A business line of credit is a flexible form of small business financing. You can borrow against it up to a preset limit and only pay interest on the amount that you’ve borrowed. Some lines of credit work similarly to a credit card, where you pay based on your total balance, while others have terms for each draw.
Jump ahead for more information on lines of credit and how they work or keep reading to check out our top picks for the best business line of credit lenders in 2025. We reviewed more than 24 lenders based on their rates and terms, repayment experience and customer service offerings to bring you the seven best options on the market.
| Lender | Best for… | Max. loan amount | Term length | Min. interest rate | Min. time in business | |
|---|---|---|---|---|---|---|
 | Large purchases | $250,000 | 6 to 24 months | 3.00%
3% to 9% for 6-month terms 6% to 18% for 12-month terms 9% to 27% for 18-month terms 12% to 18% for 24-month terms Each draw counts as a separate installment loan. Single-repayment loans will have different rates and terms. | 12 months | Get business line of credit offers |
 | Startups | $50,000 | 60 months | 12.00% Based on the current prime rate of 7.50%+ 4.50% added by Wells Fargo | None | Get business line of credit offers |
 | Bad credit borrowers | $250,000 | 12 or 24 weeks | 4.66%
| 3 months | Get business line of credit offers |
 | Secured line of credit | Not disclosed | 12 months | 8.50% | 24 months | Get business line of credit offers |
 | Automating your finances | $250,000 | Up to 12 months | 7.80% | 12 months | Get business line of credit offers |
 | Same-day funding | $100,000 | 12 to 24 months | 40.00% | 12 months | Get business line of credit offers |
 | Longer repayment terms | $250,000 | 12 to 60 months | Not disclosed | None | Get business line of credit offers |
$2,000 to $250,000
3.00% for installment loans
3% to 9% for 6-month terms
6% to 18% for 12-month terms
9% to 27% for 18-month terms
12% to 18% for 24-month terms
Each draw counts as a separate installment loan. Single-repayment loans will have different rates and terms.
0.95% for single-repayment loans
0.95% to 1.80% for 1-month terms
1.90% to 3.75% for 2-month terms
2.85% to 6.05% for 3-month terms
Rates are for single-repayment loans. Installment loans will have different rates and terms.
6 to 24 months
An American Express Business Line of Credit is an excellent option if you need to make a large purchase. It has low interest rates — the lowest starting rate on our list — which can help you save.
It may also be an option if your business doesn’t earn that much since it only requires you to show at least $36,000 in annual revenue. Plus, you can get a loan approval decision in a matter of minutes and receive funding instantly if you’re approved and connect to an American Express checking account.
However, each draw on the line of credit results in a separate loan and every loan requires a personal guarantee. Plus, the interest rate you’ll face will vary widely, depending on the length of the loan term you choose.
In order to qualify, you’ll need to meet American Express’s criteria of:
Each draw on American Express’s business line of credit will either result in a separate installment loan or a separate single repayment loan, depending on length of the loan term chosen.
With installment loans, you’ll repay a set monthly payment each month until the loan is paid off in full at the end of the loan term.
In contrast, single repayment loans don’t require multiple monthly payments. Instead, the full principal balance and any interest charges are due in a single payment on a predetermined due date. Terms for single-repayment loans range from 1 to 3 months, with rates ranging from 0.95% to 6.05%. Single repayment loans are only available to people who have an existing American Express product.
$5,000 to $50,000
12.00% Based on the current prime rate of 7.50%+ 4.50% added by Wells Fargo
60 months (no annual review)
Companies less than two years old can apply for startup business financing with the Wells Fargo Small Business Advantage unsecured line of credit. Backed by the Small Business Administration (SBA), this line of credit comes with no annual fees and undergoes a review once every five years. More established businesses may want to consider the Wells Fargo BusinessLine line of credit to access higher amounts at a lower rate.
In order to qualify, you’ll need to meet Wells Fargo’s criteria of:
Wells Fargo’s Small Business Advantage line of credit works like a credit card. You’ll be able to draw from it as needed over the five-year period and you’ll receive monthly statements with a minimum payment requirement. If there is a balance due on your account at the end of the five-year draw period, your account will renew automatically.
