The Best Business Lines Of Credit For 2018

business line of credit loan

A line of credit is one of the most useful tools at a merchant’s disposal. Merchants with a line of credit can have funds available within a few days without going through a long application process every time. These funds can be used for many business reasons, such as working capital, business growth, or emergency funds.

Are you looking to gain access to a line of credit? Or do you have a line of credit already, but want to know what your other options are? You’re in luck! We’ve searched out and evaluated the best credit lines currently available to businesses of all sizes — from microbusinesses and startups to stable and established operations.

The following lines of credit are sorted (roughly) by ease of qualification (from easiest to most difficult). Bear in mind that, in general, the easier it is to qualify for a line of credit, the higher the rates and fees you will be offered.

Best Lines Of Credit (At A Glance)

Products Offered Best For
Fundbox • Invoice-backed lines of credit
• Traditional lines of credit
B2C and B2B startups, microbusinesses, and freelancers
BlueVine • Invoice factoring
• Traditional lines of credit
B2C and B2B businesses over six months old with fair credit
Kabbage • Traditional lines of credit Businesses over a year old
OnDeck • Traditional lines of credit Businesses over a year old
StreetShares • Traditional lines of credit Businesses over a year old with fair credit
Fundation • Traditional lines of credit Businesses over a year old with fair credit
P2Binvestor • Asset-backed lines of credit Large, well-established B2B businesses over two years old
SBA CAPLines • Working capital lines of credit
• Seasonal lines of credit
• Contract lines of credit
• Builder’s lines of credit
Large, well-established businesses
Your Bank Or Credit Union • Various lines of credit Well-established businesses

Fundbox

Gone are the days when you had to have a large, well-established business to qualify for a credit line. With Fundbox (read our review), you might qualify even if you’ve only been in business for three months. This service offers invoice-backed and traditional lines of credit to eligible businesses.

Borrower requirements:
• No revenue or time in business requirements, but must use compatible accounting or invoicing software for at least 3 months, or a compatible business bank account for at least 6 months.
• No credit score requirements.
Visit the Fundbox website

Fundbox currently offers the most accessible business lines of credit available. There is only one specific requirement: you must have been using compatible accounting/invoicing software for at least three months, or a compatible business bank account for six. In most cases, your credit score doesn’t matter — Fundbox doesn’t check your credit at all.

Fundbox also has one of the fastest applications available. Typically, you can create an account, apply, and get a decision within a couple of minutes. Borrowers might be eligible for a credit line up to $100,000 with repayment term lengths up to 24 weeks in length.

Obviously, Fundbox offers a useful service, but it’s not right for all businesses. The fees are higher than those of services that cater to more established businesses, so if you have been in business for a while and have strong financials, you might be able to find better rates elsewhere. Nonetheless, Fundbox is an invaluable source of financing for many businesses.

Check out our full Fundbox Review or head over to the website using the link above for more information.

BlueVine

Founded in 2013, BlueVine (read our review) offers two services to solve cash flow problems: lines of credit and invoice factoring. If your business is at least six months old and you have fair credit, a BlueVine line of credit might be right for your business. Check out the eligibility for their traditional lines of credit below:

bluevine logo
Line of credit borrower requirements:
• Must be in business at least 6 months with a revenue of $10,000 per month.
• Must have a personal credit score of 600 or above.
• Lines of credit are not available in all states. See full review for details.
Visit the BlueVine website

You have a fair chance at qualifying for a line of credit from BlueVine if you meet the above requirements. Borrowers might be eligible for a credit line up to $200,000 with repayment terms of six months. If you invoice your customers, invoice factoring might be worth your consideration — BlueVine doesn’t require monthly minimums or long-term contracts. Check out our full BlueVine review for more information on the invoice factoring services.

The application process for BlueVine is fast and straightforward. In most cases, you can expect to have a decision regarding your application within 24 hours. Unlike with some other services, you will not have to submit a lot of documentation to be considered for a credit line.

As you might expect, larger organizations will want to give BlueVine a pass. With APRs between 21% and 65%, well-established businesses will be able to find lower rates elsewhere. However, smaller companies will find this service worth considering.

Head over to the website above, or check out our full BlueVine Review for more information.

Kabbage

Kabbage (read our review) offers one of the most popular and well-known lines of credit available. This service is known for having a fast, easy application process, and for being a convenient and easy way to access funds. You might be eligible for a Kabbage line of credit if you meet the following requirements:

Borrower requirements:
• Must be in business at least 12 months and make at least $50,000 annually (or $4,500 for the last 3 months).
• No specific credit score requirements.
Visit the Kabbage website

With relatively low revenue and time in business requirements, a lot of businesses will qualify for a credit line from Kabbage. This lender does not enforce a specific minimum credit score, but it will run a check on your credit before giving you a final decision on your eligibility, rates, and fees.

Like Fundbox, Kabbage’s application process is completely automated. Most potential borrowers will be able to make an account, fill out an application, and check their eligibility within a few minutes.

With APRs that range from approximately 20% to 106%, Kabbage lines of credit have the potential to be the most expensive on this list. However, your personal rates will depend on your creditworthiness, the strength of your financials, and some other factors, so you might be eligible for lower rates. Regardless of the potentially high rates, Kabbage is worth checking out if you need fast access to a convenient line of credit.

Check out our full Kabbage Review for more information, or head over to their website using the link above.

OnDeck

OnDeck (read our review) is known for offering short-term loans, but it has also been offering lines of credit for the last few years. Because OnDeck will consider applicants that have personal credit scores as low as 500, it’s a good choice for businesses that don’t qualify for other credit lines because of poor credit.

