The best small business line of credit lenders will have a combination of low rates, fast funding speeds, and flexible repayment terms. These lenders should also offer excellent customer service and may also have easy qualification requirements and allow for quick access to funds drawn.
You should prioritize the features most important to you, as the best small business line of credit will vary depending on your specific business qualifications, needs, and goals. Here is our list of the eight best business lines of credit:
- Bluevine: Best overall for established businesses seeking low rates
- SBG Funding: Best for businesses seeking on-demand access and custom payments
- Lendio: Best for low-revenue companies
- Clarify Capital: Best for multiple loan options
- Wells Fargo: Best for businesses seeking traditional banking services
- National Business Capital: Best for high-revenue businesses seeking large amounts
- 1West: Best easy online lending process
- SMB Compass: Best rates and terms for well-qualified businesses
Get the Best Business Financing with Expert Guidance from SBG Funding |
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Best Small Business Lines of Credit at a Glance
Maximum Loan Amount | Maximum Loan Term | Minimum Credit Score | Annual Revenue Requirement | Application to Funding Speed | ||
---|---|---|---|---|---|---|
$250,000 | 6.2% to 78% | 12 months | 625 | $480,000 | As fast as same day | |
$750,000 | 15% | 24 months | 600 | $350,000 | As fast as same day | |
$250,000 | 8% to 60% | 18 months | 600 | $50,000 | 1 to 2 days | |
$5 million | 5% | 18 months | 550 | $120,000 | 24 to 48 hours | |
| Varies | Varies | 680 recommended | Varies | 2 to 5 days | |
$10 million | 5% to 60% | Varies | None | $500,000 | 24 to 48 hours | |
$500,000 | 6% | Varies | 500 | $120,000 | 48 hours | |
$5 million | 7.99% | Varies | 680 recommended | Varies | 24 to 48 hours | |
Some lenders give you the option to get a secured or unsecured business line of credit. You can learn more about the differences in our guide on business lines of credit.
Bluevine: Best Overall for Established Businesses Seeking Low Rates
Rates and Terms | |
Application Time | 5 minutes |
Approval Speed | 5 minutes |
Funding Speed | As fast as same day |
Loan Amount | Up to $250,000 |
Interest Rate | 6.2% |
Estimated APR | 6.2% to 78% |
Repayment Term | 26 weeks or 12 months |
Repayment Schedule | Weekly, monthly |
Qualifications | |
Credit Score | 625 |
Time in Business | 24 months |
Annual Business Revenue | $480,000 |
Why We Like Bluevine
Bluevine has one of the longest time in business requirements in our guide, but it’s our best overall credit line because of its rates and funding speeds. In fact, if you combine the credit line with Bluevine’s checking account, you could get instant access to funds. You can check out our Bluevine business checking review to learn more.
The company is an especially good option if you plan on utilizing its credit line for short-term financing. This is because its rates are calculated as a simple interest rate and assume that you draw the maximum amount possible while making the minimum payments allowed. In other words, paying the loan off faster would mean you’d be paying a lower effective interest rate than what’s shown above.
Funds drawn from a Bluevine line of credit can be used for virtually any business-related purpose. This flexibility, in addition to the reasons mentioned above, is why we also selected the provider in our roundup of the best working capital loans. To learn more or apply, visit the Bluevine website.
SBG Funding: Best for Businesses Seeking On-demand Access & Custom Payments
Rates and Terms | |
Application Time | 10 minutes |
Approval Speed | 24 hours |
Funding Speed | As fast as same day |
Loan Amount | Up to $750,000 |
Interest Rate | 1% per month (average fixed monthly rate) |
Estimated APR | 15% and up |
Repayment Term | 6 to 24 months |
Repayment Schedule | Weekly, monthly |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Annual Business Revenue | $350,000 |
Why We Like SBG Funding
We recommend SBG Funding to business owners seeking tailored payment options and the ability to get instant access to funds. Compared to other banks that limit payment options to a specific rate and term, SBG Funding can provide deferred payments for up to three months and make other adjustments to accommodate your company’s cash flow needs.
