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Equipment Financing vs OnDeck: Which Is Right for Your Business?

Compare Equipment Financing and OnDeck to find which funding option best matches your small business's speed, cost, and collateral needs.

⚡ Quick Verdict

Equipment Financing is ideal if you need to purchase specific machinery or assets and want predictable payments tied directly to that equipment's value, while OnDeck works better for businesses needing quick, flexible cash for general operations. SMB Capital Funding offers equipment financing with competitive terms and straightforward approval, giving you a reliable alternative to OnDeck's higher rates and shorter repayment windows.

Side-by-Side Comparison

Feature Equipment Financing OnDeck
Funding Amounts$10K – $5M$5K – $250K
Rates / Cost6% – 18% APR29.9% – 97.3% APR
Term Length12 – 60 months3 – 24 months
Funding Speed3 – 7 daysSame day
Min. Credit Score600+ preferred625+
Collateral RequiredEquipment itselfGeneral lien
RepaymentMonthly installmentsDaily/weekly

When to Choose Each Option

Choose Equipment 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 Equipment Financing and OnDeck?
Equipment Financing is a type of loan specifically designed to help you purchase machinery, vehicles, or other business equipment, where the equipment itself serves as collateral for the loan. OnDeck is a fintech lender that offers various types of short-term business loans and lines of credit with faster approval processes, but typically at higher interest rates. If you're looking for flexible funding options tailored to small business needs, you might also consider SMB Capital Funding, which can provide personalized lending solutions for equipment purchases or other business expenses.
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.