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.
$2,000 to $250,000
3.00% to 27.00%
3% to 9% for 6-month loans
6% to 18% for 12-month loans
9% to 27% for 18-month loans
12% to 18% for 24-month loans
6, 12, 18 and 24 months
660
12 months
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.
Up to $5,000,000
10.75% to 14.25%
14.25% for loans $50,000 or less
13.75% for loans $50,001 to $250,000
12.25% for loans $250,001 to $350,000
10.75% for loans above $350,000
Some lenders may charge lower rates. Based on the current prime rate of 7.75% + a rate maximum set by the SBA. Fixed-rate loans will have higher rates.
120 months
680 (recommended)
24 months (recommended)
The SBA Working CAPline is an SBA 7(a) loan. It’s meant to help business owners who may not be able to qualify for traditional long-term credit sources by providing funding for cyclical growth or recurring needs. The flexible qualifying standards and capped interest rates make this line of credit an attractive option for many small business owners. But, in exchange, you’ll have to deal with personal guarantee and collateral requirements, plus a longer acceptance process and funding times.
Up to $250,000
7.80%
6 or 12 months
625
12 months
Bluevine is our best pick for high-revenue businesses because of its unique annual revenue requirement. Businesses must bring in at least $10,000 in revenue each month to qualify for the company’s working capital line of credit. However, businesses that can qualify may be able to access funds at reasonable interest rates and have the potential to receive same-day funding with relatively few fees. For instance, you won’t be charged for opening the account, maintaining it, closing it or prepaying your balance.
$6,000 to $100,000
39.90% This rate reflects the estimated starting APR offered to at least 5% of OnDeck customers. It doesn’t reflect the minimum APR offered by the company.
12, 18 or 24 months
625
12 months
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.
Up to $150,000
4.66% to 8.99%
4.66% (12 weeks)
8.99% (24 weeks)
3 or 6 months
600
3 months
Fundbox’s working capital line of credit is the best choice for newer businesses because of its short time in business requirement. In addition, its lower minimum credit score requirement, competitive starting interest rate and lack of a prepayment penalty also make it a solid choice for businesses of all ages. Unfortunately, though, this funding is only available for U.S.-based businesses and this line of credit only extends to $150,000, which is lower than some of the other lenders on this list.
$100,000 to $250,000
$100,000 for unsecured
$250,000 for secured
Not disclosed
Up to 60 months Up to 36 months for unsecured loans and up to 60 months for secured loans
Not disclosed
None, but additional paperwork may apply if you’ve been in business less than 24 months
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 for a secured 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.