Up to $250,000
4.66% for 12-week terms
8.99% for 24- week terms
12 or 24 weeks
If you need a bad credit business loan, Fundbox might be a good option. With a minimum credit score requirement of 600, low-credit borrowers can access revolving funds up to $250,000 to use toward various business expenses. Businesses must have an annual revenue of $100,000 or greater to qualify for Fundbox’s business credit lines, but if approved, you can receive funds the next business day.
That said, in order to receive funding from Fundbox, you need to be willing to sign a personal guarantee, which puts you on the hook for repayment if your business defaults. Plus, at just 12 or 24 weeks, Fundbox’s repayment terms are fairly short, so you’ll need to be prepared to pay back the funds quickly.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
Each draw on Fundbox’s line of credit results in a separate repayment plan, which is repaid via a series of weekly repayments. Borrowers can choose between a 12-week or 24-week repayment plan. However, if you choose to subscribe to Fundbox Plus, you’ll be given the option to make monthly payments instead.
Starting at $25,000
8.50%
12 months
Bank of America’s secured line of credit comes with a high minimum borrowing amount and affordable interest rate for well-qualified borrowers. Plus, it offers plenty of opportunities to earn rate discounts.
Unfortunately, though, it may not be the best fit for every borrower. The company doesn’t disclose its minimum credit score requirements and, at $250,000, the annual revenue requirement is fairly high compared to the competition.
In order to qualify, you’ll need to meet Bank of America’s criteria of:
Bank of America’s secured line of credit functions like a credit card. Purchases can be made up to a set limit and each purchase gets added to a cumulative balance. You’ll be given a minimum payment amount and be expected to make regular payments on what you’ve borrowed.
$1,000 to $250,000
7.80%
Up to 12 months
Bluevine is our top pick for financial automation because it offers both a line of credit and a checking account, and has several features that make managing your finances easy, including the ability to automate accounts payable and link to Quickbooks for easy accounting. You can manage your line of credit and checking account (and sub accounts) from one dashboard, making it a useful solution for business owners looking to simplify their finances.
Plus, with interest rates starting at just 7.80%, qualified businesses can take advantage of Bluevine’s business line of credit, which has no hidden fees and quick funding times.
Still, Bluevine imposes some eligibility restrictions on its products. Its line of credit is not available to business owners who live in Nevada, North Dakota, South Dakota or any U.S. territories. Additionally, at $120,000, its annual revenue requirement is higher than some of the competition.
In order to qualify, you’ll need to meet Bluevine’s criteria of:
Each draw on a Bluevine line of credit must be approved by the company beforehand and results in a separate loan, with its own repayment amount and repayment schedule.
The company offers two repayment schedules. The weekly repayment plan is meant for newer businesses and allows you to repay your balance through weekly payments over the course of 26 weeks. Meanwhile, businesses older than three years are eligible for the monthly repayment plan, which allows you to repay via monthly payments over 12 months.
$6,000 to $100,000
40.00% This rate reflects the estimated starting APR offered to at least 5% of OnDeck customers. It doesn’t reflect the minimum APR offered by the company.
12 to 24 months
If you need same-day funding, OnDeck offers an unsecured line of credit, worth up to $100,000, that can be funded instantly. Plus, there are no added draw fees or annual fees to worry about, which can help bring down the cost of borrowing.
Yet, while OnDeck doesn’t disclose its absolute minimum rates, the minimum rate given to at least 5% borrowers is fairly high at 40.00%. In addition, at just $100,000 the maximum amount that you can borrow from the company is lower than you’ll find with many competitors.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
OnDeck’s line of credit allows you to draw funds as needed. It functions similarly to a credit card. After each draw, the entire balance is re-amortized and you’ll get an adjusted monthly payment amount.
Up to $250,000
Not disclosed
60 months
If you need the ability to borrow money as you go and a longer repayment term, consider Truist’s line of credit. Its secured line of credit offers access to up to $250,000 with repayment terms of up to 60 months. As an added bonus, the company doesn’t impose minimum annual revenue or time in business requirements.
