8 Best Small Business Lines of Credit for 2022
Tom has 15 years of experience helping small businesses evaluate financing and banking options. He shares this expertise in Fit Small Business’s financing and banking content.
This article is part of a larger series on Business Financing.
The best small business lines of credit combine ease of access to capital with competitive interest rates and offer the advantage of not requiring collateral. Based on these factors, we’ve identified the eight best small business lines of credit:
- Bluevine: Best overall small business line of credit
- Fundbox: Best for newer businesses
- OnDeck: Best for fast funding
- US Bank: Best for established businesses
- TD Bank: Best for the ability to make interest-only payments
- SBG Funding: Best line of credit for working capital
- Headway Capital: Best for longer repayment terms
- Credibly: Best for those with less than optimal credit
Best Small Business Lines of Credit At-a-Glance
Provider | Maximum Loan Amount | Annual Percentage Rate (APR) Range | Minimum FICO Score |
|---|---|---|---|
$250,000 | 4.8% to 78% | 600 | |
$100,000 | 10% to 79% | 600 | |
$100,000 | 10.99% and up | 600 | |
$100,000 (unsecured) | Up to 25% | 680 | |
$100,000 | Up to 25% | 650 | |
$150,000 | 21% and up | 500 | |
$100,000 | 40% and up | None | |
$250,000 | 10% and up | 560 |
Bluevine: Best Overall Small Business Line of Credit
BlueVine
What We Like
- Competitive rates
- Fast funding
- Online application
What's Missing
- High minimum revenue
- Relatively short repayment time
Features
- Maximum Amount: $250,000
- Minimum Time in Business: Six months
- APR Range: 4.8% to 78%
- Payment Frequency: Weekly or monthly
- Repayment Term: Six or 12 months
- Minimum Credit Score: 600
- Minimum Annual Revenue: $120,000
- Funding Speed: One day
Bluevine’s application process is very simple and easy to use. Its approval time and funding speed are generally within one day, which gives businesses quick access to needed capital. Repayment terms can be monthly or weekly and can extend out to a year. Bluevine will approve lines of credit for business owners who have been in business for as little as six months.
Why we like it: Out of the small business lines of credit available, Bluevine’s quick, efficient application process, along with flexible repayment terms upon approval, gives it an edge in a competitive market.
Fundbox: Best for Newer Businesses
Fundbox
What We Like
- Quick funding speed
- Online application
- Lower minimum requirements
What's Missing
- Shorter repayment terms
- Higher interest rates
Features
- Maximum Amount: $100,000
- Minimum Time in Business: Six months
- APR Range: 10% to 79%
- Payment Frequency: Weekly
- Repayment Term: 12 or 24 weeks
- Minimum Credit Score: 600
- Minimum Annual Revenue: $100,000
- Funding Speed: Same day
Fundbox is a good solution for newer businesses that only need a short period of time to repay the capital they borrow. Fundbox only requires a business owner to be in business for six months and have a minimum credit score of 600 for financing. Fundbox’s repayment terms are shorter than many of the lenders we evaluated, with repayment terms capping out at 24 weeks. This means that your weekly payments would be several thousand dollars if you borrow the maximum amount.
Why we like it: Fundbox provides newer businesses the opportunity to get needed capital.
OnDeck: Best for Fast Funding
OnDeck
What We Like
- Fast funding
- Easier qualification standards
- Online application
What's Missing
- High interest rates
- Monthly maintenance fee
Features
- Maximum Amount: $100,000
- Minimum Time in Business: One year
- APR Range: 10.99% and higher
- Payment Frequency: Weekly
- Repayment Term: 12 months
- Minimum Credit Score: 600
- Minimum Annual Revenue: $100,000
- Funding Speed: One day
OnDeck’s line of credit offering is good for those who have been in business for a short period of time or have less than ideal credit and are in need of quick access to funds. OnDeck only requires a business owner to be in operation for a year and will approve loans with credit scores as low as 600. OnDeck’s line of credit includes a maintenance fee of $20 per month, an origination fee for your line of credit, and its lines of credit can have high interest rates that average over 35% APR. However, you are only liable to pay interest on what’s borrowed, and there’s no penalty for early repayment.
Why we like it: OnDeck provides businesses with less-than-optimal credit the opportunity to get needed capital quickly.
US Bank: Best for Established Businesses
US Bank
What We Like
- No annual fee on lines of more than $50,000
- Online application
- Ability to lock in interest rate
What's Missing
- Higher qualification guidelines
Features
- Maximum Amount: $100,000 unsecured; $250,000 secured
- Minimum Time in Business: Two years
- APR Range: Up to 25%
- Payment Frequency: Monthly
- Repayment Term: None
- Minimum Credit Score: 680
- Minimum Annual Revenue: Varies based on business case
- Funding Speed: Five days
One of the perks of US Bank’s small business line of credit is that you can lock in your interest rate on existing line balances, which can be advantageous if interest rates increase and you lock in before a rate hike kicks in. Also, lines of credit of over $50,000 don’t have an annual fee assessed. If your line of credit is under $50,000, an annual fee of $150 applies. Should you choose to pursue an unsecured line of credit, you can obtain a line of credit up to $100,000.
