9
Best Business Lines Of Credit For Startups In 2026
BusinessLoans.com
Loan amounts
$5,000 to $3,000,000
APR range
Varies by product
Minimum Credit Score
550
$5,000 to $3,000,000
Varies by product
550
Apply in minutes, funding as soon as the same day.
Summary of the Best Startup Business Lines of Credit
| COMPANY | FORBES ADVISOR RATING | LOAN AMOUNTS | APR | LEARN MORE |
|---|---|---|---|---|
|
$5,001 to $250,000
|
9.50% to 12.50%
|
From participating partners via businessloans.com’s website
| |
|
$10,000 to $3 million
|
Prime + 1.75% to prime + 9.75%
|
Via Forbes Advisor
| |
|
$1,000 to $250,000
|
8% to 60%
|
On Lendio’s Website
| |
|
|
$1,000 to $250,000
|
9.00% to 18.00%
| ||
|
|
$5,000 to $100,000
|
Does not disclose
| ||
|
|
$25,000 to $500,000
|
Starting at 7.99%
|
Best Lenders for Startup Business Lines of Credit
Best Overall
Rapid Finance Small Business Loans
Loan amounts
$5,001 to $250,000
APR range
9.50% to 12.50%
Minimum Credit Score
600
$5,001 to $250,000
9.50% to 12.50%
600
Rapid Finance offers business lines of credit from $5,001 to $250,000. Repayment terms range from three to 18 months, and APRs range from a competitive 9.50% to 12%. In addition to accessing funds via ACH deposits, you can link the Rapid Access Prepaid Mastercard ® to your account for direct access to your line of credit draws. Rapid Finance also imposes less rigorous eligibility requirements than many lenders—you’ll need to be in business for at least six months and demonstrate $25,000 annual revenue requirement to qualify.
- No minimum credit score requirement
- Low annual revenue requirement
- Daily, weekly and monthly payment options
- Payments are automatically deducted from business bank account
- Doesn’t disclose fees online
- Shorter repayment terms than some competitors
Lender details
Eligibility
- Minimum credit score: 600
- Minimum annual revenue: $25,000
- Required time in business: Six months
Funding Speed
Funding can happen as quickly as the same day.
Best for Current Wells Fargo Customers
Wells Fargo Business Line of Credit
Loan amounts
$10,000 to $3 million
APR range
Prime + 1.75% to prime + 9.75%
Minimum Credit Score
680
$10,000 to $3 million
Prime + 1.75% to prime + 9.75%
680
Wells Fargo is a traditional lender that offers business lines of credit in addition to its other banking and lending products. Lines of credit are available from $10,000 to $3 million, but the lender doesn’t disclose repayment terms. APRs are pegged to the prime rate, and annual fees are waived in the first year, after which they range from $95 or $175, depending on your credit limit. Wells Fargo has more flexible time-in-business and revenue requirements than some lenders, but you must be a current Wells Fargo customer with a savings or checking account that’s been open for at least one year to qualify.
- Competitive APRs
- Only requires six months in business
- Flexible borrowing limits
- Must be an established Wells Fargo customer to qualify
- Annual fee of $95 or $175
- Higher minimum credit limit than competitors
Eligibility
- Minimum credit score: 680
- Time in business: Two years
- Minimum revenue: Does not disclose
- Minimum sales: $2-10 million for its Prime Line of Credit
Turnaround time
Wells Fargo does not disclose its approval and funding turnaround time.
Consumer Sentiment Index
- Overall rating: 2.1/5 — Neutral
Based on 6,300 customer insights and reviews for the entire category.
Some borrowers said they appreciated that a line of credit is included in Wells Fargo’s offerings, while others were disappointed with the approval process and the terms and conditions, such as the personal guarantee.
Disclaimer: The Consumer Sentiment Index from Forbes Advisor uses a proprietary weighting system designed by our subject matter experts. It evaluates thousands of consumer insights and reviews from leading online forums to determine customer satisfaction at scale.
BEST FOR FLEXIBLE LINES OF CREDIT
Lendio Business Lines of Credit
Loan amounts
$1,000 to $250,000
APR range
8% to 60%
Minimum Credit Score
600
$1,000 to $250,000
8% to 60%
600
As an online business loan marketplace, Lendio can connect you with offers from more than 75 traditional banks and online lenders. Lines of credit are generally available from $1,000 to $250,000 with terms from six to 24 months , but some lending partners offer additional options. Eligibility criteria vary by lending partner, but you’ll need a score of at least 600 to qualify. You’ll also need to demonstrate at least six months in business and at least $8,000 in monthly revenue.
