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How Does LendingTree Get Paid?LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
How Does LendingTree Get Paid? Privacy Secured | Advertising Disclosures By Tara Mastroeni and Jill Chafin | Edited by Dawn Daniels | August 30, 2024 How Does LendingTree Get Paid?LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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3.00% to 27.00% 3% to 9% for 6-month loans
6% to 18% for 12-month loans
9% to 27% for 18-month loans
12% to 18% for 24-month loans
6, 12, 18 or 24 months
An American Express Business Line of Credit is an excellent option if you need a quick business loan for your company. With up to $250,000 of revolving funds, you can tackle immediate business needs as they arise, with enough to cover emergency expenses down the road. If approved, you can receive funds almost instantly. However, monthly fees vary based on the term you select.
In order to qualify, you’ll need to meet American Express’s criteria of:
With interest rates starting at just 7.80%, qualified businesses can take advantage of Bluevine’s business line of credit, which has no hidden fees and quick funding times. If approved, you could access up to $250,000 in as little as 24 hours — with no restrictions on how to spend the funds.
Still, Bluevine imposes some eligibility restrictions on its products. Its line of credit is not available to business owners who live in Nevada, North Dakota, South Dakota or any U.S. territories. Additionally, at $120,000, its annual revenue requirement is higher than some of the competition.
In order to qualify, you’ll need to meet Bluevine’s criteria of:
39.90% This rate reflects the estimated starting APR offered to at least 5% of OnDeck customers. It doesn’t reflect the minimum APR offered by the company.
Term length (months)12, 18 or 24 months
If you need same-day funding, OnDeck offers an unsecured line of credit, worth up to $100,000. There are no added draw fees. However, while OnDeck doesn’t disclose its absolute minimum rates, the average rate given to borrowers is fairly high at 56%.
In order to qualify, you’ll need to meet OnDeck’s criteria of:
4.66% to 8.99% 4.66% (12 weeks)
8.99% (24 weeks)
If you have poor credit, Fundbox might be a good option. With a minimum credit score requirement of 600, low-credit borrowers can access revolving funds up to $150,000 to use toward various business expenses. Businesses must have an annual revenue of $100,000 or greater to qualify for Fundbox’s business credit lines. If approved, you can receive funds the next business day.
In order to qualify, you’ll need to meet Fundbox’s criteria of:
13% 4.50% + the prime rate, which is currently 8.50%
Term length (months)60 months (no annual review)
Companies less than two years old can apply for startup business financing with the Wells Fargo Small Business Advantage unsecured line of credit. Backed by the Small Business Administration (SBA), this line of credit comes with no annual fees and undergoes a review once every five years. More established businesses may want to consider the Wells Fargo BusinessLine line of credit to access higher amounts at a lower rate.
In order to qualify, you’ll need to meet Wells Fargo’s criteria of:
Lines of credit start at $25,000
Starting interest rate Term length (months)Bank of America’s secured line of credit comes with a high minimum borrowing amount and affordable interest rate for well-qualified borrowers. Plus, it offers plenty of opportunities to earn rate discounts. However, it may not be the best fit for every borrower. The company doesn’t disclose its minimum credit score requirements and, at $250,000, the annual revenue requirement is fairly high compared to the competition.
In order to qualify, you’ll need to meet Bank of America’s criteria of:
If you need the ability to borrow money as you go and a longer repayment term, consider Truist’s line of credit. Its secured line of credit offers access to up to $250,000 with repayment terms of up to 60 months. As an added bonus, the company doesn’t impose minimum annual revenue or time in business requirements.
Yet, Truist doesn’t publicly share its credit score requirements or interest rate information, which can make it hard to tell if this line of credit is the right fit for you. Plus, their secured product can come with some hefty fees, including a title insurance premium and recording fees, among other charges.
Read our full Truist Business Loan review
In order to qualify, you’ll need to meet Truist’s criteria of:
A business line of credit is a type of small business financing that works fairly similarly to a credit card.
Once approved, you’ll have the option to borrow money up to a set limit and you’ll only pay interest on the amount you’ve borrowed. As you pay down your balance, you’ll be able to borrow against it again.
Lines of credit can help cover unexpected business expenses, such as inventory, payroll or seasonal fluctuations in revenue.
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There are two main types of business lines of credit that you can choose from:
A secured business loan requires you to put up collateral, such as real estate or equipment to back the loan. If you fail to repay a secured loan or line of credit, the lender has the right to seize your assets as a form of repayment.
Because of that possibility, secured lines of credit are viewed as less risky for the lender. Lenders are often willing to offer better terms, such as higher funding caps and lower interest rates on secured loan products.
In contrast, an unsecured business line of credit doesn’t require collateral. In this case, approval is typically based on the strength of your personal financial profile and business history.
However, the lack of collateral doesn’t mean you’re off the hook if you don’t repay your unsecured loan. Some lenders may put a lien on your business assets or require you to sign a personal guarantee. Your credit score will also likely take a hit.
Lenders typically look at the following to determine your eligibility for a business line of credit:
Credit score: Your personal FICO Score and business credit report both play a role in determining your creditworthiness. Many lenders require a minimum credit score of 600 (or more) when you apply for a business line of credit, although having a higher score can help you secure a better interest rate.
Time in business: Most lenders want a steady track record of at least one to two years in business, although certain lenders will work with those in operation for only six months.
Annual revenue: You must show a steady income stream to qualify for small business financing. The amount varies greatly, with some lenders accepting annual revenue as low as $36,000 while others want to see $250,000.
You have several options when applying for a business line of credit.
You can access different business loans with a traditional bank or credit union. Typically, these lenders offer competitive rates and terms, but requirements may be fairly strict, often requiring a solid credit history and revenue, plus several years in business. You might also need to pay more fees and provide collateral to secure the funds.
Since alternative lenders incorporate a streamlined application process, they tend to be more lenient than traditional banks regarding qualifications and requirements and can provide access to funds faster. Certain alternative lenders even work with startups or offer bad credit business loans.
In addition, online lenders often offer other business loan products, such as inventory financing and franchise loans. But beware, these lenders typically have higher fees and lower credit limits than traditional bank loans.
You can also consider an SBA line of credit through the SBA CAPLines program. An SBA revolving line of credit provides short-term financing that can reach up to $5 million with repayment terms of up to ten years.
Even if you’re eligible for a business line of credit, it might not be the best financing for your business’s specific needs. Here’s what to consider as you make your decision.
Withdraw what you need and when you need it, helping limit over-borrowing
You only pay interest on what you borrow, not on the total limit
Usually has lower interest rates and higher borrowing limits than a credit card
Not suitable for large purchases or long-term expenses
You may need to provide collateral
Additional draw or maintenance fees can add up over time
When picking the best business line of credit for your company, you’ll want to compare the following details:
If a business line of credit doesn’t seem like the best fit for you, there are plenty of alternative options available, including:
We reviewed the leading small business lenders to determine the overall best business lines of credit. To create our list, we evaluated lenders based on the following criteria:
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