Fast, flexible small business loans — get funding in as soon as 24 hours.†
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Securing the right financing is a crucial step in fueling the growth and success of any small business. Whether you’re launching a startup, expanding your marketing efforts, or just in need of extra working capital for day-to-day operations, small business loans can offer flexible funding to move forward with confidence.
These days, small business owners have more financing options than ever before. The emergence of online lenders has allowed businesses to apply and get funded faster than they can with traditional business lenders. There are also specific funding types that some business owners may find easier to receive approval for — or are more flexible to repay.
Understanding your financing options empowers you to make smarter financial decisions, access competitive rates and choose what’s most tailored to your business’s specific goals.
Before you apply for small business funding, you’ll want to get familiar with the different types available. Some of the most common types of business loan options include business term loans, lines of credit, merchant cash advances and equipment loans. The speed of funding, as well as the rates and terms, will depend on the specific lender and the qualifications of the applicant. For borrowers in need of quick business funding, online lenders in particular can typically offer a streamlined application process and fast funds.
A business term loan provides funding for small businesses in a single lump sum. Maximum loan amounts typically exceed those offered by a line of credit or cash advance. Borrowers may repay a term loan through a regular schedule of daily, weekly or monthly payments. Some term loans, called secured loans, require collateral. OnDeck term loans are secured, but OnDeck doesn’t require that loans be secured by specific collateral. Instead, a general lien is placed on the assets of the business.
A merchant cash advance (MCA) provides businesses with lump-sum financing in exchange for a portion of future sales at a discount. Funding is often quick, but repayment can be expensive relative to other types of financing. Depending on the provider, repayment can be as a percentage of your debit and credit card sales or as a fixed scheduled payment regardless of what your sales have been.
A business line of credit provides access to a specific amount of funding that borrowers can tap as needed. Funds are repaid through a regular schedule of payments, and the available credit replenishes as funds are repaid. Many lines of credit will let you repay early to save money on interest as well. A line of credit is a good financing option for recurring expenses — it allows borrowers to withdraw within their credit limit without reapplying.
Equipment loans are typically for purchases of machinery or work equipment, and are offered by many banks and online lenders. Typically, the purchased equipment serves as a form of specific collateral to secure the loan, which may allow the lenders to offer a more competitive interest rate than an unsecured loan. However, if the borrower defaults, the lender can repossess the purchased equipment.
OnDeck offers two types of business funding — a line of credit and a term loan. Both options can provide fast access to working capital. After completing a quick and easy online application, we’ll be able to determine if you qualify for one option or both. If approved, you can work with a U.S.-based loan advisor to choose the amount and terms that work best for you. After approval, you can get funds as soon as the same day.†
A revolving credit line you can draw from 24/7 to receive funds within seconds.*
A one-time lump sum of cash with an eventual option to apply for more.
When it comes to small business financing, SBA loans are among the most popular and trusted options available. Most often, these loans are issued by traditional lenders but backed by the U.S. Small Business Administration. Since the SBA guarantees a portion of the loan, these loans can usually offer lower interest rates and longer repayment terms than many other types of funding. Whether you're looking to purchase real estate, invest in equipment or simply boost your working capital, understanding how SBA loans work is the first step toward securing the right financing for your business.
The SBA offers several loan programs designed to meet the diverse needs of small businesses:
The most common and versatile SBA loans, providing up to $5 million in funding for everything from purchasing inventory to refinancing debt.
This program focuses on long-term, fixed-rate financing for major assets like real estate and large equipment, helping businesses invest in their future growth.
These can speed up the approval process, with decisions in as little as 36 hours and loan amounts up to $500,000 — perfect for businesses needing fast access to cash.
Microloans up to $50,000 are delivered through nonprofit community-based lenders, making them a good fit for entrepreneurs and businesses bringing economic development to underserved communities.
Qualifying for an SBA loan starts with meeting the basic eligibility criteria set by the Small Business Administration. Generally, your business must meet these requirements:
If you can meet the requirements, the application process typically involves preparing detailed financial statements, a business plan, tax returns and other supporting documents. SBA loans require more paperwork than alternative loans, but the benefits — including lower rates and longer terms — can make the effort worthwhile. Visit SBA.gov for more information.
| Feature | OnDeck | SBA Loans |
|---|---|---|
| Loan Amounts | $5K - $250K for term loan; $6K - $100K for line of credit. |
$500 to $5.5 million, depending on the program. |
| Funding Time | Once approved, you may be able to get same-day funding.† | Varies. Generally 2 - 10 business days. |
| Minimum Credit Requirements | 625 personal FICO® score; $100K in business annual revenue.** | Not defined; need to demonstrate creditworthiness, ability to repay. |
| Repayment | Term loans repay daily or weekly over 6 - 24 months; Lines of credit repay weekly or monthly over 12, 18 or 24 month terms. | Microloans have a maximum of 7 year repayment terms; 504 and 7(a) loans can have repayment terms up to 25 years. |
| Collateral | Line of credit is unsecured; Term loans are secured with a general lien on the business. | None needed for loans up to $50K. It’s helpful but not required for larger loans. |
Complete the application.