Yet, Truist doesn’t publicly share its credit score requirements or interest rate information, which can make it hard to tell if this line of credit is the right fit for you. Plus, their secured product can come with some hefty fees, including a title insurance premium and recording fees, among other charges.
In order to qualify, you’ll need to meet Truist’s criteria of:
Truist’s line of credit lets you borrow money up to a pre-designated limit for a set term of 12 to 36 months, or up to 60 months with sufficient collateral. Once approved, you can access the funds by requesting a transfer to your checking account or by writing checks.
Interest only accrues on the amount that you borrow. You can make multiple draws up to your limit — if you do, you’ll get a new monthly payment amount.
A business line of credit is a type of small business financing that allows business owners to borrow funds on an as-needed basis, up to a preset limit.
Typically, repayment on this type of funding works in one of two ways: Sometimes each draw on the line of credit functions as a separate installment loan, with its own unique repayment amount and repayment schedule. Other times, the line of credit functions more like a credit card, giving the borrower the ability to accrue a revolving balance and requiring them to pay it down with regular payments.
Lines of credit can help cover unexpected business expenses, such as inventory, payroll or seasonal fluctuations in revenue.
There are two main types of business lines of credit that you can choose from:
A secured business loan requires you to put up collateral, such as real estate or equipment to back the loan. If you fail to repay a secured loan or line of credit, the lender has the right to seize your assets as a form of repayment.
Because of that possibility, secured lines of credit are viewed as less risky for the lender. Lenders are often willing to offer better terms, such as higher funding caps and lower interest rates on secured loan products.
In contrast, an unsecured business line of credit doesn’t require collateral. In this case, approval is typically based on the strength of your personal financial profile and business history.
However, the lack of collateral doesn’t mean you’re off the hook if you don’t repay your unsecured loan. Some lenders may put a lien on your business assets or require you to sign a personal guarantee. Your credit score will also likely take a hit.
Lenders typically look at the following to determine your eligibility for a business line of credit:
Credit score: Your personal FICO Score and business credit report both play a role in determining your creditworthiness. Many lenders require a minimum credit score of 600 or higher when you apply for a business line of credit, although having a higher score can help you secure a better interest rate.
Time in business: Most lenders want a steady track record of at least one to two years in business, although certain lenders will work with those in operation for only six months.
Annual revenue: You must show a steady income stream to qualify for small business financing. The amount varies greatly, with some lenders accepting annual revenue as low as $36,000 while others want to see $250,000.
You have several options when applying for a business line of credit.
You can access different business loans with a traditional bank or credit union. Typically, these lenders offer competitive rates and terms, but requirements may be fairly strict, often requiring a solid credit history and revenue, plus several years in business. You might also need to pay more fees and provide collateral to secure the funds.
Since alternative lenders incorporate a streamlined application process, they tend to be more lenient than traditional banks regarding qualifications and requirements and can provide access to funds faster. Certain alternative lenders even work with startups or offer bad credit business loans.
In addition, online lenders often offer other business loan products, such as inventory financing and franchise loans. But beware, these lenders typically have higher fees and lower credit limits than traditional bank loans.
You can also consider an SBA line of credit through the SBA CAPLines program. An SBA revolving line of credit provides short-term financing that can reach up to $5,000,000 with repayment terms of up to 120 months.
Even if you’re eligible for a business line of credit, it might not be the best financing for your business’s specific needs. Here’s what to consider as you make your decision.
| Pros | Cons |
|---|---|
Withdraw what you need and when you need it, helping limit over-borrowing You only pay interest on what you borrow, not on the total limit Usually has lower interest rates and higher borrowing limits than a credit card | Not suitable for large purchases or long-term expenses You may need to provide collateral Additional draw or maintenance fees can add up over time |
When picking the best business line of credit for your company, you’ll want to compare the following details:
If a business line of credit doesn’t seem like the best fit for you, there are plenty of alternative options available, including:
We reviewed the leading small business lenders to determine the overall best business lines of credit. To create our list, we evaluated lenders based on the following criteria:
