BlueVine vs OnDeck: Who Offers the Best Line of Credit in 2018?

BlueVine vs. OnDeck Capital are online providers that offer business owners quick access to capital and competitive rates through business lines of credit. While OnDeck has the lowest possible cost for prime borrowers, BlueVine has the best business line of credit for most small business owners because of its higher limit and longer term.

When to Use BlueVine

BlueVine is our recommended business line of credit provider and should be used if you need more than $100,000 in short-term financing. BlueVine offers competitive qualification requirements and lines of credit that are larger and longer (up to $250,000 for 12 months). Most importantly, BlueVine offers competitive rates for most small business owners.

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When to Use OnDeck

OnDeck is the best business line of credit provider for prime borrowers who need quick access to up to $100,000 in capital. OnDeck typically charges 14% – 40% APR, so an OnDeck business line of credit can be cheaper than a business term loan for prime borrowers who can qualify for low rates and repay their loan quickly.

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When to Use an Alternative Option

Fundbox is another company that offers small business owners quick access to up to $100,000 in capital through a business line of credit. Repayment terms for Fundbox business lines of credit are 12 and 24 months. Fundbox charges higher line of credit fees than either BlueVine or OnDeck, but has no minimum revenue and no minimum credit score needed to qualify.

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Best Business Line of Credit: BlueVine vs OnDeck Capital

How We Evaluated BlueVine & OnDeck

Business lines of credit are great for business owners who want access to flexible credit to grow their business or manage seasonal expenses. We compared the business line of credit products from both BlueVine and OnDeck. The most important thing when deciding between the two is typically cost, which was one of the many things we considered.

To evaluate BlueVine vs. OnDeck, we looked at several factors, including:

• Terms – Repayment term and payment frequency
• Qualifications – Minimum credit score, revenue, and time in business to qualify
• Costs – Rates and fees for a business line of credit
• Application Process – Time to apply, get approval, and get your loan funded
• Customer Service – How a provider handles customer service
• Customer Reviews – A provider’s reputation and rating from customers
• Other Products – What other financing solutions a provider offers to help small businesses

Based on these criteria, BlueVine is our recommended line of credit provider for most small businesses, especially those that need a line of more than $100,000. However, OnDeck is a very good option for prime borrowers who qualify for lower rates as well as business owners who are still building their credit and need up to $100,000.

“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 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. Existing businesses undergoing expansion have working capital needs similar to start-ups 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

BlueVine vs OnDeck: Rates, Fees, & Costs

The costs of lines of credit for BlueVine vs. OnDeck vary significantly. There are big differences in rates and also other fee structures. BlueVine charges origination fees and wire fees, but doesn’t have prepayment penalties or unused credit fees. OnDeck has no prepayment, origination, or draw fees, but charges monthly maintenance fees instead.

BlueVine Business Line of Credit Costs

A BlueVine business line of credit has costs including:

• Interest: 0.3% – 1.2% interest per week (or roughly 16% – 62% APR)
• Origination Fee: 1.5% draw fee
• Wire Fee: $15 (ACH is free)
• Prepayment Penalty: None
• Unused Credit Fee: None

BlueVine computes interest on a weekly basis, but their stated interest rates of 0.3% – 1.2% per week equate roughly to 16% – 62% APR. Most customers should expect to pay a weekly average rate of 0.7%.

OnDeck Business Line of Credit Costs

A business line of credit from OnDeck has the following costs:

• Interest: 13.99% – 39.9% APR
• Origination Fee: None
• Monthly Maintenance Fee: $20 (waived for six months if you draw $5,000+ within five days of opening your account)
• Draw Fee: None
• Prepayment Penalty: None; payments are fully amortized

Unlike BlueVine, OnDeck provides interest rates on an annual basis. The average customer APR for an OnDeck line of credit is approximately 29%, but prime borrowers can qualify for rates as low as 13%—the best available among alternative business line of credit providers.

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 twelve months. The expectation is that businesses that use either provider want access to capital for expansion or other short-term projects and will repay their loans in a matter of months.

BlueVine Terms

BlueVine offers business lines of credit with the following terms:

• Repayment Term: Either six or twelve months
• Payment Schedule: Monthly (for 12-month loans) or weekly (for six-month loans)

Many online lenders require business owners to make weekly payments for lines of credit. In the case of BlueVine, business owners can enjoy a substantial advantage by moving from making weekly payments to making monthly payments if you utilize BlueVine’s 12-month line of credit.

