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When it comes to financing your business, there are times when you don’t know exactly how much money you’ll need. Rather than a closed-end business loan, you may need a revolving business line of credit that allows you to handle ongoing expenses.
There are many companies that offer lines of credit for small business owners, and figuring out which one to work with can be overwhelming. To help you narrow it down, we identified the best business lines of credit based on their credit line amounts, terms, and eligibility requirements, among other criteria.
Best Business Lines of Credit in 2023
- Best for Backed by American Express: Amex Business Line of Credit
- Best for Comparing Multiple Offers: Lendio Business Line of Credit
- Best for Fair Credit and Young Businesses: Fundit
- Best for Bank of America Customers: Business Advantage Credit Line
- Best for Fast Credit Access: Bluevine Business Line of Credit
- Best Large Credit Line: PNC Secured Business Line of Credit
Best for Backed by American Express : Amex Business Line of Credit
Relatively low revenue requirement
Quick application process
Low rates available
Monthly fees apply
Personal guarantee required
Established businesses only
With an American Express Business Line of Credit you can qualify for up to $250,000—not as much as some other lenders, but enough to give you quite a bit of leeway for improvements, new inventory, etc. Amex’s rates are competitive; depending on the amount of the credit line and the desired term, rates can be as low as 2.0%.
Amex has a quick application process, allowing you to apply and receive a decision within minutes. And Amex has a lower revenue requirement than most lenders; you only need a monthly revenue of $3,000 or more to qualify.
However, Amex will only approve businesses that have been in operation for 12 months or more, and a personal guarantee is required for the line of credit.
If you have a relatively young business or need a smaller credit line, you may have a better chance of qualifying for a business credit card than a business line of credit.
- Your business must be in operation for at least one year.
- You must have a personal credit score of 640 or higher.
- You must have at least $3,000 in monthly revenue.
- You must have a business bank account.
Best for Comparing Multiple Offers : Lendio Business Line of Credit
High credit line maximum
Low credit score minimum
Secured lines of credit available
Slow disbursement time
High revenue requirement
Potentially high rates
Lendio isn’t a lender. Instead, it’s a marketplace platform that allows you to get quotes from multiple lenders. Depending on your credit and your business revenue, you could qualify for a credit line as high as $500,000, and you can have up to 24 months to use it—longer than many lenders offer.
Lendio also has secured credit lines. By providing collateral for the line of credit, you may have a better chance of qualifying for a loan or getting a better interest rate.
However, the rates on Lendio’s lines of credit can be quite high; according to the company, rates can be as high as 60%. And it can take one to two weeks to fund the line of credit, which is longer than usual for business lenders.
- Your business must be in operation for six months or more.
- You must have at least $50,000 in annual revenue.
- You must have a credit score of at least 560 for a secured line of credit and at least 600 for an unsecured line of credit.
Best for Fair Credit and Young Businesses : Fundit
Accepts young companies
Low credit score minimum
High credit line maximum
Unclear rates and fees
Vague repayment terms
Not available in all states
Many business lenders require companies to be in operation for 12 months or more, and they may also require good or excellent credit. For new businesses and business owners, it can be difficult to meet those requirements.
With Fundit, you can qualify for a line of credit with a credit score as low as 600, and businesses only need to be in operation for six months.
Although Fundit has credit lines as high as $1 million, we found that its rates, fees, and terms are unclear. On its website, the company says rates are as low as 6.0%, but it doesn’t say what the maximum rate is or what other fees may apply. And in several places, it says payments may be either weekly or monthly, but does not say what the payment schedule’s impact is on the rates of the line of credit.
- Your business must be in operation for at least six months.
- You must have at least $25,000 in annual revenue.
- You must have a credit score of 600 or higher.
- You must not reside in California, Nebraska, Nevada, North Carolina, North Dakota, Oregon, Rhode Island, Tennessee, Vermont, or Washington, D.C.
