Business Line of Credit: Requirements & How to Qualify
A business line of credit gives you flexible access to funds—draw what you need, when you need it, and only pay interest on what you use. Here's how to qualify.
Michael Chen, CFA
Business Finance Expert
Updated February 2, 2026 • 9 min read
Line of Credit Benefits
Revolving
Reuse as you repay
Pay Interest Only
On amount drawn
$10K-$500K
Credit limits
Safety Net
For emergencies
Line of Credit Requirements
| Requirement | Bank LOC | Online Lender |
|---|---|---|
| Time in Business | 2+ years | 6-12 months |
| Annual Revenue | $250K+ | $50K-$100K |
| Credit Score | 680+ | 600+ |
| APR Range | 7-15% | 15-40% |
| Collateral | Often required | Usually not |
Secured vs. Unsecured Lines
Secured LOC
- Lower interest rates (8-15%)
- Higher credit limits
- Easier approval with weak credit
- Requires collateral (real estate, equipment, inventory)
Unsecured LOC
- No collateral needed
- Faster application process
- Assets not at risk
- Higher rates (15-35%), requires strong credit
How to Improve Your Approval Odds
- Build business credit – Pay vendors on time, get a business credit card
- Increase revenue – Higher revenue = higher credit limits
- Reduce existing debt – Lower debt-to-income ratio helps
- Separate business finances – Dedicated business bank account