Business owners needing funding often consider BlueVine vs OnDeck because both providers have a stellar reputation for quick funding and customer service. While OnDeck has the lowest costs for prime borrowers, a BlueVine line of credit is best for most small business owners because of its higher limit and monthly payment option.
Best Business Line of Credit: BlueVine vs OnDeck Capital
BlueVine | OnDeck | |
|---|---|---|
Loan Amount | $5,000 to $250,000 | $5,000 to $100,000 |
Terms | Six or 12 months | Six or 12 months |
Funding Time | One to three days | One to three days |
Credit Score | At least 600 | At least 600 |
Estimated APR | 15% to 78% | 13.99% to 63.2% |
Customer Reviews | ||
Other Products | Term loans up to $250,000 Invoice factoring up to $5 million | Term loans up to $500,000 |
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BlueVine vs OnDeck: Rates, Fees & Costs
Comparing BlueVine vs OnDeck based on rates, fees, and overall costs is straightforward. OnDeck offers borrowers a lower starting APR and lower maximum APR, but it has a monthly maintenance fee. BlueVine has a higher starting APR and APR range, but it has no ongoing fees, making it a better choice for most businesses.
BlueVine Business Line of Credit Costs
The APR of a BlueVine line of credit ranges from 15% to 78%, with no additional origination, maintenance, or unused credit fees due from borrowers. Although you won’t pay a prepayment penalty, you won’t save money by doing so either, because lenders calculate your total repayment amount at origination. This means that for a $10,000 draw, you can expect to pay between $4.10 and $21.40 in daily interest charges.
OnDeck Business Line of Credit Costs
OnDeck’s starting interest rates are lower than BlueVine’s, with an APR range of 13.99% to 63.2%. This makes it more affordable for prime borrowers. However, unlike a BlueVine line of credit, which has no fees, OnDeck charges a monthly maintenance fee of $20, making it more expensive if you need a line of credit as backup financing. Based on the APR, a $10,000 draw with OnDeck will have daily interest costs between $3.80 and $17.30.
BlueVine vs OnDeck: Terms
Both BlueVine and OnDeck are online providers of short-term business lines of credit. Neither provider offers terms beyond six to 12 months. The expectation is that businesses that use either lender want access to capital for expansion or other short-term projects, and will repay their loans in a matter of months.
“Lines of credit are like credit cards—they are not a long-term solution for a persistent cash flow imbalance. Debt builds up. If a business in this situation doesn’t fix the inherent cash flow imbalance, it can find itself making payments mainly to service the debt and do little to reduce the principle.”
– Brian Cairns, CEO, ProStrategix Consulting
“Lines of credit are like credit cards—they are not a long-term solution for a persistent cash flow imbalance. Debt builds up. If a business in this situation doesn’t fix the inherent cash flow imbalance, it can find itself making payments mainly to service the debt and do little to reduce the principle.”BlueVine Terms
Many online lenders require business owners to make weekly payments for lines of credit. With BlueVine, business owners can enjoy a substantial advantage by moving from making weekly payments to making monthly payments if you use BlueVine’s 12-month line of credit. However, not every business can qualify for longer terms and monthly payments, which have a higher credit score and annual revenue requirements.
OnDeck Terms
While OnDeck offers some advantages for small business owners, the payment schedule is not one of them. OnDeck requires small business owners to make weekly payments over the course of either six or 12 months. Compared to a monthly payment option, this gives businesses less time to plan for payments and can strain cash flows.
BlueVine vs OnDeck: Qualifications
The minimum qualifications for lines of credit through BlueVine vs OnDeck are similar. Both lenders require borrowers to have at least decent credit scores. OnDeck puts slightly more emphasis on time in business, whereas BlueVine requires more business revenue to meet minimum qualification for a business line of credit.
BlueVine Line of Credit Qualifications
The minimum qualifications for a BlueVine line of credit are easy to meet and make it a more accessible lender to new businesses than OnDeck. BlueVine also has a second set of minimum qualifications to qualify for its monthly payment option with 12-month repayment terms. These include a credit score of at least 650 and $500,000 or more in annual revenue.
