
Sign up & start saving!
Get our weekly newsletter for the latest in money news, credit card offers + more ways to save
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Not too long ago you had to go to the bank to get a business loan. Today, you can often search, apply and receive your funding online. With faster turnover and competitive rates, online lenders are becoming increasingly popular among small businesses.
We compare two options — OnDeck and Prosper — to help you decide which could be a better choice for your business’s needs.
![]() | ![]() | |
---|---|---|
Funding speed |
| |
Reputation |
| |
Lending limits |
| |
Costs |
| |
Go to site |
OnDeck is an online business lender offering term loans and revolving lines of credit to small businesses. It’s main selling point is speed. And for good reason: It can get you funding in as little as 24 hours.
On the other hand, Prosper is an online peer-to-peer lender that provides access to personal financing. You can get personal loan through Prosper to cover small business costs. You’ll need a fairly high credit score to qualify, but you won’t find any business requirements to satisfy, making it ideal for startups or entrepreneurs having trouble qualifying for online business loans.
Personal loans vs. business loans
Prosper has higher credit requirements than OnDeck, but that’s it. Your business won’t need to make specific revenue or be around for many years, because you’re technically getting a personal loan.
However, borrowers living in one of Prosper’s restricted states or with a credit score that’s lower than 640 might want to consider an OnDeck business loan instead.
To qualify for a loan with OnDeck:
To qualify for a loan through Prosper:
OnDeck claims it can get you funding in as little as 24 hours after approval — which itself takes takes only a few hours.
Loans through Prosper can be funded 1 to 5 business days after approval. However, underwriting can sometimes take a week or more.
Both Prosper and OnDeck can get funds to you within a business day. But OnDeck wins with a faster process overall — from approval to funding.
Accredited by the Better Business Bureau (BBB) since 2008, OnDeck gets an A+ rating. It does just as well with customer reviews, scoring an average 9.4 out of 10 from Trustpilot users, 92% of whom rate it “Excellent.”
Prosper is also BBB-accredited, and it too gets an A+. It’s rated an average 7.3 out of 10 from a small pool of Trustpilot reviewers, of whom only 65% rate it “Excellent.”
Not only does OnDeck garner higher customer ratings, but there’s also more positive conversation about it online than Prosper.
You can take out loans of $5,000 to $250,000 with OnDeck.
Smaller loans are offered through Prosper than OnDeck, ranging from $2,000 to $40,000.
You’re more likely to find the loan amount you need with OnDeck — unless you want to borrow between $2,000 and $5,000. In that case, Prosper is your better bet.
OnDeck business term loans come with APRs starting at 35% and terms of 3 to 12 months. Its revolving credit lines have slightly higher APRs that start at 13.99%. But repayments are weekly, rather than monthly, which could get you in trouble if your business has a bad week.
Prosper’s APRs are typically lower than OnDeck’s, starting at . You can also pay off your loan over a longer period of time — from 3 years or 5 years. Longer-term loans might have lower monthly payments, but they’re more costly in the long run due to higher interest rates.
Loans through Prosper boast significantly lower APRs meaning it could potentially lead to a lower overall loan cost than OnDeck’s business loan.
Andrew started a graphic design company a year ago that’s growing faster than expected. To keep up with demand, however, he needs to hire more staff. His business is making enough money to cover three new salaries monthly, but not enough to cover the new computers and software he’ll need to support them.
He looks into taking out a loan of $8,000 to cover immediate expenses. Without enough of a business track record to qualify for a bank loan, he restricts his search to online lenders and applies for preapproval with OnDeck and Prosper.
Here’s how the rates and terms he’s ultimately extended compare:
OnDeck | Prosper | |
---|---|---|
Loan term | 2 years | 3 years |
APR | 12% | 8% |
Total cost | $9,038.11 | $9,024.87 |
Monthly payment | $376.59 | $250.69 |
Going with Prosper is a no-brainer for Andrew. Not only will he save more on monthly payments and his total loan cost, but he also isn’t required to submit as much paperwork and documentation to qualify.
Another concern: OnDeck’s weekly micropayment system. He plans to make some big purchases in the near future, and expects his business bank account to be short for a week or two.
Whether OnDeck or Prosper is better for your needs depends on your business priorities. Business owners concerned with speed and credit requirements might do better with OnDeck. Those worried about costs above all else might want to go a loan through Prosper.
LoanBuilder vs. OnDeck | |
BlueVine vs. Fundbox | |
Fundbox vs. Kabbage | |
Kabbage vs. OnDeck | |
OnDeck vs. LendingClub |
Compare minimum credit requirements with 9+ lenders and who gets the best rates.
How a peer-to-peer pioneer and a highly rated direct lender stack up.
Compare these two online lenders to figure out which one could help you the most.
Not sure you want to borrow from Upgrade? Check out seven similar personal loan providers that might be a better fit.
A lot of dealer finance options can seem like the better deal when you’re reviewing the terms — and the same can be said about car loans. But which one is really the better option?
Just because you don’t work a 40-hour week doesn’t mean you can’t get a personal loan. Find out what you need to apply online and what your options are.
Learn how you can verify your income and increase your chances of approval — even if you’ve only been working a few months.
See which business lenders could get you approved funds the fastest. Turnaround times as short as one day.
Find out which lender is better for your business needs on cost, funding speed and more. See how others rate these two lender’s services online.
These two online business lenders come with slightly different fee structures and funding requirements. Find out which is better for your financing needs.