Business line of credit rates in 2026 run 8-30%+ APR, set mostly by lender type and credit. Bank lines (strong borrowers): 8-13%, prime + 1-5%. Online / fintech lines: 14-30%+. Secured lines price 200-400 bps below unsecured. You pay interest only on what you draw, but watch draw fees (1-3% per draw) and annual maintenance fees, which raise the effective cost. Most lines are variable, tied to prime (~7.5%).
A business line of credit is revolving: you draw what you need, pay interest only on the outstanding balance, and the limit replenishes as you repay. That flexibility makes the headline rate only part of the cost — draw fees and maintenance fees matter just as much. In 2026, rates sit at the higher end of recent history because the line's variable rate tracks prime, which the Federal Reserve has held above trend. This page is a reference: 2026 rate ranges by lender type, the fees that change the real cost, and what drives your quote. For the evergreen explainer, see what are typical business line of credit rates; for cross-product context, see the 2026 business loan rates hub.
2026 Line of Credit Rates by Lender Type
| Lender / Line Type | Rate Range (2026) | Typical Limit | Best For |
|---|---|---|---|
| Bank line (secured) | 8-11% APR | $25k-$500k+ | Established, collateralized borrowers |
| Bank line (unsecured) | 10-13% APR | $10k-$250k | 680+ FICO, 2+ yrs, clean financials |
| Credit union line | 9-14% APR | $10k-$250k | Members with banking relationship |
| Online / fintech line | 14-30%+ APR | $5k-$250k | Speed, thinner files, 6+ mo TIB |
| Asset-based / inventory line | 9-16% APR | $50k-$1M+ | Inventory- or receivables-heavy businesses |
Ranges assume the line is used responsibly and repaid on schedule. Confirm your tier with credit score requirements and compare structures in secured vs unsecured line of credit.
The Fees That Change Your Real Cost
| Fee | Typical Range | Notes |
|---|---|---|
| Draw fee | 1-3% per draw | Common on fintech lines; adds up if you draw often |
| Annual / maintenance fee | $0-$250 | Charged whether or not you draw |
| Origination / setup | 0-3% | One-time; more common online |
| Inactivity fee | Varies | Some lenders charge if the line goes unused |
How Line of Credit Rates Are Set
Bank and credit union lines price as prime + a spread. Prime moves with the Federal Reserve's federal funds rate; as of June 2026 it sits around 7.5%, up from ~3.25% in early 2022. Online and fintech lenders set rates on internal risk models that weigh bank-statement revenue, time in business, and credit — which is why their pricing runs higher and varies more by borrower than by Fed moves. Because nearly all lines are variable, your rate can move during the life of the line as prime changes.
What Actually Drives Your Quote
- Lender type — the biggest single factor. Bank vs online can mean a 10-point difference on the same borrower.
- Personal FICO — 680+ opens bank pricing; below 640 pushes you to online lenders or a secured line.
- Secured vs unsecured — collateral or a deposit cuts the rate 200-400 bps and often raises the limit.
- Time in business and revenue consistency — 2+ years and steady deposits price best; bank-statement underwriters score pattern over peak revenue.
- Utilization history — lenders renew and reprice based on how you use the line; chronically maxed lines can be cut or repriced. See why lines get cut or revoked.
How to Compare Line of Credit Offers
- Add draw and maintenance fees to the APR. A 14% line with a 3% draw fee can cost more than an 18% line with no draw fee, depending on how often you tap it.
- Check whether the rate is teaser or ongoing. Some fintech lines advertise a low first-draw rate that resets higher on later draws.
- Compare to a term loan if you need a lump sum. If you'll draw the full amount once and pay it down, a term loan may be cheaper. See line of credit vs term loan.
Next Step
Get line-of-credit quotes from multiple lenders in one application, with the fees disclosed up front. Get matched at current 2026 rates.