Can a startup get a business line of credit?

Yes, but it is harder than for an established business. Most bank and major online lenders require at least 6 to 12 months of operating history and consistent revenue. A handful of lenders work with newer businesses, especially if you have strong personal credit, existing revenue from another source, or collateral. A secured line of credit — backed by inventory, receivables, or a cash deposit — is the most realistic path for a true startup.

What credit score do I need for a startup line of credit?

Most lenders that work with startups want a personal FICO of at least 650, and the best terms go to 700+. Because the business has no track record, your personal credit is the primary underwriting factor. A stronger score can partially offset the lack of business history.

How much can a startup get on a business line of credit?

Startup lines of credit are typically small — $10,000 to $50,000 is realistic in the first 6 to 12 months. A business credit card issued on personal credit is a functional alternative for early-stage needs. Limits grow as the business builds a deposit and payment history.

What's the best alternative to a line of credit for a startup?

A business credit card on your personal credit, an SBA microloan (up to $50,000, lower rates than most alternatives), or equipment financing tied to an asset you're buying. Once you have 6 to 12 months of consistent revenue, traditional revolving credit lines become available at better terms.

Business Line of Credit for Startups: What Actually Works

How startups and early-stage businesses can get a business line of credit — which lenders approve new businesses, what they look for, and the alternatives when you don't qualify yet.

A business line of credit for a startup is possible, but most lenders want at least 6–12 months of operating history and steady revenue before approving one. True day-one startups are more likely to succeed with a secured line, an SBA microloan, or a business credit card — and graduate to a larger revolving credit facility once they've built a deposit and payment track record.

A line of credit is the most flexible financing tool for a growing business: borrow what you need, repay it, draw again. The catch for a startup is that most lenders price risk using business history — bank statements, tax returns, a track record of deposits. Without that history, lenders lean on your personal credit, collateral, and the strength of any real revenue already coming in.

The short version

Most traditional lines of credit require 6–12 months of business history. For a real startup: a secured line (backed by a deposit or asset), an SBA microloan, or a business credit card are the realistic first steps. Build 6 to 12 months of consistent deposits, pay everything on time, and the doors to a proper revolving credit facility open quickly.

Why lines of credit are hard for startups

Revolving credit lines are underwritten on cash flow, not just credit. A lender wants to see that your business generates enough consistent deposits to draw, use, and repay a credit line in a predictable cycle. A startup with no deposits has no history to model — so the lender falls back to your personal credit and any available collateral. That is why startup lines of credit are small when they happen at all, and why the business credit card (which lenders approve primarily on personal credit) is often the more realistic starting point.

What actually works by stage

Startup financing by stage: line of credit and alternatives
Stage	Best option	Typical limit	Est. cost
Day 1 — no revenue	Business credit card (personal credit)	$5k–$30k	18%–29% APR
Day 1 — has collateral	Secured line of credit / cash-secured	$10k–$50k	10%–18%
0–6 months revenue	SBA microloan or equipment financing	Up to $50k	8%–13%
6–12 months revenue	Revenue-based line of credit (online lenders)	$15k–$100k	15%–40% eff. APR
12+ months, consistent deposits	Traditional or SBA revolving line	$25k–$250k+	8%–22%

A secured line of credit is the fastest real option for day-one startups

A cash-secured line — where you deposit $10,000 to $25,000 as collateral and the bank extends a matching credit line — is one of the most reliable paths for a business with no history. The rate is lower than a credit card, the limit is real, and using it responsibly builds a business credit profile quickly.

The SBA microloan path

If you need working capital in the first year and want a real term loan rather than revolving credit, the SBA microloan program is worth a close look. Microloan intermediaries — typically nonprofit community lenders — make loans up to $50,000 to early-stage businesses at rates around 8–13%. They often accept lower credit scores than banks and offer mentoring alongside the capital. The tradeoff is that the process takes longer than a credit card or online lender.

Building toward a traditional line of credit

Open a dedicated business checking account immediately

Even if you have no revenue yet, a dedicated business account starts the deposit history lenders need. Run all business income and expenses through it.

Get a business credit card on your personal credit

Use it for small, regular purchases — subscriptions, fuel, supplies — and pay it off in full each month. This builds a business credit profile (Dun & Bradstreet, Experian Business, Equifax Business) alongside your personal track record.

Keep personal credit strong

Pay every personal obligation on time. Personal FICO under 650 makes startup business credit nearly impossible to access at reasonable rates.

After 6–12 months of consistent deposits, apply for a revolving line

By this point you have 6–12 months of bank statements, a business credit file, and a real deposit pattern. Many online lenders — and eventually banks — will approve a revolving line at this stage, often at meaningfully better rates than the alternatives you used to start.

Avoid blanket-lien lenders before you know what you're doing

Some revenue-based lenders file a UCC-1 blanket lien on all business assets when they extend early-stage credit. That lien can block future financing from other lenders until it is terminated. Read the terms carefully and understand what a lender is securing before you sign. See our guide on UCC liens and business loans.

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The bottom line

A business line of credit for a startup is not impossible, but it takes the right sequence. Start with what you can actually qualify for — a business credit card, a secured line, or an SBA microloan — build 6 to 12 months of clean deposit history, and graduate to a proper revolving facility. The credit limit and rate you get at month 18 will be meaningfully better than anything available at day one, and you'll have built a business credit profile that makes all future financing easier.