Securing funding is a crucial aspect of running a successful small business. Whether you’re a startup in need of capital or an established company looking to expand, having access to flexible funding is essential. Business lines of credit offer a convenient solution, allowing you to borrow money on-demand without going through a lengthy application process every time funds are needed.
In this article, we will explore the best business lines of credit available for small businesses. We will analyze various lenders and their offerings, taking into account factors such as borrowing limits, eligibility requirements, interest rates, and repayment terms. By the end, you’ll have a comprehensive understanding of the top options available and be able to make an informed decision for your business.
Lendio: Best Marketplace for Business Lines of Credit
Lendio stands out as the best marketplace for business lines of credit. Rather than being a direct lender, Lendio connects small business owners with funding through its network of 75 lending partners. This unique approach increases the chances of qualifying for a line of credit, especially for businesses with credit challenges or limited funding options.
Why We Chose Lendio for Best Business Lines of Credit
Lendio’s extensive network of lenders provides borrowers with a wide range of options to choose from. By completing a single application, you can receive multiple offers, allowing you to compare and select the most suitable line of credit for your business. Additionally, Lendio offers long-term financing options, making it an attractive choice for businesses with larger funding needs.
Lendio Services
Lendio’s network of lenders offers business lines of credit ranging from $1,000 to $500,000. Repayment terms extend up to two years, providing flexibility for businesses to manage their cash flow effectively. In addition to lines of credit, Lendio’s network also provides access to other funding options such as SBA loans, short-term loans, equipment financing, merchant cash advances, and more.
Lendio Rates & Fees
Lendio’s rates and fees vary depending on the chosen lender. Interest rates generally range from 8% to 24%. While rates can be expensive, they are competitive considering the flexibility and convenience offered by Lendio’s marketplace. Additional fees, such as origination fees, may vary depending on the lender.
Lendio Eligibility Requirements
To qualify for a line of credit through Lendio, businesses must meet the following minimum requirements:
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Minimum credit score of 560
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Annual revenue of at least $50,000
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At least six months in business
By meeting these criteria, you can take advantage of Lendio’s marketplace and explore various funding options available to your business.
OnDeck: Best for Building Business Credit
OnDeck is an excellent choice for businesses looking to build their credit while accessing flexible lines of credit. OnDeck offers lenient borrower qualifications, making it accessible to businesses that may not meet the requirements of traditional banks. Furthermore, OnDeck reports to business credit bureaus, allowing businesses to establish and improve their credit history.
Why We Chose OnDeck for Best Business Lines of Credit
OnDeck’s application process is fast and easy, taking just a few minutes to complete. Once approved, you can begin initiating draws against your line of credit immediately, providing quick access to funds. OnDeck also offers fast funding, available 24/7, including weekends and holidays.
OnDeck Services
OnDeck offers revolving lines of credit ranging from $6,000 to $100,000. This flexibility allows businesses to borrow the exact amount they need, rather than being limited by pre-determined loan amounts. Additionally, OnDeck provides term loans ranging from $5,000 to $250,000 for businesses requiring additional capital or longer repayment terms.
OnDeck Rates & Fees
Interest rates for OnDeck’s lines of credit start at 29.9% and can go up to 69.9%. The average APR for their lines of credit is 52.6%. Repayment terms are set at 12 months, with weekly payments. OnDeck does not charge origination or draw fees. However, a maintenance fee of $20 per month is applicable to most borrowers.
OnDeck Eligibility Requirements
To qualify for a line of credit through OnDeck, businesses must meet the following minimum requirements:
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Minimum credit score of 625
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At least $100,000 in annual revenue
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At least one year in business
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Must have a business checking account
Meeting these requirements opens up the opportunity to access OnDeck’s flexible lines of credit and build your business credit history.
National Business Capital: Best for Large Credit Needs
If your business requires a larger line of credit, National Business Capital is the best option to consider. With lines of credit ranging from $25,000 to $5 million, National Business Capital caters to businesses with substantial funding needs. Their fast funding process, often within 24 to 48 hours, ensures that businesses can access capital quickly.
Why We Chose National Business Capital for Best Business Lines of Credit
Similar to Lendio, National Business Capital acts as a loan aggregator, connecting businesses with various lenders offering lines of credit. This approach makes it easy for businesses of all types and sizes to find the funding they need. National Business Capital’s extensive network of 75 lenders ensures that businesses have access to a wide range of options.
National Business Capital Services
National Business Capital provides eligible businesses with lines of credit ranging from $25,000 to $5 million. The borrowing limits cater to businesses with high credit needs, allowing them to secure substantial funding for their operations. Additionally, National Business Capital can connect businesses to other types of funding, including term loans, SBA loans, equipment financing, and asset-based financing.
National Business Capital Rates & Fees
As a loan aggregator, National Business Capital’s rates and fees vary depending on the lender and various factors such as credit score, annual revenue, and business history. Interest rates range from 5% to 60%, offering competitive options for businesses. Payment terms and additional fees are determined by the specific lender chosen by the business.
National Business Capital Eligibility Requirements
To receive a line of credit from National Business Capital, businesses must meet the following minimum requirements:
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Minimum credit score of 600
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Annual revenue of $120,000
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Time in business of 12 months
By meeting these criteria, businesses can take advantage of National Business Capital’s vast network of lenders and secure the funding they need.
