Best Working Capital Lines of Credit in 2026
We compared LOCs to find the best options for common working capital needs. For personalized results, get matched from LendingTree’s network of 30+ business lenders.
| Lender | User rating | Best for | Starting rate | Amount | Term | |
|---|---|---|---|---|---|---|
|
Lower-revenue businesses | 3.00% |
$2k – $250k |
6 – 24 months | ||
|
SBA line of credit | Not specified |
$10k – $500k |
12 months (Revolving) | ||
|
High-revenue businesses | Not specified |
$1k – $250k |
Up to 12 months | ||
|
Same-day funding | 39.60% (APR) |
$6k – $200k |
12 – 24 months | ||
|
Startups | 4.66% | Up to $250k | 3 – 12 months | ||
|
Secured line of credit | Not specified |
$3.5k – $250k |
12 – 60 months | ||
|
Borrowers with poor credit | 1.01 (factor rate) |
$10k – $1M |
6 – 18 months |
Working capital line of credit lenders: More details
Best for: Lower-revenue businesses – 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.
- Quick application process
- No prepayment penalty
- Low monthly revenue requirement
- Must link a business bank account to determine eligibility
- Requires a personal guarantee
- Credit lines above $150,000 only available to select borrowers
Many working capital lines of credit impose high annual revenue requirements, but the American Express only requires $36,000 in annual revenue, making it a fit for lower-revenue businesses. Plus, the streamlined application process takes just minutes to complete and provides up to $250,000 in flexible funding that you can draw from on an as-needed basis.
If you have an American Express business credit card, check your account to see if you’re eligible for a prequalification offer for the business line of credit. Note that you’ll be on the hook with a personal guarantee if your business fails to repay the debt and that each draw on the line of credit counts as its own installment loan, which comes with a separate monthly fee attached.
Read our full American Express review.
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: SBA line of credit – KeyBank
- Starting rate
- Not specified
- High maximum borrowing amount
- Interest-only payment options
- Secured and unsecured LOC options available
- Doesn’t disclose interest rates
- Doesn’t disclose eligibility requirements
Banked by the Small Business Administration (SBA), KeyBank’s SBA line of credit offers a solid option for small business owners who are unable to qualify for traditional bank financing. It offers loan amounts up to $500,000, which is larger than many other lenders on this list. Plus, as an SBA preferred lender, KeyBank may be able to help you bypass the SBA’s notoriously long loan funding times.
Still, KeyBank doesn’t disclose its borrowing requirements or interest rate information, which can make it hard to tell if this working capital line of credit is a good fit for your business. And while SBA lines of credit have caps on interest rates, not all of KeyBank’s business lines of credit come with SBA guarantees, so it’s a good idea to read your loan agreement and check your interest rate before agreeing.
Read our full KeyBank review.
In order to qualify for KeyBank’s line of credit, you’ll need to meet its criteria of:
- Minimum credit score: Not specified
- Minimum time in business: 3 years for SBA loans
- Minimum annual revenue: Minimum is not disclosed, but there are caps for Small Business Administration (SBA) loans.
Max net worth: $15 million
Max average net income over past two years: $5 million
Best for: High-revenue businesses – Bluevine
- Starting rate
- Not specified
- Quick funding options
- No maintenance fees
- Offers a high-yield business checking account
- High annual revenue requirement
- Not available in Nevada, North Dakota or South Dakota
- Doesn’t list maximum interest rates
If your business is registered as an LLC or corporation and generates at least $10,000 a month, Bluevine’s line of credit could be for you. With flexible terms, low starting interest rates and quick funding options, Bluevine can be a great option for businesses who qualify. You can access up to $250,000 on an as-needed basis to tackle a range of business expenses.
Bluevine also a high-yield checking account with competitive APYs.
Note that Bluevine’s financing isn’t available for sole proprietors or businesses located in Nevada, North Dakota or South Dakota.
Read our full Bluevine 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
- 39.60%
Minimum APR offered to at least 5% of customers (not the lowest rate offered)
- Same-day funding available
- On-time repayment helps build your business credit score
- No prepayment penalty
- Average interest rates run high
- Payments will automatically be deducted from your bank account
- High annual revenue requirement
As one of our top picks for fast business loans, OnDeck can help you access quick cash for your business. The application process can be completed in minutes and, once approved, you may be able to get funding within 30 minutes for draws from $1,000 to $10,000 with a linked debit card — even on nights and weekends. For larger amounts, OnDeck uses ACH to transfer funds, which is still relatively fast.
