Business Line of Credit

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 does 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 in which to repay the funds. You’ll make weekly or monthly payments on the amount that you’ve borrowed to pay it off by the end of the term. You’ll want to do your research on lenders, as some may charge a fee for early repayment.

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 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.^*

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.^§

While it can be more difficult to find business financing with a low credit score or no business credit, it’s not impossible. At OnDeck, we consider a more comprehensive view of your business finances and may be able to approve those with less-than-perfect credit scores who have been turned down by traditional lenders.

OnDeck’s application process is simple and fast — and you can often get a decision on the same business day. We also make it easy to compare offers with our loan comparison tool. Keep in mind that when choosing between credit offers it’s important to consider things like interest rates, fees and other terms. And for new businesses, remember that OnDeck requires a minimum of one year in business to be eligible for funding.

If your lender reports to the business credit bureaus, then business loans, including business lines of credit, can help you build your business credit. 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.

The difference between an unsecured and secured business line of credit is the need for collateral. With a secured business line of credit, you will need to provide a business asset as collateral for the loan. This means if you fail to repay, the lender can seize and sell that item to recoup their losses.

With an unsecured business line of credit, you will not need to offer any business assets as collateral. While not offering collateral can lead to higher interest rates, it also helps you protect your business’s assets and make it possible for businesses without many physical assets to get credit.

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.