OnDeck Capital
Pros
- Simple and fast one-page application
- No prepayment penalty
- Prepayment discount on interest owed if you pay back the loan early
- Builds business credit but doesn’t affect personal credit
Cons
- Requires UCC-1 lien and personal guarantee
- Can be expensive on higher end of interest rate range
- Requires daily or weekly payments
OnDeck is an online lender that provides fast, short-term financing in amounts up to $500,000. Short-term loans from OnDeck are great for covering big, unexpected expenses and can be used for virtually any purpose. OnDeck’s loan application can be completed quickly and easily online and they can fund businesses in as little as one day. Plus, unlike many alternative lenders, OnDeck offers a prepayment discount on your interest-owed if you pay back your loan early.
Loan Amount: $5,000 to $500,000
Est. Rates: 9.99% to 99%
Terms: Three to 36 months
Fees: Origination fee of 0% to 4%
Time to Fund: As fast as one business day
Min. Credit Score: 600
Min. Annual Revenue: $250,000
Min. Time in Business: Three years
Funding Circle
Pros
- Low interest rates and long terms for an online lender
- Monthly payment schedule
- No prepayment penalty; can save on interest by paying early
- Can build business credit but won’t affect personal credit
- No minimum revenue requirement
Cons
- Requires blanket lien and personal guarantee
- High eligibility requirements for an online lender
- Origination fee can reach 6.99%
- Not as fast to fund as some online lenders
Funding Circle is a peer-to-peer lending program that offers medium-term loans with affordable rates and a simple online application process. Funding Circle is a great option for established businesses who need longer-term financing for large purchases or expenses. In this way, Funding Circle is a faster, yet affordable, alternative to bank loans. Funding Circle term loans are also worthwhile for qualified business owners looking to consolidate existing business debt.
Loan Amount: $25,000 – $500,000
Est. Rates: 11.67% to 36% APR
Terms: Six months to five years
Fees: Origination fee between 3.49% and 6.99% of approved loan amount
Time to Fund: As fast as two days
Min. Credit Score: 660
Min. Annual Revenue: No minimum
Min. Time in Business: Two years
BlueVine
Pros
- Startup and newer businesses can qualify
- No origination or other fees
- No prepayment penalty
- Once approved, can receive funds in as fast as a few hours
Cons
- Requires UCC-1 lien and personal guarantee
- Weekly payment schedule
- Can be expensive on higher end of interest rate range
BlueVine is an online lender that offers short-term loans with a fast and fully digitized application and underwriting process. Term loans from BlueVine are worthwhile for business owners looking to fulfill a specific, short-term financing need—as well as for newer businesses. With their speed and flexible requirements, BlueVine short-term loans are also good for businesses who can’t qualify for traditional bank term loans.
Loan Amount: $5,000 to $250,000
Est. Rates: 4.8% to 51%
Terms: Six or 12 months
Fees: No origination or other fees
Time to Fund: Average of two to seven business days
Min. Credit Score: 600
Min. Annual Revenue: $100,000
Min. Time in Business: Six months
