Business lines of credit are harder to find for new businesses, but it’s not impossible. Check out these top picks.
| Lender | User ratings | Best for… | Max. loan amount | Term length | Min. interest rate | Time in business |
|---|---|---|---|---|---|---|
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Business owners with lower credit scores | $150,000 | 12 or 24 weeks | 4.66% for 12-week terms8.99% fo 24-week terms | 6 months |
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User Ratings & Reviews
Ratings and reviews are from real consumers who have used the lending partner’s services. | Same-day funding | $100,000 | 12, 18 or 24 months | 39.90%* | 12 months |
 | User ratings coming soon | Short-term funding | $250,000 | 6, 12, 18 or 24 months | 3% to 9% 6-month loans6% to 18% for 12-month loans9% to 27% for 18-month loans12 to 18% for 24-month loans | 12 months |
 | Not applicable | SBA products | $5,000,000 | 120 months | Capped at Prime + 6.5% | 24 months |
 | User ratings coming soon | Secured lines of credit | From $1,000 | 12 months | Not disclosed | 6 months |
 | User ratings coming soon | Low-revenue businesses | $250,000 | 6 to 18 months | 8.00% to 60.00% | 6 months |
| Loan amounts | $150,000 |
| Starting interest rate | 4.66% |
| Term length (months) | 3 or 6 months |
| Minimum credit score | 600 |
| Minimum time in business | 6 months |
| Pros | Cons |
|---|---|
Shortest time-in-business requirement Low starting interest rate Low minimum credit score requirement | Lower funding cap Shorter loan terms Only available to businesses based in the U.S. |
| Loan amounts | $6,000 to $100,000 |
| Starting interest rate | 39.90%* |
| Term length (months) | 12, 18 or 24 months |
| Minimum credit score | 625 |
| Minimum time in business | 12 months |
| Pros | Cons |
|---|---|
Same-day funding available Lower annual revenue requirement Lower minimum credit score requirement | Low funding cap ($100,000) Doesn’t disclose starting interest rate Requires a business bank account |
OnDeck’s ability to provide same-day funding is what really sets it apart from the competition. Its lenient qualifying requirements, including its $100,000 annual revenue requirement and minimum credit score requirement of 625, ensure that it’s an attainable option for newer businesses.
At the same time, you’ll be subject to a low funding cap once again. Plus, since OnDeck doesn’t publish its starting interest rates, it can be hard to estimate how much you’ll pay for the privilege of borrowing.
| Loan amounts | $2,000 to $250,000 |
| Starting interest rate |
|
| Term length (months) | 6, 12, 18 or 24 months |
| Minimum credit score | 660 |
| Minimum time in business | 12 months |
| Pros | Cons |
|---|---|
Fast application process No prepayment penalty Publishes full interest rate range | Must link a business bank account for approval Requires personal guarantee Higher minimum credit score requirement |
American Express’ streamlined application process and transparency about its interest rates make it a strong pick for those looking for an affordable business line of credit. Plus, its lack of a prepayment penalty ensures that you’ll likely save money over some competitors if you decide to pay off your line of credit early.
Still, with a minimum credit score of 660, American Express is likely a better fit for those with excellent credit scores. In addition, be aware that the company’s personal guarantee requirement means you’ll be expected to repay the loan if your business is unable to foot the bill.
| Loan amounts | Up to $5,000,000 |
| Starting interest rate | Prime + 3.00% |
| Term length (months) | Up to 120 months |
| Minimum credit score | 680 (Recommended) |
| Minimum time in business | 24 months (Recommended) |
| Pros | Cons |
|---|---|
Can choose between a term loan and line of credit Capped interest rates Borrowers who may not be approved by more traditional financing sources may qualify | Could require a personal guarantee Collateral may also be required Funding times may be longer than you’d encounter with traditional lenders |
The Small Business Administration’s Working CAPline is a form of an SBA 7(a) loan that is designed to help business owners who may not be able to qualify for more traditional financing by providing them with cyclical funding. Its capped interest rates and flexible qualifying standards make it a smart choice for newer businesses, but there are a few tradeoffs.
For one, SBA loans may come with personal guarantees or collateral requirements, and the application process and funding times may take longer than through other lenders.
| Loan amounts | From $1,000 |
| Starting interest rate | Not disclosed |
| Term length (months) | 12 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | 6 months |
| Pros | Cons |
|---|---|
Low annual revenue requirement Short time-in-business requirement Likely easier to qualify for than other business lines of credit | Requires a cash deposit to open Doesn’t disclose all qualifying requirements Available funding may be limited |
As a secured financial product, Bank of America’s Cash Secured Line of Credit works a little differently than other business lines of credit. This line of credit requires a minimum security deposit of $1,000 to open an account. Plus, your available funding will be equal to the size of the security deposit you can make.
The bank only requires six months in business and $50,000 in annual revenue, which is why it’s one of our best picks for newer businesses. Still, the funding you can access will be limited to what you can afford to put down, making it less flexible than some other options on this list.
| Loan amounts | $1,000 to $250,000 |
| Starting interest rate | 8.00% |
| Term length (months) | 6 to 18 months |
| Minimum credit score | 600 |
| Minimum time in business | 6 months |
| Pros | Cons |
|---|---|
Low minimum credit score requirement Low annual revenue requirement High funding cap | Potentially exorbitant interest rates Shorter repayment terms Funding may take a few days |
A business line of credit is a flexible form of small business funding. Unlike a term loan, which disburses the money in one lump-sum payment, a business line of credit typically works more like a credit card.
You can use it to borrow money up to a certain limit. You’ll only pay interest on the amount that you’ve borrowed, and you can borrow against your limit again once you’ve paid down your balance.
Typically, most financial institutions require you to be in business for at least two years before extending you a line of credit. However, our picks for best business line of credit for new businesses have shorter time in business requirements.
On this page
| Pros | Cons |
|---|---|
Can withdraw money as needed Only pay interest on the amount that you borrow Typically has lower interest rates and higher borrowing limits than a credit card | Not the best pick for financing large purchases or ongoing expenses May need to secure your financing with collateral Additional fees can elevate the cost of borrowing |
Luckily, it is possible to get a business line of credit as a new business. All you need to do is research available lenders until you find one for which you meet or exceed the qualifying requirements. The list above can help you get started in your search.
Most banks require you to have at least a two-year business history before applying for a line of credit. However, some banks have more lenient qualifying requirements. For example, Fundbox only requires you to show six months in business.
The process for getting a business credit card as a startup often involves incorporating your business, obtaining an EIN number and applying for a card that suits your needs.