Borrower requirements:
• Must be in business at least 12 months with a revenue of $100,000 per year.
• Must have a personal credit score of 500 or above.
• Must not be in one of OnDeck’s restricted industries.
Visit the OnDeck website

OnDeck’s credit lines currently range from $6,000 to $100,000, with repayment terms of six months. Unlike the lender’s short-term loans, which are usually repaid daily, draws from your credit like are repaid on a weekly basis. OnDeck does not charge a fee for drawing from your line, but they do charge a monthly maintenance fee.

Although slower overall than Kabbage or Fundbox, OnDeck has a relatively fast application process. Most borrowers will have a final decision within 24 hours after applying.

OnDeck’s rates and fees are competitive with similar lines of credit. So while you still might wind up with a rate that is higher than you would like, you will not come across fees that are overly expensive.

Head over to our full OnDeck Review or their website for more information.

StreetShares

StreetShares (read our review) is a P2P lender that offers many financial products to small businesses, including lines of credit. This lender has very low revenue requirements, so if you have at least 12 months in business and fair credit, you might be able to qualify for a credit line.

Borrower requirements:
• Must be in business at least 12 months with a revenue of $25,000 per year (sometimes StreetShares will make exceptions for high-earning businesses at least 6 months old).
• Must have a personal credit score of 620 or above.
Visit the StreetShares website

Like those of many other lenders, StreetShares credit lines max out at $100,000, but the amount you will personally be offered will be about 20% of your annual revenue. StreetShares APRs range from 7% to 39.99%, which is competitive with many other online lines of credit. Draws have a maximum repayment length of 36 months, which is the longest draw term-length on this list.

StreetShares’ application process generally takes less than a week. Naturally, once you have access to a credit line, you can draw at any time without going through an application, although StreetShares will occasionally request to see your financials if you haven’t drawn from your line in a while.

Check out our full StreetShares Review for more information, or head over to their website using the link above.

Fundation

Fundation (read our review) is an online lender that offers installment loans and lines of credit to eligible businesses. Here are the requirements you’ll have to meet to qualify for the latter:

fundation logo
Borrower Requirements:
• Must be in business at least 12 months with a revenue of $100,000 per year.
• Must have a personal credit score of 600 or above.
• Must have at least three full-time employees (including yourself).
Visit the Fundation website

Because of the employee requirement, Fundation might be a little more difficult to qualify for, but eligible borrowers will benefit from favorable terms and fees. Fundation offers credit lines between $20,000 and $100,000. Draws have repayment terms of 18 months, which is longer than most other lenders on this list. Additionally, with APRs that range from 7.99% to 29.99%, Fundation’s rates are lower than those of most of the above lenders.

The application process to gain access to a line of credit is short, and most applicants can expect a decision in fewer than seven days. Between the low rates and the fast application process, this is definitely a lender worth checking out if you aren’t yet big enough to get a line of credit from a bank or the SBA.

Check out our full Fundation Review or their website using the link above.

P2Binvestor

P2Binvestor (read our review), which began as a modern take on invoice factoring, offers lines of credit that are backed by assets. Currently, P2Binvestor (P2Bi for short) offers credit lines backed by unpaid invoices or inventory. Check out the qualifications below:

P2Binvestor P2Bi logo
Borrower Requirements:
• Must be in business at least 12 months with a revenue of $500,000 per year.
• Must be a US-based B2B business.
Visit the P2Binvestor website

P2Bi is a little more difficult to qualify for than the above lenders, but eligible merchants will discover that P2Bi offers low rates and fees in comparison to others on this list.

This service is useful for businesses that are growing fast (and need funds to continue that growth), but don’t yet qualify for a bank line of credit. P2Binvestor’s credit lines, which range from $250,000 to $10,000,000 (or even higher) can give you the money you need to keep your business growing. While P2Bi does charge an early termination fee, they will waive it if you are able to find lower rates with a line of credit from a bank.

Check out our full review of P2Binvestor for more information, or head over to their website using the link above.

SBA CAPLines

The Small Business Administration (SBA) works with partner lenders, such as banks and credit unions, to offer loans to small businesses at affordable prices. The SBA’s lines of credit (part of their 7(a) loan programs) are called CAPLines. Currently, the SBA offers four different lines of credit:

  • Working Capital CAPLines: Lines of credit for working capital and/or operating needs.
  • Seasonal CAPLines: Lines of credit to help your business get through your busy season. This line cannot be used during your business’s slow period.
  • Contract CAPLines: Lines of credit used to finance specific contracts.
  • Builder’s CAPLines: Lines of credit used for construction and renovation.

CAPLines max out at $5,000,000. The SBA will guarantee a maximum of 75% or 85%, depending on the size of the credit facility.

The SBA borrower requirements for a CAPLine are the same as those for other 7(a) loans:

  • Your business must be for-profit
  • You must do business in the United States or its territories
  • You must have reasonable owner equity
  • You must have used personal savings and other alternative financial assets before seeking an SBA loan

However, the partner you’re working with will have other requirements you need to meet. You’ll need to be able to prove 1) that your financials are strong enough to qualify for a credit line, and 2) that you have the necessary collateral.

To apply for an SBA CAPLine, you’ll have to find a partner lender that offers CAPLines. The best place to start your search is the SBA’s Lender Match platform.

Your Bank Or Credit Union

If your company is stable and well-established, you might be able to qualify for a credit line from your bank or credit union. Banks and credit unions are notoriously risk-averse, but for qualified businesses, banks can offer credit lines with favorable terms and fees.

Final Thoughts

Lines of credit are useful tools for businesses of any size, whether you’re just starting out or have been running a successful organization for a while. The above lines of credit will work for most businesses, but if you’re not seeing one that works for you, check out our full library of business line of credit reviews.

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