5 Best Business Lines of Credit in 2023

After comparing rates, credit limits, and more at dozens of lenders, we’ve found the best lines of credit for small business owners.
Best overall
Lendio
Lendio
  • pro
    Up to $500,000
  • pro
    Personalized loan matching
  • pro
    Wide variety of funding options
  • pro
    560 min. credit score
Best for flexible repayment
Backd
  • pro
    Up to $750,000
  • pro
    Near-instant approval
  • pro
    Quick access to funds
  • pro
    640 min. credit score
Best for low rates
BlueVine
Bluevine
Starting at
4.8% interest
  • pro
    Up to $250,000
  • pro
    Many financing options
  • pro
    Easy application process
  • pro
    625 min. credit score
Best for repeat borrowers
OnDeck
OnDeck
  • pro
    Up to $100,000
  • pro
    Excellent reputation
  • pro
    Discounts for repeat customers
  • pro
    600 min. credit score
Best for established businesses
Funding Circle
Funding Circle
Starting at
10.99% APR
  • pro
    Up to $100,000
  • pro
    Access to other financing
  • pro
    Competitive APR
  • pro
    660 min. credit score

Data as of 5/30/23. Offers and availability may vary by location and are subject to change.

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Business lines of credit (LOCs) offer flexible financing for small businesses. They let you borrow what you need (up to your credit limit), repay what you borrowed, and borrow again, paying interest only on the money you use. That makes LOCs a good way to deal with cash flow problems, take advantage of time-sensitive opportunities, and otherwise handle working capital needs.

After scoring dozens of lines of credit from both traditional banks and online lenders, we found Lendio has the best business credit lines. Lendio offers the best combo of borrower requirements and interest rates ― plus, Lendio lets you shop around. But we’ve found other lenders that can work equally well for your business.

So let’s look at the top LOCs.

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Need a refresher on LOCs?

We’ve got a brief refresher below, or you can check out our guide to how a business line of credit works.


Our top-rated lender: Lendio

Lendio partners with over 75 lenders, which improves your odds and efficiency to get the funding you need.

Qualifications:

bullet

$50k in revenue

bullet

6 mos. in business

bullet

560 credit score


Compare the best business lines of credit

Brand
Min./max. line of credit
Lowest listed rate
Min. revenue requirement
Get a loan

$1,000.00/$500,000.00

$50,000.00/yr.

$25,000.00/$750,000.00

-

$100,000.00/yr.

$5,000.00/$250,000.00

4.8% interest

$10,000.00/mo.

$6,000.00/$100,000.00

$100,000.00

$6,000.00/$100,000.00

10.99% APR

$25,000.00/yr.

Data as of 5/30/23. Offers and availability may vary by location and are subject to change.

What is a business line of credit?

A business line of credit is similar to a credit card in that you can apply for access to a specific amount of money from a lender but you will only owe interest on the amount that you actually use. Based on your credit score and how much you need, the lender will determine how much money they are willing to make available to you.

How does a business line of credit work?

While business lines of credit often get lumped in with business loans, they’re a different kind of financing altogether. A term loan gives you money in one lump sum, which you pay back over time. A line of credit, though, gives you a credit limit. So you can borrow what you want, up to that credit limit. Then you pay back what you borrowed (plus interest).

A business line of credit lets you keep borrowing and paying back repeatedly (this is called revolving credit), so you don’t have to reapply for financing every time a new need arises within the term of the credit line.

It’s kind of like a business credit card, but lines of credit usually work better for large working capital expenses. (In fact, many businesses enjoy the flexibility of using both a business line of credit and a business credit card.)

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Terms on LOCs
Some business lines of credit have a borrowing term, which basically means you can use your LOC as much as you want for a year (or whatever your term is), and then it expires. Pretty much all LOCs have repayment terms on the money you borrow, which can range from weeks to years.

