The short answer
Typical score bands by product
| Product | Common credit guideline | Other common guidelines |
|---|---|---|
| Line of credit | about 650+ | about $17,500/month, usually 1+ year |
| Working capital loan | 600+ | about $17,500/month, often 6+ months |
| Merchant cash advance | flexible, from 500 | about $7,500/month, often 3+ months |
A line asks more of credit because it is revolving. You can draw, repay and draw again, so the funder is trusting you with ongoing access, not one fixed amount.
Who a line of credit fits and who it does not
Fits: an established business with credit around 650 or higher that has uneven but predictable cash needs, such as payroll gaps between client payments, supply runs before a busy month, or covering slow weeks.
Does not fit: an owner below the common band who needs one large purchase now, a business under a year old, or one with recent defaults. For those, a fixed product is often more realistic. MFE's credit score guide for lines of credit covers the qualifying side in more detail.
Check what your business qualifies for
Merchant Fund Express reviews credit score for a business line of credit requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.
Check funding options with Merchant Fund ExpressHow your score changes the price
Credit is one of the main inputs to price. A stronger score usually means a lower fee per draw, a longer repayment window or a higher limit. A weaker score inside the acceptable range usually means the opposite. Two businesses with the same revenue can get very different line offers because of credit alone.
Funders also look past the number: recent late payments, high card balances, tax liens and collections can all weigh on an offer even when the score itself looks fine.
Illustrative example: one $20,000 draw at two credit levels
Assumptions: a $50,000 line, the owner draws $20,000, each draw repays weekly over 52 weeks. Business A has a 720 score. Business B has a 655 score. Same revenue, same history.
| Business A, 720 score | Business B, 655 score | |
|---|---|---|
| Draw amount | $20,000 | $20,000 |
| Draw fee | 2% = $400 | 3% = $600 |
| Net cash received | $19,600 | $19,400 |
| Total repayment | $23,000 | $25,200 |
| Weekly payment (52 weeks) | $442.31 | $484.62 |
| Total cost (repayment minus net cash) | $3,400 | $5,800 |
Illustrative example only. The 65-point gap costs Business B about $2,400 more on a single draw. Over several draws a year, credit becomes one of the biggest drivers of what a line really costs.
These figures are illustrations, not offers. Real pricing, amounts and terms depend on the full file.
Funding brings customers. Is your website ready for them?
A line of credit works best when there is a plan for each draw, and many owners use one to fund seasonal marketing ahead of a busy stretch. Cheap Cheap Websites builds professional sites from $399, and Website Care at $30/month keeps offers and hours current so each marketing dollar lands on a page that works.
How to raise your score before applying
- Pay every account on time for at least a few months before you apply.
- Bring credit card balances below about 30% of their limits.
- Dispute any errors on your reports, such as accounts that are not yours.
- Avoid opening several new accounts right before an application.
- Resolve small collections where you can, and keep proof.
What to prepare
- 3 to 4 months of business bank statements.
- Government ID and a voided business check.
- A short application.
- For larger limits: financial statements and recent tax returns.
Complete files often get a same-day decision, with funding often following the next business day. Neither is promised.
When another option or waiting is better
If your score sits in the low 600s, a working capital loan may fit now while you rebuild toward a line. If you need money this month and credit is in the 500s, a merchant cash advance considers that range, though at a higher cost. Compare the two in working capital loan vs line of credit. If you can wait 90 days to clean up balances, the better line offer may be worth more than the speed.
Related funding guides
Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 15, 2026.