,000. It has lenient approval requirements and may approve businesses traditionally not accepted by major banks. Unlike other lines of credit that have weekly or biweekly payments, Fundible offers monthly payments. A spokesperson also stated that it offers revolving terms from 12 to 120 months, wide-ranging compared to most credit lines’ 18 months or less.

Bluevine: Best for established businesses

Overview: Bluevine is an online business bank that offers business checking and loan products. For its line of credit, your application can be approved in as little as five minutes. You can then use its handy online dashboard to start drawing funds that same day or even instantly if you have a Bluevine checking account. Its credit lines go up to $250,000, similar to other online lenders. 

American Express Business Blueprint™️: Best for secured line of credit

Overview: American Express Business Blueprint™, formerly Kabbage, is a service from American Express offering lines of credit. It offers accessible eligibility requirements to apply, accepting businesses with fair credit and as little as $3,000 in average monthly revenue. Its line of credit can cater to businesses needing small loan amounts from $2,000 to $250,000. But instead of interest, it charges a monthly percentage of your loan balance, a fee structure that can quickly add up to more than you’d pay with other lines of credit. This line of credit offers flexible repayment terms of six, 12, 18 or 24 months.

The total monthly fee incurred over the loan term ranges from 3.00% to 9.00% on six-month terms, 6.00% to 18.00% on 12-month terms, 9.00% to 27.00% on 18-month terms and 12.00% to 18.00% for 24-month terms. Once approved, you’ll make a monthly payment instead of the usual daily or weekly payment schedule. And you won’t get tagged with a prepayment penalty if you pay back the loan early.

* All businesses are unique and are subject to approval and review. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.

Fundbox: Best for fast funding

Overview: Fundbox is an online business lender that has offered business lines of credit to over 500,000 businesses since it opened its doors. Through its unsecured line of credit, you can get funding up to $150,000, which is a lower limit than most competitors. Though Fundbox charges a weekly fee, you can bypass it by repaying your loan quickly without early prepayment penalties. 

Backd: Best for high loan limits

Overview: Backd is a fintech lender specializing in business lines of credit and working capital loans. It keeps its loan requirements relaxed. And unlike many business lenders, its loans don’t require you to secure them with assets.

OnDeck: Best for short-term lines of credit

Overview:  OnDeck is an online lender offering both term loans and lines of credit. For its line of credit, the credit limit is $100,000. While this is a low credit limit compared it other lenders, its eligibility requirements are more relaxed, only requiring a personal credit score of 625, one year in business and annual revenue of $100,000. Unlike most lines of credit, OnDeck’s small business line of credit also gives you the chance to get same-day or instant funding once you’re approved. However, starting APRs are high, and the average APR for a line of credit is 55.90 percent.  

Bank of America: Best for low interest

Overview: Bank of America is a national bank with nearly 4,000 branches across the U.S. It offers both secured and unsecured lines of credit that you can renew each year. It also offers a cash-secured credit line with lower qualification requirements, with $1,000 as the minimum deposit. All three of its credit lines offer monthly payments, compared to many online lenders that offer daily or weekly payments.

Wells Fargo: Best for unsecured lines of credit

Overview: Wells Fargo is a well-established bank with about 5,600 branches across the U.S. It has three business lines of credit products, including two unsecured lines and an SBA-backed line. Most lenders offer just one business line of credit option, and it’s rare to find a lender offering SBA-backed lines. Its unsecured lines of credit offer credit limits of $10,000 to $150,000, and the SBA-backed line offers limits from $5,000 to $50,000.

What is a business line of credit?

A business line of credit (LOC) is a flexible loan for businesses that works like a credit card. Companies draw money from their credit lines as needed, only paying interest on the portion of money borrowed. Business lines of credit can be revolving or non-revolving. For revolving lines of credit, as the borrower repays the amount borrowed, the lender replenishes the funds available so that they can withdraw from the credit line again. These funds can typically be accessed using a business checking account or mobile app. 

How does a business line of credit work?

Business lines of credit are similar to business credit cards. Both allow small businesses to access funds when needs arise instead of the lump sum a business loan would provide. Interest rates on business lines of credit are typically lower than those of a business credit card. 

Lenders set credit limits and interest rates based on factors like how long the business has been running and what the company’s annual revenue is. An LOC typically requires renewal annually and may require an annual fee.

The repayment process varies from lender to lender. With some LOCs, you can make interest-only payments during your draw period. Then, you make repayments during the repayment period of six months to five years following the draw periods. Other lenders treat each draw like an individual term loan — you have a set period to repay each draw you make, which could be weeks or months long. 