Fundbox: Best Business Line of Credit for Startups
For startups and businesses with lower credit scores, Fundbox offers the best business line of credit option. Fundbox specializes in fast funding, with lines of credit often approved in less than five minutes. This speed is crucial for startups that need immediate access to capital to support their growth.
Why We Chose Fundbox for Best Business Lines of Credit
Fundbox’s easy and fast application process sets it apart from other lenders. Startups and businesses with lower credit scores can qualify for a line of credit through Fundbox, even if they don’t meet the requirements of traditional lenders. The ability to access up to $150,000 quickly makes Fundbox an ideal choice for businesses in need of immediate funds.
Fundbox Services
Fundbox focuses on providing revolving lines of credit up to $150,000. This flexibility allows businesses to draw funds as needed, ensuring they have the necessary working capital to support their operations. While repayment terms are shorter, and weekly payments are required, Fundbox’s convenience and accessibility make it an attractive option for startups.
Fundbox Rates & Fees
Fundbox offers competitive rates, starting at 4.66% for 12-week terms and 8.99% for 24-week terms. There are no draw fees or additional fees, simplifying the borrowing process for businesses. With Fundbox, businesses can access funds quickly and efficiently, allowing them to focus on growing their operations.
Fundbox Eligibility Requirements
To qualify for a Fundbox line of credit, businesses must meet the following minimum requirements:
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Minimum credit score of 600
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Annual revenue of at least $100,000
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At least six months in business
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Must own a business checking account
By meeting these criteria, startups and businesses with lower credit scores can leverage Fundbox’s offerings and secure the funding they need to thrive.
Bluevine: Best for Fast Funding
When speed is of the essence, Bluevine stands out as the best business line of credit option. Bluevine’s application process takes just minutes, and approvals are provided instantly. With the ability to receive funds in hours, Bluevine ensures that businesses can access capital quickly to meet their urgent financial needs.
Why We Chose Bluevine for Best Business Lines of Credit
Bluevine’s fast and efficient application process sets it apart from other lenders. Businesses can complete the application within minutes, and approvals are provided instantly. Once approved, funds can be deposited into the business’s account in a matter of hours, ensuring that urgent financial needs can be met promptly.
Bluevine Services
Bluevine offers business lines of credit up to $250,000, providing businesses with the necessary capital to support their growth and operations. The flexibility of their lines of credit allows businesses to access funds as needed, ensuring they have the working capital required to navigate financial challenges.
Bluevine Rates & Fees
Bluevine’s rates range from 15% to 78% APR, depending on the line of credit’s term. The specific rates are determined by factors such as creditworthiness and repayment terms. Draw fees of 1.6% to 2.5% may apply, and businesses looking for expedited funding can opt for a $15 expedited deposit fee.
Bluevine Eligibility Requirements
To qualify for a Bluevine line of credit, businesses must meet the following requirements:
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Minimum personal credit score of 625
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Monthly revenue of at least $40,000
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Time in business of at least 24 months
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Good standing with the Secretary of State
Meeting these criteria allows businesses to leverage Bluevine’s fast funding process and access the capital they need.
PNC Bank: Best for Longer Repayment Terms
While alternative lenders dominate the business lines of credit market, traditional banks can offer competitive rates and terms for businesses that meet their stringent qualifications. PNC Bank stands out as the best option for longer repayment terms, offering a seven-year revolving credit period that serves as a long-term financial safety net for businesses.
Why We Chose PNC Bank for Best Business Lines of Credit
PNC Bank’s reputation as a traditional bank, coupled with their competitive rates and long repayment terms, makes them an attractive choice for businesses with excellent credit and stable operations. The seven-year revolving credit period stands out as a unique offering, providing businesses with a long-term financial safety net.
PNC Bank Services
PNC Bank provides both unsecured and secured lines of credit. Unsecured lines of credit range from $20,000 to $100,000, while secured lines of credit are available from $100,001 to $3 million. PNC Bank also offers a range of other small business lending services, including term loans, SBA loans, commercial vehicle loans, commercial real estate loans, and business credit cards.
PNC Bank Rates & Fees
PNC Bank’s rates for lines of credit are variable and based on the Prime Rate. For unsecured lines of credit, payments are 1.5% of the balance, while secured lines have monthly interest-only payments, with the principal payable at any time. Unsecured lines of credit have an annual fee of $175, while secured lines have an annual fee of 0.25% of the committed line amount.
PNC Bank Eligibility Requirements
While PNC Bank does not list specific eligibility requirements, they evaluate applications based on factors such as personal credit history, business credit history, debt-to-income ratio, time in business, and payment history on prior PNC loans. PNC Bank caters to businesses with excellent credit and stable financials, making it an attractive option for those who qualify.
Conclusion
Securing a business line of credit is a crucial step for small businesses looking to access flexible funding. Whether you’re a startup or an established company, the options available can cater to your specific business needs. From Lendio’s marketplace to OnDeck’s credit-building opportunities, each lender offers unique advantages.
Consider your business’s borrowing needs, creditworthiness, and repayment preferences when selecting the best business line of credit option. Evaluate the borrowing limits, interest rates, and repayment terms carefully to ensure that you choose the option that aligns with your business goals and financial situation.
Remember, the best business line of credit is the one that provides the necessary funding while considering the long-term financial health and growth of your business. Take advantage of the options available and leverage the flexibility and convenience offered by business lines of credit to propel your small business forward.