AmEx vs. OnDeck Business Lines of Credit: Which Loan Is Best for Your Business?
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If you need financing to cover short-term needs, but can’t quite qualify for a traditional business loan, American Express and OnDeck are two good options. These online lenders offer lines of credit that can fund within days and come with a streamlined application process and minimal paperwork.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here’s how these two online business loans compare:
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:
| 35.9% to 84.9% 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. |
*The required FICO score may be higher based on your relationship with American Express, credit history, and other factors.
**All businesses are unique and are subject to review and approval.
American Express® Business Line of Credit details
American Express® Business Line of Credit*
$250,000
American Express offers the American Express® Business Line of Credit***, where each draw requires repayments over 6, 12, 18 or 24 months. Line of credit amounts range from $2000 to $250000, although only select borrowers who have a pre-existing relationship with American Express may borrow more than $150,000. Similarly, the 18- and 24-month loan terms are limited to those with pre-existing relationships with the lender.
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.
Total monthly fee structure makes it difficult to compare costs to other lenders.
Requires a higher minimum credit score than OnDeck.
Requires collateral.
Minimum qualifications
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
With the American Express® Business Line of Credit, you may be able to borrow as little as $2000 or as much as $250000. This gives small-business owners a more tailored solution for smaller and larger projects. In comparison, OnDeck’s line of credit loan amounts range from $6000 to $100000.
Low average monthly revenue requirement
American Express® Business Line of Credit requires just $3,000 or more in average monthly revenue, which is lower than OnDeck’s minimum revenue requirement of $8,333 per month. While all businesses are unique and are subject to review and approval, this lower monthly revenue threshold makes American Express a potentially better option for newer or seasonal businesses.
Read NerdWallet’s full American Express® Business Line of Credit review.
OnDeck business line of credit details
OnDeck - Line of credit
$100,000
OnDeck’s revolving line of credit option ranges from $6000 to $100000 and can be repaid over 12, 18 or 24 months. Payments must be made weekly or monthly.
Instant funding for withdrawals between $1,000 to $10,000.
Requires a lower minimum credit score than American Express.
Doesn’t require collateral.
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 qualifications
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
OnDeck’s line of credit option doesn’t require collateral, which means you don’t have to provide a business asset that OnDeck may seize and sell if you don’t repay your loan. This is especially helpful for small businesses that don’t have many tangible business assets, such as newer or online businesses.
Low minimum credit requirement
With OnDeck’s line of credit option, business owners may be able to get funding with a credit score as low as 625, making it a potential option for borrowers with bad credit. For more bad credit options, check out NerdWallet’s list of best bad credit business loans.
Read NerdWallet’s full OnDeck review.
Key similarities between AmEx and OnDeck
While there are some differences between American Express and OnDeck’s lines of credit, they share some features as well.
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.
Instant funding. Both OnDeck and American Express offer instant deposits for select borrowers, but restrictions may apply. For example, American Express borrowers must have an Amex® Business Checking account, while OnDeck only allows instant funding for draws between $1,000 to $10,000.
Multiple term options. Both lines of credit come with varying repayment term lengths, from six to 24 months. 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
To help you decide between American Express and OnDeck, here are some things to consider:
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.
Want more options? Check out NerdWallet’s list of the best business lines of credit.
** All businesses are unique and are subject to approval and review.
***American Express® Business Line of Credit offers two loan types, installment loans and single repayment loans for eligible borrowers. All loan term types, loan term lengths, and pricing are subject to eligibility requirements, application, and final approval. This article contains general information about the American Express® Business Line of Credit installment loan type only.
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