Types of business lines of credit

There are two main types of business lines of credit: secured and unsecured. 

Secured lines of credit are typically easier to qualify for and have lower interest rates. But they require collateral that the lender can repossess if you are unable to make your required payments. Often this will be physical property, such as a piece of real estate your business owns or valuable equipment.

Unsecured lines of credit don’t require collateral. That means you can qualify even if you don’t have anything to put up to secure the loan. But they tend to have stricter eligibility and credit requirements and charge higher interest rates or fees.

Pros and cons of business lines of credit

There are reasons to get lines of credit for businesses and situations where you might want to look into other borrowing options.
 

Pros:

  • Improve cash flow: With access to cash, as needed, you can quickly close gaps in cash flow.
  • Accessible: Online lenders often have more lenient requirements and disburse funds quickly.
  • Establishes a relationship with a lender: A line of credit helps you start a relationship with a lender, which can potentially make it easier to secure additional financing in the future.

Cons:

  • Fees: You may pay a monthly maintenance fee as well as annual renewal fees and draw fees. These fees can add up, leading to a high overall cost for borrowing.
  • High interest rates: Business lines of credit tend to have higher interest rates than term loans. Interest rates may also be variable, which means that the rate may rise over time based on market fluctuations.
  • Short repayment terms: You may have a short repayment term, such as 12 or 18 months. Its short repayment term may have a higher payment and a more agressive repayment schedule, such as daily or weekly payments, than long-term loans.

Who should get a business line of credit?

Business lines of credit offer flexibility and usually have more lenient requirements than business loans. Your specific business needs will determine if a business credit line is right for you. A line of credit is a good fit for businesses that meet the loan requirements and:

  • Are looking for extra cash flow or experiencing a short-term cash flow issue
  • Don't have a specific purpose in mind
  • Experience seasonal fluctuations
  • Have increased short-term expenses, like replacing inventory or paying for unexpected costs
  • Have customers who take longer than 30 days to pay
  • Want easy access to extra funds
  • Can repay the loan quickly

Business lines of credit offer flexibility and usually have fewer requirements than business loans, but lenders often restrict the amount that you can borrow. Generally, business lines of credit will have lower limits than traditional business loans. 

When you borrow from the credit line, you also want to make sure that you can successfully manage the repayments, as you will have a set repayment term, such as six to 18 months. A great way to do this is to add the loan repayments as a budget line item in your business budget to ensure you can afford them. 

Lightbulb Icon

Bankrate insight

If the line of credit you’re considering presents the following red flags, consider going with a different option.
 
  • Vague wording around fees and other aspects of the loan agreement
  • An unusually short draw period
  • Prepayment fees preventing you from repaying your balance early
  • Renewal wording is vague, or it will be difficult to renew the line of credit 
  • The amount you can borrow is much smaller than you need, even if you repay the borrowed amount

Alternatives to business lines of credit

If you aren’t sure if a business credit line is for you, alternative funding options include:
 
Lightbulb Icon

Bankrate insight

If you’re experiencing a long-term cash shortage, you may want to look into zero-debt financing, a type of financing that doesn’t use debt to fund your business. You can also try cutting expenses or increasing business revenue rather than getting a business loan.

Where to get a business line of credit

You can find lines of credit with both traditional and online lenders.

Traditional banks or credit unions: At these lenders, you can talk to an employee face to face and get all your questions answered. But these lenders have more strict requirements like a long time in business, higher annual revenue or credit score. These may offer more traditional secured loan types, which can lead to potentially lower rates. 

Online banks/financial services companies: These are online lenders that work entirely digitally. You often manage your loan through apps or online portals. They can offer more convenience and have more relaxed requirements. They just don’t offer the face-to-face experience some people prefer.  

To choose the lender that’s right for you, ask how your business measures up against its requirements. For instance, if you’re a newer business, have lower credit or have smaller annual revenue, online lenders may be best for your situation. It’s also important to assess if you value an office right up the road or an online-only experience. 

Frequently asked questions about business lines of credit

How we chose our best business line of credit lenders

Bankrate's trusted small business loan industry expertise

Read our full methodology

57

years in business

30

lenders reviewed

22

loan features weighed

770

data points collected

To choose the best business lines of credit, we ensured all loans featured are broadly available across the United States. We then considered features that make loans affordable and accessible to businesses with different characteristics and needs, including interest rates, whether the loans are secured or unsecured, minimum annual revenue and fees.
 
When evaluating lenders, we use a 22-point scale to measure quality in five key areas: