The 9 Best Business Lines of Credit to Consider

Having a line of credit available for your business is important for numerous reasons. As a business owner, you need to understand the business lines of credit. You also need to find the best available credit line for your growing company. Establishing business credit is important for acquiring capital when you need it.

For success as a business owner, your business needs to grow over time. Growth requires capital. Business loan companies work with business owners to help them take advantage of growth opportunities requiring capital. When you first start your company, you won’t have a business credit history. The sooner you start establishing your business credit, the better off you’ll be.

A line of credit for your business helps you do numerous things that increase revenues and grow your company. For example, a credit line for your company could allow you to purchase equipment. In many industries, expensive equipment is needed for everyday operations. A business credit line can also allow a company to hire new employees or invest in advertising.

While business credit lines are important, you need to put research into them. You need to understand how to evaluate available credit lines. You also need to know about the best available business credit lines.

Lines of Credit to Consider For Your Business

We have compiled a list of different options for those looking for a business line of credit loan. You can consider all the lines of credit mentioned below when looking for the best option for your company.

Of course, you first want to figure out what you need. Before you search available lines of credit, know what your company is looking for. This means figuring out what your credit rating is like. It also means calculating how much you want to borrow. Crunch the numbers and plan carefully. Have an idea of what interest rates your company should qualify for before you get started.

Here are the nine best business lines of credit to consider.

US Bank’s Cash Flow Manager Line of Credit

If your company is relatively established, you might want to look into the US Bank’s Cash Flow Manager Line of Credit. This line of credit has relatively strict approval requirements. However, it also offers great terms to those who are approved.

In order to be approved for this line of credit, your company needs to be at least two years old. Those who are approved can borrow as much as $250,000 for a secured line and up to $100,000 for an unsecured line. Companies can have a minimum credit line of $2,000, but anything less than $50,000 comes with a $150 annual fee.

They can take out the loan for a maximum period of 80 months. The lowest available interest rate is 6.00 percent variable. In addition to the interest rate, this credit line also typically involves an origination fee of $75.

This credit line is best suited to small or medium businesses. You have a lot of options to choose from with US Bank’s Cash Flow Manager Line of Credit. There are numerous fixed-rate options as low as 7.75 percent for those who qualify.

Fundbox

Fundbox is a business line of credit that offers a great deal of convenience. Business owners can enjoy numerous advantages with this credit line. One of the primary advantages is that the application process is automated.

Also, the Fundbox line of credit is fairly easy to qualify for. The requirements for approval with Fundbox are quite easy to achieve. Also, it’s worth noting that funding comes very quickly with this credit line.

However, there are a few disadvantages to be aware of. For one thing, the interest rate on this business line of credit can be relatively high, depending on your creditworthiness, but it can be as low as 4.66 percent.

Those who work with Fundbox are not able to borrow as much as they might be able to with other business lines of credit providers. The loan amounts are not generally very high compared to some other options. The typical maximum credit limit with Fundbox is $150,000.

You don’t have to be in business very long to qualify with Fundbox. In fact, your company may qualify despite only being six months old. However, you need at least $100,000 in annual revenue, have a business bank account, and have a personal FICO score of at least 600.

Bank of America Business Credit Lines

Another possible line of credit option is a Bank of America Business Credit Line. They offer both secured and unsecured lines. One of the biggest advantages of these credit lines is that the interest rates tend to be low. Also, you can use a credit line from Bank of America over the long term for your business.

With Bank of America, you can use multiple business financing products from the same lender. In addition to lines of credit, Bank of America also provides SBA loans, business term loans, and other commercial loans.

One possible disadvantage is that these credit lines are not always easy to qualify for. You will need to have fairly decent credit. Your business will also need to be well established – at least two years in business under current ownership. In other words, if you’ve just bought the company, you have to wait until you’ve owned it for two years.

You also have to meet some revenue requirements. If you want to take out an unsecured loan, your company’s revenue must be at least $100,000 annually. For a secured loan, you need revenue of at least $250,000 annually. You can borrow as little as $10,000. The maximum you can borrow depends on your specific application factors.

OnDeck

If you are a small business owner, you should consider business lines of credit from OnDeck. There are numerous advantages to OnDeck credit lines. For one thing, you can get the funds you need quickly if you are approved. In fact, you can get funds on the same day that you are approved in some cases.

Credit score requirements are not particularly stringent. You need a credit score of only 600 to qualify using your personal credit. You’ll also need to be in business for at least one year and have an annual business revenue of $100,000.

Another advantage to consider is that there is not a great deal of paperwork involved. The process of applying for and taking out the loan is streamlined and simplified.

Some disadvantages to OnDeck credit lines include the fixed-fee structure. This means that you won’t save any money if you pay off the loan early. Another thing to keep in mind is that you have to make payments back on the line of credit on a daily or weekly basis.

Also, you need to provide a personal guarantee in order to use a line of credit from OnDeck. And the average interest rate is about 47.14 percent, which is high in comparison to many other options.

