Cash flow rarely moves in a perfectly straight line. A small business may need $15,000 for inventory this month, nothing next month, and another $30,000 three months later to cover payroll, equipment repairs, marketing, or a new contract. Taking out a new term loan every time can be inefficient.
A business line of credit solves a different problem: it gives an approved business access to revolving capital that can generally be drawn when needed, repaid, and potentially used again.
However, business credit lines vary considerably in interest rates, credit limits, repayment schedules, fees, collateral requirements, personal guarantees, minimum credit scores, and revenue requirements.
This guide explains how business lines of credit work and how to compare lenders, rates, qualification requirements, and total borrowing costs.
Business Line of Credit Comparison
| Financing Option | Credit Availability | Published Pricing/Structure | Notable Feature |
|---|---|---|---|
| Wells Fargo BusinessLine | $10,000–$150,000 | Prime + 1.75% to Prime + 9.75% | Unsecured bank credit line |
| Wells Fargo Prime Line | $100,000–$3 million | Starts at Prime + 0.50%, subject to 5% floor | Secured larger-business line |
| Bluevine | Up to $250,000 | Rates as low as 7.8% for top qualifying customers | Online revolving financing |
| SBA-backed financing | Varies by program/lender | Subject to SBA/lender rules | Government-backed small-business financing |
Published rates and limits can change, and the lowest advertised rate is generally reserved for stronger borrowers. Approval and final pricing depend on underwriting.
What Is a Business Line of Credit?
A business line of credit is revolving financing.
Suppose your company receives a $100,000 credit line.
You do not necessarily receive $100,000 immediately.
Instead, you might draw $25,000 for inventory.
Interest or financing costs generally apply to the amount actually borrowed rather than the entire unused credit line, subject to the lender’s terms.
After repaying the balance, some or all of the available credit can become accessible again.
That makes the structure particularly useful for:
- Seasonal cash-flow gaps
- Inventory purchases
- Payroll
- Emergency repairs
- Short-term marketing
- Accounts-receivable gaps
- Unexpected operating expenses
- Short-term growth opportunities
A line of credit is generally better suited to recurring or unpredictable working-capital needs than a large one-time purchase.
Business Line of Credit vs Business Loan
The difference matters when comparing financing.
A traditional business term loan normally provides a lump sum that is repaid over an agreed term.
A business line of credit provides revolving access to funds up to an approved limit.
Consider a company needing $200,000 to purchase a major piece of machinery.
A term loan may make more sense because the cost and financing need are known upfront.
Now consider a seasonal business that periodically needs $10,000–$50,000 to purchase inventory before revenue arrives.
A revolving credit line may provide greater flexibility.
The decision should therefore be based on how the money will be used, not simply which product advertises the lowest rate.
Wells Fargo BusinessLine
Wells Fargo currently offers its BusinessLine revolving credit product with limits from $10,000 to $150,000.
Published interest rates range from Prime + 1.75% to Prime + 9.75%, depending on personal and business credit evaluation.
The product is unsecured, meaning collateral is not required for the BusinessLine itself.
Wells Fargo says applicants should generally consider these qualification factors:
6+ months in business + typically 680+ FICO for guarantors + personal guarantees from qualifying owners.
Owners with at least 25% ownership generally must provide personal guarantees, with a minimum combined aggregate of 51% ownership represented by guarantors.
There is an annual fee after the first year: currently $95 for lines between $10,000 and $25,000 and $175 for lines above $25,000.
Worth investigating for: established businesses wanting a traditional bank relationship and an unsecured revolving credit line.
Wells Fargo Prime Line of Credit
Larger companies may need substantially more than $150,000.
Wells Fargo’s Prime Line provides credit limits from $100,000 up to $3 million.
Published pricing currently starts at Prime + 0.50%, subject to a minimum floor rate of 5%, depending on credit evaluation.
Unlike BusinessLine, this financing is secured.
Wells Fargo takes a security interest in qualifying business assets such as accounts receivable, inventory, equipment and certain other noncash business property.
Businesses seeking larger lines should also expect more financial documentation.
Wells Fargo lists items such as two years of business and personal tax returns and company-prepared financial statements among additional application requirements for its Prime Line.
Worth investigating for: established companies needing six- or seven-figure working-capital access and willing to secure the line with business assets.
Bluevine Business Line of Credit
Bluevine provides an online business line of credit with access to as much as $250,000.
