The specs
OnDeckBeacon Funding
Product typeMulti-productTerm
Amount range$5K – $400K (term); $6K – $200K (LOC)$5K – $500K (equipment); $250K+ on documented collateralized deals
Cost (factor / APR)Term APR 27%+; LOC APR 30%+APR 8% – 30% depending on file grade and equipment class
Speed to fundSame-day for approved filesSame-day app-only sub-$150K; 3 – 7 days documented deals
Min time in business12 months0 months
Min monthly revenue$8,000Not strictly required — underwrites on equipment + experience
Min credit score600+600+
Products
- Term loan
- LOC
- Equipment financing
- Equipment leasing
- Working capital (limited add-on)
Verdicts by use case
- General working capital and LOC — Winner: OnDeck. OnDeck offers term loan + LOC for general working capital uses. Beacon is equipment-finance only — no general working capital product. For non-equipment uses, OnDeck is the only realistic option.
- Equipment purchase (trucking, tow, vocational) — Winner: Beacon Funding. Beacon's equipment-finance specialty with trucking and tow vertical depth funds at 8 – 16% APR collateralized by the asset. OnDeck term loan at 27%+ APR is materially more expensive for asset-secured uses. For known equipment, Beacon wins outright on cost.
- Start-ups (0 – 12 months TIB) — Winner: Beacon Funding. Beacon accepts 0 TIB start-ups when applicant has industry experience plus strong personal credit. OnDeck requires 12+ months. Sub-12-month businesses are Beacon-only in this pair.
- Same-day funding on approved file — Winner: Tie. Both offer same-day funding on approved files — OnDeck on term loan + LOC, Beacon on app-only equipment sub-$150K. Compare on the product matching your use.
- Larger deal size ($300K+ general working capital) — Winner: OnDeck. OnDeck term loans go to $400K with general-purpose deployment. Beacon's $500K range is documented equipment only, not deployable for general working capital. For large general working capital, OnDeck wins.
The honest takeaway
OnDeck and Beacon Funding 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 an established trucking operator at $80K/mo needing $200K for two tractors — which?
- Beacon. Asset-secured equipment finance at 9 – 14% APR over 60 months is far cheaper than OnDeck's 27%+ APR term loan for the same deal. The tractor titles serve as collateral, lowering Beacon's risk and the borrower's cost. Use OnDeck only if Beacon declines the file (rare for established trucking operators with clean credit). The math difference on $200K is $30K – $60K in total fees over the term — material money.
- I'm a start-up tow operator with no business but 20 years of fleet management experience — can OnDeck help?
- No — OnDeck requires 12+ months in business with revenue history. Your file is exactly Beacon's start-up program: industry experience plus collateralized equipment (the tow truck itself) makes the deal underwritable even at 0 TIB. Expect APR in the 14 – 24% range reflecting the start-up risk premium. Once you have 12+ months of revenue, OnDeck becomes available for working capital LOC — natural progression.
- Can I carry an OnDeck LOC for working capital and a Beacon equipment loan for the trucks?
- Yes, common combination. OnDeck's covenants require disclosure of outside debt at draw — disclose the Beacon loan. Beacon's equipment loan is asset-secured against the trucks, so it doesn't typically conflict with OnDeck's general LOC underwriting. Most files accept the stack. Cash management: OnDeck monthly interest on drawn LOC balance plus Beacon monthly equipment payment — workable for established operators.