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7 Best Startup Business Lines of Credit in 2025

Consider some of the best business lines of credit to meet your startup business financing needs.

A business line of credit can be a great way to finance your startup business, offering flexibility and a renewable funding source. But newer businesses may have a more difficult time meeting the criteria needed to qualify. Consider these lenders that offer business lines of credit to help you start or grow your new business.

7 Best startup business lines of credit

Best marketplace

Lendio business loans

9.6 Excellent

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If you'd rather not do the comparison shopping yourself, a marketplace like Lendio can do the work for you. It's a network of over 75 lenders, including many that offer business lines of credit ranging from $1,000 to $500,000. Rates start as low as 8% but could reach as high as 60%.

Apply online and prequalify with a soft credit check to review multiple options for a business line of credit. If approved, you could receive funding within one to two business days. But Lendio seems to require more documentation than other lenders, and rates might be high for some startup businesses.

Loan amount$1,000 to $500,000
APRVaries by lender
Min. Credit Score 560

Best for faster access to funds

Rapid Finance small business loans

7.5 Great

Go to site
on Businessloans.com's secure site

While it can sometimes take a few days to access funds from a business line of credit, Rapid Finance provides a prepaid Mastercard that gives you “near real-time” access to your LOC. Plus, you can use it to make secure payments anywhere Mastercard is accepted. Rapid Finance offers credit lines up to $250,000 with terms ranging from three to 18 months. But it may require weekly or daily repayments, and it doesn't disclose its rates and fees.

Loan amount$5,000 to $250,000
APRUndisclosed

Best for fair revenues

American Express® Business Line of Credit

8 Great

Read review

American Express Business Line of Credit can be a solid option for startup businesses because it only requires at least $3,000 in average monthly revenue. You can apply in minutes, and it offers flexible repayment terms with each draw on the LOC, resulting in either a single repayment loan from one to three months or an installment loan from six to 24 months.

But you'll need at least one year in business and a credit score of 660 to qualify.

Loan amount$2,000 – $250,000
APRN/A
Min. Credit Score660

Best for fast application process

Bluevine business lines of credit

8.6 Great

Read review

After a quick online application, Bluevine can give you a decision in as little as five minutes after applying. Its startup business lines of credit go up to , and unlike some of its competitors, it doesn't charge maintenance fees. It also allows for unlimited transactions, although you may be subject to some limitations based on your checking account restrictions.

To qualify for a Bluevine business line of credit, you'll need at least one year in business, $10,000 in monthly revenue and a minimum 625 credit score. And Bluevine accepts only corporations or LLCs, so sole proprietorships and partnerships may need to look elsewhere.

Loan amountUp to $250,000
APRAs low as 7.8%
Min. Credit Score 625

Best for poor credit

Clarify Capital

Most lenders that offer startup business lines of credit require at least a 600 credit score, but Clarify Capital accepts scores as low as 550. And, you'll only need to be in business for at least six months, which is less than many lenders.

It doesn't charge prepayment penalties, and rates start as low as 5%, but you'll need a good credit score to qualify for a rate that low. Clarify Capital doesn't disclose any additional fees or its loan terms.

Loan amountUp to $5 million
APRAs low as 5%
Min. Credit Score 550

Best for brand-new businesses

Guidant Financial business loans

8 Great

When you're just getting off the ground, qualifying for traditional business loans can be tough. But Guidant Financial has a somewhat unique solution with its portfolio loan. It functions much like a business line of credit, where you only pay interest on the funds you use.

Portfolio loans — also known as stock loans or security-based lending — essentially use your brokerage account as collateral for a line of credit. Rates start as low as 3% to 4%, and the loan process takes about two weeks. However, you'll need at least $85,000 in eligible securities to qualify, and there's a flat fee of 4% to facilitate the loan, which is comparable to an origination fee.

Loan amountUp to 80% of your account balance
APRAs low as 3%
Min. Credit Score None

Best for more established businesses

Idea Financial lines of credit

7.8 Great

If you've been in business for at least three years, you may qualify for up to a line of credit from Idea Financial. Unlike some lenders, it doesn't charge origination fees, prepayment penalties or maintenance fees.

It offers flexible repayment terms of up to 36 months but charges withdrawal fees. To qualify, you must have at least a 650 credit score and $15,000 or more in monthly revenue. Nonprofits and sole proprietorships are not eligible.

Loan amountUp to $275,000
Min. Credit Score 650

Methodology: How we choose these lenders

Finder’s business loan experts analyzed dozens of lenders offering business lines of credit for startups and newer businesses. We ultimately chose lenders that offer more lenient requirements than traditional business loans and are willing to work with newer businesses and owners with, potentially, lower credit scores and less revenue.