Bluevine currently advertises interest rates as low as 7.8% for top qualifying customers. It says businesses pay for the funds they actually use and that there are no maintenance fees.
Current minimum eligibility requirements include:
- 625+ personal FICO score
- At least 12 months in business
- At least $10,000 monthly or $120,000 annual revenue
- $2,000 average monthly bank balance
- LLC or corporation
- No bankruptcy on file
- Good standing with the applicable Secretary of State
- Eligible industry and state
Meeting these minimum requirements does not guarantee approval.
Bluevine’s available credit lines range from $1,000 to $250,000, with the actual amount determined through underwriting.
Its structure can appeal to owners prioritizing a digital application and relatively quick access to working capital.
Worth investigating for: small businesses seeking an online line of credit and businesses that may not want a traditional branch-based application process.
SBA Business Lines of Credit
Businesses looking for government-backed financing should also investigate programs available through the U.S. Small Business Administration and participating lenders.
SBA financing is generally provided by approved lenders rather than the SBA simply depositing money directly into every borrower’s account.
For revolving or working-capital needs, businesses may encounter SBA structures designed around short-term and recurring operating requirements.
SBA-backed financing can be attractive for qualifying businesses, but the application can involve more documentation than some online lending products.
A business owner should compare:
Interest-rate structure + guarantee fees + collateral + repayment term + lender requirements + processing time + total financing cost.
Do not assume that “SBA loan” automatically means approval or the lowest possible cost.
Secured vs Unsecured Business Lines of Credit
One major financing decision is whether to pledge collateral.
Unsecured Business Line of Credit
An unsecured line does not require the same type of pledged business collateral.
That sounds attractive, but lenders still need to control their risk.
They may compensate with:
Stronger credit requirements + lower limits + higher rates + personal guarantees.
Wells Fargo’s BusinessLine is one example of an unsecured revolving business credit product.
Secured Business Line of Credit
A secured line uses assets to support the borrowing.
Potential collateral can include:
- Accounts receivable
- Inventory
- Equipment
- Other qualifying business assets
Wells Fargo’s Prime Line is an example of a larger secured credit facility.
For a mature company, pledging collateral can potentially provide access to a larger credit facility or different pricing.
Business Line of Credit Interest Rates
Comparing rates is more complicated than simply searching for “lowest business loan rate.”
Many bank credit lines use variable pricing such as:
Prime Rate + lender margin.
For example, if a hypothetical product were priced at Prime + 3%, the actual borrowing rate would change when the underlying Prime Rate changes.
That creates interest-rate risk.
Bluevine also notes that business credit lines frequently have variable rates, although financing structures differ by lender.
Before accepting financing, determine whether the lender quotes:
APR + interest rate + factor rate + fixed fee + draw fee + annual fee.
These numbers are not interchangeable.
The lowest-looking number on a marketing page may not represent the lowest total borrowing cost.
Business Line of Credit Requirements
Every lender uses its own underwriting model, but several factors repeatedly matter.
Personal Credit Score
For small businesses, lenders may review the owner’s personal credit.
Current examples illustrate the variation:
Bluevine: minimum 625 FICO for its direct line
Wells Fargo BusinessLine: guarantors typically have at least 680 FICO
These are not universal industry requirements.
Time in Business
A longer operating history gives lenders more information about the company’s performance.
Wells Fargo’s BusinessLine is available to businesses operating for at least six months, while Bluevine’s current minimum is 12 months.
Annual Revenue
Revenue demonstrates whether the business generates enough activity to support repayment.
Bluevine currently requires at least $10,000 monthly or $120,000 annual revenue for its direct credit line.
Cash Flow
Revenue alone is not enough.
A company generating $1 million annually while consistently losing money can present more risk than a smaller profitable company with predictable cash flow.
Existing Debt
Lenders may examine current loans, credit cards, leases, and other financial obligations.
Documents Needed for a Business Line of Credit
The documentation depends on the lender and size of the request.
Applicants may need:
- Business legal name and EIN
- Owner information
- Business bank statements
- Revenue information
- Profit-and-loss statement
- Balance sheet
- Business tax returns
- Personal tax returns
- Accounts-receivable information
- Existing debt information
Online lenders may automate portions of the process by connecting to a business bank account.
Traditional lenders can require more documentation, particularly for larger credit facilities.
Personal Guarantees
A business line of credit can be issued to a company while still requiring the owner to provide a personal guarantee.
