Best Business Lines of Credit in April 2026
Compare top lenders offering competitive rates, flexible repayment and fast funding for small businesses, with credit limits from $1,000 to $5M.
- Business lines of credit are best for flexible, ongoing expenses like managing cash flow, inventory or payroll, but may not be ideal for large one-time purchases.
- You may qualify for as little as $1,000 or as much as $5M, depending on your revenue and credit score and whether you offer collateral.
- Lower rates are typically offered by banks, while online lenders often provide faster approval and funding — sometimes within a day.
Is a business line of credit right for your business?
A line of credit may be a good option if:
- You need flexible access to funds for ongoing expenses like payroll, inventory or cash flow gaps.
- You want to borrow only what you need and avoid paying interest on unused funds.
- Your expenses are recurring or unpredictable, rather than one-time costs.
However, you may want to consider an alternative financing option if:
- You need funding for a large, one-time purchase or long-term investment.
- You prefer fixed payments and a structured repayment schedule.
- You want the lowest possible rates and can qualify for a traditional term loan.
According to a LendingTree survey, about 22% of new businesses fail within their first year, often due to cash flow challenges. Having access to flexible financing, like a business line of credit, can help cover expenses and manage gaps in revenue.
Pros and cons of business lines of credit
Pros
- Withdraw what you need and when you need it, helping to 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
Cons
- 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
Compare top business line of credit lenders
| Lender | Starting rate | Amount | Term | Time in business | |
|---|---|---|---|---|---|
|
3.00% |
$2k – $250k |
6 to 24 months | 12 months | |
|
9.75% (interest rate) | Up to $5M | 12 to 120 months | Not specified | |
|
4.66% | Up to $250k | 3 to 12 months | 3 months | |
|
Not specified | Starting at $25k | Up to 12 months | 24 months | |
|
7.80% |
$1k – $250k |
Up to 12 months | 12 months | |
|
39.60% (APR) |
$6k – $200k |
12 to 24 months | 12 months | |
|
Not specified | Up to $250k | 12 to 60 months | None |
How to compare business lines of credit
- Compare total cost, not just rates: Look beyond APR to fees like draw fees, maintenance fees and penalties.
- Consider repayment terms: Some lenders require daily or weekly payments, while others offer monthly schedules.
- Check funding speed: Some lenders offer same- or next-day funding, while others take longer to approve and fund.
- Understand how it works: Some lines of credit treat each draw as a separate loan, while others work like a credit card with one ongoing balance.
Your actual rate and terms will vary. Comparing multiple offers is the best way to find the lowest-cost option.
Best for: Large purchases – American Express Business Line of Credit
- Starting rate
- 3.00%
Total loan fees for installment loans range from: 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.
- Same-day approval possible
- Instant funding with Amex business checking
- Low annual revenue requirement ( $36,000)
- Flexible repayment options (installment or single repayment)
- Personal guarantee required
- Subject to account review
- Each draw is a separate loan
- Rates vary based on term and borrower profile
American Express offers one of the lowest starting rates on this list, making it a strong option for larger purchases where keeping interest costs down matters most. It’s also relatively accessible, with a low annual revenue requirement, and funding can be fast, especially if you already have an Amex business checking account.
Each draw is structured as a separate loan, with either fixed monthly payments or a single repayment depending on the term. This can help control interest costs, but may require managing multiple payments if you borrow frequently.
In order to qualify, you’ll need to meet American Express’s criteria of:
- Minimum credit score: 660
- Minimum time in business: 12 months
- Minimum annual revenue: $36,000
Best for: Interest-only payments – Byline Bank
- Starting rate (interest rate)
- 9.75%
Some borrowers may qualify for lower rates. Based on the current prime rate of 6.75% + a rate maximum set by the SBA. Maximum rates for variable-rate SBA 7(a) loans are: 13.25% for loans $50,000 or less; 12.75% for loans $50,001 to $250,000; 11.25% for loans $250,001 to $350,000; 9.75% for loans above $350,000
- Interest-only payment periods offered
- Capped interest rates (SBA backed)
- Long repayment terms (up to 120 months)
- Designed for managing cyclical cash flow and working capital
- Requires collateral (inventory or accounts receivable)
- Loan amount depends on collateral value
- Eligibility criteria not specified
Byline Bank offers an SBA-backed line of credit with interest-only payment periods, which can help reduce short-term cash flow pressure, especially for businesses with seasonal or cyclical revenue. It also stands out for its long repayment terms (up to 120 months) and higher borrowing limits compared to many online lenders.
However, this line of credit is typically secured by inventory or receivables, and your borrowing limit depends on the value of that collateral. The bank also doesn’t publicly disclose its eligibility requirements, so you’ll need to contact the lender directly to determine if it’s a good fit.