OnDeck Terms

OnDeck offers terms including:

• Repayment Term: Lines of credit up to six months
• Payment Schedule: Weekly

While OnDeck offers a number of advantages for small business owners, the payment schedule is not one of them. Business owners who have small business lines of credit from OnDeck are required to make weekly payments

BlueVine vs OnDeck Capital: Qualifications

The minimum qualifications for lines of credit through BlueVine vs OnDeck are not very different. 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

BlueVine has minimum qualifications including:

• Credit Score: 600+ (check yours for free here)
• Time in Business: Six or more months
• Business Revenue: $10,000 or more per month

OnDeck Line of Credit Qualifications

OnDeck has the following minimum qualifications:

• Credit Score: 600+ (check yours for free here)
• Time in Business: 12 or more months
• Annual Business Revenue: $100,000 or more in the past 12 months

Based on these minimum qualifications, it is essentially a toss-up between OnDeck and BlueVine. It’s important to remember that if you just meet these minimum qualifications, you’ll likely only qualify for a business line of credit on the lower end of either company’s range. You will need better qualifications to borrow the maximum from either company.

BlueVine vs OnDeck: Application Process

The application processes for BlueVine vs. OnDeck Capital are relatively similar. Both companies are online providers that provide business owners with quick access to capital. BlueVine and OnDeck both have quick and easy applications, provide qualification decisions quickly, and fund loans in as quick as a day.

BlueVine Line of Credit Application Process

The process of getting a line of credit from BlueVine includes:

• Application Time: As quick as five minutes
• Loan Funding: One to three days

OnDeck Line of Credit Application Process

Getting a line of credit from OnDeck includes:

• Application Time: Five to ten minutes
• Loan Decision: Pre-approval within 10 minutes; full decision and funding within one to three days
• Loan Funding: One to three days

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 very responsive customer service teams.

BlueVine Customer Service

BlueVine’s reputation for customer service includes:

• Customer Service Teams: Extremely responsive
• Business Access to Capital: As quick as a few hours

OnDeck Customer Service

Customer service from OnDeck includes:

• Customer Service Teams: Responsive and helpful
• Business Access to Capital: As quick as 24 hours

BlueVine vs OnDeck Capital: Customer Reviews

Both OnDeck and BlueVine reviews generally have positive reviews as online providers of business loans. While there are some outliers for both—customers whose applications were denied or misunderstood the terms of their loans—customer experiences with both firms are generally positive.

BlueVine Customer Reviews

BlueVine has achieved a four-star BlueVine review from Fit Small Business based on more than 24 individual customer reviews. The company also has a five-star rating on Trustpilot based on nearly 700 individual reviews. Among the most frequently customer-cited benefits are strong, responsive customer service, and a lot of transparency on costs and fees.

OnDeck Capital Customer Reviews

OnDeck has a five-star OnDeck review from Fit Small Business after five reviews. The company also has a 9.7/10 rating on Trustpilot after more than 1,200 reviews and an A+ rating from the Better Business Bureau. The benefits most frequently cited by customers include fast access to funding and reliable customer service. OnDeck is also ranked as the Best Overall Short-Term Business loan provider by Fit Small Business.

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 that need longer access to capital.

BlueVine Invoice Factoring

Invoice factoring is a product that allows business owners to borrow against invoices that clients haven’t yet paid. Interest rates for invoice factoring are competitive with many business lines of credit and can be a great option for business owners who bill a lot clients and want access to their money before clients pay.

For more information, check out our guide to invoice factoring or our comparison of the best invoice factoring companies.

BlueVine’s invoice factoring product has the following terms:

• Loan Size: $20,000 – $5 million
• Minimum Credit Score: 530+ (check yours for free here)
• Advance Rate: 85% – 90% of invoice due
• Interest Rate: 0.3% – 1% per week
• Max Overdue Account: 12 weeks
• Wire Transfer Fee: $15 (no charge for ACH transfers)

Like with its line of credit, interest for BlueVine’s invoice factoring is also provided in weekly terms. However, invoice financing clients reportedly pay about 40% APR on average. If you bill a lot of clients on 30- or 60-day terms, invoice factoring can provide faster access to capital and help you grow your business.

OnDeck Term Loans

Unlike lines of credit, term loans are issued for longer periods of time and provide businesses with a more permanent financing partner. While lines of credit from BlueVine or OnDeck are only issued for up to six to twelve months, a term loan from OnDeck can be issued for up to three years for longer-term projects.

Term loans from OnDeck have terms including:

• Loan Size: Up to $500,000
• Loan Duration: Three to twelve months or 15 to 36 months
• Minimum Credit Score: 600+ (check yours for free here)
• Starting Interest Rates: 9% (short-term) or 9.99% (long-term)
• Origination Fee: 2.5% – 4%

Term loans can be used for everything from buying inventory to developing new product lines or finishing buildouts. If you’re borrowing money for a longer-term project or may have trouble repaying a line of credit within six months, you should consider a term loan instead. For more, you can see how OnDeck compares to Kabbage, a top competitor in the short-term small business loan space.

BlueVine & OnDeck Capital Competitors

Bottom Line

Lines of credit can be very helpful for business owners to expand their business or handle seasonal expenses. Small business will often have both a line of credit and business credit cards to maintain healthy working capital. 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 business 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 them 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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