5 Best Business Lines of Credit 2024: (Ranked & Reviewed)

Business lines of credit can be a great option when you’re looking for financing. They offer quick and easy access to cash and come with a range of features that can be tailored to your business needs. But not all business lines of credit are created equal. This blog post will rank and review five of the best business lines of credit on the market. We’ll look at what makes each one unique, and we’ll help you decide which one is right for your business!

What Are The Best Business Credit Lines?

There are a few things to consider when looking for business credit lines. First, you’ll want to look at the interest rates and fees. Make sure you understand these before signing up for a business line of credit. You’ll also want to consider the repayment terms and whether or not there is a grace period. Finally, consider the features that each business line of credit offers. Some may provide flexibility in using the funds, while others may have restrictions.

Now that we’ve gone over what to look for in business credit lines, let’s take a closer look at five of the best options on the market:

1) Ondeck

Ondeck was founded in 2006 and got acquired by Enova in 2020. Currently, they have extended $13B to small businesses. They were also the winner of LendingTree’s Customer Satisfaction Award in 2019.

Some of the benefits of the Ondeck business line program are:

• Business lines of credit from $6K to $100K
• Weekly payments instead of monthly payments
• The repayment term is 12 months
• Instant Funding – Get your lump sum in your bank account pretty quickly
• Help build business credit
• Receive an increased credit limit automatically
• Pricing is transparent through their SMART Box Capital Comparison Tool
• No prepayment penalties
• Only pay for what you borrow

Minimum Eligibility Requirements:

• Established businesses of at least 1 year
• Personal credit score of 600
• Business annual sales or gross revenue of $100,000
• A business checking account is required

How Does Ondeck Work?

• Fill out the application.
• Wait for a decision
• If approved, obtain funds

Pricing:

Interest rates start at 35.9% APR, but they state that the average rate is 47.14% APR. This depends on your personal credit, business credit scores, cash flow, annual revenue, and other factors. It looks like Ondeck has a secured business line offering, and you will need to double-check on their unsecured business line offering.

You can apply to Ondeck here.

 2) Fundbox

Fundbox was founded in 2013 and has provided $3B in capital to over 500,000 business owners. They offer business lines of credit that can help with payroll expenses, inventory, raw material purchases, and other business expenses.

Some of the benefits of the Fundbox business line program are:

• No origination fee
• Weekly payments instead of monthly payments
• If you upgrade to Fundbox Plus, you can get 20% lower fees, longer to pay, and other benefits.
• The Fundbox Flex Pay program gives you three days to repay with no additional fees.
• Fundbox Insights provides cash flow projections and easy-to-access balances and customizes your threshold to see if your cash flow or revenue hits below that level. There are no fees to use Insights.
• You can repay early with no prepayment penalty

Minimum Eligibility Requirements:

• Based in the US
• Established businesses of at least 6 months
• Personal credit score of 600+
• Business annual sales or gross revenue of $100,000
• A business checking account is required

How Does Fundbox Work?

• Fill out the application. Decision in as little as 3 minutes.
• Quick access to funds if approved
• Flexible repayment terms

Pricing:

The Fundbox website has a business line calculator based on what the business owner is looking for. Below is an example of a $150,000 business line. They mention a fee rate of 4.66% of the draw funds for 12-week terms and 8.99% for 24-week terms. It looks like Fundbox has a secured business line offering. You will need to double-check on their unsecured business line offering.

12-week terms:

24-week terms:

You can apply to Fundbox here.

3) Bluevine

Bluevine was founded in 2013 as a fintech company. They provide integrity, operating as owners, pushing the limits, and growing together. The focus is on helping small business owners be successful. Bluevine received recognition as America’s Best Startup Employer by Forbes in 2022.

Some of the benefits of the Bluevine business line program are:

• Business lines of credit up to $250,000
• Access to revolving business line of credit with no monthly fees
• Only pay for what you borrow.
• No fees for account opening or closure
• Financing is matched with your business growth at any stage. You may be able to get a credit line increase if it makes sense.
• No prepayment penalties
• You can pay fixed monthly or weekly payments over a 6-month or 12-month repayment period.

Minimum Eligibility Requirements:

• Established businesses of at least 6 months
• Personal credit score of 625+
• Business monthly revenue of $10,000
• Business is operating or is incorporated in an eligible US state. Must be a corporate or LLC and in good standing with your Secretary of State. The following states are not eligible: Nevada, North Dakota, and South Dakota.
• No bankruptcies in the past year

How Does Bluevine Work?

