Updated September 10, 2025
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Our team researched the best business loan options available so you can compare business lines of credit.
If you see an option that's compelling to you, click the 'See personalized rates' button to get started.
Choose a loan from a Bankrate partner and receive your funds if you qualify.
The best business lines of credit offer a wide range of credit limits, lenient eligibility requirements, no draw fees and fast funding. Take a closer look at Bankrate’s best picks business lines of credit and the features they offer.
With fair loan terms and fast funding, National Funding is one of the most competitive lenders on the market. Best of all, they offer discounts for borrowers who are able to pay off their loans early. This is a welcome contrast to lenders that penalize early payoffs.
Fundible is our 2025 winner for best business line of credit due to its favorable lending terms, fast funding and loan amounts ranging anywhere from $10,000 to $500,000. That, combined with its low time-in-business and minimum revenue requirements, make it a compelling choice for any prospective borrower.
If your business is well along in its journey, then Bluevine might be an ideal fit for you. If you have enough monthly revenue, the lender offers fair interest rates for qualified applicants, and it also offers funding in as quickly as one business day.
If you are fine with a secured line of credit, American Express Business Blueprint could be a compelling choice. American Express also offers a unique monthly fee structure that allows borrowers to save money if they can pay off their line of credit early.
If you need a line of credit quickly, Fundbox makes a lot of sense. The company has been known to approve loans in as short a time as three minutes. Furthermore, funds can appear in your account as soon as the next business day.
Backd is our 2025 winner for short-term business loans because of its flexibility and features offered to borrowers. It also offers high credit limits to borrowers, with up to $750,000 available in funding.
Due to its flexible range of short-term lines of credit, OnDeck is our 2025 award winning lender for startups. They offer loan terms as short as 12 months with funding amounts as high as $100,000. For companies just starting on their business journey, this is a winning combination.
With interest rates starting at just 9.25 percent for unsecured lines of credit, Bank of America offers highly competitive terms. And as a traditional financial institution, the company offers valuable face-to-face guidance at any of its branch locations across the country.
Wells Fargo offers competitive interest rates, a wide range of loan amounts and it offers both secured and unsecured lines of credit. This is part of the reason why the bank won our 2025 award for best small business lender for those with good-to-excellent credit.
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If you’re ready to apply for a business line of credit, Bankrate makes it easy for you. Here’s our in-depth guide to finding the right line of credit, getting your application in order, boosting your odds of approval and comparing lenders for the best deal possible.
A line of credit can be a useful lending product under the right circumstances, which may include:
The key difference between a business loan and a business line of credit is flexibility in funding. While a business loan offers financing in a predetermined lump sum, a business line of credit allows you to withdraw as much or as little as you need within the credit limits over the draw period.
Here's a side-by-side comparison to help you decide which is best for your business:
| Business loan | Business line of credit |
|---|---|
| Lump sum payment | Continuous funds that can be withdrawn |
| Predetermined loan amount | Flexible balance depending on how much has been drawn |
| Lower interest rates | Higher interest rates |
| Higher credit requirements | Lower credit requirements |
| Longer repayment terms | Short, more aggressive repayment terms |
| New loan required for additional funds | Additional funds can be drawn from existing line of credit |
There are different reasons to get lines of credit for businesses, especially when comparing them to loans or credit cards.
A business line of credit is an attractive financing option for companies that value flexibility, given uncertain and/or erratic liquidity needs. Unlike a traditional loan, which entails borrowing an interest-bearing sum upfront, a line of credit allows you to borrow only what you need, when you need it (up to a predetermined credit limit). This type of revolving credit facility enables financial agility, while minimizing interest expense.Thomas Brock, CFA, CPA
How much debt you take on can determine whether your business succeeds or fails, which is why it’s important to budget out your debt balance and monthly payments ahead of time.
As a rule of thumb, you should aim for no more than a 36 percent debt to revenue ratio. This means that if your business makes $100,000 annually, you should aim for no more than a $36,000 credit and interest balance for the year. On a monthly basis, this means your monthly payment should be no more than $3,000 with interest and fees.
Since your line of credit balance can change, it’s a good idea to calculate your monthly payment ahead of each draw you take, and ensure you either have the revenue or the cash reserves to cover your line of credit payment.
Selecting the right lender for your business line of credit can set you up for success, especially if you borrow from them in the future and establish a long-term relationship.
When considering a lender, you’ll want to think about the following factors:
While lenders will differ in their offerings and approaches, different types of lenders can offer different pros and cons.
Bankrate can help you find the right lender by allowing you to compare rates, fees, limits and requirements all in one place. Use our loan calculator to get started and get matched with the best lender for your needs.
Ensuring you can qualify for a business line of credit can help you save time and a possible hard check on your credit score when you apply. While not all lenders will have the same requirements, as a rule of thumb, you’ll want to have:
It's also a good idea to gather a list of documents you'll need to complete your application — such as business tax returns, registration paperwork and your business plan.
To make the loan process easier, be prepared with the documents you'll need.
Read moreWhen shopping for loans, consider prequalifying with us. Bankrate offers multiple benefits if you decide to prequalify on our site, including:
Which business line of credit that works best for your business will depend on your business model and priorities. While no two businesses are the same, there are a few key factors you should consider when selecting a line of credit.
| If your most important deciding factor is… | …then you should consider |
|---|---|
| Cost |
|
| Flexibility |
|
| High limits |
|
| Customer service |
|
| Ease of approval |
|
| Mangeable repayment terms |
|
You can use Bankrate’s preapproval tool to compare lines of credit one on one, and help determine which lending product works best for you and your business.
How to decide if a secured or unsecured business line of credit is better for your business.
Read more
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