Our streamlined loan application process is designed to be completed in just minutes.
Get a decision.
Work with an expert loan advisor to discuss eligibility and choose the best funding option for your business needs.
Receive your funds.
Sign your contract and get funds sent to your business bank account as soon as the same day.†
Mark Kruger
Omaha, NE
Line of Credit Term Loan
CF Webtools
“The entire application process was online, which was fairly simple — took maybe 15 minutes. I was approved in a very short amount of time, and was very relieved to be able to make payroll.”
Why Mark chose funding from OnDeck:
1 Year
in business
Business
checking account
$100K
business annual revenue
625
personal FICO® score
If you need a fast business loan, several types of small business financing can provide quick funding. Here are some common options:
Line of credit. Offers flexible, revolving access to funds you can draw from as needed. Great for managing cash flow or covering unexpected expenses.
Short-term loan. Provides a lump sum of capital with a quick repayment schedule, typically 3 - 18 months. Short-term business loans are good for urgent purchases or temporary cash flow shortages.
Invoice factoring. Invoice factoring can provide an advance of cash based on your unpaid invoices, giving you immediate working capital without waiting for customers to pay.
Merchant cash advance (MCA). Delivers a lump sum upfront, most often repaid through a percentage of your daily debit and credit card sales.
Microloans. Small, fast loans (up to $50,000) from nonprofit or community lenders, microloans are designed for startups or businesses with limited credit history.
Working capital loans. Working capital loans are designed to cover everyday business operations like payroll, rent and inventory — often with faster approval times.
These loan products are designed for speed and accessibility, making them ideal when you need funds quickly and don’t have time for lengthy application processes.
Qualifying for a small business loan typically depends on several key factors, including your personal and business credit score, business revenue, time in business and financial history. Most lenders look for a personal credit score of 650 or higher, at least 1 - 2 years in operation, and consistent cash flow to ensure you can repay the loan. You’ll also likely need to provide additional information with documentation such as tax returns, bank statements and sometimes a business plan.
Whether a small business loan is secured or unsecured depends on the lender and the loan itself. Many traditional banks and credit unions specialize in secured loans — though some may offer unsecured loans, too. Online lenders are better known for unsecured business loans, though many offer both.
With a secured loan, the borrower pledges collateral, such as property or liquid assets, in exchange for the loan. If the borrower defaults, the lender can take possession of the collateral to recoup losses on the loan. Unsecured loans don’t require collateral. This increases the risk to the lender, so interest rates for unsecured loans are typically higher than those for secured loans.
To provide flexibility, OnDeck’s term loan is secured with a general lien on business assets. This can help healthy businesses secure a small business loan, even if they don’t have specific collateral to offer. OnDeck’s line of credit is unsecured.
Small business loans can be either fixed or variable, depending on the type of loan and the lender. Traditional term loans and many SBA loans often come with fixed interest rates, meaning your payment stays the same over the life of the loan. On the other hand, lines of credit and some alternative loans may have variable rates that fluctuate based on market conditions. Always check the loan terms carefully to understand whether your rate is fixed or variable and how it might affect your payments.
The easiest small business loans to qualify for are usually online loans and business lines of credit from alternative lenders, which often have more relaxed requirements than traditional financial institutions. Additionally, SBA Microloans and merchant cash advances can be more accessible for new businesses or those with bad credit. However, these easier-to-get loans may come with higher interest rates or shorter repayment terms, so it’s important to weigh convenience against cost.
Loan amounts can vary widely depending on your business’s qualifications and the type of financing you choose. Small business loans typically range from $5,000 to $5 million. SBA loans, for example, offer up to $5 million through their 7(a) program, while microloans max out at $50,000. Online lenders and alternative financing options may offer smaller amounts, usually between $5,000 and $1 million. How much you can borrow will depend on how underwriting evaluates your revenue, creditworthiness and overall financial health.
For more business resources and information on small business loans, check out these blog posts.
