When it comes to financing, every small business has unique needs. A one-size-fits-all approach often falls short of meeting these diverse requirements. That’s why we’re excited to introduce our latest dual financing feature: a solution that combines the benefits of Fixed Term Loans or Flex Funds with the added flexibility of a Line of Credit. Let’s explore dual financing, its benefits, and how to qualify.
How Does Dual Financing Work?
Dual financing offers a blend of stability and adaptability. Depending on your needs, there are two primary options to consider:
Option 1 – Fixed Term Loans + Line of Credit: Designed for businesses that prefer a fixed and predictable repayment structure. Fixed Term Loans provide stability with their predetermined repayment plan, while a Line of Credit allows you to draw funds when you need them most.
Option 2 – Flex Funds + Line of Credit: Designed with seasonal businesses or those looking for a flexible repayment structure in mind. This combination gives you greater control over your financing with a repayment schedule that aligns with your cash flow patterns and business cycles.
*Fixed Term Loans and Flex Funds cannot be combined.
Let’s Cover the Basics
Before diving into the benefits, let’s review the basics of our product offering to help you determine the most suitable combination. Here are the key aspects of each financing solution:
1. Fixed Term Loans
- Receive the full financing amount upfront and repay it with fixed installments (daily or weekly) over a specified term.
- Ideal for long-term investments or larger expenses that require a substantial upfront amount.
- A good option if you clearly understand your funding needs and prefer a predetermined repayment plan.
- Up to $300,000 in financing.
2. Flex Funds
- Offers the full financing amount upfront, and repayment is based on a small percentage of your daily card sales.
- Benefit from a variable, daily repayment structure that seamlessly adjusts to your business’s revenue.
- Designed to provide flexibility and peace of mind to businesses with seasonal revenue fluctuations.
- Up to $300,000 in financing.
3. Line of Credit
- Offers the freedom to access funds when needed while paying interest only on the amount you borrow.
- Repayments are made through weekly fixed or variable repayments.
- Well suited for managing short-term cash flow needs, covering unexpected expenses, or immediate opportunities.
- Up to $300,000 in financing and withdraw as little as $500 right up to your limit.
The Benefits of Dual Financing in Action
1. Maintain Business Operations
Imagine you’re expanding your operations and need funds to buy new equipment. Fixed Term Loans are the perfect solution, as they cover the initial investment. But, as your equipment gets used, you may face unexpected maintenance costs that require your attention. With the support from a Line of Credit, you can tap into the available funds when needed, helping you maintain operations while you work through the temporary setback.
2. Simplified Repayment Structure
With dual financing, you can enjoy a simplified repayment structure that streamlines your financial management. No more juggling multiple accounts from different providers with varying repayment schedules. This makes it easier to monitor and manage your balances.
3. Customizable Loan Combinations
Design a combination that works for you and your business. With the ability to choose from our Fixed Term Loans, Flex Funds, and Lines of Credit products, you can create a personalized dual financing solution that aligns with your specific goals.
Interested in Learning More?
If you’re an existing customer, simply reach out to your Account Manager to find out if adding a Line of Credit to Fixed Term Loans or Flex Funds makes sense for your business. If you’re new to OnDeck Canada, click here to apply. Applying is 100% risk-free and will not impact your credit score. At a minimum, your business should meet the following criteria:
- Business must be based in Canada.
- Must have a business bank account with a Canadian financial institution.
- Must have a business history of at least six months with you as the business owner.
- Must make a minimum of $100,000 in annual sales.
Our dedicated team of Lending Advisors will help you determine the ideal product combination and repayment terms. Once funded, you can access and manage your funds online, track your balance, make payments, and monitor your repayment schedule.
The Bottom Line
Dual financing brings stability and flexibility together into a single, powerful solution. With the ability to secure Fixed Term Loans or Flex Funds for bigger investments, alongside a Line of Credit for short-term cash flow requirements, you have the perfect toolkit to propel your business growth. Explore the potential of this newest dual financing feature today and unlock a new level of financial flexibility in your business.
Want to know more? Get in touch with our Lending Advisors at (855) 704-7458 Monday through Friday from 9 a.m.-6 p.m. ET.