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The 6 Best OnDeck Alternatives

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ondeck alternatives business loan

If you’re looking for a business loan, chances are you’ve come across the name OnDeck (see our review). Founded back in 2007, OnDeck was one of the first companies to offer fast, easy-to-access business loans. Although the company has more competition today, OnDeck is still one of the most well-known lenders available because it’s fast, easy to qualify for, and offers multiple business financing products. Generally, OnDeck’s term loans or lines of credit only take a few minutes to qualify for, and you receive your cash just a few days later.

This lender is not without its critics, however. OnDeck may be fast and convenient, but their loans have the potential to come with hefty fees, and the daily repayment schedule may be inconvenient for some businesses.

Whether you already use OnDeck and are looking for lower-cost alternatives, you’re shopping around, or some other reason, we’ve got you covered—here are the best OnDeck alternatives. All these companies provide loans similar to OnDeck, but might be able to offer you lower fees, more convenient repayment options, or products better suited to your business.

Who knows? Maybe one of these funding companies can bring your business to the next level.

Most Similar To OnDeck: Lending Club & StreetShares

Looking for lenders similar to OnDeck? Look no further than StreetShares or Lending Club. Like OnDeck, Lending Club and StreetShares offer business term loans, and the latter also offers lines of credit. Both serve a similar demographic, but might be able to offer you rates and fees that are similar to or better than OnDeck’s.

Unfortunately, Lending Club and StreetShares do have higher credit requirements. If you have a credit score below 600, you’ll have to look at other lenders on this list for an OnDeck alternative. But if you do meet the credit requirements, read on for more information about each of these companies:

lending club logo
Borrower requirements:
• In business at least 12 months with $50K annually
• Owner has at least fair credit

Founded at about the same time as OnDeck, Lending Club (see our review) is a big name in the lending world. Although the company is generally more known for offering personal loans, like most others on this list, Lending Club also offers business term loans. 

Capping off at about 36% APR, Lending Club’s rates are better than those of some other lenders on this list (though the rates and fees you’re personally offered will vary between lenders). Additionally, Lending Club is one of the few lenders that offer monthly repayments, which might appeal to a lot of borrowers.

Lending Club’s application to funding time is typically a week or two. Check out our full Lending Club review for more information.

Streetshares logo
Borrower requirements:
• In business at least 12 months with $25K in annual revenue
• Owner’s personal credit score is 620 or above

StreetShares (see our review) is a peer-to-peer lender that offers term loans, lines of credit, and contract financing to eligible businesses.

Note that the above borrower requirements do not apply to contract financing (a type of invoice factoring). Check out our full StreetShares Review for more information on that service.

On paper, the rates for the term loans offered by StreetShares tend to be a little better than OnDeck’s — you’re looking at APRs between 7% and 39.9%, as opposed to OnDeck’s 6% to 99%. Borrowers might also like that StreetShares requires weekly payments instead of daily. On the other hand, you might not be able to borrow as much money from StreetShares; the total possible borrowing amount caps at $100K, whereas OnDeck’s maxes out at $500K.

That said, for their lines of credit, both company’s rates cap off at 39.9%. They both offer maximum credit lines of $100K and require weekly repayments. If you’re choosing between either lender’s credit lines, you might want to get quotes from both before deciding on a service.

Check out our StreetShares Review for more information on this lender.

For Merchants Who Don’t Qualify For OnDeck: Credibly

If your business doesn’t yet qualify for an OnDeck loan (which requires at least 12 months in business and an annual revenue of $100K), Credibly might be your best bet.

Borrower requirements:
• In business at least 6 months with $15K in monthly revenue
• Owner’s personal credit score is 500 or above
Visit the Credibly website

Credibly (see our review) offers short-term loans and more traditional installment loans. The fees for short-term loans function a little differently than they do with traditional loans, so if you’re interested in Credibly, you might want to become familiar with this type of product.

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 time from application to funding of two to five days, you can expect the funds pretty quickly.

Head over to our full Credibly Review for the complete picture on this lender.

For PayPal Users: PayPal Working Capital

Naturally, PayPal Working Capital is only available to merchants with a Business or Premier PayPal account. If that’s you, you might be able to borrow up to 25% of your annual PayPal sales within a few minutes.

PayPal review
Borrower requirements:
• In business at least 3 months with either $20K in annual revenue (for a PayPal Premier account) or $15K in annual revenue (for a PayPal Business account)
• No credit score requirements

OnDeck may be fast, but you can’t get any faster than PayPal Working Capital (PPWC) (see our review). The PPWC application is completely automated, which means the system will come to a lending decision within a few minutes from submitting your application; if you’re approved, funds are deposited in your PayPal account almost instantaneously. Although the fees can vary quite a bit, they’re generally very reasonable, and you will be able to choose from multiple offers so you get the one that works best for your business.

This service is not without its downsides, however. Merchants report unexplained or unwarranted denials and no way to reverse those decisions because the system is automated. If you’re having trouble getting an acceptance, we’ve included a troubleshooting section in our full PayPal Working Capital Review.

For Merchants Who Are Overqualified For OnDeck: Fundation & SmartBiz

According to the company’s website, the average OnDeck borrower has a well-established business. Merchants who fit that profile might discover that OnDeck is the right lender for them. On the other hand, seasoned businesses also have a lot of other options to choose from. Two excellent options for well-established businesses are Fundation and SmartBiz.

fundation logo
Borrower requirements:
• In business at least 12 months with $100K in annual revenue
• Owner’s personal credit score is 660 or above
• At least 3 full-time employees, including the business owner(s)
Check your eligibility with Fundation

Fundation (see our review) offers business term loans and lines of credit to eligible borrowers. Both their term loans and lines of credit cap off at a maximum borrowing amount of $300K. Additionally, interest rates for both products max out at 29.9%, which is overall lower than the products offered by OnDeck.

With a typical time to funding 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.

Visit the Fundation website via the link above to check if you’re qualified, or head over to our full Fundation Review to learn more about the company.

smartbiz logo
Borrower requirements:
• In business at least 2 years
• Owner’s personal credit score is 600 or above
• No specific revenue requirements
Visit the SmartBiz website

Most borrowers on this list offer medium- or short-term loans, which means they’re repaid in 5 years or less. SmartBiz (see our review) is a little different. This company partners with banks to offer SBA loans, but 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 time to funding of anywhere between a week and three months — but they will be able to tell you whether you have a good chance of qualifying within a few minutes of applying. Additionally, they more than make up for the somewhat slow process by providing low cost, long-term loans which you’re unlikely to find elsewhere.

In particular, SmartBiz offers two types of SBA 7(a) loans: 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 cap off at a mere 8.95%, which is by far the lowest on this list.

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. For more details, read our full SmartBiz Review.

Final Thoughts

Between these six lenders and OnDeck, you’ve got a good chance of finding financing that is right for your business. Each offers different loan products; if you don’t know which is right for you, here is more information on each one:

Don’t see anything you like? Your next stop is our small business loan comparison chart or our business line of credit comparison chart.

Bianca Crouse

Bianca Crouse

Bianca Crouse has been writing about business loans and finance for three years. In addition to Merchant Maverick, she has appeared in Startup Nation and, among others. She has a BA in English from George Fox University and lives in the Pacific Northwest.
Bianca Crouse
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Responses are not provided or commissioned by the vendor or bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the vendor or bank advertiser. It is not the vendor or bank advertiser's responsibility to ensure all posts and/or questions are answered.

    David Bruhwiler

    LendingClub no longer offers lines of credit.

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