Byline Bank doesn’t publicly disclose its eligibility requirements, so you’ll need to contact the lender directly to determine if you qualify.
Best for: Startups – Fundbox
- Starting rate
- 4.66%
12- to 52-week terms, or up to 104 weeks in certain limited situations
- Startup friendly (just 3 months in business required)
- Low minimum credit score requirement
- Fast funding (often within 1–2 business days)
- No prepayment penalties
- May require a personal guarantee
- Sometimes offers short repayment terms
- Weekly payments are typically required
Fundbox is one of the most accessible options for startup businesses, with a minimum time in business requirement of just 3 months and a relatively low credit score threshold. It also offers fast access to funds, with draws typically available within a couple of business days.
However, repayment terms are shorter than many competitors, and weekly payments can be difficult to manage depending on your business revenue. Each draw is structured as a separate loan, which may require tracking multiple repayment schedules if you borrow frequently.
Check out LendingTree’s full Fundbox review.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
- Minimum credit score: 600
- Minimum time in business: 3 months
- Minimum annual revenue: $100,000
Best for: Secured lines of credit – Bank of America
- Starting rate
- Not specified
Bank of America’s secured business line of credit is a revolving account with an annual review
- Potential rate discounts for existing Bank of America customers
- No interest charged until you draw funds
- Offers business credit monitoring tools
- High annual revenue requirement ($250,000)
- Requires collateral (secured line of credit)
- Doesn’t disclose rates or credit requirements
- Subject to annual review
Bank of America offers a secured line of credit that may provide lower rates and more borrowing flexibility with collateral, making it a strong option for established businesses with solid financials. Existing customers may also benefit from relationship-based rate discounts. Bank of America also offers an unsecured line of credit.
However, this product comes with stricter requirements than many online lenders, including a high annual revenue threshold and a longer time in business. It also requires collateral and doesn’t publicly disclose its rates or credit requirements, and the application process may be slower than fully online alternatives.
Check out LendingTree’s full Bank of America Business Loan review.
In order to qualify, you’ll need to meet Bank of America’s criteria of:
- Minimum credit score: Not specified
- Minimum time in business: 24 months
- Minimum annual revenue: $250,000
Best for: Streamlining your business finances – Bluevine
- Starting rate
- 7.80%
- No monthly or maintenance fees
- Fast funding (as soon as 24 hours)
- Integrated business checking and credit line
- No hard credit check to apply
- Not available in Nevada, North Dakota, South Dakota or any U.S. territories
- High annual revenue requirement ($120,000)
- Short repayment terms (up to 12 months)
Bluevine stands out for combining a business line of credit with a business checking account, allowing you to manage both from a single dashboard. Automated payments and managing your finances in one place can help simplify day-to-day financial management.
It also offers fast funding and no ongoing fees, which can help reduce the overall cost of borrowing. However, eligibility requirements are higher than some competitors, and repayment terms are relatively short, which may not work for businesses needing longer-term financing.
Check out LendingTree’s full Bluevine Business Line of Credit review.
In order to qualify, you’ll need to meet Bluevine’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 12 months
- Minimum annual revenue: $120,000
Best for: Same-day funding – OnDeck
- Starting rate (APR)
- 39.60%
Minimum APR offered to at least 5% of customers (not the lowest rate offered)
- Same-day funding available
- No collateral required
- No hard credit check to apply
- Only pay interest on the amount you draw
- High average interest rate
- Low maximum credit limit ($200,000)
- Not available in North Dakota
- Weekly or monthly payments may be required
OnDeck is one of the fastest options on this list, with same-day funding and near-instant access to funds in some cases. This makes it a strong choice if you need quick access to working capital for urgent expenses or short-term cash flow gaps.
However, that speed comes at a cost. OnDeck’s APRs are significantly higher than many other lenders, and borrowing limits are lower than some competitors. This makes it better suited for short-term needs rather than long-term financing.
Check out LendingTree’s full OnDeck Business Loan review.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
- Minimum credit score: 625
- Minimum time in business: 12 months
- Minimum annual revenue: $100,000
Best for: Long repayment terms – Truist
- Starting rate
- Not specified
- Long repayment terms (up to 60 months with collateral)
- No minimum time in business requirement
- No minimum annual revenue requirement
- Interest due only on the amount you borrow
- Larger loan amounts require collateral
- Rates or credit requirements not disclosed
- Closing must be in person at a branch
Truist offers longer repayment terms than many competitors, which can help keep monthly payments lower and more manageable, especially for larger expenses. It’s also one of the few options on this list with no minimum time in business or revenue requirement, making it more accessible than many traditional lenders.
However, longer terms typically require collateral, and the lender doesn’t publicly disclose its rates or credit criteria. You’ll also need to visit a branch to complete the process, which may be less convenient than fully online lenders.