OnDeck Line of Credit Qualifications
OnDeck has the same credit score and annual business revenue qualifications as a BlueVine line of credit. However, it requires a minimum of one year in business, so some newer businesses may not qualify. Although OnDeck doesn’t have a second set of qualifications for its 12-month repayment terms, we expect the option to be more difficult to qualify for.
BlueVine vs OnDeck: Application Process
The application processes for BlueVine vs OnDeck are similar. Both companies are online providers that provide business owners with quick access to capital. BlueVine and OnDeck both have a quick and easy application, provide qualification decisions quickly, and fund loans in as quickly as a day.
BlueVine Line of Credit Application Process
BlueVine line of credit application process includes:
- Application time: As quick as five minutes
- Approval decision: As soon as the same day
- Loan funding: One to three days
OnDeck Line of Credit Application Process
OnDeck line of credit application process includes:
- Application time: As quick as five minutes
- Approval decision: As soon as the same day
- Loan funding: One to three days
BlueVine vs OnDeck: Collateral & Personal Guarantee
An OnDeck and BlueVine line of credit are both considered unsecured business loans because they don’t require the borrower to pledge any collateral. However, both require a blanket UCC filing and a personal guarantee from the borrower. This gives the lender an option to pursue your business and personal assets if you default.
BlueVine vs OnDeck: Customer Service
Both BlueVine and OnDeck are online providers that provide customer service online and over the phone. However, both companies have strong reputations for fast loan funding and responsive customer service teams. Each company also connects business owners with a loan specialist available to answer questions about the account.
BlueVine vs OnDeck: Customer Reviews
Both OnDeck and BlueVine have positive reviews as online providers of business loans. Most customers enjoy the convenience and overall experience offered by both BlueVine and OnDeck. Sometimes there are negative reviews from borrowers who misunderstood the terms or did not qualify for funding.
BlueVine Customer Reviews
BlueVine has achieved a 4-star BlueVine review from Fit Small Business based on over 20 individual customer reviews. The company also has a 5-star rating on Trustpilot based on 1,200 individual reviews. Among the most cited benefits are responsive customer service teams and transparency surrounding rates and fees.
OnDeck Customer Reviews
OnDeck has a 5-star OnDeck review from Fit Small Business after 13 reviews. The company also has a 9.7-star out of 10-star rating on Trustpilot after over 1,900 reviews and an A+ rating from the Better Business Bureau. The benefits most cited by customers include fast access to funding and reliable customer service.
BlueVine vs OnDeck: Other Loan Products
In addition to small business lines of credit, BlueVine and OnDeck provide other products that can be beneficial for small business owners. BlueVine offers invoice factoring for borrowers who invoice lots of customers and want access to money before customers pay, while OnDeck has term loans up to $500,000 for businesses needing longer access to capital.
“Existing businesses undergoing expansion have working capital needs similar to startups due to the addition of staff, increased inventory needs, and other increased overhead expenses. Longer-term working capital needs like these are best met by term loans with longer repayment periods.”
– Paola Garcia, Small Business Advisor, Excelsior Growth Fund
“Lines of credit are best used to meet short-term working capital needs that exist for less than 12 months. One common need results from business seasonality, like purchasing inventory for a peak selling season. Another short-term need could be adding temporary staff to fulfill a short-term contract. For existing businesses, it’s advisable to have sufficient working capital to cover at least three to six months of operating expenses to support slow periods.BlueVine Invoice Factoring
Invoice factoring is a product that allows business owners to borrow against invoices that clients haven’t yet paid. The best invoice factoring companies offer interest rates competitive with many business lines of credit and can be a great option for business owners who bill clients and want access to their money before clients pay.
BlueVine’s invoice factoring costs, terms, and qualifications include:
- Loan amount: $5,000 to $5 million per month
- Advance rate: 85% to 90% on invoices with face values of $500 or higher to business-to-business (B2B) customers
- Discount rate: 0.25% to 1.35% per week
- Estimated APR: 13% to 70%
- Credit score: At least 530
- Time in business: At least three months
- Annual revenue: At least $100,000
Compared to a BlueVine line of credit, borrowers can get access to funds with low minimum qualifications with invoice factoring. Rates start as low as 13%, which is comparable to both an OnDeck and BlueVine line of credit, and newer businesses may find it easier to qualify. However, you must invoice business or government customers to qualify, which not every business does.