Some of the criteria we evaluate include:

  • Interest rates
  • Additional fees
  • Loan amounts
  • Loan terms
  • Repayment plans
  • Turnaround times
  • Credit score requirements
  • Time in business requirements
  • Revenue requirements
  • Reputation of the lender

Finder also maintains strict editorial integrity and independence. Our content and suggestions are fair, accurate and trustworthy, and our advertisers or partners don’t influence our opinions. To learn more, check out our editorial guidelines here.

How to compare startup business lines of credit

Consider these factors when choosing the best business line of credit for your company:

  • Rates. Interest rates can vary widely depending on the lender. Be sure to check with multiple lenders to find the best line of credit rates.
  • Fees. Most lenders that offer startup business lines of credit charge some types of fees, including origination, maintenance and draw fees. To save money, look for lenders with minimal fees.
  • Lender requirements. To qualify for a business line of credit, lenders typically have requirements for credit scores, revenue and time in business. Be sure you meet the criteria of lenders you’re interested in.
  • Turnaround times. Funding for business lines of credit is often quicker than for other loan types, but some lenders may take longer to give you access to credit.
  • Loan terms. Startup business lines of credit typically have shorter terms than other types of business loans — and may require weekly repayments — so make sure your budget can handle the repayment schedule.

What is a business line of credit, and how does it work?

A business line of credit is a revolving line of credit similar to a credit card. It gives you access to a set amount of funds, but you only have to pay interest on the money you use. Business lines of credit can be found at banks, credit unions or online lenders. These loans may be secured or unsecured LOCs, and some don’t require a personal guarantee.

When you get a business line of credit, you’ll typically be approved for a preset line of credit limit up to $500K or more. As you require funding, you can draw on those funds as often as needed, up to your approved limit. And, unlike other business loans, you only have to pay interest on the funds you spend And as you make payments, your funds are replenished.

Most business lines of credit lenders have flexible repayment terms. Typically, you only have to make interest payments during the draw period, although you also have the option to pay more, saving yourself on interest charges in the long run. Lines of credit generally have short loan terms of two years or less.

Pros and cons of startup business lines of credit

Consider the risks and rewards of a business line of credit before deciding if it’s the right type of financing for your business.

Pros

  • Only borrow what you need
  • Renewable access cash flow
  • Easier to qualify for than some business loans
  • Helps to build business credit

Cons

  • May include numerous fees
  • Interest rates may be higher than other loan options
  • Typically have short loan terms
  • Some require weekly repayments

Compare other startup business loans

Consider other lenders that offer loans for startup businesses.

Product Finder Score Min. Amount Max. Amount APR Requirements
Finder score
$2,500
$5,000,000
Varies by lender
$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.
Finder score
$5,000
$20,000,000
Varies by lender
Minimum credit score of 500, minimum annual revenue of $120,000, preferably one to two years in business
Compare lending options and get funded fast.
Finder score
$1,000
$5,000,000
Varies by lender
Operate business in US for 6 months or more, have a business bank account, minimum 580 personal credit score, at least $8,000 in monthly revenue.
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Businessloans.com Main Product  logo
Finder score
$5,000
$3,000,000
Varies by loan type and lender
Must have been in business between 1 to 2 years, have a minimum revenue of $75,000 to $250,000 and have a minimum credit score of 500 to 650.
Complete a three-minute form to see loans that fit your business’s needs. Compare offers without a hard credit check.
National Funding logo
Finder score
$5,000
$500,000
Undisclosed
In business 6+ months and make at least $250,000 in annual sales. Other loan types have additional requirements.
Working capital loans and equipment financing, some high-risk industries may be eligible.
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What is the Finder Score?

The Finder Score crunches 12+ types of business loans across 35+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best business loans for startups loans, you can see how each business loan stacks up against other business loans with the same borrower type, rate type and repayment type.

Read the full Finder Score breakdown

Other types of business loans

If you want to look into other funding options, consider these alternative types of business financing.

