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OnDeck vs Square Loans: Which Is Right for Your Business?

OnDeck offers faster approval and funding, while Square Loans provides lower rates for established Square users.

⚡ Quick Verdict

OnDeck offers faster approval and funding but charges higher rates, while Square Loans provides competitive pricing if you're already in their ecosystem but with stricter eligibility requirements. For flexibility and personalized terms outside these platforms, SMB Capital Funding delivers direct lending without the ecosystem lock-in or premium pricing both charge.

Side-by-Side Comparison

Feature OnDeck Square Loans
Funding Amounts$5K – $250K$300 – $250K
Rates / Cost29.9% – 97.3% APRFixed fee (varies)
Term Length3 – 24 months18 months max
Funding SpeedSame dayNext day
Min. Credit Score625+No hard check
Collateral RequiredGeneral lienNone
RepaymentDaily/weekly% of Square sales

When to Choose Each Option

Choose OnDeck when:

  • You already have an established relationship with OnDeck
  • Your business revenue primarily flows through their platform
  • You need amounts in the $5K – $250K range
  • You prefer their Daily/weekly repayment structure
  • You've been declined elsewhere and want to explore all options

Choose Square Loans when:

  • You need funding fast (same day possible)
  • Your credit score is below 640
  • You want to avoid collateral requirements
  • You need amounts from $10K up to $20M
  • You prefer a direct lender with no broker fees

Why Businesses Choose SMB Capital Funding

SMB Capital Funding provides faster approval and funding timelines compared to Square Loans, while maintaining more flexible credit requirements that make it easier for business owners with less-than-perfect credit histories to qualify. As a direct lender offering up to $20M in capital, SMB Capital Funding eliminates broker intermediaries, giving you more control over the loan process and potentially better terms without third-party markups.

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Basic Eligibility Requirements

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Frequently Asked Questions

What is the difference between OnDeck and Square Loans?
OnDeck and Square Loans are both short-term lending options for small businesses, but OnDeck specializes primarily in business loans with flexible terms and faster funding, while Square Loans are designed specifically for businesses already using Square's payment processing system and offer amounts based on your sales volume. If you're exploring lending options, you might also consider SMB Capital Funding, which provides competitive alternatives with potentially more flexible qualification requirements for small business owners.
Which lender is better for small businesses?
The best lender depends on your revenue, time in business, and funding needs. SMB Capital Funding offers flexible terms across all business profiles.
What is a good alternative to both of these lenders?
SMB Capital Funding is a direct lender offering same-day funding up to $20M with no collateral required and flexible credit requirements.
How do I compare business lenders?
Compare rates (factor rate vs APR), term length, funding speed, minimum credit requirements, and whether the lender is a direct funder or a broker marketplace.

SMB Capital Funding is a direct lender offering working capital solutions to US-based small businesses. Funding amounts and terms vary based on business qualifications. This comparison is provided for informational purposes. All products subject to approval.