The Best Business Line Of Credit

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the best business line of credit

There are many business financing options available. But none are as flexible as business lines of credit. Business lines of credit are always more open-ended than other loan types. But when it comes to certain goals, you need to go with only the best business line of credit. So, let’s look into a few different options and highlight what makes them the best.

Because there are so many good options, we will highlight the strengths of each lender. For example, a FundBox Business line of credit is especially great if you have bad credit.

Best Business Line Of Credit For Convenience: Kabbage

Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$50,000/yr 1 year 560+ See if you qualify

If you need a line of credit fast, Kabbage is the winner when it comes to speed. A Kabbage business line of credit can have a draw limit of up to $250,000. What’s better is that you can be approved for one in a matter of minutes. Their automated approval process makes their approval speed very fast. You just need to connect your accounting software or bank account and wait a few minutes for their automatic response.

You can get a Kabbage business line of credit fairly easily. They start rejecting business owners with credit scores below 560. Also, their annual revenue requirement is low at $50,000.

Once you have a kabbage business line of credit opened, using it is very convenient and simple. You can draw the funds directly to your PayPal funds for immediate use. Or, you can set up a direct deposit to your business bank account and get started on the next business day. Lastly, you can order a Kabbage card, which will take a few days to arrive.

Best Business Line Of Credit For Bad Credit: Fundbox

Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$25,000/yr 3 months 500+ See if you qualify

The biggest obstacle to a good line of credit is often bad credit. But bad credit doesn’t always mean lines of credit aren’t available to you.

FundBox offers a business line of credit of up to $100,000. This is quite a small sum compared to what’s offered with other business funding options. But when you consider the minimum credit score is just 500, it makes more sense.

If you’re struggling to get a business line of credit, FundBox can likely help. Their credit score requirement is very low, and their minimum revenue requirement is just $25,000. Apart from that, they just need to see the last 3 months of your invoicing history to qualify you.

Best Business Line Of Credit For Rates: OnDeck

Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$100,000/yr 1 year 600+ See if you qualify

If you want fast service for the best rates, OnDeck is the lender to check out. They have a slightly higher credit score requirement than other business lenders at 600. But they make up for this by offering better rates to business borrowers with higher credit scores. APRs range from 9% to 99%.

OnDeck can get some borrowers cash during the same business day they applied on. They also don’t have much paperwork for you to fill out and can offer better rates for high credit borrowers.

For Large Businesses: Banks

If you’re running a bigger business, you will usually be best served by a bank. Alternative lenders offer a lot of speed and convenience. But they were meant for small businesses ineligible for traditional loans.

If you work with a bank, you can get more personal service and better rates. The catch is the banks will care about business revenue AND the personal credit score of applicants. But if you meet their requirements, you will get far better lines of credit. Your interest rates will be lower and your repayment terms will be longer.

If you’re a big business owner, you can still resort to alternative lenders if you need funding faster than banks can provide them. Just make sure to compare your options and choose the lenders that offer you the best rates and terms.

Can’t Decide? Try SuperMoney or Fundera

Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$10,000/mo 3 months n/a See if you qualify
Lender Minimum Revenue Time In Business Minimum Credit Next Steps
$10,000/mo 6 mo. 550+ See if you qualify

Finding the right business line of credit can be difficult. So, you can use a business lending marketplace to have the comparison work done for you.

SuperMoney offers loans through its partner lenders. If you need a business line of credit, you can just specify that you want one during your search. SuperMoney has a clean, simple, and easy-to-navigate page. They also offer an extra tab that can let you know about any extra fees a lender will charge.

Because it’s a business lending marketplace, the APRs on listed business lines of credit will vary. You can find the best business lines of credit and the worst. APRs can range from about 10% to over 50% depending on your credit score and other factors.

Not sure where to go for a business loan? Read these quick & helpful guides:
Check out our preferred marketplace lenders.

Lender Minimum Revenue Time in Business Minimum Credit Next Steps
$10,000/mo 6 mo. 550+ See if you qualify
$10,000/mo 3 mo. n/a See if you qualify
$10,000/mo 3 mo. n/a See if you qualify
$75,000/yr 24 mo. 620+ See if you qualify
Varies Varies 560+ See if you qualify

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