The specs
OnDeckClover Capital
Product typeMulti-productMCA
Amount range$5K – $400K (term); $6K – $200K (LOC)$500 – $1M (varies by Clover volume)
Cost (factor / APR)Term APR 27%+; LOC APR 30%+Single fixed fee (factor 1.12 – 1.30 typical); no APR / no compounding
Speed to fundSame-day for approved files1 – 2 business days after acceptance
Min time in business12 months6 months
Min monthly revenue$8,000~$5,000+ in Clover card sales typical floor
Min credit score600+No FICO pull — underwrites against Clover POS history
Products
- Term loan
- LOC
- Embedded working capital (Clover merchants only)
Verdicts by use case
- Can actually apply (vs invitation-only) — Winner: OnDeck. OnDeck accepts applications from any qualifying merchant. Clover Capital is invitation-only via the Clover POS dashboard. Most Clover merchants never see an offer.
- Cheapest cost of capital when invited — Winner: Clover Capital. Clover Capital's 1.10 – 1.18 factor totals 10 – 18% in fees over 6 – 9 months. OnDeck's 27%+ APR term loan over 12 – 24 months typically totals more in absolute fees for the Clover-eligible portion. When invited and the amount covers the need, Clover wins on cost.
- Capital not tied to Clover processing — Winner: OnDeck. OnDeck funds into business bank account; processor-independent. Clover Capital pulls % of all Clover card sales; switching processors defaults the advance. Multi-processor or off-Clover capital uses favor OnDeck.
- Larger deal size ($100K+) — Winner: OnDeck. OnDeck term loans go to $400K and LOC to $200K. Clover Capital offers are sized to annualized Clover processing — most merchants see offers under $100K. For deals over $100K, OnDeck is the realistic option.
- Builds business credit — Winner: OnDeck. OnDeck reports both term loan and LOC to commercial credit bureaus. Clover Capital is structured as receivables purchase and generally does not report. Credit-building merchants favor OnDeck.
The honest takeaway
OnDeck and Clover Capital 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
- Clover offered me $40K at 1.12 factor; OnDeck pre-approved $60K term loan at 30% APR — which?
- Clover on cost ($4,800 fees vs ~$18,000 over a 24-month OnDeck term). Take Clover if $40K covers the need. Take OnDeck's $60K only if you genuinely need the extra $20K for a defensible reason — don't borrow $20K extra at a $13K+ premium just because OnDeck will fund it. OnDeck also reports to bureaus (Clover doesn't) — worth a small premium if building business credit matters for a future SBA application.
- I process $50K/mo on Clover but Clover hasn't offered capital — should I wait or apply at OnDeck?
- Apply at OnDeck if you have 12+ mo TIB and 600+ FICO. Clover's algorithm weighs tenure, transaction consistency, chargeback rate, and account standing — restaurants and retailers with seasonality or shorter Clover history routinely get skipped. OnDeck accepts most established Clover merchants who clear its credit and TIB floors. Don't wait indefinitely for a Clover invitation that may never come.
- Can I run both an OnDeck loan and a Clover Capital advance simultaneously?
- Yes, with disclosure. OnDeck's covenants require disclosure of outside debt at underwriting and renewal — disclose Clover Capital. Some OnDeck files accept the stack; some decline. Carrying both means OnDeck's daily/weekly ACH plus Clover's % of card sales — workable for high-volume restaurants and retailers with healthy margins but tightens cash management noticeably.