Business Line of Credit: Best Lenders & Rates (2026)

Last updated: October 2026

A business line of credit is a revolving credit limit your business can draw from, repay and draw again. You pay interest or fees only on what you have drawn, not on the full limit. Banks usually ask for 2 years in business, $100,000+ in annual revenue and a 660 to 700+ FICO score. Online lenders often accept 1 year, about $100,000 a year in revenue and a 625 score. Bank lines are priced off the Prime rate (7.00% in late October 2026). Online lines cost more. OnDeck, for example, publishes an average line-of-credit APR of 59.8%. Below: how lines work, the best business lines of credit by lender with their published terms, and how to qualify.

How a business line of credit works

The lender approves a maximum limit, say $100,000. You draw what you need, when you need it, and repay on a set schedule. As you repay, that amount becomes available again.

January: you draw $30,000 for inventory. Interest runs on $30,000 only.
February: you repay $20,000. Your balance is $10,000 and $90,000 is available.
March: you draw $25,000. Your balance is $35,000 and $65,000 is available.
April: you repay the full $35,000. The whole $100,000 is available again.

Two pricing models are common. Banks charge a variable interest rate (Prime plus a margin) on the outstanding balance, plus an annual fee. Many online lenders instead turn each draw into a short installment loan of 6 to 24 months with fixed weekly or monthly payments. Use our business credit line calculator to estimate payments on a draw.

Best business lines of credit: published terms compared

There is no single best business line of credit. The best one is the cheapest line you can actually qualify for. The table lists each lender's own published amounts and minimums, checked in October 2026.

Lender	Line amount	Published cost	Published minimums
Bank of America (unsecured Business Advantage line)	$10,000 to $250,000	Variable rate; Prime + 0% intro for 7 billing cycles; $150 annual fee, waived year one	2 years under current ownership, $100,000 prior-year revenue, FICO above 700 typically required
Bank of America (cash-secured line)	$1,000 to $50,000, secured by an equal deposit	Variable rate; $150 annual fee, waived year one	6 months in business, $50,000 annualized revenue, a Bank of America deposit account
Chase	$10,000 to $500,000 for existing Chase business customers (larger commercial lines also offered)	Variable, indexed to Prime; annual fee of $200 or 0.25% of the line, capped at $750	660 FICO, $100,000 annual revenue, 2 years of stable ownership; personal guarantee from 20%+ owners
Wells Fargo BusinessLine	$10,000 to $150,000	Prime + 1.75% to Prime + 9.75%; $95 or $175 annual fee after year one	6+ months in business, guarantors typically 680+ FICO
U.S. Bank Cash Flow Manager	Up to $250,000 (larger lines through a banker)	$150 annual fee on lines of $50,000 or less; $0 above $50,000	Not published
Bluevine	Up to $250,000	Rates from 7.8% for top-qualifying customers; no maintenance fees	625 FICO, 12 months in business, $10,000 monthly revenue; corporations and LLCs only
American Express Business Line of Credit	$2,000 to $250,000	A monthly fee on each draw instead of interest; repaid over 6, 12 or 18 months	660 FICO, 1 year in business, $3,000 average monthly revenue
OnDeck	Lines up to about $200,000	Published average line APR of 59.8% (six months to June 30, 2026)	625 FICO, 1 year in business, $100,000 annual revenue
Headway Capital	$5,000 to $100,000	Repaid over 12 to 24 months	1 year in business, $50,000 annual revenue

Best line of credit by situation

Lowest cost, established business: a bank line from Bank of America, Chase, Wells Fargo or U.S. Bank, especially if you already bank there.
Newer business (6 to 12 months): the Wells Fargo BusinessLine (6 months minimum) or a cash-secured line such as Bank of America's, which is built to establish business credit. It can lead to an unsecured line after a record of on-time payments.
Fast online approval with good credit: Bluevine or the American Express line.
Fair credit around 625: OnDeck or Bluevine, if revenue meets their minimums. Expect a much higher cost than a bank.
Larger, longer lines: SBA 7(a) working capital lines (CAPLines) can go up to the 7(a) maximum of $5 million, and SBA Express lines up to $500,000. They take weeks, not days.

Marketplaces such as Lendio are not lenders. They pass one application to several lenders, which can save time but does not change any lender's terms. Fundbox now offers much of its credit through partner platforms, so its terms vary by channel.

Business line of credit rates and fees

Most searches for "business line of credit rates" want one number, but the range is wide:

Bank lines: Prime plus a margin. With Prime at 7.00%, Wells Fargo's published range of Prime + 1.75% to Prime + 9.75% works out to 8.75% to 16.75%. The rate moves when Prime moves.
Online lines: Bluevine advertises rates from 7.8% for its best customers. OnDeck's published average line APR is 59.8%. Most online borrowers land well above the advertised floor.
Fee-based lines: American Express charges a monthly fee per draw instead of an interest rate, so convert it to total dollars before comparing.

Fees to ask about: annual or maintenance fees, draw fees, origination fees, the rate after any intro period, and whether you can repay early without a penalty. Ask every lender for the total dollar cost of a sample draw. That is the only fair way to compare an APR with a monthly fee.

Types of business lines of credit

Secured vs. unsecured

A secured line is backed by collateral: a cash deposit, receivables, inventory, equipment or real estate. It is easier to get and usually cheaper. An unsecured line has no specific collateral, but most lenders still require a personal guarantee and file a UCC lien on business assets. If you want to avoid the guarantee, see business credit lines without a personal guarantee.

