Whether you’re looking to expand your business, stock up on inventory or simply increase cashflow for daily operations, you’ve likely thought about securing financing for your business. Like many small business owners, your first thought may be to turn to your bank for funds. However, you might be missing out by overlooking other lending options. In many cases, online lenders, such as OnDeck, could be a great fit for you and your business.
Founded in 2017 to support and empower small businesses, OnDeck is committed to serving customers with smart financing solutions and a personalized service. OnDeck has loaned over $13 billion to small business owners across the globe and is trusted by over 100,000 small businesses world-wide.
More Diverse Lending Options
Traditional banks generally offer just that, traditional lending options. Typically, banks offer basic loans, such as equipment loans, term loans and lines of credit. And, while they may offer lower rates, you may still want to take a look at online lending options to ensure that your business’ specific needs are being met.
OnDeck offers a wider variety of lending options with both flexible or fixed repayment options to choose from, depending on what makes the most sense for your business:
- Fixed Term Loans : A short-term infusion of capital to fund specific projects and purchases to drive your business forward. You pay a set amount for a fixed amount of time with the option to choose from daily or weekly repayments.
- Business Lines of Credit : A reliable, revolving access to working capital to help you manage your ongoing business needs. You pay only on what you borrow.
- Flex Funds : Aligned to work with your cash flow. Repayment is flexible, based on your daily card sales. You pay back faster when sales are strong, and benefit from smaller payments when they’re not. A great option for seasonal businesses looking to make the most out of their busy season.
An Easier Application Process
When applying for financing through a bank, it can be a weeks-long process that can require a fair amount of documentation. You may also have to take time out of your day to setup an appointment to meet with a loan officer in order to complete the application process. OnDeck’s online application process is completely different. We know you’re busy running your business and time is money, so we’ve streamlined our application to be easy and straightforward. It’s just as secure, but only takes a fraction of the time and effort. After all, you shouldn’t have to be a financial expert to complete a loan application. To help you compare, take a look at what you’ll need to complete a bank application vs. OnDeck’s:
Bank application requirements :
- A detailed business plan outlining why you are looking for a loan, what, if any, assets will be purchased with the proceeds from the loan, and how you expect the business to benefit from using the borrowed funds in this way.
- Business financial statements (possibly, going back three years) including balance sheets and profit & loss statements (P&L).
- Tax returns for both the business and the owners for the past three years.
- A debt schedule.
- Personal financial statements of all the business owners.
- The lease for the business premises, if applicable.
- Financial projections for three years showing what you expect revenue and expenses to be. You should also plan on having to demonstrate how those operations will make it possible to repay the proposed loan.
- Resumes for all business owners and key employees.
- Information about the assets to be purchased, including a copy of the sales contract or purchase agreement, if applicable.
OnDeck application requirements :
- Basic personal information about you, the owner (name, % of business owned, personal address, etc.)
- Information about the business (business name, address, average sales, etc.)
- Business bank statements
Faster access to funds
As a small business owner, it’s not uncommon to need funds quickly. Whether it’s to jump on a sudden opportunity, or you need a quick influx of cash to boost operations, trying to access the required capital in a timely manner can be stressful. In these situations, OnDeck is a great option. Banks can take weeks, or even months, to provide loans; OnDeck has the technology and expertise to get you your funds quickly. You can get a quote in minutes and funding in as fast as one business day post approval, ensuring that you never miss out on a growth opportunity due to lack of access to capital.
Higher Approval Rates
Banks have strict eligibility requirements when it comes to financing small businesses, so while their cost of borrowing is low, their approval rates can be as well. OnDeck evaluates your business differently. Unlike traditional banks who rely heavily on your credit score and collateral, OnDeck evaluates your business’ creditworthiness by looking at a variety of factors to determine the overall health of your business. There’s also no requirement to provide specific, upfront collateral to qualify for a loan. Although there is no guarantee that your business will be approved, OnDeck uses a combination of technology and real people so that we can say “yes” to more small businesses.
To be eligible for OnDeck’s financing programs, your small business should meet the following minimum criteria:
- Be in business for a least 6 months or more
- Have an average of $100K annual sales
- Have a Beacon Score of at least 600
- Have a business bank account
While the bank is a great financing solution for many, there is no “one-size fits all” solution for small business financing. It’s important to compare a range of funding options to ensure you find the best financing fit for your unique business needs. If your small business could use some working capital and you’ve been turned down by your bank or maybe you’re just looking to weigh your options, you may want to consider financing from OnDeck Canada.
Click here to see how much you may qualify for. There is absolutely no obligation to continue and applying will not impact your credit score.