Small Business Line of Credit

Access cash–when you need it–with a line of credit

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What is a business line of credit and how does it work?

A business line of credit is a revolving loan that allows access to a fixed amount of capital, which can be used when needed to meet short-term business needs. A business line of credit is the best financing option when you need extra working capital to cover recurring business expenses or bridge cash flow gaps. With ongoing access to funds, you have the flexibility to withdraw only what you need, when you need it—and pay for only what you use. So, you’ll be prepared for whatever challenges and opportunities come your way.

Benefits of an OnDeck Business Line of Credit

Revolving lines of credit from

12-month repayment term, resets after each withdrawal

Automatic weekly

Instant Funding: Get money in your account within seconds every time you make a withdrawal—24/7, even on nights and weekends.

Only pay for what you borrow: Withdraw what you need, when you need it. And pay interest just on the financing you use.

A consolidated payment for all withdrawals: Make one weekly payment on all withdrawals, avoiding the headache of multiple payment schedules.

Access more funds automatically: Receive automatic credit limit increases when we review your credit profile and determine if you qualify. We do this on an ongoing basis, so the opportunity is often there.

Business credit building: Help build your business’s credit by making on-time payments, which we report to the credit bureau.

Revolving credit: Apply once and funds replenish when you pay them back, so long as you make timely payments.

No prepayment penalties: Get more flexibility by paying off your line of credit anytime you’d like, with no penalty or fee.

Transparent pricing: Use our SMART Box® Capital Comparison Tool to get a comprehensive breakdown of your line of credit’s cost—including all the key terms you need to evaluate potential loan offers.

Minimum eligibility requirements for an OnDeck Term Loan or Line of Credit

We lend to over 700 industries, but there are some industries we cannot serve: see list of restricted industries. In addition, OnDeck does not lend to businesses in Nevada, North Dakota, or South Dakota.

Applying for a line of credit at OnDeck is quick and simple

Get Started

Step 1. Complete the application

Our application is pretty simple, and you can apply online or over the phone.

Step 2. Get a decision

Your dedicated loan advisor will review your options with you.

Step 3. Receive your funds

Complete the online checkout and receive your funds as soon as the same day.*

Ways to use a business line of credit

Unlike a term loan, a business line of credit allows you to run your business without having to apply for a new loan every time you need a bit of extra cash. And with ongoing access to working capital, you can plan for and better manage your business’s future cash flow with less stress. Your line of credit can give you the boost you need to take advantage of opportunities when they arise.

One of the main benefits to having a business a line of credit is that it’s revolving. That means you can access the credit line when you need it, pay down the balance, and use the line again as funds replenish. There are many ways you can use business lines of credit. Here are some popular reasons why other small business owners use credit lines.

Top ways to use a line of credit

  1. Reopening your business
  2. Bridging cash flow gaps
  3. Covering payroll
  4. Hiring more employees

How other small business owners have used their
OnDeck Lines of Credit

Photo of Brandi Nichols

“We used the money from OnDeck to consolidate our business credit card debt, help maintain the inside of the building, and buy some computers. We also used the line of credit to pay off the maintenance fee for the air conditioning, so we’ve been able to use that funding to keep this building going and our business running efficiently.”

Brandi Nichols
Gotta Dance Studio & Company
Bend, OR

Photo of Devoughn Owens

“I have used both a term loan and a line of credit from OnDeck to sustain my business when I have vacancies in my homes. Any business owner knows that your revenues can change over a period of time, but expenses do not. You need to borrow a little until you fill that vacancy so you can keep paying your bills, make payroll, etc. It’s smart business.”

Devoughn Owens
Meadowlark Home Care
Oak Park, MI

Photo of Charlene and Ross Meriwether

“Without flexible financing, we would not be able to grow the business. We would have had to come up with other sources of cash or wait until the business generated enough cash to be able to grow. About 90% of the money we borrowed went to inventory, and about 10% was for payroll and other operations.”

Charlene and Ross Meriwether
Wild Women Winery
Denver, CO

FAQs: OnDeck Business Line of Credit

What is Instant Funding?
Instant Funding is the fastest and easiest way for small business owners to access working capital to run their business. OnDeck is one of the only lenders to offer business lines of credit with instant access to your funds. 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 – so you can get back to business as fast as you can click “draw funds.” And the best part is Instant Funding is available at no extra cost.

