Quick answer
OnDeck does not use traditional MCA factor rates. It charges APR-disclosed pricing: term loans 27.30-99.90% APR and lines of credit 30.95-99.90% APR. APRs reflect paper grade, term length, and origination fees (2.5-4% on term loans). This APR transparency is OnDeck's main pricing advantage over factor-rate MCAs.
Full answer
OnDeck does not use the factor-rate structure common in MCA. As a regulated lender (originated by Celtic Bank in some products), OnDeck discloses Annual Percentage Rate (APR) — the same standardized rate disclosure used for personal loans and credit cards.
Published APR ranges: Term loans run 27.30-99.90% APR ($5K-$250K, 3-24 month terms). Business line of credit runs 30.95-99.90% APR ($6K-$100K, revolving with 12 or 18-month term).
What determines your rate: paper grade (your bank statement quality, debt-service-coverage ratio, time in business, credit score), term length (longer = often higher APR), and origination fee (2.5-4% deducted from funded amount on term loans, baked into APR calculation).
Concrete math: $50,000 term loan at 40% APR over 12 months with 2.5% origination fee = $1,250 origination + ~$11,000 interest = $12,250 cost. Total payback ~$62,250 over 12 months. Compare to a 1.30-factor MCA on $50K over 9 months = $15,000 fee, ~45% APR-equivalent. The OnDeck term loan is materially cheaper for the same merchant.
Prepayment policy: OnDeck offers prepayment benefits on term loans — pay off early and remaining interest is waived (you pay only accrued interest + origination). MCAs typically charge the full factor regardless of payoff speed. This is a structural advantage of OnDeck's APR model.
Where OnDeck wins on pricing: APR-disclosed = directly comparable to other loans (bank, SBA, fintech). Prepayment-friendly. No surprise compounding. For established merchants (12+ months TIB, 600+ FICO, $8K+/mo revenue), often the cheapest non-bank option.
Where to be careful: 27-99% APR isn't cheap — just cheaper than MCA factor equivalents. Aggressive daily/weekly auto-debit on cash flow. Personal guarantee required. Higher-APR end of the range (75%+) means OnDeck's underwriter sees risk — get a competing quote before signing.
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Methodology. Fundnode is an independent funding-platform that scores merchants against our 100-funder database. We earn referral fees from funders when merchants apply via Fundnode. Editorial rankings and answers are independent of fee structure. Updated 2026-06-25.