The Best Small Business Lines of Credit - Full Overview
The table above highlights the best loans on the market. Now we will go into more detail about each provider.
Fundbox is a solid option for businesses in their initial stages that only require a short time to pay back the borrowed capital. To be eligible for a loan with fundbox you only need to have been in business for six months and to have a credit score of 600 or more. Also, the repayment terms of Fundbox are generally shorter than other lenders.
- Fast funding speed
- Online application process
- Easier minimum requirements
- Tighter repayment terms
- Higher interest rates
Fundbox has a maximum borrowing amount of $150,000 and an APR range of 10%-79%. Payment frequency is weekly and the repayment terms are 12 or 24 weeks. You can get funding as quickly as the same day you apply. You must have been in business for at least 6 months to be eligible for a loan with Fundbox. Other eligibility requirements include a minimum credit score of 600 and a minimum annual revenue of $100,000.
Our verdict: Fundbox provides businesses that are new on the scene with the chance to get the capital they require. Read the full Fundbox review for more details.
BlueVine’s business line of credit easily competes with the top banks. Yet, BlueVine provides all the features and ease of use that you would expect from an online lender.
- Reasonable starting rates
- Same-day or next-day funding
- For some lines - monthly payments
- Higher borrowing eligibility requirements than most
- Sometimes incurs larger fees
BlueVine has a 4.8% starting interest rate, which competes with traditional banks. BlueVine offers a top deal if you are eligible. However, BlueVine has tougher eligibility criteria than many of the other lenders on this list - with respect to its line of credit. You need to have at least $40,000 in monthly revenue and a credit score of more than 650.
Our verdict: If you manage to qualify for BlueVine’s line of credit, then BlueVine is a great choice as they offer lower rates than most. Read the full BlueVine review for more details.
Credibly offers both unsecured and secured lines of credit. Secured lines of credit are generally secured by a certificate of deposit or a blanket lien on your assets. Credibly Business Lines of Credit may approve a line of credit application within just 24 hours time. They can also provide the funds for a business line of credit within just 2 business days following approval.
- Minimum personal credit score requirement of just 560
- Discounts for early repayment
- Fast and simple application process
- Informative and clear website
- Finances are suitable for the growing needs of a business
- At times rates may be expensive
- Some additional fees may be incurred
- A blanket lien is necessary
Line of credit amounts begin at $5,000 and span up to $250,000. The terms of Credibly’s business lines of credit range from 3 to 24 months. Rates start from just 4.80%. Credibly’s requirements are typically lower than an average lender. You could even qualify if you only have a credit score of 560 and have only been in business for six months.
Our verdict: Landing a business line of credit can be challenging if you don’t have a great credit record. Credibility has a minimum personal credit score requirement of 560, for business lines of credit, making Credibly a top option for businesses with bad credit. Read the Credibly review for more details.
Fora Financial has provided over $2 billion in funds to more than 25,000 small businesses since its inception in 2008. This lender caps its terms at 15 months. It won’t charge you extra fees and will offer speedy funding. If you need funding in a hurry to pursue a growth opportunity or to buy new inventory, you don’t want to wait a long time before you receive your money.
- Discounts of up to 30% for early payoff
- Competitive factor rates
- Relevant to small businesses
- No minimum credit score needed
- Need to make daily payments
- Turnaround can take as long as 3 days
- Not completely transparent about costs
Fora Financial offers four line of credit options:
- Revolving line of credit - you will be granted a limit you cannot exceed, If you make a purchase this limit is lowered. Once you pay off your balance, your limit goes back up
- Nonrevolving line of credit - once your limit has been reached it cannot be used again
- Secured line of credit - you need to provide collateral and if you are unable to repay your debt the lender might take ownership of your collateral
- Unsecured line of credit - you are not required to provide collateral
Our verdict: A lot of business owners use a business line of credit from Fora Financial to balance their cash flow. By accessing a business line of credit, you will likely have cash available to meet your business requirements. Receiving a line of credit from Fora Financial can help you build your business credit history, which will be advantageous for you in your future loan pursuits. Read the Fora Financial review for more details.
Kabbage provides a line of credit that is suited to businesses with poor personal credit, as it doesn’t demand a minimum personal credit rating. Kabbage appears to accept business owners with lower credit scores as many entrepreneurs are eligible for loans even with a score of 560.
- The Kabbage Card - which allows for immediate access to your line of credit
- Lower credit scores are accepted
- Lower eligibility requirements for new businesses
- Default credit line limit of $150,000
- Relatively high APR 20.00%-80.00%
- Fees are front-loaded - lessening the incentive to repay credit early on
The loan amount is generally between $2,000-$250,000 and the APR rates are between 20.00%-80.00%. The terms are 6, 12 or 18 months. And you will need to have a minimum credit score of 560.
You will also have to have been in business for 12 months with approximately $50,000 in revenue annually. The default credit line of Kabbage is at the higher end $150,000 and it has a minimum draw range of $10,000. So if you want a credit line of more than $150,00 you will need to go through a manual review and will have to have been in business for over three years with annual revenue of $300,000 or more.
Our verdict: Kabbage is a top choice for businesses with poor personal credit scores. Read the full Kabbage review for more details.
OnDeck provides fast approval online for lines of credit ranging from $6000 - $100,000. If you are eligible for these loans you can make weekly payments for 12 months. The interest rates for these loan types vary, and there are no prepayment penalties.
- Quick funding
- Online application process
- Simpler to qualify for
- Higher interest rates than most
- Maintenance fees on a monthly basis
You must have been in business for a minimum of 1 year to qualify, and you need to have a minimum credit score of 600 and a minimum annual revenue of $100,000. The maximum amount for a time of credit is $100,000 and the APR range is 10.99% and higher. You can get funding within 1 days time. The repayment frequency is weekly and the repayment term is 12 months.
OnDeck only demands that a business owner be practicing for a year and will provide approval to loans with credit scores as little as 600.
Our Verdict: OnDeck’s line of credit is great for people who have been in business for a limited period of time or those who don’t have a great credit score.
Key Features of The Best Small Business Lines of Credit
There are some excellent options on the market. To save you time and to provide you with some clarity, we’ve researched five of the best lenders and summarized them for you in the table below.
$100,000 / $100,000
4.66% - 8.99%
- Amount: Up to $5.5 million
- Term: Seven years for working capital, 10 years for equipment, and 25 years for commercial
- Interest: Up to 8%, including the prime rate
- Time to get the loan: Up to 4-8 weeks
$5,000 / $250,000
Minimum requirements: Fico score 650+
2+ years in business
Monthly revenue $30K+
$5,000 - $250,000
Minimum personal credit score requirement of just 560
Fora financial review
$5K – $500K
Factor 1.1 - 1.3
6+ months in business, $12,000+ monthly revenue, no open bankruptcies
$5,000 / $250,000
24% - 99% APR
Basic requirements: Linked business information; Bank account info; Personal information
$6,000 / $100,000
From 35.9% APR
Minimum requirements: 1 year in business; Personal FICO score 600; Business annual revenue $100K; Business bank account