How does my line of credit payback work?
Unlike other online lenders – our line of credit is revolving with no draw fees (just a monthly maintenance fee).  Funds replenish as you pay them back – and additional draws are consolidated into one loan with one easy weekly payment.

Can I get a credit line increase?
There are some times when you could really use access to additional funds. Based on your cash flow, net income and payback history you may be eligible for a credit line increase. All you need to do is call your dedicated loan advisor to learn more.

How much will it cost? 
Interest rates start at 29.9% annual percentage rate (APR). 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 and annual revenue and cash flow.

What other small business loans can I get in addition to my line of credit?
You may have a project that could benefit from funds beyond the capabilities of your business line of credit. At OnDeck we understand and our term loans are available in addition to your business line of credit. Reach out to your dedicated loan advisor to explore some of your available options. In addition to OnDeck’s Term Loan and Line of Credit, check out this page for other types of small business loans.

What is the SMART Box®?
Transparency is key when it comes to choosing a lender. That’s why OnDeck developed the SMART Box Capital Comparison Tool. In plain English and an easy-to-read format, this tool shows you key terms you need to evaluate potential short term loan offers so that you have a comprehensive, standardized breakdown of your cost of capital. The SMART Box is used by all members of the Innovative Lending Platform Association.

How does business credit building work?
Unlike most online lenders, we use soft pulls of personal credit reports (which doesn’t affect your credit score). And we report your payments to business credit bureaus so that every time you pay on time, you’re helping your business build a strong credit profile.

Additional resources on business lines of credit

Business Line of Credit vs. Business Credit Card

A line of credit is a revolving loan that provides a fixed amount of working capital that can be accessed as needed. All or part of the credit line can be accessed at any given time up to the fixed limit, repaid, and used again. Interest is only paid on the amount of credit used. A business credit card is also a very popular and flexible financing and purchasing tool for those times when business owners need quick access to cash.

While business credit cards are similar to business lines of credit and are both used by small business owners on a regular basis, there are some purchases or payments that can’t be made with a business credit card. For example, you may not be able to make certain payments including your property lease, payroll, and invoices from vendors; but you can use the funds from your business line of credit. Additionally, while some business credit cards come with lower credit limits, an OnDeck business line of credit is between $6,000 and $100,000.

Secured vs. Unsecured Business Lines of Credit

There are different types of loans for different types of business needs. One type of lending common for small business is asset-based lending. Asset-based lending can be any lending product that uses an asset as collateral for the loan, or in this case, a line of credit. In the event the borrower defaults on the loan, the lender can take possession of the asset. Assets can include things like real estate, equipment, inventory, accounts receivable, or cash accounts. These assets can be pledged as collateral to back new loans, and whether they are used as collateral determines whether the loan or line of credit is “secured” or “unsecured”.

A secured business line of credit requires a business to pledge assets as collateral to secure the line. Since a line of credit is a short-term liability, lenders typically ask for short-term assets, such as accounts receivable or inventory. If the borrower is unable to repay the line, the lender may proceed to assume possession of the collateral and sell the asset in order to pay off the balance.

An unsecured business line of credit does not require a business to pledge assets as collateral to secure the line. Unsecured lines of credit typically require the business owner to have a strong credit profile and credit score, along with a positive business track record to qualify. In general, unsecured lines of credit have slightly higher interest rates and line sizes are relatively smaller.

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*Same Day Funding is only available in certain states, for term loans up to $100K. Eligibility window is Monday-Friday before 10:30am EST. If checkout is done before 10:30am EST, funds will be available by 5pm local time the same day. If checkout is done after 10:30am EST, or on a weekend or bank holiday, it will not qualify for Same Day Funding and funds will be deposited within 2-3 business days. Eligibility rules around creditworthiness and length of term loan apply.

Registration terms and conditions apply. Instant Funding registration and withdrawals are currently supported from your desktop and the OnDeck mobile website. They are not currently supported in the OnDeck mobile app. Occasionally, the transfer may take up to 30 minutes to complete due to potential Visa & bank processing lags. This benefit is available at no additional cost with a vast majority of major banks participating. Instant Funding is available for transactions between $1K-$10K. Eligibility for the lowest rates is very limited, available only to businesses with the strongest creditworthiness and cash flows, and typically businesses that have shown an excellent payment history on prior loan products with OnDeck. The average rate for lines of credit is 48.9% APR. Averages are based on loans originated in the half-year ending March 31, 2022.