- One application connects you to more than 75 lenders
- Funding in as little as 24 hours
- Wide variety of loan products, including lines of credit, term loans and equipment financing
- Doesn’t disclose APRs or fees
- Terms and funding times vary depending on specific lender
- Minimum credit score requirement may vary by lender
Overview
Lendio is an online business loan marketplace that connects prospective borrowers with traditional banks and nonbank online lenders. Over its existence, Lendio has helped small business owners receive over $12 billion in funding nationwide.
Applicants may see Lendio as a one-stop shop. You can apply for business loans, lines of credit, SBA loans, equipment financing, merchant cash advances (MCAs), commercial mortgages, invoice factoring and business acquisition loans. However, because Lendio is a marketplace and not a lender, it doesn’t publish specific terms. Instead, you’ll have access to its lending partners while helping you find the best offer for your needs.
Eligibility
Minimum Credit Score: 560
Time in Business: Six Months
Minimum Annual Revenue: $50,000
Funding time
Applying through Lendio takes 15 minutes. After you review your offers and are approved by your lender, you can receive your funds in as little as 24 hours.
Best for Fast Funding
Fundible Business Line of Credit
Loan amounts
$1,000 to $250,000
APR range
9.00% to 18.00%
Minimum Credit Score
500
$1,000 to $250,000
9.00% to 18.00%
500
Fundible is a commercial financing lender that offers business lines of credit and other financing tools in-house and through third-party lending partners. In addition to imposing low credit score (500) and time-in-business (six-months) requirements, Fundible offers flexible borrowing limits and revolving repayment terms that extend up to two years. The lender’s same-day approval and funding can help you access cash more quickly than with some competitors.
- Same-day approval and funding
- No prepayment penalties
- Time-in-business requirement of six-months
- Higher minimum APR than some competitors
- May result in solicitations from third-party funding providers
- Rates, terms and payment structure may vary by lender and state
Best for Low-Revenue Startups
Headway Capital Business Line of Credit
Loan amounts
$5,000 to $100,000
APR range
Does not disclose
Minimum Credit Score
625
$5,000 to $100,000
Does not disclose
625
Headway Capital’s True Line of Credit ranges from $5,000 to $100,000 with 12-, 18- and 24-month repayment terms. You can choose weekly or monthly payments, and there are no penalties if you pay off your line of credit early. To qualify, you’ll need a personal credit score of at least 625 and the ability to demonstrate at least one year in business with or more in annual revenue. These requirements make Headway Capital more accessible than some competitors. However, the lender doesn’t disclose its APRs, and you’ll need to pay a 2% draw fee unless your business is in Colorado, Georgia, Indiana, New Jersey or Oklahoma.
- Funds may be available the next business day
- Flexible borrowing limits
- Low annual revenue requirement
- Draws are subject to a 2% draw fee in most states
- Minimal initial draw amounts vary by state
- Payments will be automatically debited from your business bank account
Best for East Coast Borrowers
TD Bank Business Line of Credit
Loan amounts
$25,000 to $500,000
APR range
Starting at 7.99%
Minimum Credit Score
600
$25,000 to $500,000
Starting at 7.99%
600
TD Bank offers business lines of credit up to $500,000, much higher than other lenders on our list. However, online applications are limited to $250,000, and you’ll need to be in business for at least two years to qualify for an online line of credit greater than $25,000. That said, the lender’s minimum credit score is low, and its starting APRs are competitive. TD Bank also has more than 1,100 branches across 15 states and Washington, D.C., making it a good option if you’re in the lender’s East Coast coverage area and prefer in-person borrowing.
- High maximum borrowing limits
- Low credit score requirement
- Competitive APRs
- Must apply in person for lines over $250,000
- Doesn’t disclose maximum APRs
- Online borrowing limit is $25,000 for businesses less than two years old
Tips To Compare Startup Business Lines of Credit
When you’re running a startup, it’s necessary to access capital to fund day-to-day operations and grow the company. A line of credit is one way to get that funding, and it can be a helpful tool for managing cash flow and covering unexpected expenses. But with so many options out there, it can be tough to determine which line of credit is right for your business.
Here are a few tips to help you compare lines of credit and choose one that fits your needs:
- Look for a credit line with no hidden fees. Some lines of credit come with annual fees, origination fees and other hidden charges to help cover the lender’s administrative costs. Read the fine print so you know exactly what you’re getting into and, where possible, choose a lender that doesn’t charge extensive fees that drive up borrowing costs.
- Compare interest rates and terms. Interest rates on lines of credit can vary widely but typically range from 10% to 80%, with the most competitive rates reserved for those with excellent credit. Draw periods often last 12 to 24 months. Choose a lender with interest rates and repayment terms that align with your budget and borrowing needs.