US Bank’s line of credit requires businesses to be in operation for two years and its owners to have good credit scores, which means newer businesses may need to pursue other options.
Why we like it: US Bank offers customers the ability to lock in their interest rate when paying down their credit line balance.
TD Bank: Best for Interest-only Payments
TD Bank
What We Like
- Competitive rates
- Interest-only payments
- Online application
What's Missing
- Not available nationally
- Larger lines of credit require you to apply in-person
Features
- Maximum Amount: $100,000 online
- Minimum Time in Business: None
- APR Range: Up to 25%
- Payment Frequency: Monthly
- Repayment Term: Variable
- Minimum Credit Score: 650
- Minimum Annual Revenue: Varies based on business case
- Funding Speed: Five days
TD Bank offers the ability to apply online for up to $100,000 in unsecured financing, with approval taking around five business days. TD Bank is one of the few lenders to offer the ability to pay just the interest on a line of credit, which will help businesses that need some cash flow support in leaner revenue cycles. One major disadvantage with TD Bank is that applicants need to be located within TD Bank’s footprint of 16 states, mainly on the United States East Coast. It’s also worth noting that if you want more than $100,000 in financing, you’ll need to visit a TD Bank office to apply.
Why we like it: The option to make interest-only payments provides increased flexibility for small business owners.
SBG Funding: Best for Working Capital
SBG Funding
What We Like
- Online application
- Lower qualification standards
- Fast access to cash
What's Missing
- Higher interest rates
Features
- Maximum Amount: $150,000
- Minimum Time in Business: Six months
- APR Range: 21% and higher
- Payment Frequency: Weekly and monthly
- Repayment Term: Six to 24 months
- Minimum Credit Score: 500
- Minimum Annual Revenue: $120,000
- Funding Speed: Up to Four days initially
SBG Funding offers lines of credit for businesses whose owners have credit scores as low as 500 or have been in business for as little as six months. SBG Funding is a good option for those businesses that need working capital and may not have ideal credit or may only have a few months in operation under their belt.
Why we like it: SBG Funding offers lines of credit for working capital to newer small businesses and to those businesses whose owners have less than ideal credit scores.
Headway Capital: Best for Longer Repayment Terms
Headway Capital
What We Like
- Quick funding speed
- Newer businesses are eligible
- Online application
What's Missing
- High interest rates
Features
- Maximum Amount: $100,000
- Minimum Time in Business: Six months
- APR Range: 40% and higher
- Payment Frequency: Weekly or monthly
- Repayment Term: 12, 18, or 24 months
- Minimum Credit Score: N/A
- Minimum Annual Revenue: $50,000
- Funding Speed: Two days
Headway Capital offers lines of credit that range from $5,000 to $100,000, which is sufficient for most small businesses needing capital for recurring expenses. Headway Capital also has low minimum requirements compared to other lenders; however, it also has some of the highest interest rates among lending providers. There’s no stated minimum credit score with Headway, as business performance is weighed in with the owner’s personal credit as part of the decision-making process.
Why we like it: Headway Capital is one of the few alternative lenders that offer repayment of up to 24 months on borrowed funds.
Credibly: Best for Those With Less Than Optimal Credit
Credibly
What We Like
- Quick funding speed
- Newer businesses are eligible
- Ability to support those with poor credit
What's Missing
- Shorter repayment terms
- Origination fees
Features
- Maximum Amount: $250,000
- Minimum Time in Business: Six months
- APR Range: 10% and higher
- Payment Frequency: Weekly or monthly
- Repayment Term: 26 weeks
- Minimum Credit Score: 560
- Minimum Annual Revenue: $50,000
- Funding Speed: One day
Credibly offers lines of credit of up to $250,000, with interest rates starting at 4.8% for 26-week terms. It’s a good choice for businesses whose owners have poor credit, as Credibly will approve loans with credit scores as low as 560. However, the interest rates for those with poor credit will be higher. Also, Credibly may assess an origination fee.
Why we like it: Credibly is a good option for business owners with subprime credit that need a boost of short-term financing.
How We Determined the Best Small Business Lines of Credit
Small business lines of credit are commonly available from many banks, and the process of picking a good line of credit can be confusing, given all the options. Our evaluation process in ranking small business lines of credit considered rates, terms, credit score requirements, and quickness in funding.
If a business has been established for at least two years and its owners have good personal credit, traditional lenders will often provide better rates when a business applies for a business line of credit. However, many of the providers in our list offer lines of credit with a more expedited approval and funding process. When applying for a business line of credit, make sure you are prompt in responding to any lender inquiries, as a slow response will delay decision and funding times.
Bottom Line
Alternative lenders are more likely than traditional leaders to approve a line of credit if your credit score isn’t great or if you are a newer business; however, you’ll pay a higher interest rate. Traditional lenders will provide lower rates but may not be very quick about giving you the funding you need. It’s important to shop around and see what the best option for your business is. Depending on your qualifications and business needs, any of these eight lenders are good choices.