In order to qualify, you’ll need to meet Truist’s criteria of:
- Minimum credit score: Not specified
- Minimum time in business: None, but extra paperwork may be required if you’ve been in business for less than two years
- Minimum annual revenue: None
See how LendingTree chose and ranked the best business line of credit lenders.
How business lines of credit work
A business line of credit lets you borrow funds as needed, up to a set limit. You only pay interest on what you draw, and your available credit replenishes as you repay.
Typically, repayment on this type of funding works in one of two ways:
Separate installment loans
Each time you draw funds, it becomes a separate loan with its own repayment schedule.
- Best for: Larger, less frequent expenses
- Why it works: Can help control interest costs
- Trade-off: You may have multiple payments to manage at once
Revolving account
Your draws are combined into one balance, similar to a credit card, with a single ongoing payment.
- Best for: Frequent or smaller expenses
- Why it works: Simpler repayment with one payment
- Trade-off: May result in higher total interest over time
If you plan to borrow frequently, a revolving structure is usually easier to manage. For larger, one-time expenses, separate installment loans may be more cost-effective.
Business line of credit requirements
Lenders typically look at the following to determine your eligibility for a business line of credit:
- Credit score: Typically 600+ (higher scores may qualify for better rates)
- Time in business: Usually one to two years, though some lenders will work with those in operation for only three to six months
- Annual revenue: Often $30,000 to $250,000+, depending on the lender
- Collateral: Required for some lines of credit, but not all
- Business finances: Lenders may review your revenue and business bank statements
Where to get a business line of credit: Banks vs. online lenders
| Banks | Online lenders |
|---|---|
| Lower interest rates | Faster funding (often same-day) |
| Stricter requirements | Easier qualification |
| Longer approval process | Quick, online applications |
| Potential relationship discounts | Typically higher costs |
| Best for established businesses looking for low interest rates. | Best for businesses prioritizing quick access to cash and easy applications. |
Compare offers from both banks and online lenders to find the best rates, terms and funding speed for your business.
- For fast funding: Choose an online lender that can deliver funds within 24 hours.
- For lower rates: Consider traditional banks or SBA-backed options, which may offer better terms if you qualify.
- For newer businesses: Look for lenders with lower time in business and credit score requirements.
- For larger expenses: Choose a lender with higher credit limits and longer repayment terms.
- For ongoing flexibility: A revolving line of credit may be better than options that treat each draw as a separate loan.
Alternatives to business lines of credit
If a business line of credit doesn’t seem like the best fit for you, there are plenty of alternative options available, including:
- Business term loan: Provides you with all of your funding in one lump sum payment. As a result, it may be a better option if you have to cover a large one-time expense.
-
Business credit card: A revolving credit option where you only pay for what you use. Credit cards typically have higher interest rates than lines of credit but may offer rewards programs.
- Check out LendingTree’s full guide on business lines of credit vs. credit cards.
- Invoice factoring: Involves selling your unpaid invoices to a third-party company that fronts you a percentage of the amount due and takes responsibility for pursuing repayment. When the invoice is paid, you’ll receive the remaining percentage, minus any fees charged by the factoring company.
- Merchant cash advance (MCA): Provides you with an advance on your debit or credit card sales in exchange for a percentage of the profits. However, interest rates can be high with this method of financing.
How LendingTree can help you access a business line of credit
Compare offers from multiple lenders by filling out a single form. You can review your options, apply with the lender that best matches your business needs and potentially receive funding as quickly as the same day.
Select applicants may also work with a LendingTree Small Business Concierge service specialist who can help you through every step of the application process.
LendingTree’s concierge service helped over 1,000 small business owners get a line of credit last year.
Frequently asked questions
A business line of credit is better for ongoing or flexible expenses like payroll or inventory, while a loan is better for large, one-time costs. The right option depends on how you plan to use the funds.
Some lenders require collateral, while others offer unsecured lines of credit. Secured options may offer lower rates and higher limits, but require you to pledge business assets.
Costs vary widely. Some lenders offer low starting rates, but others — especially those with fast funding — charge higher APRs and fees.
Yes, some lenders work with businesses that have as little as three to six months in operation, though requirements are typically higher for newer businesses.
Our methodology: How we chose the best lines of credit
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:
- Rates and terms: We prioritize lenders with competitive rates, limited fees, flexible repayment terms, a range of credit amounts and APR discounts.
- Repayment experience: We consider each lender’s reputation and overall business model.
- Products offered: We factor in how each line of credit works, including repayment structuring, term lengths and ways to access funds, to determine which lender is best for specific needs.
- Customer service: We favor lenders that offer reliable customer service and provide customer perks, like free business coaching.