Its lenient eligibility criteria make it a solid choice for low-credit borrowers and early-stage businesses, though you must have a robust cash flow to qualify. Since OnDeck reports to the major credit bureaus, on-time payments can help boost your business credit profile.
But while OnDeck offers quick funding for a wide range of credit scores, that comes at a price, as rates tend to run on the high side.
Read our full OnDeck 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: Startups – Fundbox
- Starting rate
- 4.66%
12- to 52-week terms, or up to 104 weeks in certain limited situations
- Fair to low credit accepted
- Short time-in-business requirement
- Available in all U.S. states and many territories
- Short repayment terms
- Lower funding cap
- Doesn’t list maximum interest rates
Fundbox’s flexible line of credit is ideal for early-stage businesses and entrepreneurs needing startup financing to cover a range of expenses. Fundbox offers a speedy online application and, once approved, funds could hit your bank account in as soon as two business days. You can choose your repayment plan with each withdrawal, although terms are relatively short compared to other lines of credit.
Note Fundbox’s credit limit caps at $250,000. While this may be enough for many startups, you may need to consider additional options to cover any funding gaps.
Read our 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: $30,000
Best for: Secured line of credit – Truist
- Starting rate
- Not specified
- No minimum time-in-business or annual revenue requirements
- Longer terms
- Wide range of traditional bank products
- Larger loan amounts require collateral
- Doesn’t list interest rates
- Lack of information on credit score requirements
When you need access to a larger loan amount or a longer loan term, consider Truist’s secured line of credit as an option. A secured line of credit uses an asset as collateral to back up the loan, allowing for more favorable terms, such as Truist’s extended 60-month loan term and $250,000 borrowing limit.
However, Truist doesn’t list its minimum credit score requirements or estimated interest ranges, making it hard to compare against other traditional bank loans. Additionally, if approved, you’ll need to visit a Truist branch in person to close on your new working capital line of credit.
Read our full Truist review.
In order to qualify, you’ll need to meet Truist’s criteria of:
- Minimum credit score: Not specified
- Minimum time in business: None, but you may need to supply extra documents if you’ve been operating for less than two years
- Minimum annual revenue: None, but additional requirements may apply to smaller businesses
Best for: Borrowers with poor credit – Taycor Financial
- Factor rate
- Starting at 1.01
- Accepts low credit scores
- Quick funding times
- High loan amounts
- Origination fee may apply
- Weekly payments may be required
- Factor rates make it hard to estimate total cost of borrowing
While Taycor Financial’s line of credit may be an excellent choice for those who need bad credit business financing because the required credit score is only 560. With lenient eligibility requirements, low rates, flexible terms and no hidden fees, you could access between $10,000 to $1,000,000 as quickly as within four to 24 hours. Funds can be used for a wide range of working capital expenses.
Note that origination fees of up to 3.00% may apply. Additionally, factor rates are listed instead of standard interest rate or APR, making it more difficult to compare Taycor Financial’s rates with competitors.
Read our full Taycor Financial review.
In order to qualify for a business line of credit, you’ll need to meet Taycor Financial’s criteria of:
- Minimum credit score: 560
- Minimum time in business: 6 months
- Minimum annual revenue: $50,004
What is a working capital line of credit?
The term “working capital” refers to the cash you have on hand to cover your business’s day-to-day operations. Having adequate working capital allows you to keep your business afloat, while a surplus can help you grow and expand your business or explore new opportunities.
A working capital line of credit is a type of business financing designed to cover short-term operating expenses, such as rent, utilities, inventory, supplies, payroll or seasonal fluctuations in revenue.
Typically, working capital lines of credit are not used to cover one-time purchases or more expensive projects. In that case, a long-term business loan may be a better fit.
How does a working capital line of credit work?
Similar to a standard business line of credit, a working capital line of credit typically offers a credit limit based on your criteria and creditworthiness.
Once approved, you can usually use your working capital line of credit as you would a business credit card: You withdraw what you need, as often as you need it, up to your credit limit. In general, interest is only charged on the withdrawn amounts, although some lenders may charge additional withdrawal, maintenance or annual fees. However, in some cases, each draw against your line of credit may be counted as a separate installment loan — these tend to work better for occasional large withdrawals, like covering inventory or seasonal slowdowns.
Since the credit line has a fixed limit, you do not need to fully pay off your balance to borrow again. Instead, once you make a payment, the available funds open up again. Some businesses choose to carry a balance during slow months, and then repay the debt during high-revenue seasons.