How to use a line of credit

When you apply for a business loan, you’re given money for a specific purpose (like buying real estate or a new industrial mixer). But since lines of credit are a form of revolving credit that are not tied to one specific purpose, you can use them for all sorts of needs, such as:

  • Purchasing equipment or inventory
  • Hiring staff and making payroll
  • Taking advantage of time-limited deals
  • Creating marketing campaigns
  • Smoothing over cash flow issues
  • Tiding over seasonal profit changes

That flexibility is great for you as a business owner — but it’s also why lenders like to be careful to who they extend credit lines.

For more details on getting and using a business line of credit, check out our guide to how a business line of credit works.

Don't qualify for a business loan? Get a personal loan instead.

Lendio: Best business line of credit overall

Best business line of credit overall
Lendio
Lendio
  • pro
    560 min. credit score
  • pro
    $50,000.00 min. annual revenue
  • pro
    6 mos. min. time in business

Data as of 3/21/23. Offers and availability may vary by location and are subject to change.

Lendio is our favorite source for business lines of credit. So why does Lendio deserve the top spot? Easy — because Lendio is not a lender, but a lending marketplace.

Here’s what that means: You apply to Lendio with a brief online application. Lendio then takes your application and matches you with lenders you qualify for. You then compare offers and choose the one that works best for you. Lendio works with several of the other lenders on this list, so your application on Lendio’s lending platform gives you a shot at most of our favorite lines of credit.

Lendio’s marketplace approach lets it offer large lines of credit and competitive rates. So for most businesses looking for a line of credit, Lendio should be your first (and hopefully only) stop.

Strengths
pro Fast application
pro Wide variety of funding and lenders
pro Personalized guidance and expertise
Weaknesses
con High-interest rates on some credit lines
con Reports of hard credit inquiries

Backd: Best for flexible repayment

Best for flexible repayment
Backd
  • pro
    Minimum FICO credit score 640
  • pro
    $100,000.00+ annual revenue
  • pro
    1 year in business

Data as of 5/30/23. Offers and availability may vary by location and are subject to change.

Backd might not offer the largest lines of credit — or the cheapest — but Backd gets points for flexibility and speed to funding.

That’s because Backd has the most flexible repayment requirements we’ve seen for a line of credit. Backd allows for terms of six months or 12 months. As you need funds, your credit automatically reloads when you pay your balance. There is no need to contact an agent each time you need more funds.

Applying for a line of credit is just as easy. You simply apply online with your proof of ownership, most recent tax return and bank verification. You will receive an answer and funding within 24 hours. Backd's funding turnaround is one of the fastest in the biz. 

The biggest drawback is that Backd does not fund all industries. Some industries Backd will not work with include financial services, real estate services, government or non-profit agencies, cannabis, and adult entertainment to name a few. 

 

Strengths
pro Automated application
pro Low approval requirements
pro Funds available as soon as the next business day
Weaknesses
con Lack of transparency for rates
con Will not offer funding for certain industries

Bluevine: Best for low rates

Best for low rates
BlueVine
Bluevine
  • con
    Starting at 4.8% interest
  • pro
    600 min. credit score
  • pro
    $10,000.00 min. monthly revenue
  • pro
    6 mos. min. time in business

Data as of 3/21/23. Offers and availability may vary by location and are subject to change.

Bluevine’s business line of credit can compete with the big banks while offering the convenience of an online lender.

Bluevine’s 4.8% starting interest is comparable to (or even lower than) what you can find at a traditional bank. It’s a great deal if you can qualify. Bluevine has higher application criteria than most of the other lenders on this list. Bluevine requires at least $10,000 in monthly revenue (which comes to $120,000 in annual revenue). And that’s the minimum — to qualify for the best rates, you’ll need more impressive qualifications than the minimum credit score.

Even so, if you want low rates on your business line of credit, Bluevine is the place to start. For a little bit more information on Bluevine, read our more in-depth review. 

