Compared: Best Business Lines of Credit

A business line of credit is a financing option where a lender provides a select credit limit for businesses to draw funds from. Lines of credit are reasonably flexible, allowing you to use all or part of the allotted credit wherever and whenever you need it, so long as you stay within the draw period. 

In addition to flexibility, the line of credit process is reasonably straightforward. After your application has been accepted, your lender will determine your limit, decide your interest rate, and set your repayment schedule. However, it’s important to keep in mind that the terms of your repayment plan are not set in stone and can be adjusted. 

Are you interested in taking out a business line of credit? We’ve made it easier to decide who to work with by rounding up some of the best business lines of credit on the market. In this blog post, we’ll cover the loan amounts that are offered as well as look at some of the requirements needed to qualify and apply. 

Backd

Founded in 2018 after two brothers discovered that traditional financial institutions were not meeting the capital needs of businesses across the country, Backd focuses on providing the funds that businesses need to grow in a timeline that actually works for them. 

Backd offers a business line of credit ranging between $50K and $750K with term lengths set at 6 or 12 months. Backd focuses on short-term financing and because of this is more fee-focused rather than APR-focused, ensuring that the cost of capital is competitive against other lenders. Backd is proud to be transparent about any and all fees prior to paperwork being signed and even includes a phone call with a relationship partner to ensure that you get the most out of your funding experience. 

Backd’s requirements include a minimum of 2 years in business, average monthly revenue of $50K, a minimum credit score of 625, a business bank account, and proof of a brick-and-mortar business address. 

American Express Business Blueprint

Business Blueprint is the business line of credit option offered by the well-known banking institution, American Express. 

Business Blueprint offers a business line of credit amount that ranges from $2K to $250K. When taking out this business line of credit you can choose from terms lengths of  6,12 or 18 months with each option being accompanied by its own corresponding monthly fee. 

The Business Blueprint features a somewhat complex fee structure which makes it difficult to compare the costs to that of offer lenders, however, it is advertised that the monthly fees start at 2%. 

A footnote on the American Express website does provide a little more clarity by stating that “each draw on the line of credit will result in a separate installment loan. All loans are subject to credit approval and are secured by business assets. Every loan requires a personal guarantee. Total monthly fees incurred over the loan term range from 2-9% for 6-month loans, 7.5-18% for 12-month loans, and 15.75-27% for 18-month loans, and are subject to change for future loans drawn under the available line of credit.”

OnDeck

OnDeck is an online lender that provides loans specifically to small businesses. OnDeck offers business lines of credit ranging from $6K to $100K with term lengths of 12 months that reset after each withdrawal. The APR on OnDeck’s business line of credit can be anywhere from 29.9% to 65.9%. 

Some of the minimum requirements that OnDeck asks of businesses seeking to utilize their business line of credit are a minimum of one year in business, a minimum credit score of 625, and an average annual revenue of $100k. They also require a business lien and personal guarantee before being accepted for their business line of credit and stipulate that your business cannot have had any bankruptcies in the past two years. 

OnDeck advertises that cash is available on the same business day however this is only applicable in certain states and if your checkout is done on Monday through Friday before 10:30 am eastern time. If this deadline is not met then funds will actually be provided in 2-3 business days.

OnDeck requires daily or weekly repayments on their business line of credit and the fine print on their website stipulates that the eligibility for the “lowest rates is very limited, available only to businesses with the strongest creditworthiness and cash flows and typically businesses that have shown excellent payment history on prior loan products with OnDeck.” They also state that the average rates for lines of credit are 48.9% APR, this is based on loans originating in the half-year ending March 31, 2022. 

Bluevine

Bluevine is another online-based alternative lender that specifically caters to small businesses seeking funding. Bluevine’s business lines of credit range from $6K to $250K with multiple term lengths offered for different financing needs, however, these term lengths are not openly advertised. 

Among the requirements that Bluevine sets for their business lines of credit are a minimum of two years in business, a minimum credit score of 625, and an average annual revenue of at least $480K. They may also require a personal guarantee or anyone who is approved. 

Bluevine advertises on its website that the rates start as low as 6.2% however this is a simple interest rate calculated from total repayments over 26 weeks. A review of Bluevine’s business line of credit found that the estimated APR is between 20% and 50%. This review also states that Bluevine may require weekly repayments. 

PNC Bank

The PNC Financial Services Group, Inc. is a bank holding company and financial services corporation. PNC Bank exists as its banking subsidiary which operates in 27 different states. 

PNC Bank offers both secured and unsecured business lines of credit with the unsecured loan amount ranging from $20K to $100K and secured loans ranging from $100K up to $3M. The term lengths of both the secured and unsecured are revolving terms with annual renewal and a monthly repayment schedule. The unsecured business line of credit has an annual fee of $175 with potential additional fees that may apply while the secured business line of credit has an annual fee of 0.25% of the committed line amount, also with additional fees that may apply. These fees are in addition to an estimated aPT of 15.24% to 17.24%. 

PNC Bank's line of credit requires that applicants have been in business for at least three years, have a minimum credit score of 720, a minimum annual revenue of $100K in addition to a business credit history that is free of bankruptcy, tax liens, judgments, and lawsuits. Your personal credit history must also have no derogatory items for five years or more and a personal guarantee by the business owner is required. 

Lendio

Lendio isn’t a direct loan, rather it works as a free online marketplace for small business owners to find loans. Because of this, Lendio operates as a sort of middle-man to all of the providers that they have listed on their site, and applying for loans through Lendio could incur more fees than applying directly through the lenders themselves.

As Lendio works as a marketplace for multiple loans, it does make it a little difficult to compare their options as terms and requirements may differ from lender to lender. However, it is known that some lenders charge pre-payment penalties and the APR of the lenders on Lendio can range anywhere from 8% to 60%. Lendio’s online application process is also advertised as taking up to 15 minutes.

When it comes to transparency, Lendio is severely lacking in information before going through its application process. There is no mention directly of what lenders they actually work with and their website is a little bare in terms of content related to the actual services that you are applying for. While Lendio may connect you to up to 75 lenders with a wide variety of loan products, it could be argued that doing the research on providers yourself could bear a more fruitful partnership. 

Get Backd!

Traditional funding through banks and credit unions has inconvenient and drawn-out lending processes that can take up to months, and their approval rates are usually quite low - that's why we created the Backd solution.

Backd’s business line of credit offers the highest unsecured line of credit on the list as well as an average minimal credit score that provides fair access to lines of credit for all business owners. Get instant access to revolving credit with competitive terms and the best rate for your business. 

At Backd our application process takes as little as 3 minutes with a soft credit check so there is no impact on your credit score. Typically funds will be sent to you in just 24 hours so don’t wait to secure the funding that your business needs today, get Backd.