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Best business lines of credit in December 2023

Nov 10, 2023
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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 how lines of credit for businesses work, how they differ from typical loans and whether they’re the right fit for you.


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Best for flexible lines of credit


Bankrate Score
Loan amount
$5k- $5M
Term: 6 - 120 months
Interest rate
7.00- 19.99%
Fastest funding
1 business day
Apply nowArrow Right

on partner site



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

on partner site

Best for established businesses


Bankrate Score
Loan amount
$5k- $250K
Term: 6 - 12 months
Interest rate
Starting at 6.20%
Fastest funding
1 business day
Apply nowArrow Right

on partner site



Bankrate Score
Loan amount
$6k- $100K
Term: 12 - 12 months
Interest rate
Starting at 29.90% APR
Fastest funding
1 business day

Best for secured line of credit


Bankrate Score
Loan amount
$2k- $250K
Term: 6 - 24 months
Interest rate
Fastest funding
1 business day



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

Best for low interest


Bankrate Score
Loan amount
Starting at $25k
Term: 6 - 18 months
Interest rate
Starting at 8.25%
Fastest funding
1 business day

Best for unsecured lines of credit


Bankrate Score
Loan amount
$10k- $150K
Interest rate
Starting at 10.00%
Fastest funding
Not disclosed

Compare the best business lines of credit in December 2023

Fundible Flexible lines of credit 600 $1,000 to $500,000 6 months
Backd High loan limits 600 $5,000 to $750,000 12 months
Bluevine Established businesses 625 $5,000 to $250,000 24 months
OnDeck Short-term lines of credit 625 $6,000 to $100,000 12 months
American Express Business Blueprint™️* 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
Fundbox Fast funding 600 $1,000 to $150,000 6 months
Bank of America Low interest Not stated $25,000 and up 24 months
Wells Fargo Unsecured lines of credit 680 $10,000 to $150,000 24 months

A closer look at our top business lines of credit

Fundible: Best for flexible lines of credit

Overview: Fundible is an online lender that promises funds after approval within 24 hours — in some cases in as little as one to three hours. It has lenient approval requirements compared to many other lenders and can accommodate new businesses that may not be approved by big banks. Fundible offers lines of credit up to $500,000. 

Why Fundible is the best for flexible lines of credit: Fundible lets you make monthly payments on its business lines of credit, and a spokesperson stated lines of credit have revolving terms between six and 120 months. Some online lenders only let you make weekly or biweekly payments and have terms that only go up to 18 months. It also doesn’t penalize businesses for paying off their line of credit sooner than expected.

Who Fundible is good for: New businesses and business owners with bad credit can benefit from loans from Fundible. Its website notes a FICO score of over 500 and an average monthly revenue of at least $8,000. But ideal applicants will have a personal credit score of 600 and an average annual revenue of $200,000.

Backd: Best for high loan limits

Overview: Founded in 2018, 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 or a personal guarantee.

Why Backd is the best for high loan limits: Backd offers lines of credit between $5,000 to $750,000. This maximum limit is high compared to most lenders’ $250,000 credit limit. You can apply and get approved in less than 24 hours, and there are no limitations on how often you draw funds. You also don’t get tagged with an early prepayment fee if you happen to repay your loan early. Keep its short repayment periods in mind, though. It offers weekly payments across six or 12 months. 

Who Backd is good for: This lender is ideal for midsize to large businesses that have fair credit — at least a 600 personal credit score. Businesses will also need an annual business revenue of at least $300,000 to be considered.

Bluevine: Best for established businesses

Overview: Bluevine is an online business bank that offers business checking and loans 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. Its credit lines go up to $250,000, similar to other online lenders.

Why Bluevine is best for established businesses: Bluevine’s starting interest rates are relatively low. It accepts a fair personal credit score of 625 and offers flexible monthly as well as weekly payments. Some lines of credit stick with daily or weekly payments, which could be an aggressive debt schedule to keep up. 

Who Bluevine is good for: Your business does need to be well established with a monthly revenue of at least $40,000. At that level, you qualify for its six-month repayment terms. For 12-month repayments, your business will need $80,000 in monthly revenue. Bluevine doesn’t charge fees for origination, maintenance or early repayments.

OnDeck: Best for short-term lines of credit

Overview: In business since 2006, OnDeck is an online lender offering both term loans and lines of credit. For the line of credit, you can choose to have instant funding or same-day funding once approved. Its credit line comes with a $20 monthly maintenance fee that you can bypass by borrowing $5,000 up front when you open the line.

Why OnDeck is the best for short-term lines of credit: OnDeck offers unsecured business lines of credit for up to $100,000. Eligibility requirements are more relaxed than other lenders that offer unsecured business lines of credit. You only need a personal credit score of 625, one year in business and an annual revenue of $100,000. 