The advantage of a working capital line of credit versus a working capital loan is that you aren’t locked into a regular repayment schedule, nor do you have to use all of the available funds. You can keep your line of credit open for emergency expenses, avoiding ongoing interest charges as you would incur with a traditional term loan.
Many lenders will not allow you to borrow more than your business’s current working capital. You can calculate your working capital by subtracting your company’s liabilities from its assets. So, if your company has around $50,000 in available working capital, your working capital line of credit may be capped at $50,000.
How to get a working capital line of credit
If you are ready to apply for small business financing, here are five steps to help you open a working capital line of credit.
1. Determine how much you need
Start by creating a business budget, listing your company’s current operating expenses and any anticipated costs you need to cover in the near future. Then, use a business loan calculator to estimate your borrowing power. Make sure that you can afford to repay the debt.
2. Evaluate your eligibility
While business loan requirements will vary by lender and loan type, you can expect to be evaluated based on your personal credit score and business credit score, how long your company has been operating and the amount of revenue you bring in each year.
3. Compare potential lenders
Both traditional banks and online business lenders offer lines of credit. Be sure to research a few different options to find the lender that works best for you. You can get quotes from multiple lenders with LendingTree, and then compare interest rates, repayment terms and fees.
4. Gather the required documentation
Having all your paperwork on hand can help speed along the application process. While the exact documents will vary, here’s a general idea of what you might need:
- A copy of your business plan
- Your business bank statements
- Your business tax returns
- Your governing documents and any applicable business licenses
- Collateral, if applying for secured financing
5. Apply for the line of credit
Applying for a working capital line of credit can usually be completed online, with a decision often made within minutes. In some cases, the lender may reach out to you to ask questions or request additional paperwork.
How to compare working capital lines of credit
You can apply individually with your favorite lenders, or save time by using a marketplace platform like LendingTree to see all your options listed in one place. Once you have several quotes or prequalification offers, take a look at the factors below to select the best option for your business needs.
Rates
Working capital interest rates can vary by lender and are typically calculated based on your business’s financial profile. Some lines of credit charge a fixed, monthly fee, while others charge fixed or variable interest. Sometimes lenders may charge a factor rate instead.
Added fees
Extra fees can add to your cost of borrowing, such as draw fees or monthly maintenance fees. Some lenders may charge a prepayment penalty if you repay your debt early, while lenders like {partner_name} offer a prepayment discount.
Repayment terms
With working capital lines of credit, repayment can happen on either a monthly or weekly basis. Make sure you can afford the repayments on time to reduce the risk of default.
Credit limit
Some lenders offer higher credit limits than others. Start with what you need and see if you can increase your credit limit down the road. If you need more substantial funds, such as if buying a franchise, you will likely need to consider an SBA loan or traditional bank loan.
Funding time
Some lenders have the ability to deposit funds into your account the same day your application is approved. For others, the process can take a few days to complete.
Pros and cons of a working capital line of credit
Pros
- Ability to withdraw funds as needed to cover short-term or emergency expenses
- Only pay interest on withdrawn amounts rather than the total credit limit
- May offer a higher credit limit than a business credit card
- Options to help cover initial expenses when starting a business
Cons
- Not meant for large purchases or long-term expenses
- May need to provide collateral or a personal guarantee
- Additional fees can increase the cost of borrowing
Frequently asked questions
A working capital line of credit is a type of flexible funding meant to cover your business’s ongoing operating expenses, like inventory, supplies, utilities and payroll services. You can also use other types of business financing for working capital expenses, like an SBA 7(a) loan or a short-term business loan.
In general, lenders prefer for businesses to operate for one to two years before extending them credit. That said, many alternative lenders now work with startups after just several months of business history, with some even waiving the business history requirement altogether.
If you have an established business and a robust credit profile, you’ll have an easier time qualifying for a working capital line of credit. Startups and those with bad credit may need to choose their lenders carefully. Be sure to evaluate each lender’s requirements before applying to improve your chances of approval.
You can also use LendingTree Spring to monitor and boost your credit score, which may help secure a more competitive rate.
For those who can’t qualify for a line of credit, here are some alternatives to consider:
Our methodology
We reviewed more than 20 lenders to determine the overall best seven working capital lines of credit. For each category, like SBA lines of credit and lenders that offer same-day funding, we focused our research on features tailored to borrowers who fit that specific category. To make our list, lenders must meet the following criteria:
- Minimum credit score: We included lenders that cater to a range of credit scores, including lenders that work with borrowers with low credit scores and lenders that offer competitive rates to borrowers with good or excellent credit.
- Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
- Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like business coaching.