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The 5 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. Founded 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. It’s quick, easy to qualify for, and provides multiple business financing products. Generally, OnDeck’s term loans or lines of credit only take a few minutes to find out if you qualify, and you receive your cash just days later.

This lender is not without its critics, however. OnDeck may be fast and convenient, but its loans have the potential to come with hefty fees. Plus 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 with the best OnDeck alternatives below. All these companies provide loans similar to OnDeck but might be able to grant 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.

Learn More About Our Top Picks

CompanySummaryNext Steps
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.

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

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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.

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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.

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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, so it's better suited for working capital needs or small business expansion projects.

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Read more below to learn why we chose these options.

1. LoanBuilder

LoanBuilder



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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).

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2. Fundbox

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.

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3. SmartBiz

SmartBiz



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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.

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4. Fundation

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.

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5. Credibly

Credibly



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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.

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Final Thoughts

Between these five lenders and OnDeck, you’ve got a good chance of finding financing that is right for your business. Each delivers different loan products; for instance, both Fundation and Credibly offer installment loans. OnDeck, Fundbox, and Fundation provide lines of credit. You can get short-term loans with OnDeck, Credibly, and LoanBuilder, while SmartBiz is the place to go for SBA 7(a) loans.

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

A Last Look At Our Top Picks

  1. LoanBuilder
    Summary - 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.
  2. Fundbox
    Summary - Fundbox is an online lender with a fast and automated application process. This lender originally offered unpaid invoice financing but later added lines of credit in 2017. Fundbox boasts minimal borrower requirements.
  3. SmartBiz
    Summary - 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.
  4. Fundation
    Summary - 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.
  5. Credibly
    Summary - 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, so it's better suited for working capital needs or small business expansion projects.
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 Business.com, among others. She has a BA in English from George Fox University and lives in the Pacific Northwest.
Bianca Crouse
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1 Comment

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.
    David

      This comment refers to an earlier version of this post and may be outdated.

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    Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.

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