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.
Frequently Asked Questions
What are typical business line of credit rates in 2026?
Bank lines price lowest for strong borrowers, while online and fintech lines cost more for speed and easier approval. Most lines are variable, so the rate moves with the underlying index plus a margin.
What fees affect the real cost of a line of credit?
Draw fees, annual or maintenance fees, and inactivity or minimum-utilization fees can quietly dominate the cost, especially if you draw infrequently. Read the fee schedule, not just the rate.
How are line of credit rates set?
By your credit and revenue, time in business, whether the line is secured, and the lender. Because most lines are variable, your rate also rises and falls with the benchmark index.
How do I compare line of credit offers?
Look past the rate to the full cost: fees, draw rules and minimums, the variable index, and any personal guarantee. Two lines with the same rate can cost very differently once fees and draw behavior are factored in.
Frequently Asked Questions
What are business line of credit rates in 2026?
Business line of credit rates run 8-30%+ APR in 2026. Bank lines for strong borrowers price 8-13% (prime + 1-5%). Online and fintech lines price 14-30%+ depending on revenue, time in business, and credit. Secured lines price 200-400 bps below unsecured.
Are bank lines of credit cheaper than online ones?
Yes, usually by a wide margin. Bank lines run 8-13% but require strong credit (680+), 2+ years in business, and full documentation. Online lenders approve thinner files in days but charge 14-30%+ for the speed and looser underwriting.
Do you only pay interest on what you draw?
Yes. A line of credit charges interest only on the outstanding balance, not the full limit. Many lenders also add a draw fee (1-3% per draw) or an annual maintenance fee, which raises the effective cost versus the headline APR.
Is a line of credit interest rate fixed or variable?
Most business lines of credit carry a variable rate tied to prime, so your rate moves when the Federal Reserve changes the funds rate. Some fintech lines quote a flat fee per draw instead of an APR.
What credit score do you need for the best line of credit rates?
680+ FICO with 2+ years in business and consistent revenue opens bank pricing of 8-13%. Below 640, expect online lenders at 20-30%+ or a secured line backed by collateral.