- Consider your collateral options. Secured lines of credit require collateral like real estate or other valuable business assets, while other financing does not. If you’re not comfortable pledging collateral for a loan, opt for an unsecured business line of credit for your startup.
- Choose a lender you’re comfortable with. Shop around and compare lender options to find a financial institution you trust and feel comfortable doing business with. This may involve working with your current bank, reading online reviews and asking friends and colleagues for recommendations.
- Consider the credit limit and how it will meet your needs. Make sure the credit limit is high enough to cover your needs but not so high that you’ll be tempted to overspend.
- Choose a flexible line of credit that can grow with your business. As your business grows, you’ll need access to more capital. Choose a line of credit that has the potential to grow with your business so you’re not stuck with financing that doesn’t meet your needs down the road.
What Is a Business Line of Credit?
A business line of credit is a type of financing that provides companies with access to capital to cover operating costs and other ongoing expenses. Lines of credit are similar to credit cards in that the borrower can access cash up to a certain limit, pay it back over time and then withdraw the same funds repeatedly during the draw period.
Unlike a business loan, which is disbursed as a lump sum, borrowers can access lines of credit on an as-needed basis, and interest accrues only on the outstanding balance. The best business lines of credit feature competitive interest rates, low fees and flexible loan terms.
Business Line of Credit vs. Business Loan
There are a few key differences between business lines of credit and business loans. Business lines of credit are revolving, which means you can borrow money again once you pay it back. Business loans, on the other hand, are one-time loans with interest that accrues on the entire loan amount beginning at disbursement.
Business lines of credit also are more flexible than business loans and can be used for a range of purposes. In contrast, business loans are often restricted to a specified use, like the purchase of equipment. You can also request an increase of your line of credit borrowing limit, so financing can grow with your company as it expands, rather than remaining fixed.
Find the Best Startup Business Loans
How Does a Business Line of Credit Work?
A business line of credit is a flexible financing tool that lets startups access cash over time for operating expenses and other ongoing costs. Interest accrues only on the outstanding balance, and monthly payments begin once the borrower makes their first withdrawal.
Eligible startup owners can also use their business lines of credit on a revolving basis, meaning they can pay down the balance and borrow the funds again and again. After the borrower pays down their balance, they can reuse those funds for the duration of the draw period—typically 12 to 24 months. When the draw period ends, the repayment period begins and the borrower must pay off the outstanding balance over a set period.
Because interest accrues only on the outstanding balance, this type of financing is a good option for startup founders who need to withdraw funds gradually, rather than as a lump sum.
Pros and Cons of a Startup Business Line of Credit
Startup business lines of credit can get your business the cash it needs, but there are downsides. Consider the pros and cons of a business line of credit before applying:
Pros:
- Quick cash. Depending on the lender, getting approved for a business line of credit—especially an unsecured one—can happen within a few days. This offers quick access to money for payroll, supplies and other expenses.
- Continuous source of funds. If you’re unsure how much money you need to fund your expenses, credit lines offer an open-ended amount you can continually use and pay off as necessary.
- Accrues interest on what you borrow. Unlike installment loans where interest is charged on a lump sum over an entire term, interest on business lines of credit is only charged on the amount you draw from the account.
Cons:
- High-interest rates. Business lines of credit rates are often variable and can be high if you don’t have strong credit. A credit line can also become risky if you make just minimum payments, allowing high-interest debt to accumulate.
- Ongoing fees. Some lenders charge annual fees to keep credit lines open. Creditors may also charge draw fees each time you borrow money.
- Credit line limitations. Having limited revenue when starting a business could mean you only qualify for a small amount of credit that’s not sufficient to fund your operation.
Where To Get a Startup Business Line of Credit
If you need cash for your startup, you may qualify for a business line of credit through a bank, online lender or financial institution tailored to small businesses. Some lenders impose eligibility requirements that are accessible to new businesses. However, having established revenue, more time in business and a strong credit score will improve your odds of qualifying with certain lenders.
- Traditional banks and credit unions. Traditional financial institutions offer business credit lines, but qualifying for a loan from a brick-and-mortar bank may be difficult without a strong credit score, consistent revenue and several years in business. However, if you have an existing relationship with a bank or credit union, you may still qualify for a line of credit or other business loan.
- Online lenders and fintech companies. Online lenders typically provide more accessible lines of credit, and some cater to startups by imposing less restrictive credit, revenue and time-in-business requirements than traditional lenders. Funding speeds are also faster with online lenders and financial technology (fintech) companies, making them a good choice if you need cash quickly.
- Small Business Administration (SBA) lenders. SBA microloans aren’t technically lines of credit, but they can offer government-backed funds to eligible startups. While the SBA’s 7(a) Working Capital Pilot program offers lines of credit, businesses must demonstrate at least 12 months of operations to qualify.
