Business Line of Credit
Access up to $200K in funding. Apply with no credit score impact. Instant Funding available.*
No Routine Fees‖
No monthly, draw or origination fees.
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What is a business line of credit?
A business line of credit is a flexible form of business funding that gives you access to funds up to an approved credit limit. From that amount you can draw funds as your business needs them. Similar to a business credit card, your available credit replenishes as you make repayments, so you can borrow on an ongoing basis without reapplying.
Unlike a business credit card, the funds you draw from your line of credit are deposited into your business checking account to use as cash. You only pay interest on the amount you borrow, not your full credit limit. That’s also different from a traditional business loan, which provides a one-time lump sum that you repay with interest over a set period.
Common ways to use a business line of credit.
Buy extra inventory
Stock up before a busy season.
Take on bigger project
Cover upfront costs of a large job.
Bridge payroll gaps
Pay your team while waiting on invoices.
Smooth seasonal dips
Cover operating costs during slower months.
OnDeck Line of Credit
OnDeck’s small business line of credit is a strong fit for businesses that want ongoing access to working capital. With flexible financing available when business needs change or opportunities arise, business owners can keep their business running at full strength.
Only pay for what you borrow
Withdraw what you need, when you need it.◊ You’ll only be charged interest on the funds you draw.
Instant funding
Receive your money within seconds when you make a withdrawal — 24/7, even on nights and weekends.*
Build business credit history
We report to business credit bureaus, which helps build business credit history with on-time payments.
Product Details
Product Details
OnDeck Business Line of Credit
Credit Limit
$6,000 - $200,000
Funding Speed
As soon as the same day.† Instant Funding available for draws of $1,000 to $10,000 — available within seconds.*
Fees
No origination fees, monthly fees or draw fees
Repayment Terms
12, 18 or 24 months
Repayment Schedule
Weekly or monthly
Minimum Requirements
1 year in business, business checking account, $100,000 annual revenue, 625 personal FICO® score
| Product Details | OnDeck Business Line of Credit |
|---|---|
| Credit Limit | $6,000 - $200,000 |
| Funding Speed | As soon as the same day.† Instant Funding available for draws of $1,000 to $10,000 — available within seconds.* |
| Fees | No origination fees, monthly fees or draw fees |
| Repayment Terms | 12, 18 or 24 months |
| Repayment Schedule | Weekly or monthly |
| Minimum Requirements | 1 year in business, business checking account, $100,000 annual revenue, 625 personal FICO® score |
How does a business line of credit work?
Get preapproved for a credit limit.
Apply and get preapproved for a set credit limit based on your business's revenue, time in business, credit history and bank statements.
Draw what you need.
If approved, you can draw funds up to your available credit at any time.◊
Pay interest only on what you draw.
Interest is charged only on the portion of your credit limit you've actually drawn. OnDeck doesn't charge an annual fee to keep your line open.
Repay on a schedule that fits your business.
Make weekly or monthly payments toward your balance. You can pay the minimum due or pay off the balance in full, whichever fits your cash flow.
Draw again as needed.
As you pay down your balance, those funds become available to draw from again. There’s no need to reapply, and you only accrue interest on the funds you’ve drawn until they are repaid.
Business Line of Credit vs. Business Loan
| Business Line of Credit | Business Loan | |
|---|---|---|
| How You Get Funds | Draw as needed, up to a limit | One lump sum up front |
| Financing Purpose | Can be used for any business purpose | Typically tied to a specific, stated business purpose |
| Interest | Only on what you draw | On the full loan amount |
| Repayment Terms | Revolving line of credit — pay down your balance, then draw again | Installment — fixed payments over a set term |
| Best For | Unpredictable or ongoing operating expenses | A large, one-time expense or investment |
| Credit Requirements | Can be easier to qualify for, depending on the lender | Tends to require stronger credit and more time in business |
| Reusable | Yes, repay and draw again | No, repaid in fixed installments |
A small business loan is generally an installment loan (or “business term loan”) better suited to a specific, known project, while a business line of credit can provide ongoing access to working capital as needs arise, similar to a credit card.
