Construction Financing · Ranked #7
OnDeck: Term Loans & Lines of Credit
Fast business loans with same-day funding. Good for emergencies but higher rates than specialized lenders — and no understanding of retainage or project timelines.
What OnDeck Does
OnDeck is one of the largest online small business lenders in the United States. They offer two primary products: term loans (lump-sum capital up to $250,000) and revolving lines of credit (draw-as-needed capital up to $100,000). Both are designed for speed — apply online, get approved in hours, and receive funds as fast as the same business day.
Their underwriting model is technology-driven. Instead of requiring months of financial statements and collateral documentation like a traditional bank, OnDeck connects to your bank account and uses algorithms to assess cash flow, revenue patterns, and creditworthiness. It's efficient, it's fast, and it's completely industry-agnostic.
That last part is the problem if you're in construction. OnDeck treats a plumbing contractor the same way it treats a coffee shop or an e-commerce brand. The algorithm doesn't know what a signed contract is worth. It doesn't understand that your revenue is lumpy because you get paid in progress billings, not daily transactions. And it certainly doesn't factor retainage into its credit decision.
Strengths
Same-Day Funding
OnDeck can approve and fund loans within 24 hours. When you need capital yesterday, that speed matters. Emergency equipment repairs, unexpected material costs, payroll gaps — OnDeck moves fast.
Simple Application
Minimal paperwork compared to traditional bank loans. Connect your bank account, provide basic business info, and you can have a decision in minutes. No 60-page SBA application.
Established Track Record
OnDeck has originated over $15 billion in loans since 2007. They're publicly traded (via Enova International) and well-capitalized. You're not dealing with a fly-by-night operation.
Flexible Products
Both term loans (lump sum) and revolving lines of credit. Term loans up to $250K with terms up to 24 months. Lines of credit for ongoing working capital needs.
Limitations
High Cost of Capital
APRs can range from 29% to 97% depending on your credit profile and loan type. That's the price of speed and loose underwriting. For a contractor funding a $500K project, those rates eat your margin alive.
No Construction Expertise
OnDeck doesn't understand retainage, progress billing, or project timelines. They underwrite based on revenue and credit score — not contract value or project pipeline. A $2M signed contract means nothing to their algorithm.
Daily or Weekly Repayments
Most OnDeck loans require daily or weekly automatic debits from your bank account. That's brutal for construction companies whose revenue arrives in project-shaped chunks, not steady daily streams.
Short Terms
Maximum 24-month terms on term loans. Construction projects can stretch 12-18 months before final payment. The loan might come due before your retainage is released.
OnDeck vs. Mobilization Funding
This comparison isn't really fair — they're solving different problems. OnDeck is a general-purpose business lender that happens to serve some construction companies. Mobilization Funding is a construction-specific lender that was built from the ground up for contractors and subcontractors.
OnDeck looks at your bank statements and credit score. Mobilization Funding looks at your signed contracts, project timelines, and general contractor relationships. OnDeck requires daily or weekly repayments regardless of when you get paid. Mobilization Funding structures repayment around your project cash flow.
If you need $20K tomorrow for an emergency that has nothing to do with a project, OnDeck might be your best option. If you need to mobilize labor and materials against a signed contract while waiting for your first progress payment — Mobilization Funding is the obvious choice.
| Factor | OnDeck | Mobilization Funding |
|---|---|---|
| Industry Focus | All industries | Construction only |
| Underwriting | Revenue & credit score | Project contracts |
| Repayment | Daily/weekly auto-debit | Project-aligned |
| Speed | Same day | Days |
| Retainage Understanding | None | Core competency |
Frequently Asked Questions
Q: Is OnDeck good for construction companies?
OnDeck can work as an emergency stopgap, but it's not designed for construction. Their underwriting ignores project contracts, retainage, and billing cycles. Daily repayment schedules clash with how contractors actually get paid. For construction-specific financing, Mobilization Funding is purpose-built for the industry.
Q: What are OnDeck's interest rates?
OnDeck's APRs typically range from 29% to 97%, depending on your creditworthiness, time in business, and loan product. Lines of credit tend to be at the higher end. These rates are significantly higher than construction-specific lenders who underwrite against project contracts rather than just credit scores.
Q: How fast can OnDeck fund a loan?
OnDeck can fund as fast as the same business day after approval. The application takes minutes, and decisions can come within hours. This speed is their primary competitive advantage — but you pay for it through higher rates.
Q: What's the difference between OnDeck and Mobilization Funding?
OnDeck is a generic business lender that uses revenue and credit scores to underwrite. Mobilization Funding is a construction-specific lender that funds against project contracts, understands retainage, and structures repayment around project timelines. OnDeck is faster; Mobilization Funding is smarter for construction.
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