A working capital line of credit is a type of business line of credit that’s meant to cover operating expenses, like inventory, supplies, utilities, and payroll.
Working capital lines of credit can help you cover operating expenses like inventory or supplies.
| Lender | User ratings | Best for… | Max. loan amount | Term length | Min. interest rate | Time in business | |
|---|---|---|---|---|---|---|---|
 | User ratings coming soon | Short-term funding | $250,000 | 6, 12 or 24 months | 3.00% to 9% 6-month loans 6% to 18% for 12-month loans 9% to 27.00% for 18-month loans | 12 months | Get business loan offers |
 | Not applicable | SBA working capital line of credit | $5,000,000 | 120 months | Capped at Prime +3.00% | 24 months | Get business loan offers |
 | User ratings coming soon | High-revenue businesses | $250,000 | 6 or 12 months | 6.20% for 26-week term | 24 months | Get business loan offers |
 | 5 stars | Same-day funding | $100,000 | 12, 18 or 24 months | 39.90%* | 12 months | Get business loan offers |
 | 5 stars | Newer businesses | $150,000 | 12 or 24 weeks | 4.66% for 12-week terms 8.99% for 24-week terms | 6 months | Get business loan offers |
 | User ratings coming soon | Businesses seeking longer loan terms | $100,000 for unsecured $250,000 for secured | Up to 36 months for unsecured Up to 60 months for secured | Not disclosed | None | Get business loan offers |
| Loan amounts | $2,000 to $250,000 |
| Starting interest rate |
|
| Term length (months) | 6, 12 and 24 months |
| Minimum credit score | 660 |
| Minimum time in business | 12 months |
| Pros | Cons |
|---|---|
Quick application process No prepayment penalty Shorter time in business requirement | Must link to a business bank account to determine eligibility Requires a personal guarantee Higher minimum credit score requirement |
With loan terms of up to 24 months, the American Express Business Line of Credit is a convenient choice for those looking for short-term funding. Its streamlined application process takes just minutes to complete, granting eligible borrowers up to $250,000 in funds with no prepayment penalties attached.Still, it may not be the best fit for all borrowers. A minimum credit score requirement of up to 660 means that it’s only a fit for those with good or excellent credit scores. Plus, as a business owner, you’ll be on the hook with a personal guarantee if your business can’t afford to pay back the loan.
| Loan amounts | Up to $5,000,000 |
| Starting interest rate | Prime + 3.00% |
| Term length (months) | 120 months |
| Minimum credit score | 680 (recommended) |
| Minimum time in business | 24 months (recommended) |
| Pros | Cons |
|---|---|
Ability to choose between a term loan and line of credit Capped interest rates Borrowers who wouldn’t be approved by traditional lenders may qualify. | May require a personal guarantee Collateral may be required May have longer funding times than other lenders |
| Loan amounts | Up to $250,000 |
| Starting interest rate | 6.20% for the 26-week period |
| Term length (months) | 6 or 12 months |
| Minimum credit score | 625 |
| Minimum time in business | 24 months |
| Pros | Cons |
|---|---|
Same-day funding available Quick funding decision Decently competitive interest rate | High annual revenue requirement Not available in all states Higher minimum credit score requirement |
| 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 Shorter time in business requirement Lower annual revenue requirement | Lower funding cap Doesn’t publish starting interest rate Requires a business bank account |
OnDeck’s standout features are its ability to provide same-day funding and its relatively lenient qualifying standards. Compared to some other lenders, the company’s $100,000 minimum revenue requirement and 12-month time in business requirement seem fairly attainable.However, you’ll be subject to a lower funding cap. In addition, OnDeck doesn’t publish its starting interest rate, which can make it hard to estimate how much you’ll pay for the privilege of borrowing.
| Loan amounts | Up to $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 |
|---|---|
Shorter time in business requirement Relatively low starting interest rate Lower minimum credit score | Lower funding cap Short loan terms Only available to businesses based in the U.S. |
| Loan amounts | $3,500 to $250,000 |
| Starting interest rate | Not disclosed |
| Term length (months) | Up to 60 months |
| Minimum credit score | Not disclosed |
| Minimum time in business | None, but additional paperwork may apply if you’ve been in business less than 24 months |
| Pros | Cons |
|---|---|
Longer loan terms available No annual revenue requirement No time in business requirement | Doesn’t disclose minimum credit score requirement Doesn’t disclose starting interest rate information Larger loan amounts will require collateral |
Truist is our top working capital line of credit pick for businesses seeking longer loan terms because its terms extend to 60 months. When paired with the fact that the company doesn’t have hard-and-fast annual revenue requirements or time in business requirements, it could also be a smart pick for businesses that can’t qualify for more traditional financing.That said, Truist chooses not to publicize many of its eligibility requirements, which can make it hard to tell if you qualify. Additionally, if you want to take advantage of its longer loan terms or larger loan amounts, you’ll need to be prepared to put up collateral to secure the loan.
A working capital line of credit is a type of business line of credit that’s meant to cover short-term operating expenses. You can use a working capital line of credit to cover costs, such as rent and utilities, inventory, supplies, emergency expenses or payroll.
Typically, working capital lines of credit are not used to cover large one-time purchases. If you need that type of funding, a business term loan is likely going to be a better fit instead.
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A working capital line of credit is a type of business line of credit that’s meant to cover operating expenses, like inventory, supplies, utilities, and payroll.
Most lenders prefer that you have a two-year business history before they approve you for a working capital line of credit. But it’s possible to find lenders with a shorter time in business requirement or even no firm requirement at all.
If you have an established business and a strong 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 increase your odds of being approved.