Who OnDeck is good for: OnDeck business lines of credit work best for businesses needing fast funds that may not qualify with traditional lenders. Repayment terms are 24 months for each draw, but that resets each time you make a new draw.

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

Overview: Business Blueprint, formerly Kabbage, is a service from American Express offering lines of credit. This secured line of credit is unusual in that it doesn’t charge interest — which can make comparing it to other lines of credit tricky. Instead, you pay a monthly fee equal to a percentage of your outstanding balance. Those fees can be high, so it’s best to pay down your balance quickly.

Payments on borrowed funds are made monthly.

Why Business Blueprint is best for secured lines of credit: Business Blueprint offers an online application and reasonable qualification requirements. Its flexible term lengths and monthly (rather than weekly or daily) payment schedule may be appealing to business owners.

Who Business Blueprint is good for: This business line of credit may be best for newer or smaller businesses that would otherwise face higher interest rates. Since the fee is a percentage of the outstanding balance, it might also be good for anyone looking for a microloan-like option. 

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

Fundbox: Best for fast funding

Overview: Fundbox is an online business lender that has served over 500,000 businesses since it opened its digital doors in 2013. For its unsecured line of credit, it doesn’t charge traditional interest rates on the amount you borrow. It goes with a weekly percentage of the loan amount with loan terms of 12 or 24 weeks. 

Why Fundbox is best for fast funding: Fundbox boasts fast approval times as short as three minutes and funding as soon as the next business day. You may also want to have a goal to pay off the loan as quickly as possible. You can avoid the weekly fees by doing so, and Fundbox won’t charge you early repayment penalties. 

Who Fundbox is good for: Fundbox may fit businesses that regularly need fast cash to cover operating costs, like shipping or food industry ventures. It also works for newer businesses with just six months of experience. You will need a business bank account to get approved and easily transfer funds.

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 but a credit limit of $50,000. All three of its credit lines offer monthly payments, compared to many online lenders that offer daily or weekly payments.

Why Bank of America is best for low interest: Bank of America's business lines of credit have lower interest rates compared to online lenders. Its lines of credit start at 9.25 percent for the secured line and 9.75 percent for its unsecured line. 

Who Bank of America is good for: Bank of America’s main lines of credit go best with established businesses in both experience and credit history. They require at least two years in business. While the lender doesn’t disclose its credit requirements, most banks want to see at least a personal credit score of 670 or higher. Meeting these requirements may grant you the lowest interest rates.

Wells Fargo: Best for unsecured lines of credit

Overview: Founded in 1852, Wells Fargo is a well-established bank with about 4,700 branches across the U.S. It has three business lines of credit products, including two unsecured lines. One small business line of credit never has an annual fee, while its other lines waive the fee for the first year. Wells Fargo also serves SBA loans to small business owners. 

Why Wells Fargo is the best for unsecured lines of credit: Wells Fargo offers two unsecured lines catering to different crowds. Wells Fargo BusinessLine® line of credit works for established businesses, offering loans up to $150,000. And the Small Business Advantage® line helps newer businesses through an SBA-backed line of credit, though it’s limited to $50,000. 

All of its credit lines earn rewards on purchases that can be redeemed in several ways, including for travel, check or deposit or for Apple merchandise. You won’t see that perk with many other lines of credit. 

Who Wells Fargo is good for: Wells Fargo works best for businesses with strong credit or those seeking an SBA-backed credit line. It requires a personal credit score of at least 680.

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. For revolving lines of credit, as the borrower repays the amount borrowed, they replenish the funds available. 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 current owner has been in place and what the company’s annual revenue is. An LOC typically requires renewal annually.

The repayment process varies from lender to lender. With some LOCs, you can make interest-only payments during your draw period. A repayment period of up to five years follows 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.

Secured vs. unsecured business line of credit

Business lines of credit can be unsecured or secured by business assets as collateral. Whether or not you should secure your line of credit depends on the features you’re looking for. A secured credit line helps lenders offer you more flexibility — high loan amounts or lower interest rates. It may also help startups or business owners with bad credit get approved for a credit-builder line. 

But if you don’t have much in the way of assets, you could qualify for an unsecured line of credit based on your business’s credit history and financial statements. You will need a stronger financial picture to qualify for an unsecured line vs. a secured line of credit.

Business line of credit vs. business credit card

Business lines of credit and business credit cards both let companies draw funds from a pool of credit on an as-needed basis. While both have their advantages and disadvantages, the best business credit cards have features you won’t find with business lines of credit. 

Loan amounts

Lines of credit typically have loan limits of up to $100,000 to $250,000, though some lenders like Wells Fargo, Fundible and Backd offer even higher limits.