You can borrow as little as $6,000 and up to $100,000. There is a 12-month rolling repayment term. In short, this means that if you use $1,000 of your $6,000 credit line in the first month, you have 12 months to repay that amount. If you use another $1,000 the following month, you’ll have 12 months to repay that amount. Each withdrawal has its own repayment date.

Wells Fargo Business Line

Regardless of the size of your company, Wells Faro Business Line could suit you as a line of credit. This credit line is appropriate for startup companies. It can also be appropriate for large, established companies.

Many business owners choose Wells Fargo Business Line because the interest rates tend to be low – as low as Prime + 1.75 percent. You can be approved for a revolving credit line of anywhere from $10,000 to $100,000.

Also, this credit line does not include a lot of additional fees. There is an annual fee, which is waived the first year. After that, it’s $95 for lines of up to $25,000 and $175 for lines over $25,000. Other than that, the only fee you’ll pay is if you choose to use your line of credit for a cash advance.

You will need to meet some fairly demanding requirements to be approved for BusinessLine from Wells Fargo. This includes being in operation for at least two years and having established business credit. If you are a newer business, the Wells Fargo Small Business Advantage Line of Credit has lower requirements with many of the same benefits.

Fundera

Fundera is a business line of credit provider with a great reputation. This is a newer lender. The company was founded in 2013. When you do business with Fundera, you’ll know exactly what you’re getting into. Fundera is devoted to providing transport financial products to business owners. However, you may have to deal with high- interest rates and relatively expensive fees with Fundera.

Fundera isn’t only a great source of credit lines for business owners. The company also offers financial products like cash advances, short-term loans, and SBA loans. You can also take out a loan with Fundera to finance a commercial equipment purchase.

Working with Fundera is ideal if you’re feeling overwhelmed in your search for a business line of credit. With exceptional customer service, Fundera will provide you with the advice and answers you need to optimize business finances.

Fundera doesn’t offer the loans itself but is a platform for helping businesses connect with lenders. Typically, customers approved on Fundera are typically in business for over one year, have at least $250,000 in annual revenue, and have a credit score of at least 650. Lines of credit range from $10,000 to more than $1 million with interest rates of anywhere from 7 percent to 25 percent. Loan terms are usually three months to 18 months.

Kabbage

One huge advantage of business lines of credit from Kabbage is that they tend to be easy to qualify for. You only need a minimum credit score of 560 to qualify for a line of credit for your business with Kabbage.

Another advantage is that the application and qualification process is so quick. In fact, you can qualify in only 10 minutes. You can also borrow as much as $250,000. Once you are approved, you get the funds quickly. And you have easy access to your credit line funds any time and anywhere that you want it.

A Kabbage line of credit is generally designed for shorter terms, ranging from six to 18 months. One possible drawback that business owners have to be aware of is that the interest rate can be high. The APR for these loans will typically range between 24 and 99 percent.

And there are fees that range from 2 percent to 27 percent, depending on the repayment term. However, this could be a good option if you absolutely must borrow capital and your company doesn’t yet have strong credit established.

PNC Bank Secured Business Line of Credit

You have a lot of options with business lines of credit from PNC Bank. You can take out either a secured or unsecured credit line with PNC Bank. Secured credit lines are a great idea if you are looking to establish your company’s business credit. These credit lines are especially recommended over the short term to cover revenue gaps. Credit lines are secured by any business assets other than real estate assets.

Because these credit lines are secured, they typically feature lower interest rates. There is a lot of convenience in a PNC line of credit. It’s easy to access the funds. They can be accessed via checks and online. They can also be linked to a company’s business checking account. This makes it quick and convenient to make payments.

The lines of credit offered by PNC Bank range from $20,000 to $100,000 for unsecured and $100,001 to $3 million for secured. The secured line of credit will entail a yearly fee of 0.25 percent of the credit line amount or $175 for the unsecured line of credit. Interest rates are variable.

BlueVine

BlueVine is another good line of credit provider for companies without strong, established credit. Perhaps the biggest advantage of a line of credit with BlueVine is that the requirements for approval are low.

However, this is not the only advantage. BlueVine also offers fairly low-interest rates for those who qualify. The lowest possible interest rate available is only 4.8 percent. Also, BlueVine gets funds out to companies fast. Those who are approved can get their funds on the same day.

Unfortunately, BlueVine lines of credit are not available everywhere. BlueVine cannot offer funds to companies located in certain states, including Nevada, North Dakota, and South Dakota. There are also certain industries that are restricted from borrowing. Also, those who cannot qualify for lower interest rates may have to pay high fees with BlueVine.

You can borrow up to $250,000 with a revolving credit line with a repayment term of six months to one year. Business owners typically need to bring in at least $10,000 monthly in revenue and be in business for at least six months to qualify for a BlueVine credit line. Also, business owners need to have credit scores of at least 625 to borrow with BlueVine.

Leave a Comment

Your email address will not be published. Required fields are marked *