Lines of credit also generally provide more flexible access to cash than SBA loans, which are backed by the government and often come with longer approval timelines and more documentation requirements. The right choice depends on how much financing you need, what you plan to use it for and what your business can qualify for. Factors such as your credit score, business performance and collateral requirements may affect which options are available to you.
How to apply for a business line of credit.
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Step 1
Complete the application.
Our streamlined application process is designed to be completed in just minutes.
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Step 2
Get a decision.
Work with an expert loan advisor to find out your funding options. Choose the best option for you.
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Step 3
Receive your funds.
Sign your contract and get funds as soon as the same day.† If approved for a line of credit, sign up for Instant Funding to receive funds within seconds!*
FAQs: Business Line of Credit
The main difference is that a secured business line of credit requires collateral — an asset the lender can claim if the borrower defaults. This usually results in lower interest rates and higher credit limits, but also increases risk to the borrower. Common forms of collateral include equipment, inventory or property.
An unsecured business line of credit, on the other hand, doesn’t require collateral. Instead, lenders evaluate the business’s creditworthiness, cash flow and financial history. These lines typically come with higher interest rates, lower credit limits and may require a personal guarantee, but they offer access to financing without putting business assets at risk.
OnDeck offers unsecured lines of credit, so your business can access funds without pledging collateral.
Flexibility. Keep money on hand for when you need it. As you repay you can borrow from your available credit without needing to reapply.
Access to funds. You can draw working capital on demand — even after regular business banking hours.
Cost-effective. Unlike a term loan where you pay interest on the entire lump sum, a line of credit lets you only pay interest on the amount that you borrow.
Better cash flow management. Smooth cash flow gaps and ensure your business has the funds it needs to stay on track while investing in growth.
The amount of business credit you can get depends on several factors, including your business’s financial situation, creditworthiness and the lender’s eligibility requirements. Typically, strong business finances and a good credit score will allow you to access higher credit limits and better terms such as a lower interest rate.
An OnDeck Line of Credit offers qualified borrowers loan amounts up to $200,000. Applying is easy and only takes a few minutes. Plus, OnDeck only conducts a soft credit check, so it won’t affect your score.
When you take a draw from a line of credit, you’ll generally have a set time period to repay the funds. You make weekly or monthly payments on the amount that you’ve borrowed to pay it off by the end of the term.
With an OnDeck Line of Credit, you’ll receive your repayment terms upfront. When you take a draw, you’ll only pay interest on the amount you borrow and the funds will be repaid in an easy weekly or monthly payment. We don’t charge any annual fees or draw fees. Additionally, you can repay early to bring down the cost of borrowing, with no prepayment penalty.
The cost of a line of credit will vary between providers, but interest rates, fees and how you use it all play a role. You’ll typically only pay interest on the amount you borrow, not the full credit limit, which gives you more control. Traditional lenders, like banks, may offer lower interest rates but can be harder to qualify for.
Rates can vary widely depending on the lender — typically from 7% to 60+% APR.§ Fees will also depend on the lender with some charging origination fees, maintenance fees or draw fees. Before you borrow, be sure to read all of the terms to be sure you understand the cost of your line of credit.
You can estimate your potential costs with OnDeck’s Business Loan Calculator to see projected repayment terms.
If your lender reports to the business credit bureaus, then business loans, including business lines of credit, can help you build your business credit history. Make sure that you take all the steps necessary to open your business credit file. Keep an eye on your credit utilization and ensure that you make your payments on time. Doing so will help you build a strong credit profile, which can potentially boost your business credit score.
OnDeck reports your payments to business credit bureaus, so every time you pay on time, you’re building business credit history.
OnDeck uses soft pulls of personal credit reports that don’t affect your credit score.
