Business Line of Credit with Lends Well

Apply in as little as 6 minutes and hear from a dedicated loan specialist within one hour.


Pay interest only on drawn funds


Rates as low as 10.99% APR 

Credit lines from $6,000 to $100,000

Applying won’t affect your credit score!*

Why a Business Line of Credit?

Lends Well and our network of partner lenders are here to help you find the financing your business needs to succeed. Business lines of credit are incredibly flexible as you can draw out funds when you need to, and only pay interest for the money you borrow. As you repay what you have drawn, your line of credit will be replenished and can be tapped again.

A business line of credit can be a good option for business owners who want to keep funds on reserve to cover the slow season or unexpected expenses, without having to break the bank.


Since 2011, Lends Well & Partners has helped businesses in over 700 industries access the capital they need.

Over $10 billion lent to 50,000 small businesses globally.

Pros and Cons of a Business Line of Credit


  • You only pay interest on the funds you draw out

  • You’re not required to borrow money

  • You can draw against your credit line multiple times without having to submit new loan applications


  • You may receive a high, variable interest rate

  • You’ll typically need a good credit score to qualify

  • The lender may lower your credit limit without warning

  • There could be various fees

Expected Fees

Here are some fees that may be associated with a business line of credit. The fees you’ll actually pay will depend on the lender partner you’re matched with, but you’ll always know what fees there are before accepting your offer.

  • Monthly maintenance fee: $20 monthly maintenance fee4 to cover the cost of servicing and processing your line of credit account.

  • Draw fees: 1.6% to 2.5% draw fee when you tap into your credit line.

  • Late payment fee: You may be charged a fee, such as 5% of the past-due amount, if you miss a payment after taking a draw.

If you apply for a business line of credit elsewhere, look for application, account opening and annual fees.


You deserve better business finance

Lends Well was created with a big idea: to revolutionize the outdated lending system and build a better deal for small businesses. With one 6 minute application we can help you find the right financing options for your needs, from lines of credit to term loans, cash advance and even Small Business Administration (SBA) loans.

Let's get started.


Start your online application

Apply online in 6 minutes with one simple application.


Review your options

Your dedicated Account Manager will contact you as soon as possible to review your needs and help you find the best funding option for your business.


Get funded

Get a decision in as little as 24 hours and funding as soon as the next day accepting an offer.

Business Line of Credit Frequently Asked Questions

What is a business line of credit?

A business line of credit is a type of credit account that you can borrow against, up to your credit limit. After getting approved for a line of credit, you don’t need to borrow money, but you’ll have the option to take withdrawals (called “draws”) against your account. You can have multiple draws as long as your outstanding balance doesn’t go beyond your account’s credit limit.

What are the different types of business lines of credit?

Business lines of credit may be secured or unsecured, and either closed or revolving. As with a secured installment loan, a secured line of credit requires collateral. Unsecured lines of credit are approved based on your personal and business finances and creditworthiness. With a closed line of credit, your credit limit is the maximum you can borrow in total and funds are dispersed to you at the start of the loan. Revolving lines of credit let you pay down and borrow against your credit limit multiple times, similar to a credit card. Lends Well current partners offer unsecured revolving credit lines, a common option for small business lines of credit.

How does a line of credit work?

An unsecured revolving line of credit works by letting you borrow money as you need it. You can draw as little as your account’s minimum draw requirement (such as $500), and up to your approved credit limit. You won’t have to pay interest on the unused portion of your line of credit. When you take a draw, the funds will be electronically transferred to your bank account. You’ll then repay the draw with periodic daily, weekly or monthly payments over a specific repayment term, such as six or 12 months.

What can I use a line of credit for?

You can use your business lines of credit for almost any business need. Common uses include covering operating costs during a slow season, paying for recurring expenses and preparing for a new project. A line of credit can also help with emergency expenses, as you can request a draw without having to apply for a new loan.

What kind of businesses are best suited for lines of credit?

Any business may be able to benefit from a line of credit if it has regular, short-term financing needs or is making ongoing payments for a large project. Companies that regularly face cash-flow crunches, such as manufacturing, wholesale, construction and medical businesses could use a line of credit to smooth their cash flow.

Is there an application fee?

Funding Circle’s partners don’t charge an application or account opening fee, but some lenders do have application or account opening fees for new business lines of credit. Prepayment fees aren’t common on business lines of credit. However, lenders may charge monthly or annual maintenance fees, and origination or draw fees when you tap your line of credit.

How does repayment work?

Your line of credit’s repayment terms can vary depending on your lender and the account’s terms. With some lines of credit, each draw has its own repayment term, and you’ll repay the draw with daily, weekly or monthly payments. In other cases, you may make regular payments but each draw you take could reset the repayment term for your account.

What are the pros of a business line of credit?

A business line of credit gives you the option, but not the requirement, to borrow money as you need it. Having an open business line of credit can be helpful whether you experience a setback or want to take advantage of a new opportunity, but don’t want to worry about applying for and getting a new loan. A line of credit can also be less expensive than a term loan when you need to make recurring payments, as you’ll only pay interest on the money you borrow.

What are the cons of a business line of credit?

A business line of credit may have high interest rates. If it’s a variable rate, you also risk having to make higher payments in the future. Additionally, various fees, such as draw fees and maintenance fees, can add to your overall financing costs. The lender may also lower your credit limit without warning, limiting your ability to use your line of credit.

What’s the difference between a business line of credit and a business credit card?

While business lines of credit and business credit cards can both be revolving credit accounts, they generally work in different ways. Credit cards tend to be best for day-to-day purchases, and they require at least a monthly minimum payment while you can revolve the rest of your balance. If you pay your credit card balance in full each month, you might not pay any interest. However, there may be many types of fees on your card, including annual, cash advance, balance transfer and foreign transaction fees. A line of credit is best for making large draws that you want to pay off over time. While you’ll pay interest on the entire draw amount, the interest rate on a line of credit may be lower than a credit card.

1 If your business is organized as a general partnership, your credit score may be impacted.

2 Eligibility for the lowest rates is very limited, available only to businesses with the strongest creditworthiness and cash flows, and typically businesses that have shown an excellent payment history on prior

loan products with partner lender(s).


3 Approval and funding times may vary by lending partners.


4 Fee is waived for 6 months if a $5,000 initial draw is made within 5 days of opening account.