OnDeck began offering small business loans in 2007 in an effort to solve a major issue facing small businesses: efficient access to capital. Since its founding, the lender has provided more than $10 billion in funding to businesses in more than 700 industries. Today, OnDeck is one of the top sources for business financing, including term loans and lines of credit.
The company has a generally positive reputation among borrowers, and many people who have taken out business loans with OnDeck have left positive reviews expressing their satisfaction with the financial option. The lender values cash flow and not just credit score; however, the minimum allowed personal credit score is 600 and the majority of those who borrow from OnDeck have a score of 660 or higher.
Read on to discover The Good, The Bad, and The Bottom Line about OnDeck, or jump straight to OnDeck reviews from verified customers to learn more about how consumers feel about the lending option.
OnDeck saves time and makes applying for a business loan quick and straightforward. Prospective OnDeck borrowers can apply online in minutes by sharing the requested loan amount your business needs, intended use of funds, uploading qualifying documents including bank statements.
Potential borrowers may also apply over the phone by speaking to a loan specialist.
Approval can be received as quickly as within a few hours to OnDeck and customers may only wait 1–3 business days to hear if they have been approved.
Highlight: OnDeck's requirements for qualification are comparatively minimal.
Lower qualification requirements open the door for more business owners to receive critical funding and grow their business.
Even borrowers with bad credit may be considered for an Ondeck loan. For example, traditional bank and many other alternative lender options typically do not consider borrowers with a personal credit score of 600, but OnDeck will.
Most of these other lenders also require the business to be at least two years old, but OnDeck only requires one year in business.
OnDeck's revenue requirements are also relatively low compared to competitors at $100,000+ in the past 12 months.
OnDeck offers both short-term and long-term loan amounts up to $500,000.
Short-term loans range from 3 to 12 months and are generally used to finance projects that have an immediate return on investment, such as updating or refreshing locations, purchasing inventory with a quick turnaround, marketing, and seasonal hiring and inventory. The interest rate for a short-term loan can start at as low as 9 percent simple interest.
Long-term loans have repayment terms ranging from 15 to 36 months and are typically used to fund larger projects that pay back longer term, such as expansion or adding new locations, large-scale inventory purchases, equipment purchase, and new product development. The annual percentage rate for long-term loans starts at 9.99 percent.
The actual loan amount and rate that a borrower receives will be based on OnDeck's assessment of the business, as well as the borrower's personal and business credit history and profile.
The origination fee, which is used to cover the cost of servicing and processing the loan, for fixed term loans ranges from 2.5 to 4 percent of the total loan for the first loan, 1.25 to 3 percent of the total loan amount for the second loan, and 0 to 3 percent of the total loan for the third loan and beyond.
The repayment schedule is somewhat flexible; fixed term loans can be paid back with fixed daily or weekly payments and are automatically deducted from the borrower's business bank account. Note that there is no monthly payment option.
In addition to offering fixed-term loans, OnDeck also offers a business line of credit up to $100,000 that can be used as flexible working capital to manage accounts receivable gaps, take advantage of new opportunities, and manage unexpected expenses. The annual percentage rate for OnDeck lines of credit starts at 13.99 percent.
With a credit line business owners can draw the money they need directly into their business checking account at any time. Interest is only paid on what is drawn, and the balance can be paid back at any time. The line of credit is paid back with fixed weekly payments that are automatically deducted from the business bank account. There is no additional interest rate or fee to draw cash, but a $20 monthly maintenance fee is charged. However, this fee is waived for six months if a borrower draws $5,000 or more in the first five days after opening an account.
As mentioned above, a small business owner can generally fill out OnDeck's online application within a couple of minutes and will know if they have been approved in a few hours. Once approval is received, business owners can receive funding as quickly as one business day.
Business owners who borrow from OnDeck can use their small business loan for a variety of purposes within their company. For example, borrowers can use the financing received to purchase inventory, manage receivables, run marketing campaigns, expand their business, hire employees, acquire business assets, renovate their location, relocate their business, and more.
OnDeck strives to minimize prepayment penalties by offering a prepayment benefit that waves up to 25 percent of the remaining interest if a loan is paid off early.
OnDeck strives to provide its borrowers with great customer service. In addition to offering business financing, the lender also provides borrowers with credit resources and renewal benefits. Additionally, OnDeck allows borrowers to access their accounts via a customer portal or mobile app around the clock. For borrowers who prefer to speak with a real person, OnDeck provides a customer service team that can be accessed six days a week. Borrowers can also get in touch with a dedicated loan specialist who will answer questions about loans and help them pick the best financing for their situation.