Since the last time we covered SBG Funding, it has improved its small business line of credit offering. The maximum loan amount has been increased from $250,000 to $750,000, and the average monthly fixed rate has decreased from 1.75% to 1%.
A downside to this, however, is that it has also adjusted some of its eligibility criteria, including a higher credit score and time in business requirements. Additionally, despite its advertised approval rate of 85%, borrowers should note that compensating factors will likely be needed if their credit or finances are borderline, even if they meet the minimum qualification requirements.
To apply, you can complete SBG Funding’s online loan application. SBG Funding will initially perform just a soft credit pull to determine your eligibility, which will not impact your credit score.
Lendio: Best for Low-revenue Companies
Rates and Terms | |
Application Time | 15 minutes |
Approval Speed | As fast as 24 to 48 hours |
Funding Speed | 1 to 2 days |
Loan Amount | $1,000 to $250,000 |
Interest Rate | 8% to 60% |
Estimated APR | Varies |
Repayment Term | 6 to 18 months |
Repayment Schedule | Weekly and monthly |
Qualifications | |
Credit Score | 600 |
Time in Business | 6 months |
Annual Business Revenue | $50,000 |
Why We Like Lendio
With the lowest revenue requirement on our list, Lendio is an excellent option for newer businesses that have not yet had time to build up their sales volume. It is a business loan broker, which means you can get financing options from different lenders. This allows you to choose the one best suited to your needs.
The company partners with over 75 lenders but features five for its small business line of credit program. No expertise or knowledge is required on your part as a borrower because you’ll be assigned a dedicated funding specialist who will walk you through the process and provide personalized recommendations.
With Lendio, you can be matched with lenders that offer both secured and unsecured lines of credit. Secured lines of credit can be easier to get and offer lower rates but may take longer to get funded. Unsecured lines of credit have faster funding speeds but often carry higher rates and have stricter qualification requirements.
To apply, you can visit the Lendio website. Applications can be completed in less than 15 minutes, after which you’ll be contacted by a lending specialist to discuss your specific needs.
Clarify Capital: Best for Multiple Loan Options
Rates and Terms | |
Application Time | 2 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | 24 to 48 hours |
Loan Amount | Up to $5 million |
Interest Rate | Not stated |
Estimated APR | 5% |
Repayment Term | 6 to 18 months |
Repayment Schedule | Monthly |
Qualifications | |
Credit Score | 550 |
Time in Business | 6 months |
Annual Business Revenue | $120,000 |
Why We Like Clarify Capital
Clarify Capital is a good option if you’re looking to get multiple loan options with a wide range of eligibility criteria. It offers low rates and flexible qualification requirements for time in business, credit score, and revenue.
It has a network of over 75 lenders, which increases the number of financing options you could be presented with. While having a large network of lenders can also improve your approval odds, the exact eligibility criteria could vary depending on the lender you’re matched with.
Working with Clarify Capital gives you the ability to choose between secured and unsecured business lines of credit. Unsecured lines of credit tend to be more difficult to get, but you can check out our guide on unsecured business lines of credit for tips on improving your approval odds.
Clarify Capital offers a high level of service, demonstrated by its 4.8 rating on Trustpilot[1]. To learn more, ask questions, or apply, you can visit the Clarify Capital website. Applications can be completed online in under two minutes, and eligible businesses can get funding as quickly as 24 to 48 hours.
Wells Fargo: Best for Businesses Seeking Traditional Banking Services
Rates and Terms | |
Application Time | 10 minutes |
Approval Speed | 1 to 3 days |
Funding Speed | 2 to 5 days |
Loan Amount |
|
Interest Rate |
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Estimated APR | Varies |
Repayment Term | Varies |
Repayment Schedule | Monthly |
Qualifications | |
Credit Score | Varies, but 680 is recommended |
Time in Business | Varies |
Annual Business Revenue | Varies |
Why We Like Wells Fargo
If you are looking to simplify your finances and have multiple products and services with the same bank, Wells Fargo is an excellent option. In addition to getting a small business line of credit, you can take advantage of its other services, including a Mastercard® access card, bill pay, business checking, automatic payments, and overdraft protection. You can also be enrolled in the bank’s free rewards program.