TypeTypical loan amountsTypical term lengthsBest for
$13,000 to $5 million
Up to 25 years
Established businesses with decent credit that don’t qualify for other types of funding
Up to 100% of the cost of the equipment
3 to 10 years
Businesses that need heavy equipment or other expensive machinery
Up to $2 million
1 to 10 years
Businesses with good credit looking for large loan amounts and predictable monthly payments
Microloans
$500 to $50,000
Up to 6 years
Startup businesses or women- or minority-owned firms
70% to 90% of unpaid invoices
1 to 3 months
Business-to-business (B2B) companies with a lot of outstanding invoices
70% to 80% of unpaid invoices
1 to 3 months
B2B companies with a lot of outstanding invoices
Merchant cash advance
$5,000 to $200,000
3 to 12 months
Retail businesses or others that have a lot of credit card sales

How to qualify for startup business lines of credit

Most lenders that offer startup business lines of credit are usually focused on your credit score, how long you’ve been in business and how much revenue you take in.

  • Time in business. Lenders generally want to see that you’ve been in business for at least six months, although some may require two or more years in business to qualify.
  • Revenue. Monthly or annual minimum revenue requirements can vary significantly by lender and affect the size of your credit line. You’ll usually need at least $10,000 in monthly revenue, although some lenders — like American Express — only require an average monthly revenue of at least $3,000.
  • Credit score. You’ll most likely need a minimum score of 600 or higher, but some lenders may consider lower scores.
  • Business bank account. Most lenders require you to have an open and active business checking account. They may want to verify your banking activity, use it to deposit funds or take out automatic repayments.

Some lenders offering no doc lines of credit may require less paperwork or be able to access your financial information by connecting to your bank account.

How to apply for a startup business line of credit

The exact process to get a startup business line of credit may vary depending on the lender, but the basic steps are similar:

  1. Decide how much you need. Define your plans for the credit line and how much you think you’ll need.
  2. Assess your budget. Figure out how much you can afford in repayments, keeping in mind that some lenders may require weekly or bi-weekly payments.
  3. Check your credit. Checking your credit score before applying for any type of business financing can help guide you toward lenders that accept borrowers in your credit range. You can also make sure your credit report is accurate.
  4. Compare lenders. It’s always a smart move to compare rates, fees and loan terms from multiple lenders so you can find the best deal.
  5. Research requirements. Check out lender requirements before you apply to make sure you qualify. For example, if you’ve only been in business for six months, you’ll need to find lenders that consider new businesses.
  6. Gather your documents. Find out which documents you’ll need to submit so you’re prepared to apply.
  7. Apply. Once you’re ready, choose a lender and follow the instructions to apply for your line of credit, submitting any required documents.

Alternatives to business lines of credit

If you don’t qualify for a business line of credit or just want to explore your options, consider these alternatives:

  • Business credit card. Credit limits for business credit cards aren’t normally as high as lines of credit, but they may be easier to qualify for.
  • Personal line of credit. If you don’t have the necessary requirements for a business line of credit, you may qualify for a personal line of credit instead.
  • Personal loan. Many business owners fund their companies with personal loans, which are generally easier to qualify for than business lines of credit.
  • Home equity line of credit (HELOC). If you own your home, you may want to look into a HELOC, a line of credit that borrows against your home’s equity. Or, you could get a home equity loan that also uses your home as collateral but provides the funds in a lump sum.
  • Personal credit cards. Rates are high for credit cards, and credit limits are typically lower than business lines of credit. But, if you qualify for a card with a 0% introductory rate, you could fund your business with interest-free financing for up to 18 months or more.

Frequently asked questions

Can startups get a line of credit?

It can be more difficult to qualify for a line of credit when you’re a newer business. But, some lenders, like the ones on our list, may be more willing to work with those that haven’t been operating for very long and may have more lenient revenue and time-in-business requirements.

What is the minimum credit score for a business line of credit?

Credit score requirements can vary widely, although most lenders require a credit score of at least 600 to qualify. But some lenders accept lower scores.

Can I get a line of credit to start a business?

If your business hasn’t opened yet, you may need to consider alternative lending sources, such as lenders that offer portfolio loans, which use your investment funds as collateral for a line of credit. Or, you could check with your bank about opening up a personal line of credit to fund your new business.

Megan B. Shepherd's headshot
To make sure you get accurate and helpful information, this guide has been edited by Megan B. Shepherd as part of our fact-checking process.
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Written by

Writer

Lacey Stark is a freelance personal finance writer for Finder, specializing in banking, loans, investing, estate planning, and more. She has 20 years of experience writing and editing for magazines, newspapers, and online publications. A word nerd from childhood, Lacey officially got her start reporting on live sporting events and moved on to cover topics such as construction, technology, and travel before finding her niche in personal finance. Originally from New England, she received her bachelor’s degree from the University of Denver and completed a postgraduate journalism program at Metropolitan State University also in Denver. She currently lives in Chicagoland with her dog Chunk and likes to read and play golf. See full bio

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