• Fill out the application. Decision in as little as 5 minutes.
• Draw funds
• Make repayments
• Access more funds

Pricing:

Bluevine states that their rates are as low as 4.8%, but it will depend on the small business owner. The rate is a simple interest rate calculated over a 26-week repayment period.

You can apply to Bluevine here.

4) SGB Funding

SBG Funding was founded in 2017 and is a niche business financing firm with the flexibility to access financing that may be limited through traditional banks. They work with small business owners in a myriad of industries.

Some of the benefits of the SBG Funding business line program are:

• Credit lines up to $150,000
• Approval rates are high
• Unlike other online lenders, they do not have minimum credit score requirements.
• Paperwork is minimal
• Funding is available on the same day if you are approved
• Early Payoff can lead to additional discounts
• Collateral is not required
• Help build business credit
• No prepayment penalties
• Weekly and monthly payment options
• Repayment terms can range from 6 months to 24 months
• High credit limit eligibility every 60 days

Minimum Eligibility Requirements:

• Established businesses of at least 6 months
• Personal credit score of 500+
• Business monthly revenue of $10,000+
• 3 most recent business bank statements

How Does SBG Funding Work?

• Fill out the online application. Decisions take under 24 hours.
• Get approved
• Obtain your funds

Pricing:

SBG Funding states that their rates are 1.75% a month. You can also see how much you qualify with their funding calculator.

You can apply to SBG Funding here.

5) Credibly

Credibly was founded in 2010 and is a financial technology company that helps provide financing to business owners. They customize finance solutions to help meet short-term and long-term goals.

Some of the benefits of the Credibly business line program are:

• Credit lines up to $250,000
• The financing experience is simple and quick
• Focus on the exact capital needs and structure of the small business
• Easy to prequalify, and funding is fast
• They offer secured line and unsecured line product offerings.
• Help build business credit.

Minimum Eligibility Requirements:

• Established businesses of at least 6 months – located in the US
• Personal credit score of 560+
• Business annual revenue of $50,000+

How Does Credibly Work?

• Prequalify online
• Online approval
• Receive funds

Pricing:

There is not much discussion on the pricing for their business line of credit on their website. Most of the other online lenders provide transparency regarding this, so this is something worth conducting more due diligence on if you plan to pursue Credibly as an option.

You can apply to Credibly here.

What is a Business Credit Line?

A business credit line is a type of financing that allows you to borrow up to a certain amount of money. You can use the funds for any business purpose and only have to pay interest on the money you borrow. Business credit lines typically have lower interest rates than other business loans and offer flexible repayment terms.

What Are The Benefits Of A Business Credit Line?

There are several benefits of business credit lines. First, they offer quick and easy access to cash. You can use the funds for any business purpose and only have to pay interest on the money you borrow. Business credit lines also typically have lower interest rates than other business loans, offering flexible repayment terms.

How Do I Qualify For A Business Credit Line?

To qualify for a business credit line, you will need to have good personal and business credit. You will also need to show that your business has a strong financial history. Lenders will also want to see that you have a solid business plan. Finally, you will need to provide collateral to secure the loan.

Business credit lines can be used for a variety of purposes. Typical uses include business expansion, start-ups, equipment purchases, and working capital.

What Are The Best Uses For A Business Credit Line?

Business credit lines can be used for a variety of purposes. Typical uses include business expansion, start-ups, equipment purchases, and working capital. If business credit lines don’t make sense for your business, you can read about premium credit cards as another option here.

Who Offers the Best Business Credit Line?

This depends on various factors regarding what type of interest rate you are willing to pay, your financial statements, and your FICO scores. Credibly and SBG Funding are more geared towards lower score business owners. Bluevine is sensitive to a higher FICO score, but they also offer lines up to $250,000, which helps provide more for your capital needs. Ondeck has been around the longest, so you may feel comfortable with a firm with longevity. Conducting more due diligence with any of the online lenders you are looking to build a long-term relationship with is crucial.

FAQ:

Can you get a business line of credit with bad credit?

It depends on the specific lender and what your score is. For example, SBG Funding and Credibly look for credit scores in the 500s. They may ask for other items to protect them, such as business assets or a personal guarantee.

Does the Small Business Administration (SBA) offer lines of credit?

The SBA offers various offerings through its CAPLines program. You can read more about the program here.