OnDeck strives to be there for business owners now and in the future, which is why the company offers loyalty benefits such as fee discounts and the ability to qualify for lower pricing on subsequent loans to repeat borrowers.
For example, if you're a current term loan customer and you take a new small business loan, the remaining interest from the first loan is waived and the origination fee of the subsequent loan can be as low as zero.
The majority of OnDeck reviews are positive, many consumers highlighting a quick funding process, exceptional customer service, and competitive rates. Positive reviews are a good indicator that a company is trustworthy and worth doing business with. This may provide peace of mind for business owners looking for quality business lending.
When a borrower takes out a loan with OnDeck, a general lien is placed on the business's assets and a personal guarantee, which is a signed promise to pay back the loan if the business defaults and puts all of the business owner's personal assets on the line that aren’t protected by law from creditors, is required. A personal guarantee is different from collateral in that collateral is a specific asset or assets that the business owner pledges as security for a loan if the business defaults.
While OnDeck provides small business loans to companies in more than 700 industries, there are a few industries the lender is unable to work with. Restricted industries include:
OnDeck does not lend to small business owners businesses in Nevada, North Dakota, or South Dakota.
In addition, the company is currently limited in how many clients it can take on in light of the PPP loan demand.
OnDeck does not do Merchant Cash Advances. A Merchant Cash Advance isn’t a loan but is rather an advance of cash based upon the credit card sales deposited in a business’s merchant account. While Merchant Cash Advances do not help build or strengthen a business credit score, business owners often use them to obtain fast financing.
I dealt with Scott. Very knowledgable. He is great on follow through and follow up. I am very pleased with his abilty to serve my short and longer term needs. Highly recommend. And I have used a few competitors.
Ondeck is an amazing company with the following components that work well for me. Easy application, speed in funding, Good customer service and far better company to deal with than those others out there!
OnDeck is an honest and professional organization and very responsive.
On Deck Is A Company A Small Business Can Trust. I Like The Short Term Loans. And The Money Is In My Account The Next Business Day. Thank You Ednita Williams
OnDeck is a great choice. Professional, Steen-lines process, excellent renewal terms.
never informed that i would be charge $4000.00 over and above the high interest rate charged for a loan. sneaky and deceitful.will never be able to deal with your firm again.I WILL ALSO LET THE WORLD KNOW THAT YOU HAVE CHEATED A 87 YEAR OLD MAN WITH CANCER AND HEART DISEASE OF AN EXTRA 4% ON A LOAN. VERY DISTURBING SITUATION.
It was easy to get started and they instantly get the money into your account. A great relief that I don't have to worry about any payroll bouncing.
OnDeck and Andrew G. are great to work with, fast and extremely efficient! Highly Recommend!!
On Deck and their associates are very helpful with the application and follow-up; as well as, the renewal process.
Very pleasant to talk with, helpful with options to help make a decision.
The service is fast and easy ....thank you
Excellent service and demonstrable care for the customer
OnDeck Has absolutely been the most wonderful company that I have ever dealt with. It is fast it is thorough it is complete and it is easy. The service is impeccable. It is always there when I need them.
The team at OnDeck (Jordan, Nathan and Ryan) with whom we have worked were professional and very courteous. Emails and phone calls were answered promptly resulting in our working together to supply the short term cash needs of our growing company. I highly recommend OnDeck! Byron D Donics Founder & CEO HTI Collection, Ltd.
They were very kind. And with fast turnaround I was able to use the business when I needed it. Thank you very much.
I totally recommend OnDeck for bussines capital funding, is easy, fast , and highly efficient professional personnel. this is my 3rd time in 1. 1/2 year borrowing money and every time is been better and better. Thank you OnDeck for a great opportunity
Tarryn M was great to work with. On Deck has helped when we needed it. Terms are clearly explained.
It was an easy application, the customer service was excellent and quick. They went over the terms of the financing thoroughly, and the funds were deposited the next day. It was exactly the financial service I was looking for.
My experience with On Deck, and my company is that we have been in business for some time but had no business credit. With that being said combined with a personal low credit score based off of deliquesce waiting for account reciables, and no business credit Ondeck was still able to work with me to establish my business credit.
