Comparison: Funding Circle vs. OnDeck Small Business Loans

# Comparison: Funding Circle vs. OnDeck Small Business Loans

Starting a small business or expanding an existing one often requires significant financial investment. This is where small business loans come into play. Two prominent lenders in this space are Funding Circle and OnDeck. Each offers unique advantages and caters to different types of small businesses. In this comprehensive comparison, we will break down the key components, benefits, and differences between Funding Circle and OnDeck, helping you make an informed decision about which lender may be the best fit for your business needs.

## Overview of Funding Circle

Funding Circle is a peer-to-peer lending platform that specializes in offering loans to small businesses. Established in 2010, it has expanded its services across multiple countries, including the United States, the United Kingdom, Germany, and the Netherlands.

### Key Features and Benefits

Fixed Monthly Payments: Funding Circle offers structured repayments, making it easier to manage your cash flow.

Competitive Interest Rates: With annual percentage rates (APR) typically ranging from 4.99% to 27.79%, Funding Circle provides competitive rates compared to traditional lenders.

Loan Amounts: They offer loan amounts between $25,000 and $500,000.

Term Lengths: Loan terms range from six months to five years.

Quick Turnaround: Funding Circle often provides funding within a few days after the application is approved.

### Eligibility Criteria

To be eligible for a loan from Funding Circle, your business generally needs to meet the following criteria:

Minimum of two years in business

Personal credit score of at least 620

Annual revenue of at least $150,000

## Overview of OnDeck

OnDeck is an online lender that has been serving small businesses since 2007. The company offers two primary financing options: term loans and lines of credit. OnDeck is known for its speed and simplicity in providing loans.

### Key Features and Benefits

Fast Funding: OnDeck can provide funding as quickly as the same day the application is approved.

Flexible Loan Options: They offer both term loans and lines of credit, providing flexibility based on the business’s specific needs.

Loan Amounts: For term loans, amounts range from $5,000 to $250,000, while lines of credit can be between $6,000 and $100,000.

Term Lengths: Term loans can have repayment periods from three months to 24 months.

Loyalty Benefits: OnDeck offers rewards such as lower fees and interest rates for returning customers.

### Eligibility Criteria

OnDeck typically requires the following for loan approval:

Minimum of one year in business

Personal credit score of at least 600

Annual revenue of at least $100,000

## Comparing Funding Circle and OnDeck

### Interest Rates and Fees

Funding Circle: Offers APRs between 4.99% and 27.79%. Fees include an origination fee of 3.49% to 6.99%.

OnDeck: The interest rates are higher, typically between 11.89% to 98.31% APR. However, for repeat customers, OnDeck might offer better rates. Fees can include an origination fee of 2.5% to 4%.

### Loan Products

Funding Circle: Primarily offers term loans with fixed interest rates and monthly payments.

OnDeck: Provides term loans and lines of credit, which offer more flexibility in how you manage borrowed funds.

### Speed and Ease of Application

Funding Circle: The application process is straightforward but may take a few days to get funded after approval.

OnDeck: Known for its quick application process and same-day funding for approved loans, making it ideal for businesses needing immediate financing.

### Customer Service and Reviews

According to customer reviews on platforms like Trustpilot:
Funding Circle: Generally receives high marks for customer service and transparency.

OnDeck: Also scores well in customer service, with many reviews highlighting the ease and speed of obtaining a loan.

## Which One Should You Choose?

### Choose Funding Circle If:

Your business has been operational for more than two years.

You seek fixed monthly payments and predictable cash flow.

You’re looking for a loan anywhere between $25,000 to $500,000 with competitive APRs.

### Choose OnDeck If:

Your business needs immediate financing.

You prefer having the flexibility of both term loans and lines of credit.

Your business has been operational for at least one year, and you are okay with potentially higher interest rates for faster funding.

## Conclusion

Both Funding Circle and OnDeck offer valuable lending solutions tailored to different business needs. Funding Circle is ideal for established businesses seeking competitive rates and structured payments, whereas OnDeck serves businesses that require quick funding and flexibility.

To make an informed decision, consider your business’s specific requirements, including how quickly you need funds, your ability to meet the eligibility criteria, and your preference between fixed terms and flexible lines of credit.

For more detailed comparisons, check trusted financial resources like [NerdWallet](https://www.nerdwallet.com/) and [Business News Daily](https://www.businessnewsdaily.com/). Choosing the right lender can make a significant difference in the financial health and growth potential of your business.