Wells Fargo offers unsecured and secured lines of credit. Its unsecured business credit line can be structured in one of two ways depending on how long you have been in business. For customers in business for two or more years, you can get up to $150,000 with rates as low as Prime + 1.75% on the bank’s BusinessLine® line of credit program. An annual fee of up to $175 does apply, but it’s waived for the first year.
For customers with less than two years time in business, Wells Fargo’s Small Business Advantage line of credit is more appropriate. It’s a program backed by the Small Business Administration (SBA) and allows for up to $50,000 in funding with rates as low as Prime + 4.50%. It has a $0 annual fee and no scheduled annual reviews.
Wells Fargo also offers a secured line of credit for customers who have anywhere from $2 to $10 million in annual sales. This credit line can be issued for up to $1 million with rates as low as Prime + 0.50%. It can be renewed on an annual basis and be structured to have interest-only payments.
To learn more or to submit a loan application, visit the Wells Fargo small business website.
National Business Capital: Best for High-revenue Businesses Seeking Large Funding Amounts
Rates and Terms | |
Application Time | 5 minutes |
Approval Speed | As fast as several hours |
Funding Speed | 24 to 48 hours |
Loan Amount | $100,000 to $10 million |
Interest Rate | 5% to 60% |
Estimated APR | 5% to 60% |
Repayment Term | Varies |
Repayment Schedule | Varies |
Qualifications | |
Credit Score | None |
Time in Business | 12 months |
Annual Business Revenue | $500,000 |
Why We Like National Business Capital
National Business Capital has the highest annual revenue requirement on our list. However, qualifying businesses could get some of the best rates available. The broker can work with a wide range of industries that commonly include construction, ecommerce, manufacturing, retail, restaurants, transportation, medical, and cannabis.
Note that meeting the minimum qualification requirements does not guarantee approval, as National Business Capital will review various aspects of your credit and finances to match you with one of its 75-plus lending partners.
An additional benefit of working with National Business Capital is the ability to get one-on-one business advisor coaching. This individual’s role is to not only get you approved and funded as quickly as possible but also to get you into a lending product that’s well-suited to help your business grow.
To apply, you can visit National Business Capital’s website. This broker has a quick 5-minute application to begin the process, after which you can connect your business bank account to aid in a more streamlined review of your loan application. You can then review your loan options with a financing advisor.
1West: Best Easy Online Lending Process
Rates and Terms | |
Application Time | 5 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | 48hours |
Loan Amount | $5,000 to $500,000 |
Interest Rate | 6% |
Estimated APR | 6% |
Repayment Term | Varies |
Repayment Schedule | Daily, weekly, biweekly, monthly |
Qualifications | |
Credit Score | 500 |
Time in Business | 3 months |
Annual Business Revenue | $120,000 |
Why We Like 1West
With 1West, you can get funded without the need to speak with an individual. This is possible with the use of its Automated Business Lending Engine (ABLE), as it can match you with financing options automatically within its network of over 50 lenders.
Like some of the other lenders in our guide, 1West offers both secured and unsecured lines of credit. Each can offer on-demand access to funds, and the credit line can be renewed if you want continued flexibility in drawing more funds.
You can visit the 1West website to submit an application. This can be completed in under five minutes, and you’ll also be able to create an account to upload the required documents and check your application status. Paperwork requirements are generally limited to six months of business bank statements but may vary depending on your business circumstances.
