Reference · Revolving capital
Business Line
of Credit.
2026 Guide
Revolving capital your business draws on, repays, draws again. Higher limits than a card, lower friction than a term loan, lower rate than online lenders if you build the file right.
§ 01 · Where to apply
Banks, online, SBA — pick by file age.
Bank lines (Wells Fargo, Chase, Bank of America) — lowest rate, strictest underwriting, 12–24 months operating history typical.
Online lenders (Bluevine, Fundbox, OnDeck) — approves faster with thinner files, significantly higher rate.
SBA-backed (CAPLines program) — middle of the road, longer commitment.
What underwriters actually look at.
- Business operating history — 6 months minimum for online lenders, 12–24 months for banks.
- Business bank statement deposits — consistent monthly, not seasonal spikes.
- Business credit profile — established tradelines, first card paid down, no inquiry spike.
- Personal credit — 680+ FICO typical for unsecured LOC approval.
- Debt service coverage — business income comfortably covers projected payment.
- Address and identity match across the three business bureaus.
What to do now to be LOC-ready.
Under 12 months in business? Focus on business bank deposit history and your first reporting business credit card. Past 12 months but stuck on LOC denials? Audit your business bank statements for what underwriters flag: large unexplained deposits, NSF fees, low average daily balance. Most denials trace to one of those three.
How to use the line correctly.
The temptation with a new business line of credit is to draw it down immediately. Resist it. Most lenders watch utilization on the first few months of the line and quietly cap your future increase potential if you sit above 60% for an extended stretch.
The cleaner play is to draw, deploy productively (inventory, payroll, project capital), and pay it back inside the same billing cycle the first two or three times. That's the utilization pattern that earns a credit-limit increase request at month nine.
Get LOC-ready