Business line-of-credit pricing is all over the map right now. If you have strong bank relationships and solid credit, you can still find rates in the high single digits. But the expensive end of the online market moves fast into 30% to 60% APR territory once your credit, revenue, or time in business starts to slip.
That range is exactly why shopping for a line of credit can go sideways quickly. This guide breaks down what borrowers are actually seeing in 2026, what fees to watch for, how bank pricing compares to online pricing, and when a term loan or SBA-backed working-capital facility might save you money.
Current Line-of-Credit Rate Snapshot
| Product type | Current planning range | What to know |
|---|---|---|
| Bank line of credit | About 6.99% to 7.91% | Average range reported for new business lines in Q3 2025 |
| Large-bank examples | About 8.00% to 8.50% starting APR | Examples published by Bankrate as of February 26, 2026 |
| Online line of credit | 3% to 60%+ APR | Very wide range driven by credit profile and fee structure |
| SBA working-capital line | Up to 9.75% to 13.25% | Official SBA variable-rate caps based on loan size |
The broadest published market summary right now puts business line-of-credit APRs between 3% and 60% or higher. The gap comes down to lender type, borrower quality, and whether the provider is quoting true APR, simple interest, or a fee-based structure that needs to be converted into an annualized cost before you can compare it to anything.
What Banks Are Charging
Bank lines are still the benchmark for lower-cost revolving capital. Bankrate cited Kansas City Fed small-business lending survey data showing average rates for new business lines in Q3 2025 at roughly 6.99% to 7.38% for fixed lines and 7.63% to 7.91% for variable lines.
Published lender examples as of February 26, 2026 put major bank starting pricing around:
- TD Bank: 8.00% APR
- Bank of America: 8.25%
- Wells Fargo: 8.50%
- Bluevine: 7.80% simple interest
But most borrowers will not land at those numbers. Those are starting offers, not average approvals. Banks reserve their best pricing for stronger credit, larger deposit relationships, and businesses with established operating history.
What Online Lenders Are Charging
Online lines of credit are easier to get, but they can get expensive fast. The same Bankrate comparison page showed examples as high as 30.00% APR from Backd and 57.10% APR average from OnDeck.
That is the tradeoff in one sentence: online lenders trade speed and accessibility for higher pricing. For the right situation, that can still make sense. For the wrong one, it turns into expensive working capital that keeps rolling over.
Where SBA Working-Capital Lines Fit
SBA-backed revolving facilities land in the middle. They are not the fastest option and they are not the easiest to close, but they can be significantly cheaper than high-APR online products if your business can handle the documentation and monitoring that come with them.
With prime currently at 6.75%, the official SBA variable-rate caps are:
- $50,000 or less: up to 13.25%
- $50,001 to $250,000: up to 12.75%
- $250,001 to $350,000: up to 11.25%
- Above $350,000: up to 9.75%
If your business has receivables, inventory, or contract-driven working capital needs, an SBA line can price better than a standard bank line. The tradeoff is that the facility is more operationally demanding to manage.
The Fees That Change Your Real Cost
Lines of credit are notorious for looking simple until the fees show up. Beyond the headline rate, make sure you ask about:
- Annual fee: Paid just to keep the line open.
- Origination fee: Common on online lines and private-credit facilities.
- Draw fee: Charged each time you access the line.
- Maintenance fee: Ongoing servicing or account fee.
- Inactivity or unused-line fee: More common on bank-style facilities.
Best practice: Compare lines using three numbers: the rate, the fees, and the payment structure. If one lender is quoting simple interest and another is quoting APR, ask them both for the estimated dollar cost on the same draw amount and the same payoff timeline.
What Most Changes Your Pricing
- Credit profile: Stronger personal credit still gets the best pricing. That has not changed.
- Time in business: Newer businesses pay more, or get pushed to online lenders entirely.
- Revenue consistency: Clean bank statements and reliable deposits matter more than most owners expect.
- Lender type: Banks price lower. Fintechs move faster. Pick the one that fits your actual need.
- Line size: Larger, better-documented facilities generally price more competitively.
When a Line of Credit Is Worth the Cost
- Recurring working capital needs
- Inventory purchases that turn quickly
- Seasonal cash-flow gaps
- Short-duration needs where you only draw part of the line
If you already know the exact amount you need and the exact project it funds, a line of credit might not be the best answer. In that case, compare it against a term loan.
How to Improve Your Rate Before You Apply
- Pay down credit-card balances and clear any recent delinquencies.
- Keep your bank statements clean for at least the last three to six months.
- Consider asking for a smaller initial line if it moves you into a better pricing tier.
- Apply to the lender class that actually fits your profile instead of chasing the lowest advertised number.
- Use a marketplace or broker if you want real rate comparison without guessing.
A line of credit can be some of the cheapest working capital your business ever uses, or some of the most expensive. The difference usually is not the product itself. It is the lender, the fee stack, and whether the line actually fits the job you need it to do.
If you are still figuring out whether a line of credit is the right product, read what lenders look for on a line-of-credit application or compare the structure on the line-of-credit product page.