The specs
OnDeckShopify Capital
Product typeMulti-productMCA
Amount range$5K – $400K (term); $6K – $200K (LOC)$200 – $2M (varies by store volume)
Cost (factor / APR)Term APR 27%+; LOC APR 30%+Single fixed fee (factor 1.10 – 1.18 typical); no APR / no compounding
Speed to fundSame-day for approved files2 – 5 business days after acceptance
Min time in business12 months3 months
Min monthly revenue$8,000~$5,000+ in Shopify processed sales typical floor
Min credit score600+No FICO pull — underwrites entirely against Shopify sales history
Products
- Term loan
- LOC
- Embedded merchant cash advance (Shopify stores only)
Verdicts by use case
- Can actually apply (vs invitation-only) — Winner: OnDeck. OnDeck accepts applications from any qualifying merchant. Shopify Capital is invitation-only — you can't apply, Shopify picks who gets offers based on store sales history. Most Shopify merchants never see an offer.
- Cheapest cost of capital — Winner: Shopify Capital. Shopify Capital's fixed-fee factor (1.10 – 1.18) on a 6 – 9 month repayment lands cheaper than OnDeck's 27%+ APR term loan or 30%+ APR LOC for most short-hold use cases. Shopify wins on cost when invited.
- No FICO pull / impaired credit — Winner: Shopify Capital. Shopify Capital underwrites against Shopify sales history with no FICO pull. OnDeck requires 600+ FICO. Strong-Shopify-history merchants with damaged personal credit are Shopify-only.
- Larger deal size ($400K+) — Winner: OnDeck. OnDeck term loans go to $400K. Shopify Capital offers cap at ~1× annualized Shopify processing — most stores see $5K – $50K offers. For sizable capital not tied to Shopify volume, OnDeck wins.
- Builds business credit — Winner: OnDeck. OnDeck reports to commercial credit bureaus on both term loan and LOC. Shopify Capital is structured as a receivables purchase and generally does not report. Merchants building business credit favor OnDeck.
The honest takeaway
OnDeck and Shopify 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
- Shopify offered me $20K at 1.12 factor; OnDeck pre-approved me for $30K term loan at 32% APR — which?
- Shopify, on cost. A 1.12 factor totals 12% in fees over ~6 months vs OnDeck's 32% APR over a longer amortization — Shopify is cheaper absolute dollars even though OnDeck is funding more. Take Shopify unless you specifically need the extra $10K for use outside the Shopify ecosystem. OnDeck also reports to bureaus, which builds business credit Shopify doesn't — worth a small premium if credit building matters.
- I run a Shopify store but Shopify hasn't offered me capital — what now?
- OnDeck if you have 12+ mo TIB and 600+ FICO. Shopify's algorithm weighs sales consistency, refund rate, dispute rate, and tenure — not just revenue. New or high-refund stores routinely get skipped. OnDeck accepts most established Shopify merchants who clear its credit and TIB floors.
- Can I have both an OnDeck loan and a Shopify Capital advance simultaneously?
- Yes, but OnDeck's covenants typically require disclosure of outside debt during underwriting and at renewal — disclose Shopify Capital. Some OnDeck files accept the stack; some decline. Carrying both means OnDeck's fixed daily/weekly ACH plus Shopify's % of daily sales — workable for high-revenue operators but tightens cash management noticeably.