Find The Best Small Business Line of Credit Provider
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.
Get a Loan
Full Fundbox review
$100,000 / $100,000
4.66% - 8.99%
Depends on individual lender
Full OnDeck Review
$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
Full BlueVine review
$5,000 / $250,000
Minimum requirements: Fico score 650+; 2+ years in business; Monthly revenue $30K+
Full Kabbage review
$5,000 / $250,000
24% - 99% APR
Basic requirements: Linked business information; Bank account info; Personal information
The Best Small Business Lines of Credit Explained
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.
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.
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.
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.