AmEx vs. OnDeck Business Lines of Credit: Which Loan Is Best for Your Business?
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
How much do you need?
AmEx vs. OnDeck overview
Feature | American Express® Business Line of Credit | OnDeck Line of Credit |
---|---|---|
Loan amount | $2000 to $250000 | $6000 to $100000 |
Repayment terms | 6, 12, 18 or 24 months. | 12, 18 or 24 months. |
Repayment costs | Total monthly fees incurred over the loan term range are:
| 40% to 91.1% APR. |
Minimum credit score | At least 660*. | 625. |
Minimum time in business | At least one year**. | 12 months. |
Minimum revenue requirement | At least $3,000 average monthly revenue**. | $8,333 monthly revenue. |
American Express® Business Line of Credit details
Pros
Higher and lower borrowing limits than OnDeck.
Monthly repayment schedule (as opposed to daily or weekly).
No prepayment penalties, account maintenance fees or draw fees.
Cons
Total monthly fee structure makes it difficult to compare costs to other lenders.
Requires a higher minimum credit score than OnDeck.
Requires collateral.
- Minimum FICO score of at least 660 at the time of application. The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
- Must have started your business at least a year ago.
- Average monthly revenue of at least $3,000.
- All businesses are unique and are subject to approval and review.
Where American Express stands out
Loan amount options
Low average monthly revenue requirement
OnDeck business line of credit details
Pros
Instant funding for withdrawals between $1,000 to $10,000.
Requires a lower minimum credit score than American Express.
Doesn’t require collateral.
Cons
Requires $100,000 in annual revenue, or about $8,500 per month (American Express requires $3,000 per month).
Likely more expensive than American Express.
- Minimum credit score: 625.
- Minimum time in business: 12 months.
- Minimum annual revenue: $100000.
- No bankruptcies in the past two years.
Where OnDeck stands out
No collateral required
Low minimum credit requirement
Key similarities between AmEx and OnDeck
- No prepayment penalties. Neither lender charges a prepayment penalty, which can help reduce borrowing costs if you decide to repay your loan sooner than the standard repayment term.
- Monthly repayment schedules available. Both lenders allow borrowers to make monthly payments on their loans, as opposed to daily or weekly payments only. Monthly payments can help keep the administrative burden of paying back a loan to a minimum and are generally better for managing your cashflow.
- Multiple term options. Both lines of credit come with varying repayment term lengths. Choosing a shorter repayment term can help reduce the overall cost of the loan, but monthly payments will be higher.
- Can be used to build business credit. Both American Express and OnDeck report loan payments to commercial credit bureaus, meaning that you can use these loans to build business credit.
What to consider when choosing between American Express and OnDeck
- How much funding you need. If you need more than $100,000, you’re better off going with American Express® Business Line of Credit, since it can provide up to $250000 in financing if you qualify.
- Your business revenue and personal credit score. American Express and OnDeck both require at least 12 months in business, but each have varying requirements around minimum personal credit scores and business revenue. For example, bad credit borrowers may be better off with OnDeck, while those with $3,000 to $8,500 in monthly revenue should consider American Express.**
- How much shopping around you want to do. If you’re still considering other business line of credit options outside of AmEx and OnDeck, you may want to prioritize OnDeck, since its traditional APR-based cost structure is easier to understand and compare against other lenders.