Best Working Capital Lines of Credit in 2026
American Express is our pick for lower-revenue businesses, while OnDeck stands out for fast funding. We reviewed working capital lines of credit based on rates, funding speed and lender requirements.
- Working capital lines of credit are best for recurring short-term expenses.
- Rates and fees vary widely, especially when lenders use factor rates instead of APRs.
- Online lenders may fund faster, while traditional banks often offer longer repayment terms.
- Businesses with lower revenue or poor credit may still qualify, but borrowing costs are often higher.
- Compare repayment schedules, fees and borrowing limits — not just interest rates.
| Lender | User rating | Best for | Starting rate | Amount | Term | |
|---|---|---|---|---|---|---|
|
Lower-revenue businesses | 3.00% |
$2k – $250k |
6 to 24 months | ||
|
SBA line of credit | Not specified |
$10k – $500k |
12 months (Revolving) | ||
|
High-revenue businesses | 7.80% |
$1k – $250k |
Up to 12 months | ||
|
Same-day funding | 39.60% (APR) |
$6k – $200k |
12 to 24 months | ||
|
Startups | 4.66% | Up to $250k | 3 to 24 months | ||
|
Secured line of credit | Not specified | Up to $250k | 12 to 60 months | ||
|
Borrowers with poor credit | 1.01 (factor rate) |
$10k – $1M |
6 to 18 months |
Working capital line of credit lenders: More details
Best for: Lower-revenue businesses – American Express
- 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 fees
- Low monthly revenue requirement
- Must link a business bank account to determine eligibility
- Requires a personal guarantee
- Credit lines above $150,000 are only available to select borrowers
American Express may be a good fit for businesses with lower annual revenue since it only requires $36,000 a year to qualify. The streamlined application process takes just minutes to complete and offers access to up to $250,000 in flexible funding that businesses can draw from as needed.
Keep in mind that American Express requires a personal guarantee, which means you’re personally responsible if your business can’t repay the debt. Each draw also functions as a separate installment loan and may come with its own monthly fee.
Check out LendingTree’s 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 full eligibility requirements
- Some credit lines may require collateral
KeyBank’s U.S. Small Business Administration (SBA)-backed line of credit may work well for established businesses looking for higher borrowing limits and more flexible repayment options. Loan amounts go up to $500,000, which is larger than many working capital lines of credit. As an SBA Preferred Lender, KeyBank may also be able to speed up parts of the SBA approval process.
However, KeyBank doesn’t publicly disclose its interest rates or full borrower requirements, which can make it harder to compare costs before applying. While SBA-backed credit lines have interest rate caps, not all KeyBank business lines of credit include SBA guarantees.
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: Not specified
- 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
- 7.80%
- 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
Bluevine’s line of credit may work well for established businesses with strong monthly revenue that need fast access to working capital. Businesses registered as an LLC or corporation with at least $10,000 in monthly revenue may qualify for funding up to $250,000 on an as-needed basis to cover a range of business expenses.
Bluevine also offers quick funding options and a high-yield business checking account, which may appeal to businesses looking to manage financing and banking in one place.
However, Bluevine’s financing isn’t available for sole proprietors or businesses located in Nevada, North Dakota or South Dakota.
Check out LendingTree’s 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 for established accounts
- On-time repayment helps build your business credit score
- No prepayment penalty
- Relatively high interest rates
- Payments are automatically deducted from your bank account
- High annual revenue requirement
As one of our top picks for fast business loans, OnDeck’s line of credit may work well for businesses that need fast access to working capital for short-term expenses or unexpected cash flow gaps. You can receive funds within seconds when making a withdrawal from an established account, though instant funding isn’t available the same day you sign your loan agreement.
OnDeck may also appeal to lower-credit borrowers and early-stage businesses, though strong business finances are still important to qualify. Since OnDeck reports to major credit bureaus, on-time payments may help build your business credit profile over time.
However, fast funding often comes with higher borrowing costs, and OnDeck’s interest rates may run higher than some traditional business lenders.
Check out LendingTree’s 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 credit accepted
- Short time-in-business requirement
- Available in all U.S. states and many territories
- Doesn’t list maximum interest rates
- May require a personal guarantee
Fundbox’s flexible line of credit is ideal for early-stage businesses and entrepreneurs needing startup financing. With a minimum time-in-business requirement of just three months, Fundbox may be easier to qualify for than some traditional business lenders.
Fundbox offers a speedy online application and, once approved, funds could hit your bank account as soon as the next business day. You can choose repayment terms for each withdrawal, offering flexibility for different business financing needs.
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: $30,000
Best for: Secured line of credit – Truist
- Starting rate
- Not specified
- Longer terms
- Wide range of traditional bank products
- Secured financing may offer higher borrowing limits
- Larger loan amounts require collateral
- Doesn’t list interest rates
- Lack of information on credit score requirements
Truist’s secured line of credit may work well for businesses that need higher borrowing limits or longer repayment terms than some online lenders offer. Because the secured line of credit is backed by collateral, you may receive more favorable terms, including repayment periods up to 60 months and borrowing limits up to $250,000.
However, Truist doesn’t publicly disclose its interest rates or minimum credit score requirements, making it harder to compare against competing lenders before applying.
In order to qualify, you’ll need to meet Truist’s criteria of:
- Minimum credit score: Not specified
- Minimum time in business: Not specified, though newer businesses may need to provide additional financial documentation
- Minimum annual revenue: Not specified
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
- Factor rates make it hard to compare total cost of borrowing
Taycor Financial’s line of credit may work well for borrowers who need bad credit business financing or newer businesses that may not qualify for traditional bank financing. Borrowers with credit scores as low as 560 may qualify for funding between $10,000 and $1,000,000.
