As we already mentioned, OnDeck and Funding Circle have quite a bit in common.
OnDeck and Funding Circle both fall into the category of online lenders (aka alternative lenders), and they both offer at least a couple business financing options. And business owners like them both―OnDeck and Funding Circle earn a 4.9 and 4.5 out of 5 on Trustpilot, respectively.1, 2
From there, though, things start to look pretty different.
For starters, OnDeck is what we call a direct lender―meaning you apply for a loan, get funded, and make loan payments through OnDeck. But Funding Circle is a lending marketplace. That means that when you submit an application, Funding Circle shops around for you to find the best funding options you can qualify for. Then you can choose from those options and get funded through a partner lender.
Now, that might not seem like an important difference, but it actually matters a lot.
Because with direct lending through OnDeck, you get exactly two funding choices (a term loan or line of credit) through one lender. But with marketplace lending through Funding Circle, you can choose from more funding options (including invoice factoring and merchant cash advances) from several lenders.
In other words, Funding Circle gives you more potential loan options than OnDeck does. But lending marketplaces have their drawbacks too―especially when it comes to time.
Funding Circle can take days to shop around for you, and then you still have to finalize your loan application after that. If you’re in a hurry to get funding, Funding Circle’s lending marketplace may be too slow for your needs.
OnDeck, on the other hand, can approve your application in just a few minutes (though we should note this isn’t guaranteed). And depending on the funding method you choose, you can even get your money the same day you apply.
But the biggest difference between OnDeck and Funding Circle? Their minimum business loan requirements.