You’ve probably already noticed that OnDeck and BlueVine have a few key things in common.
They are, for example, both online lenders (as opposed to traditional lenders like banks or credit unions). They both offer fast financing, with funding turnaround in as little as 24 hours. Likewise, both OnDeck and BlueVine offer a business line of credit as one of their funding options. And both lenders have pretty positive customer reviews.
So at first blush, both lenders may seem like good fits for you. And honestly, they might be―but they have a few important differences that can help you make sure.
First off, OnDeck and BlueVine offer different financing options.
As we already noted, both OnDeck and BlueVine have business lines of credit, a type of revolving credit you can use to borrow money over and over again. (Think of a credit card, but designed for bigger expenses.) You can get a higher credit limit from BlueVine (assuming you qualify), but these credit lines otherwise look fairly similar.
OnDeck also offers term loans (technically short-term loans). These are classic small-business loans, which let you borrow a lump sum that you repay over time (plus interest). OnDeck offers larger loans than lines of credit, so its business loans may work better for certain bigger expenses.
BlueVine doesn’t have term loans (at least not anymore), but it does offer invoice factoring. Invoice factoring lets you use unpaid invoices as collateral for financing. You get a percentage of the invoice’s value (85% to 90%, in BlueVine’s case) right away, and you get the rest (minus weekly fees) when your client pays the invoice. Of course, invoice factoring only works for businesses that do invoicing―so usually B2B businesses.
So OnDeck has loans and lines of credit, while BlueVine has lines of credit and invoice factoring. But how do you qualify for these different products?