- Community Development Financial Institutions (CDFIs). CDFIs specialize in working with underserved communities and usually have more accessible qualification criteria than other lenders. These organizations also provide business development services that can be useful for startups, and many focus on woman-owned, minority-owned and rural businesses.
How To Qualify and Apply for a Startup Line of Credit
Getting a line of credit for your startup is similar to applying for other types of financing. Startup owners can apply online or, in some cases, at a brick-and-mortar bank or credit union. However, the process varies by lender.
To qualify for a startup business line of credit, you may need to meet these—or similar—requirements:
- Minimum personal credit score of 600
- Annual revenue of at least $100,000
- Have been in business for at least six months
After completing a formal application, prospective borrowers also must provide a range of documents demonstrating the financial stability of their startup. These documents vary but often include:
- A business plan illustrating the startup’s ability to generate revenue
- Copies of business registration documents and other legal documents
- Personal and business bank statements and tax returns
- Profit and loss statements and balance sheets showing sufficient cash flow to make monthly debt payments
Alternatives To Consider
Starting a business requires securing sufficient financing to support growth and operations. Startup business lines of credit can be useful, but they’re not always accessible or the right option for a startup. Here are several popular alternatives to business lines of credit:
- Business credit cards. Business credit cards are a popular way for small businesses to cover startup costs and build credit. They typically have lower borrowing limits and higher interest rates than lines of credit, but they may also come with rewards and other perks. Importantly, business credit cards are often easier to qualify for—especially for startups with limited time in business.
- Personal business loans. If you can’t qualify for a business line of credit or small business loan, you may still be eligible for a personal loan. Personal loans usually have less stringent qualification requirements than business loans, but you’ll have to personally guarantee the loan, meaning you’ll have to repay the loan personally if your business fails. Likewise, late payments and defaults will impact your personal credit score.
- Personal savings. Using personal funds to finance your startup can help you avoid the need for credit checks, loan applications and long-term debt. That said, using cash isn’t an option for many small business owners, and it’s important to evaluate your personal financial situation before committing cash to your business.
- Small business grants. Small business grants are funds provided by nonprofit organizations, government programs and private companies that you don’t need to repay. The grant proposal process doesn’t usually require a minimum time in business or credit score, but most grants are tailored to a specific mission, industry or area of innovation.
- Equipment financing. If you need to purchase machinery or other equipment for your startup, you may qualify for equipment financing. These loans are secured by the equipment you purchase, making them easier to qualify for than many other types of financing. Plus, interest rates are often competitive, so you won’t have to commit as much initial revenue to interest payments.
- Crowdfunding. If your startup is in an innovative or otherwise interesting industry, crowdfunding can help you attract numerous small backers. By using storytelling, giveaways and other attractive incentives, you can use a platform like Kickstarter or Indiegogo to fund the first stages of your startup.
- Investors. Venture capitalists and angel investors can provide funding for your startup in exchange for equity in the business. Investors may be a suitable option if you have high growth potential and a compelling business plan.
- Friends and family. Borrowing money from trusted personal connections can be much easier and faster than taking out a line of credit or loan. However, it’s essential to clearly outline the loan agreement in writing and to have a clear plan to repay the loan.
Methodology
We reviewed 20 popular lenders based on 17 data points in the categories of loan costs, loan details, eligibility and accessibility, customer experience and the application process. We chose the best lenders based on the weighting assigned to each category:
- Loan costs: 30%
- Loan details: 22%
- Eligibility and accessibility: 20%
- Customer experience: 18%
- Application process: 10%
Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lender. Finally, we evaluated each provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.
Where appropriate, we awarded partial points depending on how well a lender met each criterion.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
Forbes Advisor Staff Writer Taylor Medine contributed to this article.
Frequently Asked Questions (FAQs)
How do I get an unsecured business line of credit?
To get an unsecured business line of credit or startup business loan, choose a lender that specializes in startup financing and submit a formal application. If necessary, a lender representative will contact you to request additional documentation regarding the business and its finances.
After reviewing your financial history, the lender will decide how much money to lend. Depending on the lender and your qualifications, it may be necessary to provide collateral, such as property or equipment.
How much can I get in a business line of credit?
The best business line of credit limits can range from $10,000 to $500,000. However, some lenders offer lines of credit of $1 million or more. How much you can qualify for depends on factors like your credit, collateral and business revenue.
Can I get a startup business line of credit with bad credit?
You may be able to qualify for a business line of credit with a FICO Score as low as 560, which is in the “poor” range. However, improving your credit and increasing revenue before borrowing could improve your rate and help you qualify for a higher amount.