Business Lending Simplified: Your Financing Options At OnDeck

Business lending is a type of financial support for businesses that meet various needs, such as equipment financing or managing day-to-day operations. This financial lifeline is crucial for businesses, especially during growth phases or cash flow crunches where unexpected cash gaps might occur.

With a wealth of alternative business financing options available in the market today, both big and small business finance options are also more accessible than ever. This is why understanding commercial lending and business finance options available to you is important: it will allow you to strategically fuel growth and compete in a competitive market in ways best suited to your business needs.

With OnDeck, navigating business lending is a straightforward and efficient experience. As a recognised premier online lender in Australia, we bring years of experience to the table, offering both big and small business loans to a wide range of borrowers in the country.

Frequently Asked Questions (FAQ)

What is the difference between a term loan and a line of credit?

A term loan, or simply a loan or business loan, is a type of credit product that provides working capital in the form of a lump sum, which is then repaid over a fixed period with scheduled payments and set business loan interest rates. A finance loan is generally ideal for one-time investments or expenditures.

A line of credit, meanwhile, offers a flexible credit limit that can be drawn from as needed, with interest typically charged only on the amount used. You can borrow up to the provided limit, after which you’ll need to repay what you’ve borrowed to draw against it again.

A business line of credit is suitable for ongoing operational expenses or managing cash flow, but different lenders may have unique or stringent requirements for qualifying for this type of credit, especially when it comes to business lending. On the other hand, term loans are structured with comparatively predictable repayment schedules and clearly outlined requirements and borrower obligations.

We at OnDeck understand that every small business has unique financial needs, which is why we developed our Lightning Loans®. To check if you qualify for a Lightning Loan, you will need to provide six months of recent business bank statements for assessment.

If small business loans are not sufficient for your business needs, we also offer more robust SME loans in the six-figure range via our Lightning Loans Plus, which have the additional qualifying requirement of your most recent year’s accountant-prepared financials (within the past twelve months).

How can I compare different business loan offers?

Say you need a new business loan. As a business owner, you’ll want to compare business loans before committing to an application.

When comparing different business lending offers, we recommend evaluating the interest rates, loan terms, repayment schedules, and any associated fees offered by your chosen lender to get a good look at the total cost of the loan.

As an added step, look into your chosen lender’s reputation, customer service, and other offered credit products to determine that they’re what you need for your business. You could also consider how the loan repayment structure will affect your cash flow and if the possible repayments will be manageable if you are approved for a loan.

With OnDeck’s ‘Know Your Score’ tool and our Koala Score™, you can check your business credit score without immediately impacting it. Not only can you learn the health of your business without risking lowering your business credit score, but this credit score check is also safe, fast, and free. OnDeck will not obligate you to apply for a loan with us for using our ‘Know Your Score’ tool as well.

Complete your free business credit score check online and position your OnDeck loan application for better odds of approval. 

What are the advantages of getting a loan from an online lender versus a bank business loan?

When it comes to business lending, online lenders typically offer a faster online business loan application and approval process than traditional banks, which in turn allows businesses to access funds more quickly (provided their applications are approved).

Generally, these loan companies have less complex eligibility requirements compared to traditional lenders, making it easier for businesses with less established credit histories to access business lending options.

Additionally, online lenders typically provide a convenient and user-friendly application process, managing the entire process digitally.

To apply for a small business loan at OnDeck, you will need to provide six months’ worth of business bank statements, as well as other required documents and information, such as personal details and your business’s relevant information. Depending on your chosen loan product, we may ask for additional requirements unique to that loan product to properly determine your eligibility for the loan.

Empower Your Business with OnDeck Loans

OnDeck specialises in driving small businesses in Australia towards their next phase of growth with our tailored financing solutions. 

We’ve designed our eligibility criteria to be inclusive, requiring a minimum of one year in business, an annual turnover minimum amount, a clean financial history, and a minimum required business credit score. You can apply for and hear back on our Lightning Loans® in as little as thirty minutes and, if approved, have the borrowed funds transferred to your account in as little as two hours.*

Our innovative Koala Score™ also offers a unique credit scoring system developed exclusively for Australian businesses. Harnessing a wealth of data points and our extensive lending experience to provide a comprehensive view of your business’s financial health, the Koala Score™ allows us to extend more business lending options to more businesses than other lenders.

We’re here to empower your business to reach greater heights of success. Get started on your OnDeck application today.

This article is for general information purposes only. Content may belong to or have originated from third parties, and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. OnDeck is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how this information relates to your unique circumstances. OnDeck is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly by the use of this website.