Strengths
pro Low starting rates
pro Monthly payments on some lines
pro Same or next-day funding
Weaknesses
con High borrower requirements
con Potentially large fees
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OnDeck: Best for repeat borrowers

Best for repeat borrowers
OnDeck
OnDeck
  • pro
    600 min. credit score
  • pro
    $100,000.00 min. annual revenue
  • pro
    1 yr. min. time in business

Data as of 3/21/23. Offers and availability may vary by location and are subject to change.

The starting rates on OnDeck’s lines of credit may seem a little high, but discounted rates on future financing make OnDeck worth looking at.

That’s right — OnDeck gives repeat borrowers discounted rates. You can even get discounted origination fees when you repeatedly borrow from OnDeck. And when you decide to apply for a term loan in a year or two, that repeat borrowing discount might come in handy.

In other words, if your new line of credit is just the beginning of your business financing needs, then an OnDeck LOC might be your first step to discounted future rates.

Strengths
pro Discounts for repeat borrowers
pro Credit bureau reporting
pro Fast funding times
Weaknesses
con High starting APR
con Relatively high borrower requirements

Funding Circle: Best for established businesses

Best for established businesses
Funding Circle
Funding Circle
  • bullet
    Starting at 10.99% APR
  • pro
    660 min. credit score
  • pro
    Min. revenue unlisted
  • pro
    2 yrs. min. time in business

Data as of 3/21/23. Offers and availability may vary by location and are subject to change.

If you’ve got a more established business, we suggest looking at Funding Circle

Funding Circle has stricter borrower requirements than other lenders on our list. For instance, Funding Circle requires businesses to be much older (at least two years) and to have better credit scores. But in return, you can get a very competitive APR (annual percentage rate), fast funding turnaround times, business credit bureau reporting, and more.

So if you can qualify for Funding Circle, the associated perks make it a great lender for more established businesses.

Strengths
pro Competitive starting APR
pro Monthly payments on some LOCs
pro Funding within 48 hours
Weaknesses
con High borrower requirements
con Low maximum credit limit

Honorable mention business lines of credit

Brand
Min./max. LOC
Lowest listed rate
Annual revenue requirement
Get a loan
Kabbage

Kabbage

$1,000.00/$150,000.00

2% monthly fee

Unlisted

Bank of America

Bank of America

Starting at $10,000.00

4.75%

$100,000.00

JP Morgan Chase Bank Business

Chase

$10,000.00/$500,000.00

Unlisted

Unlisted

Citi

Citibank

$10,000.00/$5 million

Unlisted

Unlisted

Wells Fargo

Wells Fargo

$5,000.00/$500,000.00

Prime + 1.75%

Unlisted

Data as of 3/21/23. Offers and availability may vary by location and are subject to change.

Kabbage: Best for monthly payments

Best for monthly payments
Kabbage
Kabbage
  • pro
    Starting at 2% monthly fee
  • pro
    Min. credit score unlisted
  • pro
    Min. revenue unlisted
  • pro
    1 yr. min. time in business

Data as of 3/21/23. Offers and availability may vary by location and are subject to change.

Want to avoid the weekly or even daily payments that most online lenders insist on? Take a look at Kabbage.

Kabbage offers exclusive lines of credit, but with one key advantage over other lenders: It uses a monthly repayment schedule. That kind of schedule can free up cash flow during the rest of your month. Just be careful with Kabbage’s monthly fee ― because while it can be affordable (depending on your loan term and fee rate), it can also get quite costly.

But with the right term and rate, Kabbage’s monthly schedule can be just what you need to get more working capital without sacrificing cash flow.

Alternatives to business lines of credit

If a business line of credit is not right for you, there are funding alternatives through personal lines of credit or traditional banks. 

A personal line of credit can seem appealing because it has no time in business requirements or revenue requirements. If you have a very young business (or you’re about to start one), you’ll have an easier time getting a personal line of credit than a business line of credit. Sounds good, right?

