Best Business Line of Credit for New Businesses

If your business is less than two years old, most bank lines of credit aren't for you yet. Chase, for example, asks for ownership that hasn't changed in two years, $100,000 in annual sales and a 660 FICO. What does work earlier is revenue-based capital, like what Merchant Fund Express, our recommended funder, reviews; a business credit card as your first line; an SBA Express line with a bank, because SBA loans don't always have a minimum time in business; and a secured line backed by a deposit to build history.

Below you'll find the ranked list, a comparison table and a 24-month plan to reach a real bank line of credit.

The best lines of credit for new businesses, ranked

How we chose. We don't use ratings or scores. We compare every option on the same criteria: speed, minimum time in business, minimum credit, whether it accepts an ITIN or owners without an SSN, required documents, amounts and collateral. We only publish facts about other companies that we verified on their official sites; if we couldn't confirm it, we left it out. Read how we rank business funding options.

1. Merchant Fund Express (recommended funder). If your business is young but already sells every month, this is the option we recommend for fast working capital. It reviews sales and deposits, not just credit; handles $5,000 to $5,000,000, accepts FICO 500+ and often decides in 2 to 4 hours. Collateral isn't required in most cases, and it accepts applicants with an ITIN (no SSN needed). Ask which structure fits your history.
2. Business credit card. A small revolving line that many banks approve based on your personal credit, even if the business is new. Use it for recurring expenses (fuel, materials, software) and pay it in full every month to avoid high interest.
3. SBA Express line with a bank (e.g., Capital One). Capital One offers SBA 7(a), 504 and SBA Express loans and lines, and its page states there's no time-in-business requirement for SBA loans; everything is subject to approval and to working with a dedicated banker (per its site, checked October 2026). Watch the new rule: since March 1, 2026, 100% of the owners of a 7(a) applicant must be U.S. citizens or U.S. nationals.
4. Secured line backed by a deposit. Some banks and credit unions open a line backed by your own savings or a certificate of deposit. It doesn't give you new money, but it builds a payment history in the business's name and usually costs little.
5. CDFI or microlender. These are usually loans, not lines, but they accept new businesses more readily. The SBA microloan goes up to $50,000, with a maximum term of seven years and rates that, according to sba.gov, generally fall between 8% and 13%.
6. Traditional bank line, once you hit two years. This is the goal. Chase, for example, offers lines of up to $500,000 with a five-year revolving period if you meet $100,000 in sales, a 660 FICO and two years without a change in majority ownership (per its site, checked October 2026).

Comparison by criteria

Why a line of credit is so hard to get when you're new

A line of credit is money a bank commits to keep available for you for years, to use whenever you want. To the bank, that's more risk than a loan with a specific purpose. So they ask for proof that your business can survive several seasons: two years of tax returns, minimum sales and good credit.

A new business doesn't have that proof yet, even if it's selling well. What it does have is recent deposits. That's why the options that work best early on are the ones that read your bank statements, or the ones backed by something concrete (your personal credit, a deposit or a plan reviewed by a CDFI). Read more in our guide to a business line of credit for a new business.

There's another reason few people explain: the bank looks at the owner, not just the business. If your personal credit is new or has late payments, it counts double when the business has no history of its own. Before applying, check your personal report, dispute errors and bring down your personal card balances. And be patient with paperwork: a new business that hands over its registration, EIN, clean bank statements and a simple plan for using the line looks very different from one that just fills out a form. To a funder, being organized signals that you'll pay.

Which option fits your situation

Under six months, with barely any sales

No revenue-based option has anything to measure you by yet. Start with a business card for small expenses, or a CDFI if you need money to launch, and focus on getting every sale into the business account.

Six to 24 months, selling consistently

This is where deposit-based options become realistic. If you need capital for inventory, a contract or hiring, compare a sales-based offer with an SBA Express line if you meet the citizenship requirement.

Strong personal credit, new business

A business card with a good limit and, if you're a U.S. citizen or national, an SBA Express line with a bank that doesn't require a minimum time in business.

You have savings and want to build credit

A secured line backed by a deposit. Use it lightly, pay on time and ask the bank to report to the business credit bureaus.

A 24-month plan to reach a bank line

1. Month 1: register your LLC or DBA, get your EIN, open a business account and deposit all your sales there.
2. Months 1 to 3: open a business card or a secured line and use it for expenses you can pay in full.
3. Months 3 to 12: pay suppliers that report to business credit bureaus on time, avoid negative-balance days and keep your books current.
4. Month 12: file your first business tax return on time and without errors. It's the document that carries the most weight with a bank.
5. Months 12 to 24: if you need growth capital, use deposit-based options you can repay comfortably.
6. Month 24: with two returns, steady sales and good credit, apply for a traditional bank line.

More details in business line of credit requirements.

Mistakes that delay your first line

• Putting everything on your personal card. It doesn't build business history and it mixes your finances.
• Applying for many lines at once. Several inquiries in a row can lower your score.
• Maxing out the card. High utilization hurts your credit even if you pay on time.
• Using expensive capital for expenses that don't produce sales. Put it toward inventory, contracts or equipment that earns, not toward covering losses.
• Not having a clear use. Request the line with a specific recurring expense in mind, like seasonal inventory or job materials. If you don't know what it's for, it's easy to end up using it for personal spending.
• Ignoring the cost of not using the line. Some bank lines charge an annual fee if you barely use them.

If you already sell consistently and don't want to wait two years, you can apply with Merchant Fund Express; it's free and doesn't affect your credit. And once your business matures, compare the best business lines of credit. Leer en español.