A business line of credit is a more flexible option than a business loan because the borrower is not required to take the entire amount that they are approved for in one lump sum. This can be advantageous for businesses with variable expenses and seasonal businesses. In this article, we’ll explain how to get a business line of credit and how it works.
How does a business line of credit work?
The best way to think about a business line of credit is as an amount of money that your company has access to if you need it. With a business loan, you would take that entire amount and transfer it into your business bank account. With a line of credit, you take what you need when you need it. Interest only accrues on the funds you use until you pay them back.
Another difference between a business line of credit and a term loan is that interest rates on a line of credit are often variable (many are indexed to the prime rate) and can change over time. Term loans can have fixed or variable rates, depending on the lender and product.
A business line of credit is reusable if you pay back the money that you draw from it. This is appealing for small businesses where expenses vary. It’s also beneficial in companies with longer sales cycles. The funds from a line of credit can be used to cover the cost of goods sold and administrative expenses while you’re waiting for customers to pay their invoices.
Depending on the lender and product, a line of credit can be secured (backed by collateral) or unsecured. Secured lines may offer more favorable terms because you pledge an asset to reduce lender risk.
Some lenders treat each draw as a separate short-term loan with its own repayment schedule, while others combine draws into a single revolving balance.
Requirements to get a business line of credit
If you meet the qualifications and fulfill all the requirements, you might be in a good position to get a business line of credit. The approval process is comparable to getting a business loan. Lenders evaluate business and personal credit scores, the amount of time your company has been in business, and your monthly or annual revenue. They’ll also look at your existing debt.
Recent survey data highlights how common some of these hurdles are: In Bluevine’s September 2025 cash-flow management survey, 1 in 4 businesses seeking external capital (26%) said funding was difficult to obtain, and the most-cited pain points were low credit scores (8%) and limited operating history or thin credit files (6%).
The same survey also found that access to credit lines is far more common among higher-revenue companies: only 38% of firms with annual revenue under $250K reported having a line of credit, compared to 63% of firms with annual revenue above that level.
And even when businesses qualify, cost can be a barrier—39% of surveyed owners cited high interest rates as their biggest barrier to borrowing right now.
Business and personal credit score
Your business has a credit score. Most people are aware of personal credit scores, but many small business owners don’t realize that companies like Dun & Bradstreet and Experian Business track credit scores for businesses. Lenders will take those into account when you apply for a loan or business line of credit, so check them frequently if you can.
In Bluevine’s September 2025 cash-flow management survey, low credit scores were the most-cited pain point among business owners who said funding was difficult to obtain. As one example of how lenders set minimums, Bluevine’s line of credit minimum qualifications include a personal FICO score of 625+.
Amount of time in business
There’s no set rule for how long you need to be in business for a lender to approve you for a business line of credit. Most lenders like to see at least six months to two years of financial activity. Be prepared to provide financial statements and tax returns to meet the qualification criteria. More established businesses pose a lower risk to the lender and are more likely to get approved.
In the same survey, limited operating history or thin credit files were top obstacles among business owners who said funding was difficult to obtain. For context, Bluevine’s line of credit minimum qualifications include being in business for 12+ months.
Monthly or annual revenue
The amount of monthly or annual revenue your company brings in will tell the lender how much you can afford to borrow and whether you can pay it back. Tracking monthly revenue for an established business can show cyclical sales trends that could be relevant to how you’ll use a line of credit. Annual revenue provides a longer-term picture.
Revenue can also affect whether businesses have access to lines of credit in the first place: Bluevine’s cash-flow management survey found that only 38% of businesses under $250K in annual revenue reported having a line of credit vs. 63% of businesses above $250K.
Lenders’ minimum revenue requirements vary, but Bluevine’s line of credit minimum qualifications include $10,000 in monthly revenue (or $120,000 annually).
Other debt obligations
Additional debt might make it more difficult to get approved for a line of credit. Small businesses sometimes “stack” loans to raise working capital. Lenders can see that, and it makes them reluctant to offer additional loans or business lines of credit. A major factor in lending criteria at all levels is debt-to-income ratio. It’s best to keep that low.
Instead of focusing only on a debt-to-income ratio, lenders generally want to understand whether your business cash flow can comfortably cover existing debt payments as well as any new line-of-credit repayments.
If you already have multiple credit products, be prepared to provide current statements and show how you plan to use and repay a new line of credit without overextending. If you already have a line of credit, stacking additional loans or credit lines can create issues—Bluevine notes that stacking loans or credit lines can negatively impact an existing credit line.
What you need to apply for a business line of credit
Lenders will require certain documentation to consider your business for a line of credit. This should be familiar to you if you’ve applied for a business loan before. Gather the following documentation before you apply, and make digital copies of all documents if you’re applying online. You can easily use a scanner app on your mobile phone if you don’t have an actual scanner.
- Personal info: You’ll need a valid state ID, driver’s license, or passport to prove you are who you say you are. The lender may also ask for a second form of ID, like a Social Security card or credit card and your most recent personal tax returns.
- Business info: Bring proof that you own the business (Articles of Incorporation or DBA certificate), your recent financial statements and tax returns, and a copy of your business credit report. You may also want to have your business plan handy.
- Bank statements or a connected bank account: The lender needs to send the money somewhere if you get approved. Bring a bank statement or at least have the tracking and routing numbers for the account that will receive withdrawals and send payments. If you’re approved for a line of credit, connecting your business bank account could help keep your account active and save you time from having to manually upload statements in the future.
Many online lenders also let you securely connect a business bank account to speed up the financial review process, in addition to (or instead of) manually uploading statements.
Bluevine Tip
Credit review steps vary by lender. For example, Bluevine states that applying and reviewing an offer will not impact personal credit, but accepting an offer may result in a hard inquiry.
How to get a business line of credit
The best way to get a business line of credit is to gather all the personal and business documents you need, search for a local or online lender that does business lines of credit, and submit an application. You’ll have a chance at approval if your business and personal credit scores are good, you have steady revenue, and your existing debt is manageable.
Many experts recommend applying when your business finances are healthy, so funds are available when cash gets tight.
Apply for multiple types of business financing with one simple application.
Frequently asked questions
What credit score do you need for a business line of credit?
Credit score requirements vary by lender and product, but lenders commonly review both personal and business credit. Some lenders look for “fair” to “excellent” credit (often 600+), while others have higher minimums.
As one example, Bluevine’s line of credit minimum qualifications include a 625+ personal FICO score.
Can you get a business line of credit as an LLC?
Yes, many lenders work with LLCs, and some specify which business structures are eligible. For example, Bluevine’s line of credit minimum qualifications include being a corporation or LLC.
How fast can you get a business line of credit?
Timelines vary—traditional lenders can take longer, while many online lenders can move faster.
For example, Bluevine states that applicants can get a decision in as little as five minutes, and approved draws can be available in as fast as 24 hours (or instantly with a Bluevine Business Checking account).
