OnDeck vs Kabbage: Which Business Lender Is Better?

OnDeck and Kabbage are two of the most recognized names in online small business lending. Both offer fast funding with less paperwork than traditional banks, but they differ in product structure, pricing, and who they serve best.

Kabbage was acquired by American Express in 2020 and now operates as American Express Business Blueprint. The brand and product have changed significantly. OnDeck continues as an independent online lender focused on term loans and lines of credit.

Here is how they compare on the details that matter.

Products Offered

OnDeck offers two main products:

• Term loans: $5,000-$250,000, repaid over 12-24 months with fixed daily or weekly payments
• Line of credit: $6,000-$100,000, draw as needed, pay interest only on what you use

Kabbage (American Express Business Blueprint):

• Line of credit: $1,000-$150,000, repaid over 6, 12, 18, or 24 months per draw
• Term loans are no longer a primary product since the American Express transition

If you need a lump-sum term loan, OnDeck is the clearer option. If you want a flexible credit line with the backing of a major financial brand, Kabbage/Amex may be a better fit.

Interest Rates and Cost

OnDeck:

• Term loan APR: 29.9%-97.3% (varies by creditworthiness and term)
• Line of credit: starting around 35% APR
• Origination fee: 0%-4% on term loans
• Example: A $75,000 term loan at 40% APR over 18 months costs roughly $22,500 in interest, with daily payments around $540

Kabbage/Amex:

• Monthly fees: 2%-9% of each draw, depending on repayment term
• No traditional APR disclosed (fee-based structure)
• Example: Drawing $50,000 with a 3% monthly fee on a 12-month repayment costs $18,000 in total fees, or about $5,667/month in payments

Neither lender is cheap compared to SBA loans or traditional bank lines of credit. Both serve the “speed and accessibility” end of the market.

Qualification Requirements

Kabbage has a lower revenue threshold ($36K vs $100K), which opens the door for smaller or newer businesses. OnDeck’s higher minimum targets more established operations.

Funding Speed

Both platforms emphasize fast funding:

• OnDeck: Approval in minutes, funding as fast as same day for returning borrowers. First-time borrowers typically see funds in 1-3 business days.
• Kabbage/Amex: Approval in minutes, funds available same day in many cases. Draws from an existing line hit your account quickly.

For repeat borrowing, Kabbage’s credit line model is faster since you draw from an already-approved pool. OnDeck’s term loans require a new application each time.

Repayment Structure

OnDeck collects daily or weekly automatic payments from your business bank account. A $50,000 loan repaid over 12 months means roughly $230/day or $1,150/week withdrawn automatically. This is predictable but reduces your daily cash position.

Kabbage/Amex charges fixed monthly payments per draw. A $30,000 draw on a 12-month repayment is about $2,500-$3,200/month depending on the fee rate. Monthly payments are less disruptive to daily cash flow than daily debits.

Who Each Lender Is Best For

Choose OnDeck if:

• You need a specific lump sum ($25K-$250K) for a defined purpose
• Your annual revenue exceeds $100,000
• You prefer knowing the exact total cost upfront
• You have dealt with online lenders before and understand daily repayment

Choose Kabbage/Amex if:

• You want ongoing access to a credit line for recurring needs
• Your revenue is lower ($36K-$100K range)
• You prefer monthly payments over daily debits
• You want the infrastructure of American Express behind the product

How Both Compare to MCA

Neither OnDeck nor Kabbage is a merchant cash advance, though they serve a similar market. Key differences:

• MCA factor rates (1.20-1.50) translate to higher effective APRs but repayment adjusts with daily sales volume. OnDeck and Kabbage use fixed payments regardless of how your business is performing that week.
• MCA qualification is easier — most providers approve with 500+ credit scores and $10K+ monthly revenue, lower thresholds than either OnDeck or Kabbage.
• MCA speed is comparable at 1-3 days, but MCA requires less documentation.

If your credit score is below 625 and you need money this week, an MCA is likely your best option. If you qualify for OnDeck or Kabbage, their products may cost less depending on the amount and term.

The Bottom Line

OnDeck and Kabbage both fill the gap between slow bank loans and expensive merchant cash advances. OnDeck is stronger for one-time capital needs over $50,000. Kabbage works better as an ongoing credit facility for smaller, recurring draws. Neither is the cheapest way to borrow, but both deliver speed and accessibility that traditional lenders cannot match.

Compare actual offers from both before committing. Request quotes from each, calculate the total repayment on the same dollar amount, and pick the one where the total cost and payment structure fit your cash flow.

Learn More

• other MCA alternatives
• understanding factor rates
• true cost comparison
• our MCA calculator
• browse MCA providers

Ready to Explore Your Options?

Compare MCA providers side-by-side, calculate your costs, or take our 60-second quiz to find the best funding match for your business. Ready to move forward? Apply for funding today.

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