Editor's note:
This page includes information about the American Express® Business Line of Credit. The information about the American Express® Business Line of Credit has been collected by NerdWallet and has not been provided or reviewed by American Express. Some information may be outdated.
If you need financing to cover short-term needs but can’t quite qualify for a traditional small-business loan, American Express and OnDeck are two good options. These online lenders offer lines of credit that can fund within days. Both options also come with a streamlined application process and minimal paperwork.
Quick-decision guide: Choosing between American Express and OnDeck
Looking for the TL;DR on which line of credit may better suit your needs? Here’s what to know:
💸 If you need more than $100,000: Go with American Express® Business Line of Credit, which can provide up to $150,000. Select customers may even be eligible for up to $250000.
💳 If you have bad credit: OnDeck will be your best bet. The lender considers borrowers with personal credit scores as low as 625.
📉 If your monthly revenue is low: Try for the line of credit from American Express. The company requires at least $3,000 average monthly revenue (and obliges us to remind you that “all businesses are unique and are subject to review and approval”).
🛍️ If you’re shopping other options outside of AmEx and OnDeck: Prioritize OnDeck, since its traditional APR-based cost structure is easier to understand and compare against other lenders.
How much do you need?
AmEx vs. OnDeck overview
Feature | American Express® Business Line of Credit | OnDeck Line of Credit |
|---|---|---|
Loan amount | $2000 to $250000 | $6000 to $200000 |
Repayment terms | 6, 12, 18 or 24 months. | 12, 18 or 24 months. |
Repayment costs | Total monthly fees incurred over the loan term are:
| 39% to 99% APR. |
Minimum credit score | At least 660*. | 625. |
Minimum time in business | At least one year**. | 12 months. |
Minimum revenue requirement | At least $3,000 average monthly revenue**. | $8,333 monthly revenue ($100,000 annual revenue). |
*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
**All businesses are unique and are subject to review and approval.
American Express® Business Line of Credit details
American Express offers the American Express® Business Line of Credit, where each draw requires repayments over 6, 12, 18 or 24 months. Line of credit amounts range from $2000 to $250000, although only select borrowers who have a pre-existing relationship with American Express may borrow more than $150,000. Similarly, the 18- and 24-month loan terms are limited to those with pre-existing relationships with the lender.
Pros
Higher and lower borrowing limits than OnDeck.
Monthly repayment schedule (as opposed to daily or weekly).
No prepayment penalties, account maintenance fees or draw fees.
Cons
Total monthly fee structure makes it difficult to compare costs to other lenders.
Requires a higher minimum credit score than OnDeck.
Requires collateral.
Where American Express stands out
Loan amount options
With the American Express® Business Line of Credit, you may be able to borrow as little as $2000 or as much as $250000. This gives small-business owners a more tailored solution for smaller and larger projects. In comparison, OnDeck’s line of credit loan amounts range from $6000 to $200000.
Low average monthly revenue requirement
American Express® Business Line of Credit requires just $3,000 or more in average monthly revenue, which is lower than OnDeck’s minimum revenue requirement of $8,333 per month. While all businesses are unique and are subject to review and approval, this lower monthly revenue threshold makes American Express a potentially better option for newer or seasonal businesses.
Read NerdWallet’s full American Express® Business Line of Credit review.
OnDeck business line of credit details
OnDeck’s revolving line of credit option ranges from $6000 to $200000 and can be repaid over 12, 18 or 24 months. Payments can be made either weekly or monthly.
Pros
Instant funding for withdrawals between $1,000 to $10,000.
Requires a lower minimum credit score than American Express.
Doesn’t require collateral.
Cons
Requires $100,000 in annual revenue, or about $8,500 per month (American Express requires $3,000 per month).
Likely more expensive than American Express.
Where OnDeck stands out
No collateral required
OnDeck’s line of credit option doesn’t require collateral, which means you don’t have to provide a business asset that OnDeck may seize and sell if you don’t repay your loan. This is especially helpful for small businesses that don’t have many tangible business assets, such as newer or online businesses.
Low minimum credit requirement
With OnDeck’s line of credit option, business owners may be able to get funding with a credit score as low as 625, making it a potential option for borrowers with bad credit. For more bad credit options, check out NerdWallet’s list of best bad credit business loans.
Read NerdWallet’s full OnDeck review.
Similarities between AmEx and OnDeck
While there are some differences between American Express and OnDeck’s lines of credit, they share some features as well.
No prepayment penalties. Neither lender charges a prepayment penalty, which can help reduce borrowing costs if you decide to repay your loan sooner than the standard repayment term.
Monthly repayment schedules available. Both lenders allow borrowers to make monthly payments on their loans, as opposed to daily or weekly payments only. Monthly payments can help keep the administrative burden of paying back a loan to a minimum and are generally better for managing your cash flow.
Multiple term options. Both lines of credit come with varying repayment term lengths. Choosing a shorter repayment term can help reduce the overall cost of the loan, but monthly payments will be higher.
Can be used to build business credit. Both American Express and OnDeck report loan payments to commercial credit bureaus, meaning that you can use these loans to build business credit.