As you can probably guess, though, personal lines of credit have some cons you need to consider. For example, they often have higher credit requirements than many of the business lenders on our rankings.

Plus, some personal lenders have restrictions on how you can use your borrowed funds, meaning you may not be able to use your personal line of credit on a business. And depending on the type of credit line you get, your personal LOC could come with a high-interest rate and expensive fees.

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Alternative lending vs. traditional lending

Want to learn more about how banks and online lenders compare? We’ve got a guide to traditional banks vs. alternative lenders.

Traditional banks: Best for established businesses

Traditional banks offer some of the lowest rates and highest credit limits. Many offer a choice of both unsecured and secured business lines of credit too. (Securing your financing with collateral can further lower your interest rate.)

The biggest downside is that big banks have much higher application criteria than most online lenders. For example, almost all banks require your business to be at least two years old and only accept credit scores over 700. 

If your business can meet those kinds of qualifications, by all means, get your business line of credit from a traditional bank. You’ll probably get a stellar deal, especially if you do your business banking at the same financial institution. But for many small businesses, alternative lenders are the way to go — even if they cost a little more.

The takeaway

Many lenders offer lines of credit, but we believe Lendio has the best business line of credit for most small business owners. That’s because its competitive lending marketplace approach lets you compare line of credit offers to find the best deal.

Of course, we found plenty of other solid lenders too. If you’re looking for the lowest rates, start with Bluevine. Or, if set-in-stone repayment plans make you panic, Backd is your best bet. For businesses that plan to do more borrowing in the future, OnDeck offers some great perks. And if you prefer a monthly payment schedule, we recommend Kabbage.

So whatever your financing needs, we’re confident you can find the right line of credit for you.

Lines of credit are just one type of small-business lending available to you. Explore your other capital options with our rankings of the best small-business loans.

Business line of credit FAQ

Most starting interest rates we see range from 4.5% to 10%. Keep in mind, though, that those rates are for the most-qualified borrowers. For riskier borrowers, rates can go up past 30%.

Business line of credit requirements will depend on what lender you go with. At a minimum, you’ll need a 560 personal credit score, $50,000 in revenue, and a business at least six months old.

To qualify for the best business lines of credit, you’ll want a credit score in the high 600s, over $100,000 in annual revenue, and a business over two years old.

If you meet the basic qualifications, you can apply for a business line of credit with the lender of your choice. Lenders will need to see a bunch of information during the application process:

  • Business information (including type, age, and EIN)
  • Tax returns (personal and business)
  • Bank statements
  • Other financial statements
  • Credit history (including your personal and business credit score)
  • Business plan

The fees on a business line of credit vary by lender, but there are some standard fees to watch out for:

  • Opening/origination fee
  • Annual fee
  • Maintenance fees (assessed monthly for unused lines)
  • Cash advance fees
  • Late payment fees

When you apply for a business line of credit, be sure to ask your lender about the fees accompanying your specific line. Unexpected costs are the last thing you want on a product that’s supposed to help your business finances.

Sure, some business LOCs are unsecured — that is, they don’t require specific collateral from borrowers. Pretty much all lenders will require a personal guarantee, though, even for an unsecured business line of credit. Some lenders may also require a blanket lien on your business. Ask your lender about its specific collateral policies.

Take a look at our guide to unsecured business loans to learn more about personal guarantees and collateral.

Methodology

We researched dozens of business lenders and then used our standardized scoring system to grade their lines of credit on factors including credit limits, interest rates (or fees), customer reviews, and more. With the resulting scores, we created our rankings and lender reviews.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Chloe Goodshore
Written by
Chloe Goodshore
Chloe covers business financing and loans for Business.org. She has worked with many small businesses over the past 10 years, from video game stores to law firms. Those years watching frustrated business owners try to sift through their many options gave her a passion for breaking down complex business topics. She wants to help business owners spend less time agonizing over their businesses so they can spend more time running them.
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