Whether you're looking to cover unexpected expenses, invest in new opportunities, or simply maintain smooth operations during lean periods, a business line of credit offers the flexibility and financial support you need.
From established banks to innovative fintech solutions, numerous choices provide a reliable line of credit.
We’ve done the heavy lifting and curated our list of the 6 best lines of credit for a business so you can find the best one for you.
Let’s dive in!
6 Best Lines of Credit for a Business to Check Out
Here comes an overview of our top picks.
1. Puls Project
Puls Project is an all-in-one cash flow management tool that helps SMEs enhance liquidity planning while leveraging loaning possibilities.
Its core functions cover Loan capabilities, Multi-banking opportunities, and Cash flow planning.
As a result, Puls Project provides tools that provide:
- Access to needed funding
- Streamlining cash flow and enhanced planning, and
- Unifying all the transactions and operations on a single dashboard.
Key Highlights:
1. Loaning Capabilities
💰 Our fund, Montold SME Lending Fund GmbH & Co. KG, registered with BaFin, enables us to issue loans with minimal requirements from your side and without banks or third parties involved.
The only things you need to provide are the loan agreement and personal identification of beneficial owners and directors, as per GwG.
💰 Our loans are flexible, meaning you can tailor the loan, set the amount, and the repayment period to see the total cost, interest rate, and monthly interest.
💰 You can get up to €100,000 for 12 months and access the funds quickly within 48 hours of submitting your application.
Moreover, you can use credit limits when you need them without any costs and without them affecting your creditworthiness with banks.
💰 Puls Project relies on Amazon Aurora encrypted DB clusters with AES-256 encryption, so your data is secured on servers hosting the DB clusters.
Furthermore, a partnership with a GDPR-compliant service provider, FinAPI, and the Transport Layer Security standard ensure data and information security in transit.
2. Multibanking Possibilities
💰 With Puls’s multibanking functionalities, you can manage, oversee, and streamline the operational efficiency of financial activities.
💰 You can connect any bank account from over 4,000 banks. In addition, you can view and manage all companies and accounts from a single dashboard.
The more accounts you connect, the higher the credit limit.
💰 Enhance your organization and financial planning by labeling and categorizing your finances and transactions.
3. Cash Flow Planner
💰 Improve cash flow management and track balances and spending across different accounts and companies in a centralized place.
💰 We sync data multiple times a day, enabling you to leverage accurate, real-time data and recalculate your credit availability each time.
💰 Automate your expense tracking and input your monthly expenses only once — You’ll see them displayed the following month.
💰 Create future-dated draft payments to see their impact on your cash flow immediately.
💰 Get a notification the moment we spot a cash gap so you can take proactive steps to eliminate it.
Pros & Cons:
🟢 An all-in-one financial management and loan solution.
🟢 Minimal loan requirements.
🟢 Quick funding within 48 hours.
🔴 A lower borrow cap, but you can increase the loan by safely connecting another bank account.
2. Funding Circle
Funding Circle is a lending platform that provides financial solutions to small businesses.
Thus, you can apply for:
- Business Loans, including government-backed loans,
- Business Credit Card
- FlexiPay or Lines of credit, and
- Asset Finance, including Asset, Vehicle, Agriculture, and Equipment finance.
Key Highlights:
✨ You can apply as a limited company without affecting your credit score.
✨ The FlexiPay Card is free to set up and has no interest or annual fees.
However, there is a dynamic fee on each transaction, depending on how many installments you choose.
✨ No fee when you pay off your card balance in 1 installment.
✨ Repayment is in 1, 3, 6, 9, or 12 installments.
✨ You can borrow £10,000 to £500,000.
✨ Your credit score is based on Experian and TransUnion and should be between 90-100.
Pros & Cons:
🟢 Has no prepayment penalties.
🟢 Offers high maximum loan amounts.
🟢 Rates start from 6.9%.
🔴 Requires a personal guarantee.
🔴 Charges a loan completion fee.
3. Monzo
Monzo is a digital bank offering loans and overdrafts for sole traders and small businesses.
In addition, it provides various payment options, tax and accounting tools, and interest-earning savings.
Key Highlights:
✨ To be eligible to apply, you must be 18+, a sole trader, and have a Monzo Business account.
✨ You can get a loan up to £25,000.
✨ The Representative APR for loans of more than £10,000 and up to £25,000 is 15.8% APR. For loans up to £10,000, it's 29.5% APR.
✨ No extra fees if you’re late, but Monzo may report missed payments to credit reference agencies, which can negatively affect your credit score.