However, Taycor Financial may charge origination fees of up to 3.00%. The lender also uses factor rates instead of traditional interest rates or annual percentage rates (APRs), which can make it harder to compare borrowing costs with other business lines of credit.
Check out LendingTree’s 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: $50,000
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 can help businesses manage payroll, inventory, utilities and seasonal fluctuations in revenue.
A working capital line of credit is a type of business financing designed to help cover these short-term operating expenses. Businesses can draw from the credit line as needed and reuse available funds as they repay their balance.
Even profitable businesses can struggle with uneven cash flow. LendingTree research found that 22.1% of new U.S. businesses close within their first year, often due to operational and financial challenges. Access to flexible working capital may help businesses manage unexpected expenses and seasonal revenue gaps without disrupting operations.
Is a working capital line of credit or a working capital loan better for your business?
Both working capital lines of credit and working capital loans can help businesses cover short-term financing needs, but they work differently. A line of credit offers flexible access to funds as needed, while a working capital loan provides a lump sum with fixed repayment terms.
Choose a working capital line of credit if…
- You need flexible access to funds over time.
- Your business has uneven or seasonal cash flow.
- You want to borrow only what you need.
- You expect recurring short-term expenses.
- You want emergency funding available.
Choose a working capital term loan if…
- You need a lump sum upfront.
- You’re funding a larger one-time expense.
- You prefer fixed monthly payments.
- You want a predictable repayment schedule.
- You’re financing expansion, equipment or renovations.
How does a working capital line of credit work?
A working capital line of credit works similarly to a business credit card. Once approved, you can borrow funds up to your credit limit and typically only pay interest on the amount you draw.
How borrowing works
- Withdraw funds as needed, up to your approved credit limit.
- Reuse available funds as you repay your balance.
- Borrow only what your business needs instead of taking a lump sum upfront.
Common uses for a working capital line of credit
Businesses often use working capital lines of credit for:
- Payroll
- Inventory purchases
- Rent and utilities
- Seasonal slowdowns
- Emergency operating expenses
Fees and repayment
Some lenders may charge draw fees, maintenance fees or annual fees. Depending on the lender, each withdrawal may also function as a separate installment loan with its own repayment schedule.
Unlike a traditional business loan, you don’t need to fully repay your balance before borrowing again. Many businesses keep a line of credit open for recurring expenses or unexpected cash flow gaps, only borrowing when necessary.
Some lenders may limit your borrowing amount based on your available working capital.
Working capital formula
Current assets – current liabilities = working capital
Example
If your business has $100,000 in current assets and $50,000 in current liabilities, your working capital would equal $50,000.
How to get a working capital line of credit
If you’re ready to apply for small business financing, these five steps can help you open a working capital line of credit.
1. Determine how much funding you need
Start by reviewing your business budget and upcoming operating expenses. Then, use a business loan calculator to estimate your borrowing power and monthly payments before applying.
2. Evaluate your eligibility
Business loan requirements vary by lender, but most providers will review factors such as your personal and business credit scores, time in business and annual revenue.
3. Compare lenders
Both traditional banks and online business lenders offer working capital lines of credit. Compare interest rates, repayment terms, fees and funding speed before choosing a lender. With LendingTree, you can compare offers from multiple business lenders in one place.
4. Gather your documents
Having your paperwork ready may help speed up the application process. Depending on the lender, you may 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
Applications 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.
See LendingTree’s guide to the average business loan rates for 2026.
Fees
Some lenders charge draw fees, maintenance fees or origination fees that can increase your total borrowing costs.
Repayment terms
Some lenders require weekly payments, while others offer monthly repayment schedules. Make sure your business can comfortably handle the repayment frequency.
Credit limit
Some lenders offer higher credit limits than others. Even if you’re approved for a smaller amount than you’d like, using the line responsibly may make you eligible for an increased credit limit down the road. If you need more substantial funds, like for an expansion or acquisition, you may want to consider an SBA loan or traditional bank loan.
Funding speed
Some lenders have the ability to deposit funds into your account the same day you request them. For others, the process can take a few days to complete.
Pros and cons of a working capital line of credit
Pros
- Borrow funds as needed for short-term or emergency expenses
- Typically only pay interest on the amount you draw
- May offer higher borrowing limits than business credit cards
- Options to help cover initial expenses when starting a business
Cons
- Usually not designed for large long-term purchases
- Some lenders require collateral or a personal guarantee
- Fees and factor rates can increase borrowing costs
Get help finding the right business loan
For qualified users, LendingTree’s small business concierge service connects you with an expert who can help you compare loan options and choose the best fit for your business needs.
This individualized approach helped LendingTree’s small business concierge service connect more than 5,000 borrowers with over $300 million of loans in the past year.
“Our consultative approach helps business owners compare options and make informed decisions.”
— Ben Whitman, business loan sales director at LendingTree
Frequently asked questions
Yes, some lenders work with startups and newer businesses, though qualification requirements vary. While traditional banks may prefer businesses with one to two years of operating history, some online lenders may approve borrowers after just a few months in business.
Businesses with strong revenue, established operating history and good credit generally have an easier time qualifying. Startups and borrowers with lower credit scores may still qualify through online lenders, though rates and fees are often higher.
Businesses that can’t qualify may consider alternatives such as:
You can also use LendingTree Spring to monitor and boost your credit score, which may help secure a more competitive rate.
Our methodology: How we chose the best working capital lines of credit
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.