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OnDeck vs. Prosper: Which is better?

OnDeck provides larger business loans, but Prosper offers smaller personal loans with potentially lower APRs.

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By

Dhara Singh

Edited by

Holly Jennings

Updated

Fact checked

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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

OndeckProsper











Finder rating★★★★★ ★★★★★
Loan products offered
  • Term Loans
  • Line of Credit
  • Personal loans for small business costs, debt consolidation, home improvement, healthcare financing, vehicles and other purposes
Interest rates
  • Average is 55.9% to 56.1%. for term loans
  • 52.6% average APR for lines of credit
  • 8.99% to 35.99%
Fees0% to 4%1% to 9.99%
Loan amounts
  • $5,000 to $250,000 for term loans
  • $100,000 for a line of credit
  • $2,000 to $50,000
Turnaround time
  • Instant for line of credit
  • 1 business day for term loans
  • Minimum 1 business day after approval
Eligibility requirements
  • 1 year in business
  • 625 min. FICO score
  • $100K annual business revenue
  • Business checking account
  • Three months’ bank balance statement
  • Minimum 600 Credit Score
  • US citizen
  • Name
  • Address
  • DOB
  • US driver’s license or identifying documents
  • Proof of Income
Ratings
  • BBB star rating: A+
  • Trustpilot rating: 4.6
  • BBB star rating: A
  • Trustpilot rating: 4.6
State availabilityNot available in: Nevada, North Dakota, South DakotaNot available in: Iowa, North Dakota, West Virginia
Pros
  • Flexible repayment terms
  • Customizable weekly or monthly payments for line of credit
  • Reductions for origination fee if renewing the loan
  • Lower credit score requirements
  • Co-applicants accepted
  • No prepayment penalties
Cons
  • Limits of $10,000 for instant daily draws unless using ACH
  • Not available in all 50 US states
  • A late fee of $15 or 5% of the unpaid monthly amount
Read review
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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.

Compare other loans

Compare up to four lenders side by side to see how they stack up.

1 - 6 of 6
Updated regularly
Name Product USFBL Filter Values Min. Amount Max. Amount APR Requirements
Olympus Business Capital
Finder Score: 4.4 / 5: ★★★★★
Olympus Business Capital logo
$500
$250,000
Not stated
Been in business for 6 months registered with the state, active and open bank account in business name, have $10,000 of revenue each month
No credit needed. Funding up to $250,000 with a variety of finance options to best fit your business needs.
Go to site
Lendio business loans
Finder Score: 4.8 / 5: ★★★★★
Lendio logo
$1,000
$10,000,000
Varies by lender
Operate business in US or Canada for 6 months or more, have a business bank account, minimum 520 personal credit score, at least $8,000 in monthly revenue.
Submit one simple application to potentially get offers from a network of over 75 legit business lenders.
Go to siteMore Info
Fundera business loans
Finder Score: 4.9 / 5: ★★★★★
Fundera logo
$2,500
$5,000,000
Varies based on lenders
$60,000+ of annual revenue, 550+ personal credit score, in business for 6+ months
Get connected with short-term funding, SBA loans, lines of credit and more.
Go to siteMore Info
Fora Financial business loans
Finder Score: 4.5 / 5: ★★★★★
Fora Financial logo
$5,000
$1,500,000
Varies
6+ months in business, $25,000+ gross monthly sales, no open bankruptcies
Get qualified for funding in minutes for up to $1,500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.
Go to siteMore Info
National Funding business loans
Finder Score: 4.6 / 5: ★★★★★
National Funding logo
$5,000
$500,000
Undisclosed
In business 6+ months and make at least $250,000 in annual sales. Other loan types have additional requirements.
Working capital loans and equipment financing, some high-risk industries may be eligible.
Go to site
American Express® Business Line of Credit
Finder Score: 4.4 / 5: ★★★★★
American Express logo
$2,000
$250,000
N/A
Minimum FICO score of at least 660 at the time of application, have started your business at least a year ago, and an average monthly revenue of at least $3,000
Access lines of credit for your small business even if you aren't currently an Amex customer.
Go to siteMore Info
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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.

See how other lenders stack up

Holly Jennings's headshot
To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.
Dhara Singh's headshot
Written by

Writer

Dhara Singh was a freelance personal finance writer at Finder specializing in loans. Formerly she was a top 10 journalist at Yahoo Finance with more than 38+ million content views where she covered retirement and mortgages. She has also written for Bankrate, and CNET and continues to write for a variety of outlets, such as Investopedia and Worth magazine. Her articles focus on equipping readers with the right information and data so they can make the most informed decisions related to their finances. Dhara previously worked as an insights analyst for Finder’s PR team, where she started the Deadliest Cities to Drive series in 2018, connecting interesting data analysis to a suite of car insurance products. When she’s not writing, Dhara coaches small business owners through her Stories to Sales programs and empowers them to use their life experiences to help other people. She has also self-published a poetry book on Amazon called Tell her She’s Lovely. Dhara holds a B.S. in Finance and Supply Chain Management from Rutgers University and a M.S. in Journalism from Columbia University. See full bio

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