Previously known as Kabbage Funding, the American Express Business Line of Credit is a relaxed eligibility credit line from $2,000 to $250,000. Instead of interest, you pay a flat monthly fee based on the loan term. And, each draw on the line becomes an installment loan with a 6, 12, 18 or 24 month term. What you’d pay is based on the term you choose, for example, 6-month lines of credit range from 3% to 9%, while 24-month lines of credit can range from 12% to 18%.
Borrowers with a minimum credit score of 660 and an average of just $3,000 in minimum monthly revenue may qualify. Pair that with no extra fees and a quick, low-doc application, it’s worthy of consideration. But one drawback is that the line may or may not replenish as you pay it down.
If you’re in the market for a competitive business line of credit, these alternatives may offer lower APRs and options to fit your needs better.
5 companies like American Express Business Line of Credit
Like AMEX, BlueVine offers credit lines up to $250,000, but it charges interest instead of a flat fee. Rates start at a competitive 6.2% APR there are no origination, draw or maintenance fees. Its credit score requirement is also a bit lower than AMEX's.
However, BlueVine requires $40,000 in monthly revenue and 24 months in business, so it's significantly harder to qualify for a LOC with Bluevine than with AMEX. And not all industries are eligible, such as auto dealerships and fintechs. But if you're an established business owner, BlueVine could help you save.
Pros
Low rates starting at 6.2%
Quick turnaround time
Low 625 credit score requirement
No origination, draw or maintenance fees
Cons
Not all industries qualify
High monthly revenue requirement
Requires 24 months in business
Loan amount
$5,000 – $250,000
APR
Starting at 6.2%
Loan term
6 or 12 months
Requirements
12+ months in business, $40,000+ in monthly revenue, 625+ credit score
Loan amount
$5,000 – $250,000
APR
Starting at 6.2%
Min. Credit Score
625
Alternative for large loan amounts: SmartBiz SBA loans
Unlike a line of credit, SBA loans offer larger loan amounts and longer repayment terms. And, if it's the long application process keeping you from applying for an SBA loan, SmartBiz could be a great choice. It can connect you with an SBA lender and save time with its loan packaging service. The SBA process normally takes 60 to 90 days, but SmartBiz advertises that it can cut it down to 30 to 45 days.
Multiple SBA loans are available through SmartBiz, including the SBA 7(a) line of credit with a maximum amount of $500,000. Qualifying for an SBA loan isn't as simple as other types of business loans, but SmartBiz could make it easier. But it's not free — expect a referral fee and a packaging fee.
Pros
Shortens the SBA application process
Assistance with SBA loan application
Highly-rated by customers
Cons
Not a direct lender
2% referral fee and 2% packaging fee
Maximum SBA loan term offered is 10 years
Loan amount
$50,000 – $500,000
APR
Prime Rate, plus 2.75% to 4.75%
Loan term
10 years
Requirements
650+ credit score, 2+ years in business, $50,000+ in annual revenue, no bankruptcies or foreclosures in past 3 years
Loan amount
$50,000 – $500,000
APR
Prime Rate, plus 2.75% to 4.75%
Min. Credit Score
650
Alternative for no-doc business line of credit: Fundbox
If you're struggling to qualify for a LOC with other lenders, Fundbox is a good option to consider. It's one of American Express' top competitors and offers a similar product: a revolving business line of credit up to $150,000 with a lower credit score requirement than AMEX.
Each withdrawal becomes a short-term loan of either 12 or 24 weeks, and like AMEX, it charges a weekly fee instead of interest. But unlike AMEX, Fundbox specializes in business lines of credit and gets better overall customer reviews.
Pros
Accepts lower credit than American Express Business Line of Credit
Overall positive customer reviews
Line replenishes as you pay it down
Cons
Weekly fees
Loan amount
Up to $150,000
APR
Not stated
Loan term
12 or 24 weeks
Requirements
600+ credit score, 6+ months in business, $100,000+ in annual revenue
OnDeck's business line of credit is similar to AMEX's, but it's faster to fund. While most lenders require a day to transfer funds, withdrawals from OnDeck could be available within minutes. It also accepts low credit scores as low as 625.
As a low-doc lender, it may only require three months of business bank statements, which you can download from your online bank account. But it's an expensive option — save this lender for when you're willing to pay extra for convenience.
Pros
Instant funding available
Accepts 625 credit score
Daily or weekly auto payments
Cons
Average rate for lines of credit is 52.6% APR
Maximum loan amount lower than AMEX
$20 monthly maintenance fee
Loan amount
$6,000 – $100,000
APR
52.6% average APR
Min. Credit Score
625
Loan term
Up to 24 months
Requirements
Companies in business at least 1 year, $100,000+ in gross annual revenue, majority owner with a 625+ personal credit score, active business checking account
Finance Factor isn't a direct lender like AMEX. It's an online, free connection service with multiple financing options for startups. It offers business lines of credit with introductory rates starting at 0%. And its startup funding option is up to $500,000 with a 0% intro rate for up to 21 months.
Credit score requirements vary depending on the loan and provider you go with, and only the most eligible applicants can get the lowest rates. Since Finance Factory isn't a direct lender, getting your funds may take longer, since you'll need to fully apply with a lender if you find a match.
Pros
Quickly compare lenders
Multiple options for startups
Overall positive customer reviews
Cons
Rates, loan amounts and terms vary
Turnaround time slower than other competitors
Loan amount
$5,000 – $500,000
APR
0% to 15%
Loan term
Up to 10 years
Requirements
600 to 800 credit score, no required years in business or monthly cashflow, though $1,000 to $5,000 monthly is preferred
Loan amount
$5,000 – $500,000
APR
0% to 15%
Min. Credit Score
700
How does AMEX compare?
Compared to other lenders, AMEX’s business line of credit is ideal for newer businesses. It only requires a minimum of $3,000 month revenue to qualify and the lack of interest charges, prepayment penalties, application fees and origination fees make it a competitive borrowing option. However, its 660 credit score requirement is a bit higher than some of the alternatives we’ve mentioned and unlike other LOCs, your line may or may not replenish as you pay down.
Pros
Competitively priced
Simple online application
Withdraw online, mobile app or with card
No prepayment penalties, application or origination fees
Cons
Not for brand new startups
660 credit score requirement
Rocky history with past servicer
Line is not guaranteed to replenish as it’s paid off
Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto.
Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt.
Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others.
Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio
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