How do I qualify for a business line of credit?

Qualify for a business line of credit with: 2+ years in business, $100,000+ annual revenue, 650+ personal credit score, 680+ business credit score (if applicable), positive cash flow, debt-service coverage ratio above 1.25x. Startups struggle to qualify; banks prefer established businesses. Online lenders accept 1+ years in business with $50,000+ revenue but charge higher rates (15-30% APR).

How much does a business line of credit cost?

Business line of credit costs include interest (6-30% APR), draw fees (1-3% per draw), annual/maintenance fees ($50-$300/year), and possible origination fees (1-5% upfront). Banks offer lowest rates (6-12% APR) but strictest requirements. Online lenders charge 15-30% APR with easier approval. For $50,000 line at 12% APR, using $20,000 for 6 months costs $1,200 in interest.

What is the difference between secured and unsecured business lines of credit?

Secured business lines of credit require collateral (equipment, inventory, real estate, accounts receivable) and offer higher limits ($100,000-$1 million+) with lower rates (6-15% APR). Unsecured lines require no collateral but offer lower limits ($10,000-$100,000) with higher rates (12-30% APR). Secured lines are better for established businesses with assets; unsecured for newer businesses needing smaller amounts.

How long does it take to get approved for a business line of credit?

Business line of credit approval takes 1-4 weeks. Online lenders approve in 1-3 days with funding in 5-7 days. Traditional banks take 2-4 weeks for underwriting and approval. Required documents: 2 years tax returns, 3-6 months bank statements, financial statements (P&L, balance sheet), business plan (for startups). Having documents ready accelerates approval.

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

Getting a business line of credit with bad credit (under 600) is difficult but possible through alternative lenders. Options include: merchant cash advances (expensive but flexible), invoice factoring (use receivables as collateral), business credit cards (easier approval), or co-signer. Expect lower limits ($10,000-$25,000), higher rates (25-45% APR), and stricter terms. Focus on improving credit to 650+ for better options.

Business Line of Credit: Best Rates & Approval Guide 2025

Q: What is a business line of credit?

A business line of credit is revolving financing that lets you borrow up to a set limit, repay, and borrow again - like a business credit card. You only pay interest on what you use. Credit lines range from $10,000 to $250,000+ with 6-30% APR. Use it for cash flow management, inventory, payroll, emergencies, and seasonal expenses. Better than term loans for short-term, recurring needs.

Why Business Lines of Credit Matter in 2025

A business line of credit provides flexible financing for US small businesses, allowing you to draw funds as needed and pay interest only on what you use. It's different from term loans like SBA 7(a) loans. Before applying, ensure your business entity is properly structured for optimal approval chances. In 2025, business credit lines are the fastest-growing funding option, with over $400 billion in active credit lines nationwide and rates ranging from 6% to 30% APR. Whether you need a $10,000 unsecured line or a $250,000 secured facility, this guide explains how to get approved, compare top lenders like Chase and Bank of America, and secure the best business line of credit rates for your company.

Woman using calculator and reviewing bills, symbolizing credit management — Photo by Mikhail Nilov / Pexels

What Is a Business Line of Credit?

A business line of credit is a flexible loan that lets you borrow up to a set limit, repay, and borrow again. It’s ideal for managing cash flow, inventory, payroll, and emergencies.

Revolving credit (like a credit card)
Only pay interest on what you use
Can be secured or unsecured
Limits from $5,000 to $500,000+

Benefits of a Business Line of Credit

Flexible access to funds
Lower interest rates than credit cards
Improves cash flow management
Builds business credit history
Can be used for any business purpose

Coins on wood, symbolizing business funding and credit — Photo by Pixabay / Pexels

Approval Requirements in 2025

Personal and business credit scores (600+ recommended)
2+ years in business
Annual revenue ($100k+ preferred)
Business bank statements
Tax returns and financials
Collateral (for secured lines)

Hand offering debit card, symbolizing credit approval — Photo by Pixabay / Pexels

Top Business Line of Credit Lenders (2025)

BlueVine: Fast approval, lines up to $250k
Fundbox: Flexible credit, easy application
OnDeck: Large lines, quick funding
Bank of America: Best for established businesses
Wells Fargo: Wide range of credit options
Kabbage: Online application, flexible terms

Business professionals discussing financial documents at office desk — Photo by SHKRABA Anthony / Pexels

Comparison Table: Top US Business Credit Lines (2025)

Lender	Max Credit Line	APR	Min Credit Score	Funding Speed
BlueVine	$250,000	6.2%–24%	625	24 hrs
Fundbox	$150,000	4.66%–18%	600	1–3 days
OnDeck	$100,000	10%–36%	600	1 day
Bank of America	$500,000	7%–20%	670	2–5 days
Wells Fargo	$500,000	7%–22%	670	2–5 days
Kabbage	$250,000	9%–36%	640	1–3 days

How to Apply for a Business Line of Credit

Check your credit scores (personal and business)
Gather financial documents (bank statements, tax returns)
Compare lenders and terms
Complete online or in-person application
Review offers and accept best terms
Use funds for business needs, repay and reuse

Business professionals analyzing financial charts and graphs during meeting — Photo by SHKRABA Anthony / Pexels

Key Takeaways

Business lines of credit offer flexible, revolving access to funds
Compare lenders by rates, terms, and approval speed
Maintain strong credit and financials for best offers
Use credit responsibly to build business history

Frequently Asked Questions

1. What is a business line of credit?

A flexible loan that lets you borrow, repay, and borrow again up to a set limit.

2. How do I qualify?

Strong credit scores, 2+ years in business, and solid financials help.

3. Is collateral required?

Some lines are secured, others are unsecured. Collateral may help approval.

4. What are typical interest rates?

Rates range from 4% to 36% depending on lender and credit profile.

5. How fast can I get approved?

Online lenders may approve in 24 hours; banks take 2–5 days.

6. Can startups get a line of credit?

Most lenders require 2+ years in business, but some offer startup options.

7. Does a line of credit affect my credit score?

Yes, responsible use can build business credit history.

8. What documents do I need?

Bank statements, tax returns, financials, and business info.