That is an important distinction.
A personal guarantee can make the guarantor personally responsible under the guarantee if the business fails to repay according to the agreement.
For example, Wells Fargo requires personal guarantees from qualifying owners for its BusinessLine product.
Business owners should read guarantee provisions carefully before signing.
How Much Business Credit Can You Get?
Credit limits can range from a few thousand dollars to millions.
Current examples include:
Bluevine: up to $250,000.
Wells Fargo BusinessLine: $10,000–$150,000.
Wells Fargo Prime Line: $100,000–$3 million.
The maximum advertised limit does not mean every applicant receives that amount.
Lenders can consider revenue, cash flow, credit history, existing debt, collateral, industry, and overall risk.
Business Line of Credit for Startups
Brand-new companies generally have fewer options because lenders have little financial history to evaluate.
A lender may want evidence of:
Consistent revenue + bank activity + repayment ability + owner creditworthiness.
Bluevine, for example, currently requires at least 12 months in business for its direct line of credit, while Wells Fargo’s BusinessLine starts at six months.
A pre-revenue startup should therefore not assume it will qualify for conventional revolving business credit.
Building business banking history, accurate financial statements, predictable revenue, and stronger personal/business credit can improve future financing options.
Line of Credit vs Business Credit Card
Both provide revolving credit, but they serve somewhat different needs.
A business credit card can be convenient for:
Travel + subscriptions + smaller purchases + everyday expenses.
A business line of credit can be better suited to:
Payroll + inventory + supplier payments + larger working-capital needs + cash-flow gaps.
Compare the interest rate, fees, rewards, repayment requirements, and amount of capital needed.
How to Compare Business Line of Credit Offers
Do not compare lenders only by advertised interest rate.
Evaluate:
| Factor | Why It Matters |
|---|---|
| APR/rate | Determines financing cost |
| Credit limit | Determines available capital |
| Repayment period | Affects cash flow |
| Payment frequency | Weekly vs monthly can matter |
| Annual/draw fees | Increase total cost |
| Collateral | Determines assets at risk |
| Personal guarantee | Creates owner exposure |
| Variable rate | Can change over time |
| Prepayment rules | Affect early-payoff economics |
Bluevine, for example, currently offers weekly and monthly repayment structures for qualifying borrowers, with materially different eligibility standards.
Always compare the complete financing agreement.
Frequently Asked Questions
What is a good credit score for a business line of credit?
There is no universal score. Bluevine currently requires at least 625 FICO for its direct line, while Wells Fargo says BusinessLine guarantors typically have at least 680 at application.
How much can I borrow with a business line of credit?
It depends on the lender and underwriting. Current published examples range from Bluevine’s lines up to $250,000 to Wells Fargo’s secured Prime Line up to $3 million.
Can I get an unsecured business line of credit?
Yes. Wells Fargo BusinessLine is one example of an unsecured revolving line. Approval remains subject to business and owner credit evaluation.
Do business lines of credit require collateral?
Not always. Some products are unsecured, while larger facilities may require liens on business assets.
Is a business line of credit better than a loan?
Neither is universally better. A line of credit can work well for recurring or unpredictable short-term expenses, while a term loan can be more suitable for a defined one-time investment.
Do business lines of credit have fixed rates?
Some use variable rates tied to a benchmark such as Prime. Borrowers should verify the exact pricing formula before accepting an offer.
Can a startup get a business line of credit?
Potentially, but new businesses can face stricter qualification challenges because they have limited revenue and credit history.
Conclusion
The best business line of credit is not necessarily the lender advertising the lowest headline interest rate.
A strong financing decision compares the complete package:
Interest rate → credit limit → fees → repayment schedule → credit-score requirement → revenue requirement → collateral → personal guarantee → total borrowing cost.
For businesses wanting a traditional unsecured bank line, Wells Fargo currently offers BusinessLine limits from $10,000 to $150,000 with published rates from Prime + 1.75% to Prime + 9.75%.
For larger established businesses, its secured Prime Line provides access to as much as $3 million, with published pricing starting at Prime + 0.50% subject to its floor and underwriting requirements.
Bluevine provides another model, offering online revolving credit up to $250,000 and advertising rates as low as 7.8% for top qualifying customers.
The most appropriate financing depends on how much capital the company needs, how quickly it needs the money, its credit profile, revenue, cash flow, and whether the owner is comfortable providing collateral or a personal guarantee.