BlueVine Term Loans
BlueVine also offers a term loan with similar terms to its line of credit. This gives businesses the flexibility of qualifying for multiple types of financing. According to a conversation we had with BlueVine, borrowers can qualify to borrow up to 70% more funding with its term loan than its line of credit. However, it’s a lump sum payment, making it best for large, one-time expenses, not ongoing working capital.
BlueVine term loan costs, terms, and qualifications include:
- Starting interest rates: 4.8% to 47.1% simple interest
- Expected APR: 18.2% to 78%
- Loan amount: $5,000 to $250,000
- Repayment term: Six or 12 months
- Credit score: At least 600
- Minimum annual revenue: At least $100,000
- Time in business: At least six months
A term loan from BlueVine has the same qualifications as its line of credit. Compared to the term loan from OnDeck, it’s slightly more expensive, even for prime borrowers. It also offers half as much funding and has repayment terms up to one year. It is a good option if you need factoring or a line of credit from BlueVine and want to take advantage of its other loan products.
OnDeck Term Loans
Unlike lines of credit, OnDeck can issue term loans for longer periods of time and provide businesses with a more permanent financing partner. While OnDeck and BlueVine lines of credit have repayment terms of either six to twelve months, you can repay a term loan from OnDeck in three years, making it a great fit for long-term projects.
OnDeck term loan costs, terms, and qualifications include:
- Loan amount: $5,000 to $500,000
- Expected APR: 10% to 100%
- Origination fee: 0% to 5% of your loan amount
- Repayment term: Three to 36 months
- Credit score: At least 600
- Minimum annual revenue: At least $100,000
- Time in business: At least one year
You can use a term loan for everything from buying inventory to developing new product lines or finishing build-outs. If you’re borrowing money for a longer-term project or may have trouble repaying a line of credit within six months, consider a term loan instead.
BlueVine vs OnDeck: Mobile Apps
If a mobile app is a must-have feature when comparing BlueVine vs OnDeck, then OnDeck will be your only choice. It offers a mobile app where you can manage payments, request funds, see your account activity, and even chat with your loan representative. BlueVine doesn’t have a mobile app, but you can still access your account in your phone’s browser.
BlueVine Mobile App
BlueVine doesn’t offer small business owners a mobile app, but you can still access your account from the browser of your mobile phone. Sometimes this may be faster, but having a dedicated mobile app makes managing your account easier. Once you sign in, you can access your line of credit and request funds from the browser, so you have access to your capital on the go.
OnDeck Mobile App
The mobile app from OnDeck allows you to manage your account from your phone, making it more accessible and convenient for business owners on the go. You can view your line of credit balance, transfer money, make payments, and check the status of any transaction. You’ll also be able to contact your OnDeck representative or the general customer service with no need to leave the app if you have questions.
OnDeck mobile app
BlueVine & OnDeck Competitors
Provider | Terms, Costs, Qualifications |
|---|---|
Line of credit limit: $100,000 Expected APR: 10% to 79% Credit score: No stated minimum | |
Line of credit limit: $250,000 Expected APR: 24% to 99% Credit score: At least 550 | |
Term loan limit: $500,000 Expected APR: 12% to 136% Credit score: At least 550 | |
Term loan limit: $500,000 Expected APR: 10% to 136% Credit score: At least 500 | |
Credit line limit: Up to $100,000 Expected APR: 0% to 29% APR Credit score: At least 640 for best rates |
Bottom Line
Lines of credit can be helpful for business owners to expand their business or handle seasonal expenses. BlueVine and OnDeck are two great online providers of business lines of credit if you need up to $250,000 in financing. BlueVine is our best overall business line of credit and the business line of credit that we recommend for most small business owners.
BlueVine offers businesses lines of credit up to $250,000 and repayment terms up to 12 months with credit scores as low as 600 needed to qualify. BlueVine also offers competitive rates for all but prime borrowers, making it a better option for most small business owners. If you’re thinking about getting a line of credit for your business, be sure to visit BlueVine.
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