Credit cards don’t typically publish credit limits, but it’s likely most business credit cards have lower limits of $100,000 or less. One notable exception is the Divvy Business Card, which offers limits up to $15 million along with rewards for purchases and other benefits of business credit cards you won’t find with business lines of credit.

Interest rates

Business lines of credit may have lower interest rates, especially those offered at banks and credit unions. This can be especially appealing to business owners with excellent credit who are likely the rare few to qualify for the best rates on lines of credit or business credit cards. 

But many line of credit lenders won’t disclose the maximum rates for their business lines of credit, which can soar far beyond the maximum limits of business credit cards. For example, the average interest rates for OnDeck lines of credit is 52.60 percent APR.

Some business lines of credit use factor rates instead of interest rates. These are usually reserved for lines of credit available to business owners with bad credit. When you convert factor rates to interest rates, the rates are typically higher than what you'll find with a business credit card. But to be sure, you'll need to know how to convert factor rates to interest rates, which will make it easier to compare loans.

The maximum interest rates for business credit cards tend to be low, even for business owners with poor credit. For example, the Spark 1% Classic from Capital One is open to business owners with a personal credit score of 580 or higher. Its variable rate isn’t as impressive as Wells Fargo’s business lines of credit, but it is far lower than the maximum rates found with business LOCs offered by many online lenders. 

Grace period

Business lines of credit charge interest the moment you withdraw funds. That interest continues to grow until your balance is paid in full. Business credit cards work in the same way with one exception — many credit card issuers offer grace periods on purchases. 

Between the end of your billing cycle and your payment due date, you have a chance to pay your balance in full and avoid interest charges. Grace periods are at least 21 days and only apply to purchases. If you were to use your business card for a cash advance, the interest would begin accruing immediately and would continue to grow until you paid your balance in full.

Business line of credit vs. business loan

A business line of credit is a revolving type of business loan. A business can withdraw funds whenever the need arises, as long as the credit limit isn’t exceeded. Interest then accumulates on the funds that are drawn, usually at a variable rate. Repayments are made daily, weekly or monthly. For these reasons, a business line of credit can be useful for small business owners looking to cover short-term needs.

In contrast, a small business term loan is a lump sum of money given with a fixed interest rate and paid back through fixed monthly payments. Loan payments start immediately, whether a business uses the money right away or not. 

Borrowing limits are often lower on a line of credit than on a business loan, typically ranging from $2,000 to $250,000. But some lenders offer secured lines of credit, which offer higher limits. Secured lines of credit require that you provide collateral.

Additionally, business loans are typically limited to predetermined uses, like purchasing new equipment, while lines of credit are more flexible, allowing you to use the money for whatever business expense you choose.

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.


  • Closes gaps in cash flow
  • Online lenders are often lenient with approvals and disburse funds quickly
  • Helps you start a relationship with a lender
  • Builds business credit


  • May pay a maintenance fee as well as annual renewal fees and draw fees when you withdraw money
  • Lines of credit tend to have higher interest rates than term loans
  • May have short repayment terms, such as 12 or 18 months

Who should get a line of credit?

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
  • 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

Business lines of credit offer flexibility and usually have fewer requirements than business loans.

Keep in mind that lines of credit may come with variable interest rates, meaning that your initial rate may rise over the course of your repayment. There are also usually fees that add to the initial cost. These lines of credit can also be much harder to qualify for. Lenders often restrict the amount that you can borrow, generally allowing smaller amounts than the typical business loan.


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 line of credit is for you, alternative funding options include:

Where to get a 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. 

Documents needed for a line of credit

Getting a business line of credit will require you to show a solid financial outlook, though the exact documents you need will depend on the lender. At the least, you’ll need:

  • Personal and business bank statements
  • Personal tax returns
  • Business plan
  • Business formation documents
  • 1 to 3 years of business tax returns
  • Profit and loss statement
  • Other debts
  • Your industry
  • Proof of ownership for collateral
  • Collateral appraisals

How to manage a business line of credit

You’ll need to effectively manage payments from your business line of credit to make sure that you can repay what you draw. Once you withdraw funds, you have a set time period that you can repay, such as six to 18 months. You can add this as budget line item to make sure you stay on top of payments. 

But take stock of the risks of taking out a business loan. Using a business line of credit works best when you take out small amounts to cover expenses that you can repay quickly. If you’re experiencing a long-term cash shortage, you may want to consider other options like cutting expenses or generating more revenue. 

Frequently asked questions about business lines of credit


Clock Wait
years in business
Credit Card Search
lenders reviewed
loan features weighed
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.
Additionally, we use a 22-point scale to evaluate lenders in five key areas: Accessibility, affordability, transparency, customer service and flexibility. Based on the results, lenders are given a rating between 1 and 5:
  • 4.5 or higher: Outstanding
  • 4 to 4.5: Excellent
  • 3.5 to 4: Good
  • 3.5 and under: Average


*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.