Guide · Lines of credit, explained
What credit score do you need for a business line of credit?
By Alex Makowski Published
Around 600 with most non-bank providers, and higher at a bank. It is the strictest of the four products because a revolving facility exposes the provider to whatever you draw later, on a business that may look different by then. Revenue and trading history matter, but the score is a real gate here.
In this guide
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01
Why the bar is higher
A lump sum is underwritten once against a business the provider can see today. A line is a commitment to lend later, against a business as it will be in eight months.
That forward exposure is why the score matters more here than on any other product on this site — it is a proxy for how you behave over time rather than for what you are doing now.
It is also why the facility is reviewed periodically and why limits can be cut.
02
What else is weighed
Time in business, typically a year minimum and often two. This is the requirement that most commonly rules people out, ahead of the score.
Revenue consistency, more than volume. A line is repaid from operating cash, so the provider is looking at whether the account can carry a balance.
Negative days and overdrafts. Frequent negative balances are read as an inability to manage a revolving obligation, which is exactly what is being offered.
Existing obligations. Advances in place reduce what a line provider will commit to, sometimes to nothing.
03
If you are below the bar
Take working capital or an advance and repay it cleanly. That record, plus another six months of trading, is the most direct route to qualifying.
Keep every deposit in the business account and avoid negative days. On this product, banking conduct is read closely.
Consider a secured line. Collateral lowers the credit bar meaningfully, and a business with unencumbered equipment or receivables has more options than it thinks.
Apply before you need it. Applying under pressure, with an account already stretched, is the worst possible timing for the one product that judges you on account conduct.
Written by
Alex Makowski, Owner
Alex Makowski owns and runs Business Loans for America and has been placing funding for U.S. small businesses since 2021. Businesses he has worked with have secured $50M+ in financing across 1,200+ placements. He writes and reviews every guide on this site.
FAQ
Related questions.
- Can I get a line with a 580 score?
- Rarely unsecured. Secured lines are sometimes available lower, and revenue-based funding does not have this floor at all — it is the usual alternative.
- Is a hard credit pull involved?
- Usually at approval, yes. Checking options is normally soft, and you should be told before anything hard is run.
- Does business credit help?
- More than on any other product here. An established business credit file and prior facilities repaid cleanly both count.
Guides
More on lines of credit, explained
Interest on what you draw
Only the drawn balance — but fees can apply to the rest.
With weak credit
Hardest product to get this way — secure it or use another one.
Secured or unsecured
Collateral buys a lower rate and a bigger limit — and real risk.
Drawing on it
As often as you like — but watch minimums and draw fees.
If it is cut
Usually account conduct, and usually visible months in advance.
How it works
An approved limit you draw against, repay, and draw again.
Sources
- Consumer Financial Protection BureauFederal consumer-finance regulator. Publishes guidance on credit terms and disclosure.
- U.S. Small Business Administration — LoansFederal loan programmes, eligibility and what the SBA does and does not guarantee.
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