Revolving vs. non-revolving

A revolving line refills as you repay. A non-revolving line works like a draw-down loan: once you use and repay it, that credit is gone. Most small business lines are revolving. Our guide to revolving credit covers the mechanics.

Working capital line of credit

A working capital line is a revolving line meant for short-term operating costs: payroll, inventory, rent, and gaps while customers pay. It is the most common type of business line. Use it for expenses that turn back into cash within months, not for long-lived assets.

B2B line of credit

"B2B line of credit" usually means one of two things. One is trade credit, where a supplier lets you buy now and pay in 30 to 90 days. The other is a line sized to your receivables, where the limit grows with the invoices you are owed by other businesses. If slow-paying customers are the problem, invoice factoring can work like a credit line underwritten mostly on your customers' credit.

Line of credit vs. term loan

Feature	Line of credit	Term loan
How you get funds	Draw as needed, up to the limit	One lump sum up front
Interest charged on	The drawn balance only	The full loan amount
Repayment	Repay and reuse	Fixed payments until paid off
Rate	Usually variable	Often fixed
Best for	Recurring or unpredictable short-term needs	One-time purchases: equipment, buildout, acquisition

Choose a line of credit when cash flow swings month to month, when you want a standby fund for emergencies, or when you buy inventory ahead of a busy season. Choose a term loan when you know the exact amount and the purchase will pay off over years. Many businesses hold both.

Business line of credit requirements

Lenders weigh the same factors, but the bar differs by lender type:

Credit score: bank lines generally want 660 to 700+ (Chase 660, Wells Fargo 680 typical, Bank of America above 700). Online lines start around 625 (Bluevine, OnDeck). Amex asks for 660.
Time in business: 2 years at Bank of America and Chase; 1 year at OnDeck, Bluevine, Amex and Headway; 6 months at Wells Fargo and for Bank of America's cash-secured line.
Revenue: $100,000 a year at Chase, Bank of America and OnDeck; $120,000 at Bluevine ($10,000 a month); $50,000 at Headway.
Entity and banking: some lenders exclude sole proprietors (Bluevine), and bank lines often require a deposit account with that bank.
Bank statements: lenders look at average balances, overdrafts, existing loan payments and the trend in deposits.

Documents you will usually need

3 to 6 months of business bank statements (online lenders)
Business and personal tax returns, usually 2 years (banks)
Government ID, EIN and business formation documents
Year-to-date profit and loss statement and balance sheet (banks, larger lines)
A debt schedule listing current loans and advances

How to get a business line of credit

Size the need. Add up the gap you are covering: a slow season, a payroll cycle, an inventory order. Ask for a limit that covers it, not the maximum offered.
Check both credit files. Pull your personal reports and fix errors. Make sure your business has its own bank account and EIN.
Start where you bank. Your own bank already sees your deposits and may waive fees or move faster.
Prequalify online. Bluevine and several other lenders use a soft pull to show an offer. A hard pull usually comes only when you accept.
Compare total cost. Price the same sample draw at each lender in dollars.
Use it lightly at first. Draw, repay on time and keep balances well below the limit. Then ask for an increase after 6 to 12 months.

How to build a line of credit from scratch

If you are turned down for an unsecured line, start with a cash-secured line or a business credit card. Pay on time and report through your business, not only your personal file. Then reapply once you reach a year in business and steady deposits. Bank of America states that its cash-secured line can graduate to an unsecured line after consistent on-time payments.

Business line of credit for a new business or with bad credit

Startups with under 6 months of history rarely qualify for an unsecured line. Realistic options are a cash-secured line, a business credit card, or equipment financing for specific purchases. With fair or poor credit (under about 625), most published line-of-credit minimums are out of reach. In that case the usual alternatives are invoice factoring, which looks at your customers' credit, or revenue-based products such as a merchant cash advance. An MCA is not a loan or a line of credit. It is a purchase of your future receivables, repaid by daily or weekly remittances, and it is usually the most expensive option. See our guide to funding options for bad credit.

Frequently asked questions

Does a business line of credit affect my credit score?

Applying can trigger a hard inquiry on your personal credit, though many online lenders prequalify with a soft pull. Whether the line itself shows on your personal report depends on the lender. On-time payments help your business credit file with lenders that report to business bureaus.

Do I have to use my full line?

No. You can leave it undrawn. With bank lines, an annual fee may still apply.

How fast can I get a business line of credit?

Online lenders can decide within days. Bank lines usually take longer, and SBA lines take weeks. Once a line is open, draws are fast: Bluevine, for example, says draws reach a Bluevine checking account instantly or an outside account within 24 hours.

Can I get a $2 million business line of credit?

Not from the online lenders above, which cap at $250,000 or less. Lines in the millions come from banks' commercial lending teams or SBA CAPLines, and they need full financial statements, often collateral and usually several years of history.

Comparing lines of credit through a broker

Each lender above has its own credit box, and applying one by one takes time and can mean several hard pulls. FSE is an independent commercial finance brokerage working with 50+ lending partners across lines of credit, working capital, equipment financing, real estate-backed funding and merchant cash advances. One application lets us compare what you may qualify for. Our application asks for at least one year in business and $10,000+ in monthly revenue. Approval and terms depend on each lender. Start a no-obligation application.

Sources

Lender details were checked in October 2026 and change often; confirm terms with each lender. Inclusion is not an endorsement and does not mean a lender is part of FSE's network.

Business Line of Credit: Best Lenders, Rates and Requirements (2026)