SMB Compass: Best Rates & Terms for Well-qualified Businesses
Rates and Terms | |
Application Time | 10 minutes |
Approval Speed | As fast as 24 hours |
Funding Speed | 24 to 48 hours |
Loan Amount | $10,000 to $5 million |
Interest Rate | 7.99% |
Estimated APR | 7.99% |
Repayment Term | Varies |
Repayment Schedule | Varies |
Qualifications | |
Credit Score | Not stated, but 680 is recommended |
Time in Business | Not stated, but 2 years is recommended |
Annual Business Revenue | Varies |
Why We Like SMB Compass
SMB Compass is another provider on our list that offers competitive loan terms overall. While it may not seem to have the lowest rates, businesses with excellent credit and finances may be more likely to get a better overall combination of loan terms to include things like the repayment length, loan amount, and interest rate.
The lender does not list all of its requirements to be considered eligible for a business line of credit, but we’ve listed our minimum recommendations in the table above. With that said, keep in mind that satisfying the criteria is no guarantee of a loan approval.
To get the process started, you can visit the SMB Compass website. Loan applications can be completed at no cost to you and with no impact on your credit score. Once you’ve submitted all required documents, you’ll then be able to discuss your options with an SMB Compass team member.
How We Selected the Best Small Business Lines of Credit
We considered the following characteristics in selecting the best small business lines of credit:
- Interest rates and estimated APRs
- Loan amounts and loan terms offered
- Qualification requirements
- Amount of required documentation
- Application, approval, and funding speeds
- Customer reviews and ratings
How You Can Choose the Best Business Lines of Credit
The best small business line of credit will vary depending on your company’s specific qualifications, needs, and goals. You should consider the following items, each of which is explained in greater detail in our guide on how to get a small business line of credit:
- Determine why you need a small business line of credit.
- Understand the options available to you based on your business qualifications.
- Check your eligibility against a lender’s requirements.
- Choose a lender and then submit a loan application.
Alternatives to a Small Business Line of Credit
A small business line of credit gives you flexible access to funds which can be helpful for covering emergencies or unexpected shortages in cash flow. However, if you’re having trouble getting a line of credit or want to save money on a loan with lower rates, below are some options.
- Personal loan for business purposes: You can consider this if your business credit or finances are making it difficult for you to get a business line of credit. Personal loans focus more on your personal credit and finances and can be easier to get. You can also view our recommendations in our guide to the best personal loans for business purposes.
- SBA loan: You’ll typically need to have good credit and strong business finances to qualify for an SBA loan. But if you’re approved, these loans can offer some of the most competitive rates available. We recommend you visit SBG Funding if you’re interested in getting this type of loan.
- Small business credit card: Many credit card providers issue revolving credit limits up to $25,000 or more, making it a good option for small and medium-sized purchases. Some issuers also offer a lower introductory rate and a rewards program to reduce the effective cost of your business expenses. See our top-recommended small business credit cards for a place to start.
Frequently Asked Questions (FAQs)
You can generally use a small business line of credit for any type of business-related expense. This can cover unexpected costs related to repairs, emergencies, cash flow shortages, or for working capital. Although uncommon, some lenders may specifically prohibit the line of credit from certain uses, and this will be specified in your loan agreement.
This depends on your goals; however, secured business lines of credit typically have better rates, lower fees, and higher credit limits. The downside is that you’ll have to pledge business assets as collateral for the loan, which allows the lender to repossess those items in the event you default. Unsecured business lines of credit don’t require you to pledge any collateral for the loan.
Business lines of credit aren’t necessarily expensive to use, although it does depend on how you use them and what fees your lender charges. Some lenders charge inactivity, annual, and draw fees. Since the fee schedule varies among different lenders, it’s important to understand all the fees associated with your loan before signing any paperwork.
Bottom Line
A small business line of credit gives you access to additional funds on an as-needed basis. This flexibility makes it a great option for covering emergencies and unexpected expenses, and you can check out our guide on what a small business credit line is if you’re unsure if it’s right for you. The best small business line of credit for you will depend on your unique business circumstances and needs, but the options we’ve selected all offer competitive rates with a wide range of loan terms and qualification requirements.
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