The 5 Best OnDeck Alternatives

LoanBuilder is a lending service that entered the PayPal fold in 2017. Borrowers benefit from a quick application process and customizable terms with LoanBuilder, although the service does not provide lines of credit. The primary focus of this lender is short-term loans of up to $500,000 with term lengths of 13 to 52 weeks.

With its fast application process and minimal borrower requirements, LoanBuilder makes a solid option for borrowers without perfect credit or a long time in business but who need money ASAP. LoanBuilder enables business owners to find out if they’re pre-approved for a loan — it just takes a few minutes. Borrowers can adjust their desired borrowing amount and term length once approved.

For rates, expect a number between 2.9% and 18.72% of the total borrowing amount. You’ll repay this fee in installments along with the principal. As a nice bonus, LoanBuilder doesn’t charge fees beyond the borrowing charge (such as origination or application fees).

2. Fundbox

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Fundbox is an online lender with a fast and automated application process. This lender initially offered unpaid invoice financing but later added lines of credit in 2017.

Fundbox boasts minimal borrower requirements. Here’s all that’s needed to qualify: a compatible business checking account, a business that’s been operational for at least three months, and $50,000 in annual revenue. This lender does not publicize a required credit score, but it does take a peek at your credit to help make lending decisions.

To check your eligibility, simply create an account, fill out a few questions, and authorize Fundbox for read-only access to your accounts. Because the application process is automated, you can typically determine your eligibility and rates within a couple of minutes.

New businesses that don’t qualify for other lenders will want to give Fundbox a good look. Note that because of its low borrower requirements, you may wind up paying higher fees than elsewhere. Still, Fundbox is worth considering if you have the right type of business.

Get Started with Fundbox

3. SmartBiz

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Get Started with SmartBiz

Most lenders on this list do medium- or short-term loans, which means they’re repaid in five years or less. SmartBiz is a little different. This company partners with banks to offer SBA loans, but it uses technology (and quality customer service) to speed up the notoriously slow SBA loan application process.

SmartBiz is still the slowest financier on this list — you’re looking at a funding time of anywhere between a week and three months — but it will be able to tell you whether you have a good chance of qualifying within a few minutes of applying. Additionally, it more than makes up for the somewhat slow process by providing low-cost, long-term loans — which you’re unlikely to find elsewhere.

With SmartBiz, you’ll find two types of SBA 7(a) loans on offer: one for working capital and debt refinancing, and the other for commercial real estate purchases. The former has a borrowing term length of 10 years, and the latter has a term length of 25 years. The APRs for both vary slightly, with 11.04% for working capital/debt refinancing and 7.43% for commercial real estate purchases. Both of these rates are extremely competitive in the world of small business loans.

The stats above represent the minimum requirements for the working capital/debt refinancing loan; qualification guidelines are a little more strict for the commercial real estate loan.

4. Fundation

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Fundation dishes out business term loans and lines of credit to eligible borrowers. Its term loans cap off at a maximum borrowing amount of 500K, while its lines of credit are limited to $150K. Interest rates for both products max out at 29.99%, which is, overall, lower than the products offered by OnDeck.

With a typical funding time of a week or less, Fundation’s application process might take a little more time to complete than OnDeck’s. However, you can typically get a quote within 24 hours of applying. So while Fundation might not be the best pick if you’re in urgent need of cash, the application certainly doesn’t take very long.

5. Credibly

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Get Started with Credibly

Credibly offers short-term loans as well as more traditional installment loans. Credibly has the shortest term lengths of any lender on this list — at a maximum, you’ll have to repay your loan in two years. That makes Credibly’s loans better suited for working capital needs or small business expansion projects.

While they can get a little expensive, Credibly’s fees are competitive with those of OnDeck and other similar lenders in the industry. And with a timeframe from application to getting funding of two to five days, you can expect the funds pretty quickly.