The specs
OnDeckBank of America Business Loan
Product typeMulti-productMulti-product
Amount range$5K – $400K (term); $6K – $200K (LOC)$10K – $100K (Business Advantage LOC); $25K – $500K (term); $250K – $5M (SBA 7(a))
Cost (factor / APR)Term APR 27%+; LOC APR 30%+APR 7.5% – 17% (term + LOC, relationship-priced + Preferred Rewards discount); SBA Prime + 2.25 – 2.75%
Speed to fundSame-day for approved files5 – 10 business days (term + LOC); 30 – 90 days (SBA)
Min time in business12 months24 months
Min monthly revenue$8,000$20,000+/mo typical for unsecured products
Min credit score600+670+
Products
- Term loan
- LOC
- Business Advantage Credit Line
- Business Advantage Term Loan
- SBA 7(a)
- Equipment financing
- Commercial real estate
- Preferred Rewards for Business
Verdicts by use case
- Established BofA customer with Preferred Rewards status and 24+ months TIB — Winner: Bank of America Business Loan. As of 2026-06-28 BofA relationship-priced business term loans at 8 – 12% APR with Preferred Rewards discount applied materially undercut OnDeck's 27%+ term APR. For merchants who clear BofA's bar AND carry an established BofA Business Banking deposit relationship with Preferred Rewards status, BofA is structurally cheaper across all standard quotes — the cost gap (8 – 12% vs 27%+) is large enough that the slower timeline and heavier documentation are clearly worth absorbing for predictable working-capital needs.
- Newer business between 12 and 24 months TIB — Winner: OnDeck. BofA's 24+ months TIB floor declines sub-2-year merchants on unsecured products. OnDeck's 12+ months TIB floor is reachable for businesses in the 12 – 24 month window. For merchants in that band OnDeck is the only structural option in this pair, providing capital until the merchant can qualify for BofA pricing at month 24.
- Need cash this week — Winner: OnDeck. OnDeck funds same-day on approved files; first deals typically fund within 24 hours. BofA's bank-style underwriting takes 5 – 10 business days minimum. For genuine same-week capital needs BofA isn't an option regardless of Preferred Rewards status or relationship history. OnDeck's structural speed advantage matters most for opportunity-driven capital that can't wait the bank cycle.
- Larger term-loan deal sizes ($300K – $400K) — Winner: Tie. OnDeck's term loan ranges to $400K with 12 – 24 month amortization at 27%+ APR. BofA's Business Advantage Term Loan ranges to $500K at 8 – 14% APR (relationship-priced) over 36 – 60 months — materially cheaper on rate AND longer amortization. The tie is on access: BofA wins clearly for merchants who clear the 24+ months TIB and 670+ FICO bar with a BofA relationship; OnDeck wins clearly for merchants outside that profile. Within the BofA-qualifying universe BofA is the obvious better fit; within the OnDeck-only universe OnDeck is the only option.
- Sub-670 FICO merchant — Winner: OnDeck. BofA's 670+ FICO floor is firm for unsecured products. OnDeck accepts 600+ FICO with documented revenue strength. For merchants with personal FICO between 600 and 669 OnDeck is the only structural option in this pair. The credit-bar gap (600 vs 670) is the main reason OnDeck remains relevant even for established merchants who would otherwise fit a bank-product profile.
The honest takeaway
OnDeck and Bank of America Business Loan solve overlapping but distinct problems. The right choice depends on three things you already know about your business: how fast you need the money, how long you've been operating, and whether the capital need is one-time or recurring.
Frequently asked questions
- I'm a Platinum-tier BofA Preferred Rewards customer with 670+ FICO, 4 years TIB, $40K/mo revenue — does BofA clearly beat OnDeck for my $200K capital need?
- Yes, decisively. BofA Business Advantage Term Loan at 9 – 11% APR (with Platinum 0.50% discount applied) over 60 months on $200K vs OnDeck term loan at 27 – 32% APR over 24 months is roughly 18 – 23 percentage-points cheaper on a longer amortization with smaller monthly payments. The trade-off is timeline (BofA 5 – 10 days vs OnDeck same-day) and documentation (BofA requires full financials package, OnDeck takes bank statements). For predictable working-capital needs BofA wins decisively. Many merchants in this profile use OnDeck only as a backup for unexpected opportunity-driven capital where the 5 – 10 day BofA timeline is too slow.
- Can I refinance an active OnDeck term loan into a BofA term loan?
- Yes, if you qualify. A typical OnDeck term loan at 32% APR with 18 months remaining on a 24-month payback refinances into a BofA relationship-priced term loan at 9 – 13% APR (potentially 8.5 – 12.5% with Preferred Rewards) over 36 – 60 months — saving materially on cost-of-capital and extending amortization. BofA will pull business credit, see the active OnDeck debt, and underwrite the refinance as debt consolidation. Disclose proactively. The qualifying bar is firm (670+ FICO, 24+ months TIB, $20K+/mo revenue, established BofA deposit relationship). This is the standard healthy progression: OnDeck bridges through the bank-qualification window, BofA refinances once the merchant has the credit and trading history to clear bank underwriting.
- How does Preferred Rewards change the OnDeck-to-BofA calculus specifically?
- Preferred Rewards adds 0.25 – 0.75% APR discount on top of BofA's relationship-priced rack rate, depending on combined deposit + investment balances at BofA / Merrill (Gold $20K, Platinum $50K, Platinum Honors $100K). For an OnDeck-to-BofA refinance, the practical implication: a $200K refinance at 11% APR (BofA rack relationship pricing) over 60 months saves ~$3,500 vs a 10.5% APR with Gold discount, ~$7,000 vs 10.25% APR with Platinum, ~$10,500 vs 10% APR with Platinum Honors. The discount is meaningful but not transformative — the bigger value of Preferred Rewards for many merchants is the dedicated RM access at Platinum tier, which tends to surface harder-to-find quotes and faster underwriting on the same loan amount. For merchants with capacity to consolidate $50K+ in combined balances at BofA / Merrill the Preferred Rewards play is genuinely worth pursuing as part of the broader OnDeck-to-bank refinance strategy.