OnDeck accepts borrowers with fair credit scores seeking larger business term loans and lines of credit. Prosper, on the other hand, offers fixed rate personal loans to similar borrowers with more flexible use guidelines but potentially higher origination fees. Being that Prosper is a personal loan provider, it may be best for business owners only looking to cover smaller business costs with a personal loan.
OnDeck vs. Prosper: A quick comparison
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Finder rating | ★★★★★ | ★★★★★ |
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Fees | 0% to 4% | 1% to 7.99% |
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State availability | Not available in: Nevada, North Dakota, South Dakota | Not available in: Iowa, North Dakota, West Virginia |
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OnDeck vs. Prosper: Which one’s better?
In the case of business financing, OnDeck may be a better option, as it offers more generous financing of up to $250,000 at a rapid 1-day turnaround. However, since both companies accept fair credit score borrowers, it really depends on what you plan to use the loan for. For smaller business expenses below $50,000, a personal loan from Prosper may be the more affordable option.
When to consider OnDeck
OnDeck is compatible with borrowers who want:
- Diversity of experience. OnDeck reports it has worked with 700 types of businesses, such as restaurants, auto repair shops and healthcare professionals, offering $15 billion in collective funding.
- Faster turnaround loan times. OnDeck promises funding instantly for its line of credit and one business day for its small business loans.
- Flexible payment schedules. Line of credit borrowers can customize their payments to a weekly or monthly schedule.
When to consider Prosper
Prosper is best for people who:
- Want smaller loan amounts. Prosper personal loans offer loans of up to $50,000, which may work well for business owners who don’t need a larger lump sum.
- Have lower credit profiles. Prosper states it accepts borrowers with a minimum credit score of 600 that pass other criteria.
- Seek a peer-to-peer lending experience. Prosper’s peer-to-peer lending service allows a borrower to customize their repayment options from 2 to 7 years.
The similarities
While OnDeck is specifically geared toward business owners and Prosper offers personal loans that can be used for business expenses, both are highly rated lenders that may approve lower credit score borrowers. Each offers financing to their clients in a fast turnaround time and with an origination fee attached.
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Alternatives to OnDeck and Prosper
Here are three alternative products similar to OnDeck and Prosper:
- Businessloans.com: If you have a low credit score, you’ll have more luck at Businessloans.com, as this marketplace has no major credit requirements.
- Biz2Credit: You can get a fast turnaround on loans up to $6 million with Biz2Credit.
- Sunwise Capital: This lender has a low revenue and credit score requirement.
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