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A business line of credit offers flexible financing for businesses, allowing them to access funds as needed, rather than receiving a lump sum like a traditional loan. This type of financing is ideal for managing cash flow, covering short-term expenses, or funding business growth. Unlike a standard loan, you only pay interest on the amount you borrow, and once you repay it, you can borrow again.
Here are some of the top lenders offering business lines of credit, along with key details on their terms and how to apply.
BlueVine
BlueVine is a well-known lender offering flexible business lines of credit up to $250,000. Their approval process is quick, often taking only 24 hours, making it ideal for businesses that need fast access to capital.
- Loan Amounts: Up to $250,000
- Interest Rates: Starts at 4.8%
- Term Lengths: 6 or 12 months
- Requirements: Minimum credit score of 600, $10,000 in monthly revenue, at least six months in business
BlueVine is a great option for small businesses that need immediate working capital or cash flow management, with easy access to funds and flexible repayment options.
Fundbox
Fundbox provides smaller business lines of credit, up to $150,000, with fast approval and flexible repayment schedules. They are particularly known for their transparent fee structure and lack of origination fees or prepayment penalties.
- Loan Amounts: Up to $150,000
- Interest Rates: Starts at 4.66%
- Term Lengths: 12 or 24 weeks
- Requirements: Minimum credit score of 600, at least $100,000 in annual revenue, 3 months in business
Fundbox is ideal for businesses that need smaller amounts of capital for short-term needs and want a lender with a transparent and easy-to-understand fee structure.
OnDeck
OnDeck offers business lines of credit up to $100,000 and is known for its streamlined application process and quick funding times. OnDeck is also a good option for businesses with lower credit scores, as their minimum credit requirement is lower than many traditional lenders.
- Loan Amounts: Up to $100,000
- Interest Rates: Starts at 29.9% APR
- Term Lengths: 12 months
- Requirements: Minimum credit score of 600, at least $100,000 in annual revenue, 1 year in business
While OnDeck’s interest rates are higher than other lenders, they offer the advantage of being accessible to newer businesses or those with less-than-perfect credit scores.
Wells Fargo
Wells Fargo offers traditional business lines of credit with competitive rates and higher credit limits, making it suitable for larger or more established businesses. Their lines of credit can go up to $500,000, and they provide the flexibility of revolving credit.
- Loan Amounts: Up to $500,000
- Interest Rates: Variable based on market rates
- Term Lengths: Revolving credit with annual renewals
- Requirements: Strong credit history, established business with healthy financials
Wells Fargo is a good choice for more established businesses that need larger credit lines and have strong credit histories. Their traditional lending approach comes with more competitive rates but also stricter eligibility requirements.
Kabbage
Kabbage offers a business line of credit that is quick and easy to access. With a fully online application process, businesses can get approved for credit lines of up to $250,000. Kabbage’s automated system allows for rapid decision-making, making it suitable for businesses that need fast capital.
- Loan Amounts: Up to $250,000
- Interest Rates: Monthly fees starting at 1.5% to 10%
- Term Lengths: 6, 12, or 18 months
- Requirements: Minimum 1 year in business, at least $50,000 in annual revenue
Kabbage is perfect for small businesses that need quick access to funds, especially those that value the convenience of managing their finances through a digital platform.
Lendio
Lendio operates as a marketplace that connects businesses with a network of over 75 lenders offering business lines of credit. Lendio’s platform allows you to compare multiple lenders and find the one that best suits your needs.
- Loan Amounts: Varies by lender (typically up to $500,000)
- Interest Rates: Varies by lender
- Term Lengths: Varies by lender
- Requirements: Minimum credit score of 550, at least 6 months in business, $50,000 in annual revenue
Lendio is an excellent option for businesses that want to explore various lending options without needing to submit multiple applications. Their marketplace model gives businesses access to different terms and lenders with just one application.
Conclusion
A business line of credit can be a valuable tool for managing your company’s cash flow and financing day-to-day operations. Whether you’re looking for a quick funding solution from an online lender like BlueVine or Kabbage, or you prefer the stability of a traditional bank like Wells Fargo, there are numerous options available. By understanding the terms, interest rates, and requirements of each lender, you can choose the best business line of credit for your company’s specific needs.