Best for Bank of America Customers : Business Advantage Credit Line
- APR/Factor Rate: As low as 9.0%
- Loan Amounts: $10,000–$250,000
- Loan Terms: 12 months and up
Significant discounts for existing members
Annual renewals available
Secured options available
Only established businesses will qualify
High minimum revenue required ($100,000 annually)
Limited details online
If you are an existing Bank of America Preferred Rewards for Business customer, you can qualify for additional benefits when you apply for a Business Advantage Credit Line. You can qualify for an interest rate discount as high as 0.75% based on the program tier you’re in at the time of your application.
Through Bank of America, you can qualify for a line of credit as high as $250,000. And while other credit lines have set terms, Bank of America’s line of credit is renewable on an annual basis, so you can continue to utilize it if necessary.
The Bank of America business line of credit is only for established businesses. It has a high minimum revenue requirement, and businesses have to be in operation for at least two years to qualify.
- Your business must be in operation for at least two years.
- You must have at least $100,000 in annual revenue.
- You must be at least 18.
Best for Fast Credit Access : Bluevine Business Line of Credit
Quick application process
Gives access to cash within hours
Low minimum credit score
Very high revenue requirements
Added fees for bank wires
Not available in all states
When you need to tap into a credit line fast, Bluevine could be a good option. You can apply for a business line of credit and receive a decision in as little as five minutes. And if you’re approved, you can start using the line of credit within a few hours. You can qualify for up to $250,000 in revolving credit, and terms are as long as 12 months.
However, Bluevine’s eligibility requirements are strict. You need to be in operation for at least two years, and you need at least $40,000 in monthly revenue—much higher than many other lenders require.
- You must have a credit score of 625 or higher.
- Your business must be in operation for two years or more.
- You must have at least $40,000 in monthly revenue.
- You cannot live in Nevada, North Dakota, or South Dakota.
Best Large Credit Line : PNC Secured Business Line of Credit
- APR/Factor Rate: Not disclosed
- Loan Amounts: $100,001–$3 million
- Loan Terms: Not disclosed
High credit line maximum
Reduced payments during revolving credit period
Lower APRs than unsecured credit
Annual fee applies
Limited information online
Must apply over the phone or in person
Typically, business lines of credit are limited to $500,000 or less. But with PNC’s Secured Business Line of Credit you can access up to $3 million. During the revolving credit period, you only have to make interest-only payments, and you may qualify for a lower APR than if you opted for an unsecured line of credit.
There is very limited information available about PNC’s lines of credit online. The bank does not disclose the line of credit’s terms or rates. And you cannot apply online. Instead, you have to call or visit a branch in person.
PNC doesn’t publicly disclose all of its eligibility requirements for its business lines of credit. In general, you should expect to need good to excellent credit and high monthly revenue to qualify.
- Your business must be in operation for at least three years.
- You must have non-real estate assets to use for collateral purposes.
When it comes to securing financing for your small business, a business line of credit can be a useful solution. During the line of credit’s term, you can tap into it repeatedly and use it to grow and expand your business.
There are many lenders that offer business lines of credit. For those who need a relatively short term, Amex’s line of credit features low rates and allows you to access up to $250,000. For those who need a higher credit limit, PNC may be a better option; you can qualify for up to $3 million in revolving credit.
Shopping around to find the best rates and terms is key. Lendio can be a helpful option since it allows you to compare offers from its partner lenders. Whichever you choose, pay attention to the lender’s rates, fees, and repayment terms to ensure you make an informed decision.
