Compare OnDeck vs. LendingClub business financing

OnDeck

OnDeck offers secured business term loans and lines of credit at breakneck speeds online. It has relatively lax eligibility requirements, calling itself an alternative to banks and other traditional lenders.

Its quick turnaround can make it a solid option for business owners facing emergency expenses they aren’t prepared to pay off. However, its overall cost might make you look elsewhere.

LendingClub

LendingClub is an online peer-to-peer lender that connects you with funding, rather than provide the cash itself. It takes a hair longer to get funding from LendingClub than OnDeck, typically a few business days. And its lower rates and fees make it a bit more affordable — without weekly repayments.

It’s a bit harder to qualify for a LendingClub loan, but it’s still easier than getting a loan from a bank. You also don’t have to provide collateral for loans of under $100,000.

OnDeck

To qualify for a business loan with OnDeck, you must meet the following minimum requirements:

• Personal credit score of 500+
• Business age of at least one year
• Annual revenue of $100,000+
• You’re willing to provide a general lien on business assets

LendingClub

To qualify a business loan with LendingClub, you must meet the following minimum requirements:

• Fair or better personal credit
• Business age of at least two years
• Annual revenue of $75,000+
• You own at least 20% of the business
• No recent bankruptcies or tax liens
• You’re willing to provide a lien on business assets for loans of $100,000 or more

OnDeck

OnDeck offers lightning-speed loans, sometimes resulting in funding within 24 hours of approval.

LendingClub

While still fast, LendingClub typically disburses funds within a few business days.

OnDeck

OnDeck is accredited by the Better Business Bureau and gets an A+ rating. It also does well when it comes to customer reviews. Nearly 1,000 Trustpilot users give it an average 9.4 out of 10, with 92% of its users rating OnDeck as “Excellent.”

LendingClub

LendingClub is also BBB-accredited and gets an A+ based on BBB criteria. Only seven people have reviewed LendingClub on Trustpilot, which means its ratings don’t necessarily reflect the majority of its users’ experiences. These seven users give LendingClub an 8.1 out of 10, and 85% rate it as “Excellent.”

OnDeck

You can take out a fixed-term loan between $5,000 and $500,000 from OnDeck. Lines of credit go up to $100,000.

LendingClub

Fixed-term loans and lines of credit are both available in amounts ranging from $5,000 to $500,000 with LendingClub.

OnDeck

OnDeck business term loans come with APRs — meaning combined fees and interest — that start at 9.99%, with terms ranging from 3 to 36 months. Its APR includes an origination fee of 2.5% to 4%, taken from your funding before you even receive it.

Its revolving lines of credit are more expensive, with APRs starting at 13.99%. OnDeck also deducts automatic weekly payments from your business account, which can eat into your cash flow if you’re not careful.

LendingClub

LendingClub loans come with an origination fee of 0.99% to 6.99% and a total APR — meaning combined fees and interest — of at least 9.77%. Terms range from one to five years, meaning your payments might be lower but you could end up paying more overall interest than with OnDeck.

Its revolving lines of credit start at a competitive 7% APR and don’t require a monthly maintenance fee. You’ll pay a fee of 1% to 3% each time you take out money, however. And you have 25 months to pay back any amount you draw from your credit line.