Business Line of Credit

Business line of credit. A small business line of credit can offer ongoing access to funds. If you’re approved, you’ll be able to draw funds up to a certain credit limit. You’ll only pay interest on the amount you borrow. As you repay, the funds become available to borrow again. This makes a line of credit ideal for managing cash flow and other ongoing business needs.

Business term loan. A business term loan provides an upfront lump sum of cash. If approved, the funds will be deposited into your business bank account and you’ll pay interest on the entire sum. Short-term business loans can be useful when covering large, one-time business expenses such as purchasing equipment or real estate.

Secured business line of credit. With a secured line of credit, you will need to provide a business asset as collateral for the loan. For example, with many equipment loans the equipment itself acts as collateral. Though these types of loans may come with lower interest rates, there is also the risk that your business assets may be repossessed.

Unsecured business line of credit. An unsecured line of credit doesn’t require collateral — though you may need to make a personal guarantee, holding you responsible for repayment if the business defaults. While unsecured lines of credit may have higher interest rates, they also protect your business assets and make it possible for businesses without many physical assets to get credit.

OnDeck offers unsecured lines of credit — so you can be confident your business assets are protected.

The best line of credit for your business depends on your business needs. For some businesses, the amount they can borrow is the most important factor. For others, it may be things like interest rates, speed of funding or likelihood of credit approval.

When searching for a line of credit for your business, you should review the loan terms. Look at things like interest rates, repayment schedules, credit limits and fees such as origination fees or early repayment fees. This can help you ensure that the line of credit you choose is a good fit for your business.

At OnDeck we offer fast, flexible business funding with transparent pricing. Our application process is easy and, once approved, you could get your funds as soon as the same business day.^† Plus, our loan comparison tool gives you a comprehensive breakdown of your cost of capital so you can evaluate all your options.

Flexibility. Lines of credit are flexible borrowing options — allowing you to borrow what you need, when you need it.^◊

Access to funds. A line of credit can give you working capital on demand — to manage day-to-day operations, cover unexpected needs or take advantage of business opportunities — even after regular business banking hours.

Cost-effective. Unlike a term loan where you pay interest on the entire lump sum, with a line of credit you typically only pay fees or interest on the amount that you borrow — allowing you to control costs.

Better cash flow management. With a line of credit, you can 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 $100,000. 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.

Instant Funding is a fast and easy way for small business owners to access up to $10,000 in working capital to run their business. Draw from your line of credit when you need it and see the funds in your account in seconds, 24/7, even when the banks are closed.^*

There are some times when you could really use access to additional funds. Some lenders will allow you to request a credit line increase. If you’ve demonstrated a good repayment history and have the capacity to borrow more, they may approve you.

With OnDeck, credit limit increases are based on your cash flow, net income and payment history. OnDeck continually reviews its accounts to see which may benefit from a line increase.

The total cost of your line of credit will vary based on a number of factors, including your personal and business credit scores, time in business, annual revenue and cash flow.^§

If you don’t have great credit or are a startup with limited business credit history, you may be wondering if you can get business financing without a credit check. Getting any type of small business financing without a credit check is rare. Most business lenders will perform some type of credit check during their underwriting process. They may check your personal credit score, the business credit score or sometimes both. However, there are lenders that perform a soft credit check and focus more on other factors such as time in business and annual revenue.

OnDeck uses soft pulls that don’t affect your credit score — no hard inquiries.

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. And keep an eye on your credit utilization and ensure that you make your payments on time. Doing so will help you build positive credit history, 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.

You may have a project that could benefit from funds beyond the capabilities of your small business line of credit. Other types of business loans include:

Term loans. Term loans offer an upfront lump sum of cash that you can pay back over time. They can be useful for big one-time expenses.

Equipment loans. Equipment loans are a type of loan designed specifically for businesses looking to purchase equipment. Often, the equipment acts as collateral for the loan.

SBA loans. SBA loans are loans secured by the Small Business Administration. They can be difficult to get approved for and the process may take a long time.

Microloans. Microloans are business loans for a smaller amount — typically under $50,000. They can be easier to get approved for because of their smaller size.

At OnDeck we understand business financing, and our term loans are available in addition to a business line of credit. Reach out to your dedicated loan advisor to explore some of your available financing options.

We use soft pulls of personal credit reports that don’t affect your credit score.