Best Startup Business Line of Credit 2022

After looking at dozens of business lenders, we found the best ones that offer business lines of credit to young startups.
Best Overall
Lendio
Lendio
4.3 out of 5 stars
4.3
  • pro
    560 min. credit score
  • pro
    Up to $500,000.00
Best for Low Rates
BlueVine
BlueVine
3.9 out of 5 stars
3.9
Starting at
4.8% interest
  • pro
    600 min. credit score
  • pro
    Up to $250,000
See Loan OptionsAvailable via Lendio marketplace
Best for Young Businesses
Fundbox
Fundbox
3.1 out of 5 stars
3.1
Starting at
4.66% draw rate
  • pro
    600 min. credit score
  • pro
    Up to $100,000
Best for Repeat Borrowers
OnDeck
OnDeck
2.9 out of 5 stars
2.9
Starting at
35.95% APR
  • pro
    600 min. credit score
  • pro
    Up to $100,000
See Loan OptionsAvailable via Lendio marketplace
Best for Monthly Payments
Kabbage
Kabbage
2.6 out of 5 stars
2.6
Starting at
2% monthly fee
  • pro
    Min. credit score unlisted
  • pro
    Up to $150,000
See Loan OptionsAvailable via Lendio marketplace

Data effective 5/10/22. At publishing time, loan amounts, rates, and requirements are current but are subject to change. Offers may not be available in all areas.

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure.

If your startup has been around for at least six months, a startup business line of credit (LOC) can provide you with a form of revolving credit. You can withdraw funds, use them, pay them back, and then withdraw more.

Of course, it can be hard to find lenders that offer startup lines of credit. That’s why we did the research for you, digging into tons of lenders to find the best ones that offer lines of credit to younger, newer businesses.

For most business owners, we recommend applying for a line of credit through Lendio, since its marketplace lets you compare credit line offers. But we found other great startup line of credit options too.

Let’s find the right LOC for your startup.

Info
What counts as a startup?

The word “startup” gets thrown around pretty loosely sometimes, so let’s clarify: in this review, we’ll use “startup” to mean businesses that have been in business for at least six months but less than two years and that make $150,000 or less in annual revenue.


Our top-rated lender: Lendio

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

Qualifications:

Money Approach

$50k in revenue

Calendar Approach

6 mos. in business

Analysis Approach

560 credit score


Compare the best startup business lines of credit

Lender
Min./max. credit limit
Lowest listed rate
Min. revenue
Get a loan

$1,000.00/$500,000.00

Various

$50,000.00/yr.

$1,000.00/$250,000.00

4.8% interest

$10,000.00/mo.

Up to $100,000.00

4.66% draw rate

$100,000.00/yr.

$6,000.00/$100,000.00

35.9% APR

$100,000.00/yr.

$1,000.00/$150,000.00

2% monthly fee

Unlisted

Data as of 5/10/22. Offers and availability may vary by location and are subject to change.

*Does not represent the typical rate for every borrower, and other fees may apply.

Where to get startup lines of credit

You might have noticed something about our recommended lenders: They’re all online lenders, also called alternative lenders. And there’s a reason for that.

Traditional lenders (banks) don’t offer many financing options for startup businesses. See, banks tend to have high borrower requirements―and they reserve their credit lines for the most creditworthy customers. That rules out young businesses without plenty of revenue.

Fortunately, online lenders have arrived to fill in that gap. Alternative lenders will work with young businesses, businesses with bad credit, and businesses without tons of revenue. That makes them ideal for startups seeking funding.

So let’s see which alternative lender you should go with.

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Lendio: Best overall startup business line of credit

Best overall
Lendio
Lendio
4.3 out of 5 stars
4.3
  • pro
    560 min. credit score
  • pro
    $50,000.00 min. annual revenue
  • pro
    6 mos. min. time in business

Just about every startup should start its line of credit search with Lendio. It tops these rankings for the same reason it tops our rankings of the best small-business loans: Lendio makes comparing loans and LOC offers shockingly easy.

Lendio is a lending marketplace, not a lender. What does that mean for you? Simply that you just have to submit one LOC application to Lendio, and it will come back with several offers from various lenders. You can compare which have the best terms, the best APR, the highest credit limit—whatever you want—and then apply with that lender.

And since Lendio’s marketplace includes some of the lenders below, there is no reason not to begin your line of credit journey at Lendio.

(As a bonus, Lendio is one of two lenders on this list—Fundbox being the second—that requires less than one year of business history.)

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

BlueVine: Lowest interest rates

Lowest interest rates
BlueVine
BlueVine
3.9 out of 5 stars
3.9
  • 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

BlueVine offers the lowest starting rates of any lender on this list.

Interest rates on its lines of credit start at under 5%―incredibly low for an online lender, and competitive even for traditional lenders. That makes BlueVine lines of credit a very affordable financing option.

Now, if you’ve got a young startup, you shouldn’t expect to get that rock-bottom rate. But lower starting rates give you a higher chance of getting a decent rate yourself, even without an older, more established business.

So if rates are what you care about, apply with BlueVine.