✨ You can change your repayment period fee at no extra cost, and there are no early repayment fees.
Pros & Cons:
🟢 Has no early repayment fees.
🟢 Lets you change your repayment period fee at no extra cost.
🟢 No additional charges for late payments.
🔴 No loaning possibilities for limited companies.
🔴 You must have a Monzo Business account.
🔴 You can only get one loan across your Business and Personal Monzo accounts.
4. Starling Bank
Starling Bank offers loaning solutions to limited liability companies and limited liability partnerships.
It provides business overdrafts and loans for businesses running for at least 2 years.
Key Highlights:
✨ You can overdraft from £1,000 up to £50,000.
✨ There is a 1.75% arrangement fee at acceptance and annually.
✨ The expected EAR (Equivalent Annual Rate) is 11.50%.
✨ You’ll need a personal guarantee.
✨ In order to apply for a loan, you’ll need to open a Starling account and transfer your primary business banking.
In addition, if you don’t hold a non-Starling Bank account, you must provide the last 6 months of statements.
Pros & Cons:
🟢 A good option if you are an LLC.
🟢 A fixed interest rate.
🟢 No fees for early repayments.
🔴 A stricter procedure than with alternative lenders.
🔴 There is an arrangement and annual fee.
🔴 Your business must operate for at least 2 years.
5. Iwoca
Iwoca is a UK-based FinTech company that provides flexible funding solutions for small businesses.
It offers:
- Flexi-Loans
- Small business loans
- Unsecured business loans, and
- Short-term business loans.
Key Highlights:
✨ The amount you can borrow is from £1,000 up to £1,000,000.
✨ You can borrow additional funds up to your pre-approved limit and make repayments without fixed monthly amounts.
✨ There are no early repayment fees — You’re charged interest for the days you have the money.
✨ Approval is based on your business performance, so you must include bank statements and VAT returns.
✨ Rates start at 2% a month.
Pros & Cons:
🟢 Has a high maximum loan amount.
🟢 Same-day funding possible.
🟢 No early repayment fees.
🔴 Charges the interest for the days you have the money.
🔴 Has a variable interest rate.
6. Fleximize
Fleximize offers secured and unsecured flexible loans, as well as working capital loans, limited company loans, and other types of loans tailored to SMEs.
It has two main loan products depending on your business’s development stage:
- Flexiloan — For established businesses that run for more than 12 months.
- Flexiloan Lite — For early-stage businesses that run for at least 6 months.
Key Highlights:
✨ Flexiloan
- You can borrow £5,000 to £500,000.
- The repayment period is 2 - 48 months.
- Interest rates range between 0.9% and 2.9% per month.
- Offers unsecured and secured options.
✨ Flexiloan Lite
- You can borrow £5,000 to £500,000.
- The repayment period is 3 –12 months.
- Interest rates range between 1.9% and 3.9% per month.
- Offers unsecured and secured options.
✨ Regardless of the loan type, you’re eligible for a loan if you’re UK-based with at least one director living in the UK.
Furthermore, you must have a minimum monthly turnover of £5,000.
Pros & Cons
🟢 No setup or arrangement fees.
🟢 You can repay early without penalties.
🟢 Quick approval times.
🔴 You’ll need a personal guarantee for both secured and unsecured loans.
🔴 You must provide 3 months of business bank statements, recent management accounts, and a summary of revenue for the past twelve months.
🔴 Your credit score may affect the approval.
6 Lines of Credit for a Business — Which is The Best?
Our top picks are on our list for a reason — Each offers a reliable line of credit that acts as a safety net during turbulent times.
If you are a sole trader, a solution like Monzo may be optimal. Conversely, Starling Bank can be a good choice if you are an LLC and don’t mind a thorough screening process.
If you are searching for diverse loaning options, Fleximize may be the best fit.
Nonetheless, one solution offers more than loans — It provides tools to improve your creditworthiness by nurturing and maintaining a healthy cash flow.
That solution is Puls Project.
Why Go For Puls Project?
Being an all-encompassing tool that spans loaning, multi-banking, and cash flow management areas makes Puls Project a robust financial assistant to:
🔥 Unify and centralize all your operations and transactions across all accounts and companies.
🔥 Get quick access to funding with minimal requirements from your side.
🔥 Improve forecasting due to real-time data we sync multiple times a day.
🔥 Automate and streamline cash flow management to increase your credit limit and creditworthiness.
Ready to see Puls Project in action?
Sign up for Puls Project today and access funds quickly and stress-free.
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5 Best Lines of Credit for Small Business