Scott_F was very knowledgeable and professional in help me refinance my loan. Excellent customer service Scott. Thanks Alan
I had a great experience getting loan from OnDeck. The application is swift and straight forward.
Overall process is easy and Rep. is very professional. Perfect fit for busy owners without a lot of time.
Certified Auto Detailers
I have applied with several companies who said they could help but only OnDeck actually helped me. They have a business relationship with my company for as long as they keep me :)
My experience was great. And my rep Jordan was extremely knowledgeable and genuine
Agents are extremely knowledgeable. They listen to your needs and give you the best options that would facilitate them.
Patrick toby Toby’s Electric
When I first called them they were very nice and easy to work with I’ve been with on deck for three years I my self consider them number one in my book
Thank you OnDeck for your financial support on taking my flooring business to the next level. I appreciate the service I received.
OnDeck made the loan funding process incredibly easy, fast and transparent. Extremely impressed with their level of service
Sarah F was extremely helpful and quick on the turn around. Very happy with the process.
E-Z-TECH COMPUTERS INC
OnDeck was able to provide short term financing I needed for my business. My service rep was professional, personable and understood what my short term goals were.
My experience with OnDeck was wonderful, Chip helped me substantially. He helped me get the money I needed to help my buisness grow, fast!
On Deck was there when I needed them to help me put a down payment on my business property. They have also helped me to obtain quick and easy loans for business capital, which has removed a heavy burden of financial worry from my shoulders. My agent, Jessica has been extremely supportive & responsive .
Very Simple, straight forward service. Fast and efficient !! My agent Steven G stays on top of things. My sixth or seventh loan with OnDeck. My only wish would be that rates would be lower.
Exceeded expectations. Accurate, professional and friendly service.
Paul Burchell (Island Friendly Computers)
We have been getting loans with On deck for 4 Years now. As a small business owner you don't have the time to do the things that Local Banks want..a lot of paper work ..anyway one day On deck popped up on my screen and i'm glad it did..I never looked back..it was so easy with On Deck! Fast getting approval and fast getting funds! Helps us with inventory and other business expenses. Thank You Charlene for my 4th loan with you. You have been great to work with! And also i would like to thank Max as well..i never had a chance to do a review for him in the past and he deserves it as well! Thanks Again On Deck! Looking forward to doing business with you guys in the future :) and i recommend you guys all the time for people that needs funding :) Paul (Island Friendly Computers, Nova Scotia, Canada)
I am a small salon business owner , with On Deck I was able to achieve my aspirations in growing my business and having access to funds to help make that a reality. This has been an on going relationship with On deck for a couple of years and highly recommend for convenience , honesty and promptness.
Having worked with On Deck for a couple of years now, they make funding short term loans easy and affordable. It helps solve cash flow problems and funds for capital expenses and at reasonable rates. Excellent customer service and super quick and easy now.
Chris S was the best. He explained everything we where doing. He kept me in the loop through the whole process. I had the funding I asked for in 3 days.
Jane M Bond
They initiated the contact with me. Email exchanges were pleasant and efficient. The rate/terms were very competitive.
Remy was awesome and very informative through the process.
Britanny S was very responsive and helpful in processing our loan request.
it was very easy to do the loan , and the people were great and work well with you to get you what you need, this is my second time and i will allways use them
OnDeck has an easy checkout and funding process, I have an excellent agent , who gives alternatives , never pushes me to buy. I’m given there offer and terms and allowed to choose.
Fast, professional and courteous service.
Ralph Johnson RJS AUTOPROS INC
This by far is the most amazing experience I have ever had with a loan co. We were treated with so much respect and follow up service that I want to let everyone know that this is the best thing to happen to our company and to let us expand with out missing a beat . THANK YOU to the best underwriting team in the nation for guiding us through our loan process. RJ.
D&G Rehabilitation services LLC
Excellent service and fast approval of loans. There are several choices that helps the small companies survive. There are no hidden fees. Everything is in paper. Thank you for helping the small business owners like us. God bless your company.
fast application process.. was able to adjust amounts to meet my budget.. fast access to the funds
We’re very pleased with the entire process, it was simple and clear cut. We look forward to doing business in the future for our working capital needs. Funding was provided directly into our business checking account in 24 hours.
Great service, easy to apply. Terms fit my business needs. I would definitely recommend them.
OnDeck get the job done not like other marketing lending companies