Unveiling the Ultimate Showdown:
OnDeck Short-Term Loan vs. BlueVine Line of Credit
Short-term business loans can provide your business with the fast cash it needs to bridge cash-flow gaps, handle emergencies and unexpected expenses, or seize a business opportunity. Think of them as loans that offer quick turnaround, allowing you to borrow an amount that you can repay relatively quickly. This way, you can focus on running your business instead of managing debt. Next, let’s discuss the differences between a short-term loan and a line of credit.
OnDeck Capital
One option for short-term financing is OnDeck, an online business lender that specializes in providing fast and accessible funding to small businesses. OnDeck offers short-term business loans that can be a great solution if you need fast cash and don’t have perfect credit. With OnDeck, you can benefit from high borrowing amounts and speedy funding, allowing you to address your business requirements promptly.
BlueVine
Another option is BlueVine, a leading provider of working capital solutions for small businesses. BlueVine offers a short-term line of credit that can help you bridge the cash-flow gap and manage your business’s financial needs effectively. BlueVine is a good option for newer businesses as it only requires a minimum of six months in business to qualify. They also provide fast funding, ensuring that you can access the cash you require quickly.
Differences Between The Two
It’s important to understand the key differences between short-term loans and lines of credit. Short-term loans from OnDeck provide a lump sum amount that is repaid over a fixed term. On the other hand, BlueVine’s line of credit offers more flexibility, allowing you to draw funds as needed and repay based on your business’s cash flow. Lines of credit generally have shorter repayment periods, making them more suitable for managing cash flow fluctuations, furthermore.
What to Consider
When considering a short-term business loan or line of credit, it’s crucial to evaluate the eligibility requirements and qualifications. Firstly, OnDeck typically requires a minimum personal credit score of 500+, at least one year in business, and an annual revenue of $100,000+. Additionally, a personal guarantee is necessary. Conversely, BlueVine’s eligibility criteria vary depending on the length of the line of credit. For a six-month line of credit, you’ll need a personal credit score of 600+, at least six months in business, and an annual revenue of $120,000+. However, for a twelve-month line of credit, a personal credit score of 620+, at least two years in business, and an annual revenue of $450,000+ are required, furthermore.
What Draw Backs to Consider
Short-term business loans, despite offering fast cash, have several disadvantages. Firstly, they entail higher costs due to a higher APR compared to long-term loans. Secondly, it is advisable to utilize tools like NerdWallet’s business loan calculator to accurately assess affordability. Moreover, certain lenders require more frequent repayments, which can complicate cash flow. Additionally, there is a risk of falling into a debt trap by opting to refinance instead of fully repaying the loan, equally important.
BitX Connects Businesses With The Right Lender and Loan
When considering short-term financing, utilizing BitX Funding’s services proves beneficial. It’s an online marketplace connecting small business owners with competitive lenders. BitX Funding recognizes the significance of small businesses in the economy and strives to help them thrive. Through the partnership, you access a network of lenders and receive personalized guidance to find the ideal loan for your business.
To learn more about OnDeck and their short-term business loans, you can visit their website at https://www.ondeck.com/. OnDeck provides detailed information about their loan products, eligibility requirements, and the application process. Their user-friendly website offers valuable resources and tools to help you make informed decisions about your business financing.
For more information about BlueVine and its short-term line of credit, you can visit their website at https://www.bluevine.com/. BlueVine provides a wealth of information about its financing solutions, including the benefits of its line of credit, the application process, and frequently asked questions. Exploring their website will give you a comprehensive understanding of how BlueVine can support your business’s financial needs, next we will discuss.
Here are some short-term financing options available from online business lenders:
BlueVine Lines of Credit:
If you need to bridge the cash-flow gap, BlueVine is a good option for newer businesses.
Pros:
Only requires a minimum of six months in business to qualify; offers fast funding.
Cons:
High borrowing costs; requires strong revenue.
Loan amount: $5,000 to $250,000.
APR: 15% to 78%.
Loan term:
Repaid over 6 or 12 months.
Funding time: As fast as 24 hours.
Read our review:
BitX Funding
Do I qualify?
For a six-month line of credit:
600+ personal credit score.
6+ months in business.
$120,000+ in annual revenue.
Personal guarantee required.
For a twelve-month line of credit:
620+ personal credit score.
At least two years in business.
$450,000+ in annual revenue.
Personal guarantee required.
Not available in North Dakota, South Dakota, or Vermont.
OnDeck Short-term Business Loans:
If you require fast cash and don’t have perfect credit, OnDeck is a good option.
Pros:
Offers high borrowing amounts; provides fast funding.
Cons:
Financing can be costly, with frequent repayments.
Loan amount: $5,000 to $500,000.
APR: 16.7% to 99.4%, as of Q1, 2023.
Loan term: Repaid daily or weekly for 3 to 36 months.
Funding time: As fast as 24 hours, but typically a few days.
Read our review:
BitX Funding
Do I qualify?
500+ personal credit score.
1+ year in business.
$100,000+ in annual revenue.
No bankruptcies in the last two years.
Personal guarantee required.
Pitfalls of Short-term Loans:
While short-term business loans provide fast cash, they do come with some disadvantages, including:
Higher cost:
Short-term business loans typically have a higher annual percentage rate (APR) than long-term loans. Use NerdWallet’s business loan calculator to determine the cost of a loan.
More frequent repayments:
Some lenders require daily or weekly payments instead of monthly. Although these payments are smaller, the frequency can be challenging for businesses with uneven sales or limited cash in a bank account.
Risk of debt trap:
The speed and ease of short-term business loans can become addictive. Business owners may be tempted to refinance and roll over the debt into a new loan instead of repaying it in full.
In conclusion:
Short-term business loans and lines of credit can serve as valuable financial tools for small business owners. Whether you choose OnDeck or BlueVine, it’s essential to carefully assess your business’s needs, evaluate the associated costs, and ensure that you meet the eligibility requirements.
Why BitX Funding:
Partnering with BitX Funding streamlines the loan application process, giving you access to multiple lenders ready to compete for your business. Additionally, it helps you secure fast cash, manage debt effectively, and take advantage of growth opportunities.
Short-term business loans bridge cash-flow gaps, handle emergencies, and seize business opportunities. They provide quick turnarounds, allowing for timely repayment and a focus on business operations rather than debt management.
You can decide between an OnDeck short-term loan or a BlueVine short-term line of credit. Lines of credit offer flexibility and shorter repayment periods, making them suitable for cash flow management. However, it’s important to note the pitfalls associated with short-term business loans.
How To Contact BitX
BitX Funding is an online marketplace that specializes in connecting small business owners with lenders who will compete for your business. We believe that small business owners drive the economy and are passionate about helping your company reach its full potential. You can reach a loan specialist toll-free at 1-800-824-2407, email [email protected], or apply online here, and we can guide you in deciding the best loan for your business.
