How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 7 startup business lines of credit
| Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
|---|---|---|---|---|
Headway Capital - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Fast business lines of credit for startups | $100,000 | 625 | with Fundera by NerdWallet |
Fundbox - Line of credit | 5.0/5 Best for Startup business lines of credit for bad credit | $150,000 | 600 | Read Review |
OnDeck - Line of credit with Fundera by NerdWallet | 5.0/5 Best for Unsecured business lines of credit for startups | $100,000 | 625 | with Fundera by NerdWallet |
Wells Fargo Small Business Advantage® Line of Credit | 5.0/5 Best for Bank startup business lines of credit | $50,000 | 680 | Read Review |
Bank of America Cash Secured Line of credit | 5.0/5 Best for Secured business lines of credit for startups | Undisclosed | 670 | Read Review |
American Express® Business Line of Credit | 5.0/5 Best for Startup business lines of credit with monthly payments | $250,000 | 660 | Read Review |
SBA CAPLines of credit with Fundera by NerdWallet | Best for Seasonal businesses | $5,000,000 | 650 | with Fundera by NerdWallet |
Here are 7 startup business lines of credit
Best for Fast business lines of credit for startups
Best for Startup business lines of credit for bad credit
Best for Unsecured business lines of credit for startups
Best for Bank startup business lines of credit
Best for Secured business lines of credit for startups
Best for Startup business lines of credit with monthly payments
Best for Seasonal businesses
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Our pick for
Fast business lines of credit for startups
Headway Capital is a small-business lender specializing in lines of credit that range from $5,000 to $100,000. It offers weekly or monthly repayment options, and once approved, you can receive funding as soon as the next business day.
Headway Capital - Line of credit
Max loan
$100,000
Min. Credit score
625
Apr range
35.00-80.00%
Our pick for
Startup business lines of credit for bad credit
Fundbox offers credit lines for startups with six months or more in business; it accepts borrowers with credit scores of 600 or higher.
Fundbox - Line of credit
Max loan
$150,000
Min. Credit score
600
Apr range
36.00-99.00%
Our pick for
Unsecured business lines of credit for startups
OnDeck offers business lines of credit for startups with 12 months or more in business, and it doesn’t require physical collateral. Borrowers are subject to UCC blanket liens, however, and will be required to sign a personal guarantee.
OnDeck - Line of credit
Max loan
$100,000
Min. Credit score
625
Apr range
35.90-84.90%
Our pick for
Bank startup business lines of credit
Wells Fargo’s Small Business Advantage line of credit is available for startups under two years old. There is no annual fee, and line of credit amounts range from $5,000 to $50,000. Any owner of over 20% is required to sign a personal guarantee.
Wells Fargo Small Business Advantage® Line of Credit
Max loan
$50,000
Min. Credit score
680
Apr range
13.00-15.00%
Our pick for
Secured business lines of credit for startups
Bank of America offers a cash secured line of credit for businesses in operation for a minimum of six months. Your credit limit is the amount of cash you put down as a security deposit, which is refundable whenever you decide to close your account. This is a good option for businesses looking to build credit and work toward unsecured options.
Bank of America Cash Secured Line of credit
Max loan
Undisclosed
Min. Credit score
670
Our pick for
Startup business lines of credit with monthly payments
Some lenders require weekly or even daily payments, which can constrain a new business’s cash flow. But American Express offers credit lines from $2,000 to $250,000 with monthly payments for companies that started their business at least a year ago and have an average monthly revenue of $3,000.
American Express® Business Line of Credit
Max loan
$250,000
Min. Credit score
660
Our pick for
Seasonal businesses
Seasonal CAPLines, one of the four SBA CAPLines, are available to small businesses that have been operating for at least a year and experience seasonal revenue fluctuations. Funds can be used to finance seasonal increases in accounts receivable, inventory costs and labor expenses.
SBA CAPLines of credit
Max loan
$5,000,000
Min. Credit score
650
Apr range
11.50-15.00%
How business lines of credit can benefit new businesses
🤓 Nerdy Tip
A startup business is usually defined as a business in the early stages of growth. It may refer to businesses that haven’t started operating yet, or businesses that have been operating for a couple of years. For lending purposes, most banks want to see at least two years of operation, so businesses that don’t meet that threshold are often referred to as startups.Where to get a startup business line of credit for a new business
Online lenders
SBA lenders
Traditional banks
Pros and cons of a startup business line of credit
Pros
Cons
Business line of credit calculator
When you draw from a business line of credit, you only pay interest on the funds that you borrow. You then repay the funds over time, based on a schedule set by your lender.
Enter a withdrawal amount, repayment term and annual interest rate to estimate your monthly payment, total interest costs and the total amount repaid.
How to apply for a business line of credit for new businesses
- Credit score: 600 or higher.
- Annual revenue: $100,000 or more (Or at least $8,333 per month).
- Time in business: Six months or more.
- Business registration documents.
- Personal and business bank statements.
- Personal and business tax returns.
- Business financial statements, such as a profit and loss statement and balance sheet.
Alternatives to business lines of credit for new businesses
- You want an option to build your business credit history. Your time in business is usually not considered when applying for startup business credit cards. They can help cover everyday purchases and small to medium-sized startup expenses while you build your business credit history at the same time.
- You have strong personal finances. If your personal finances are in good shape, you may be able to take out a personal business loan to help fund your new business. You’ll probably be able to borrow more money this way than you could with a business credit card.
- You have family and friends who support your new business. If you don’t qualify for financing from a financial institution, consider turning to your personal network for funding. Family and friends financing typically involves asking friends and family for a loan or offering equity in your business for their cash investment.
- You don’t want to take on any additional debt. Startup business grants can be an option for funding your business. However, you’ll face competition for this “free money” and also need to set aside time to find and apply for grants.
- You have a compelling story or offer a unique product. Crowdfunding for business can be used to fund your startup business. It can be an inexpensive way to raise money and build a base of customers interested in purchasing your products and services online. Also, equity crowdfunding can be used to sell shares to family, friends and others who are interested in investing in your new business.
Methodology
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.