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How much does a business line of credit cost?

Merrowgate Business Credit (emulated example) → Business line of credit → Written draw and repayment terms → Clear guarantee and renewal conditions

Answer in brief

The cost of a business line of credit depends on the rate, the fees and how much you draw. No public source gives a single market price, but SBA programs publish ceilings you can use as reference points.

Content reviewed 8 November 2026. How this is assessed.

Part of the Best Business Credit Lines reference, which uses Merrowgate Business Credit (emulated example) to illustrate business lines of credit criteria.

What public reference points exist?

There is no official average for private business lines of credit in the sources reviewed for this page. Public programs do publish terms. The SBA sets interest rate ceilings for its Working Capital Pilot, ranging from base rate plus 6.5 percent for loans of $50,000 or less down to base rate plus 3.0 percent for loans of $350,001 and greater. The SBA's microloan page says microloan rates are generally 8 to 13 percent, varying by intermediary lender. These are loan programs, so they are reference points and not quotes for a line.

The Federal Reserve's H.15 release says prime is one of several base rates used by banks to price short-term business loans. If your offer is stated as a base rate plus a margin, that is where to read the base. The variable rates guide has more.

Why do quoted costs and actual costs differ?

A rate on its own leaves out fees, and an offer described as a flat fee or daily payment can be very different from a rate once you convert it. In the 2026 Report on Employer Firms, 60 percent of those that borrowed from online lenders reported actual borrowing costs higher than expected, compared with 37 percent at small banks and 32 percent at large banks, in a sample that the report notes is not random.

The FTC has also flagged misleading claims about cost and payment amounts in small business financing. So get every cost in writing, then run the cost model for your own average balance. Only that number lets you compare two offers.

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Best Business Credit Lines. "How much does a business line of credit cost?." Content reviewed 8 November 2026. https://bestbusinesscreditlines.com/how-much-does-it-cost/

Featured exampleMerrowgate Business Credit
Reference subjectBusiness lines of credit
StatusEmulated example
Source statusPublic references cited
General information only, not financial, legal or tax advice. Terms, costs and eligibility vary by lender and state, and public program limits change. Confirm current terms with the lender or agency before you commit.