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Revenue Based Financing vs OnDeck: Which Is Right for Your Business?

Revenue-based financing offers flexible repayment tied to sales, while OnDeck provides faster traditional loans for immediate cash needs.

⚡ Quick Verdict

Revenue Based Financing gives you capital without debt or equity dilution, making it ideal if you want to preserve ownership and only pay when business is strong, while OnDeck's term loans are simpler to understand but lock you into fixed monthly payments regardless of cash flow. SMB Capital Funding's RBF model works best for businesses with consistent revenue looking for flexible repayment aligned with actual performance.

Side-by-Side Comparison

Feature Revenue Based Financing OnDeck
Funding Amounts$25K – $2M$5K – $250K
Rates / Cost6% – 25% of revenue29.9% – 97.3% APR
Term LengthUntil repaid3 – 24 months
Funding Speed2 – 5 daysSame day
Min. Credit Score580+ preferred625+
Collateral RequiredRevenue rightsGeneral lien
RepaymentFixed % of monthly revenueDaily/weekly

When to Choose Each Option

Choose Revenue Based Financing 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

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

Why Businesses Choose SMB Capital Funding

SMB Capital Funding gets you funded faster than OnDeck with a streamlined process and direct lender expertise, eliminating middleman delays that broker platforms create. Unlike OnDeck's stricter credit requirements, SMB Capital Funding offers flexible underwriting and access to up to $20M in capital, giving you the funding options traditional lenders won't provide without unnecessary gatekeeping.

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Frequently Asked Questions

What is the difference between Revenue Based Financing and OnDeck?
Revenue Based Financing is a general funding method where you repay a percentage of your monthly revenue until a set cap is reached, offering flexible repayment tied to your business performance. OnDeck is a specific lender that offers various loan products including term loans and lines of credit, typically with faster approval times but fixed repayment schedules. If you're comparing funding options, you might also consider SMB Capital Funding, which offers alternative financing solutions designed specifically for small business owners looking for flexible terms and faster access to capital.
How quickly can I get funded?
SMB Capital Funding offers same-day to 48-hour funding for most products. Simply apply online and our team will reach out within minutes.
Is there a minimum credit score?
Most of our working capital products are available with a 550+ credit score. We look at your overall business health, not just your credit score.
Do I need collateral?
Most of our short-term business funding products require no collateral. Equipment financing uses the equipment itself as collateral.

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.