Compare the Best Business Lines of Credit
|Line of Credit||APR Range||Loan Amounts||Loan Terms|
|American Express Business Line of Credit
Best for Backed by American Express
|Lendio Business Line of Credit
Best for Comparing Multiple Offers
|Fundit Business Line of Credit
Best for Fair Credit and Young Businesses
|As low as 6.0%||$10,000–$1 million||1–24 months|
|Bank of America Business Advantage Credit Line
Best for Bank of America Customers
|As low as 9.0%||$10,000–$250,000||12 months and up|
|Bluevine Business Line of Credit
Best for Fast Credit Access
|As low as 6.2%||$5,000–$250,000||6–12 months|
|PNC Secured Business Line of Credit
Best Large Credit Line
|Not disclosed||$100,001–$3 million||Not disclosed|
Guide to Choosing the Best Business Lines of Credit
What Is a Business Line of Credit?
A business line of credit is a type of financing that businesses can use to grow or expand their operations. Rather than receiving an upfront lump sum of cash like you would with a business term loan, a business line of credit allows you to access funds many times—up to the credit limit—within the designated term.
Business lines of credit are useful if you will have ongoing financing needs or aren’t sure exactly how much money you’ll need.
If you need short-term financing, an alternative option to consider is invoice factoring. With this approach, the invoice factoring lender pays you the amount of your outstanding invoices right away, minus its fee.
Business Lines of Credit vs. Business Loans
Business loans and business lines of credit are both popular financing options, but they differ in several key ways. A business loan is a closed-end loan, meaning you receive a lump sum of cash and repay it in installments over a fixed term. The loan has a one-time disbursement. Once you’ve spent the funds, you can’t access more cash unless you apply for another loan.
With a business line of credit, you’re given access to a revolving line of credit. You can use it again and again for your business during the credit line’s term as long as you keep up with the required payments.
How to Compare Business Lines of Credit
When comparing your business line of credit options, think about the following factors:
- Rates: Rates can vary greatly between lenders. In general, rates can range from 2% to 60%. Younger businesses and business owners with less-than-perfect credit should expect higher rates.
- Terms: Terms on revolving lines of credit tend to be relatively short, such as 1 to 12 months. The term is how long you can utilize the credit line, and longer terms usually correspond with higher rates.
- Eligibility requirements: Although some companies will work with young businesses, your business usually has to be in operation for at least six months to qualify for a line of credit. There are often revenue requirements as well.
How to Get a Business Line of Credit
Most lenders allow you to apply entirely online. When you apply, you’ll need to provide the following information:
- Your personal information, including your Social Security number
- Your business information, including Employer Identification Number (EIN)
- Your monthly or annual revenue, supported by tax documents or invoices
- Your recent business bank account statements
Lenders will usually perform a personal credit check, and you generally need to have good to excellent credit to qualify for a line of credit.
Frequently Asked Questions
What Can You Use a Business Line of Credit For?
You can use a business line of credit for most of your business’ needs, including buying supplies, renting warehouses, purchasing vehicles, or paying vendors. However, some lenders have restrictions on fund use, such as prohibiting the purchase of real estate.
Can You Get a Business Line of Credit With Bad Credit?
Generally, lenders require good to excellent credit to qualify for a business line of credit. There are some companies, such as Fundit and Lendio, that accept credit scores as low as 560, but they usually charge much higher rates.
How Do Business Lines of Credit Compare to Credit Cards?
Business lines of credit give you access to a larger credit line than you’d get with a credit card. While credit cards are often limited to credit lines of $20,000 or $30,000, you can access up to $3 million with a business line of credit.
Because of their higher limits, business lines of credit are harder to qualify for, especially if your business is young.
What Credit Score Do You Need for a Business Line of Credit?
To qualify for a business line of credit, you typically need a score in the good to excellent range, so a score of 670 or better. Some lenders will work with borrowers with lower credit scores, but it’s harder to qualify for a line of credit.
Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews. To rate business lines of credit, we collected hundreds of data points for 18 options, including line of credit amounts, repayment terms, fees, and requirements, to ensure that our reviews help users make informed decisions about their banking needs.
Corporate Finance Institute. "Bank Line."
Experian. "Business Loan or Business Line of Credit: Which Is Best for You?"