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

Fundbox: Best for very young businesses

Best for very young businesses
Fundbox
Fundbox
3.1 out of 5 stars
3.1
  • con
    Starting at 4.66% draw rate
  • pro
    600 min. credit score
  • pro
    $100,000.00 min. annual revenue
  • pro
    6 mos. min. time in business

Is your startup almost brand-new? Then Fundbox might be the lender you need.

Most lenders like to work with businesses that have been around for at least one year. And while you can find the occasional lender that works with younger businesses, none of them beat Fundbox. While Fundbox does ask for businesses to be at least six months old, it does accept applications from younger businesses―as young as two months old.

Yes, that flexibility comes at a cost. Fundbox draw fees and repayment schedule make it one of the more expensive lines of credit out there―so make sure it fits in your budget.

But your business’s young age shouldn’t keep you from getting an LOC. Just ask Fundbox.​

Strengths
pro Automated applications
pro Low approval requirements
pro Fast funding
Weaknesses
con Low maximum loan amounts
con High APR
Consider a personal loan instead

OnDeck: Best for repeat borrowing

Best for repeat borrowing
OnDeck
OnDeck
2.9 out of 5 stars
2.9
  • con
    Starting at 35.9% draw rate
  • pro
    600 min. credit score
  • pro
    $100,000.00 min. annual revenue
  • pro
    1 yr. min. time in business

Are you the kind of business owner that’s always looking ahead? Then you might want to start a relationship with OnDeck.

See, OnDeck gives its repeat customers some nice perks, like reduced loan fees and lower interest rates. And it reports to credit bureaus (many online lenders don’t), so you can improve your credit score by repaying your OnDeck line of credit―setting you up for better future financing, with or without OnDeck.

Unfortunately, OnDeck (like other online lenders) can get pricey. Even its starting APR looks surprisingly high if you’re used to traditional banks.

Given how OnDeck can set you up for better future financing, though, you may find it worth the cost.

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

Kabbage: Best for monthly payments

Best for monthly payments
Kabbage
Kabbage
2.6 out of 5 stars
2.6
  • con
    Starting at 2% monthly fee
  • pro
    Min. credit score unlisted
  • pro
    Min. revenue unlisted
  • pro
    1 yr. min. time in business

Hoping for a monthly payment schedule? Go with Kabbage.

Many online lenders use daily or weekly payment schedules, which can disrupt your business’s cash flow. But Kabbage offers a monthly payment schedule on all its credit lines, freeing up more of your cash for the rest of the month.

As you can probably guess, though, Kabbage’s monthly fees can add up real fast. And of course, your monthly payments will be higher than more frequent payments.

If it fits in your budget, though, and you like monthly payments, we think you’ll be all about Kabbage.

Strengths
pro Monthly repayment schedule
pro Low fees on some LOCs
pro Automated approval process
Weaknesses
con High APR on many LOCs
con Unlisted borrower requirements

The takeaway

Lendio has the best line of credit options for most startups, since its marketplace gives you the chance to shop around for your best credit offer.

You may prefer other lenders, though―like BlueVine (if you want low-interest rates),  Fundbox (for very young businesses), OnDeck (for better future borrowing), or Kabbage (for monthly payments).

Whatever lender you go with, we hope your line of credit helps you grow your startup.

Get the most out of your line of credit by brushing up on how a business line of credit works.

Related content

Methodology

We researched dozens of business lenders and narrowed things down to lenders that offered lines of credit with relatively lenient borrower requirements (less than two years in business and under $150,000 in revenue). We scored these lenders based on costs, customer reviews, and more. With the resulting scores, we created our rankings.

Startup line of credit FAQ

What kinds of fees do lines of credit have?

Many lines of credit have origination fees. Some also charge an annual fee. You may also have cash advance fees or even monthly maintenance fees. Ask your lender to get the specifics for your line of credit.

Why get a line of credit instead of a business credit card?

There are a few reasons you’d want to apply for a business line of credit instead of getting a business credit card. First and foremost, LOCs are designed to make cash advances easy and affordable; credit cards usually have big fees for cash advances. And as we mentioned above, lines of credit tend to have lower APR than credit cards, plus longer repayment terms.

Generally speaking, lines of credit work best for larger working capital needs, like equipment purchases, bills, and business upgrades; a credit card works best for smaller business expenses, like staff lunches and office supplies.

When shouldn’t I get a line of credit?

Some lenders will not work with businesses in certain industries (such as gambling, adult entertainment, and marijuana). You probably won’t be able to get a business line of credit if you’re in one of those industries, so you shouldn’t waste time applying.

But for most businesses, the reasons they shouldn’t get a business line of credit are the same as why they shouldn’t get other types of financing: they can’t afford it. If you can’t budget to make payments on your line of credit (including the interest) then you’ll just dig yourself into a (debt) hole you can’t get out of. Make sure you can afford your LOC.

What lines of credit exist for more established businesses?

Our ranking of the best business lines of credit has options for businesses at various stages. But no matter what stage your business is at, we recommend Lendio as your first stop.

What other types of business financing should I consider?

Revolving lines of credit are great, but you’ve got plenty of other good financing options:

  • Term loans
  • Equipment financing
  • Invoice factoring
  • Business credit cards
  • Angel investors
  • Venture capitalists
  • Personal loans

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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