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8.5

Overall Score

16 User Reviews

OnDeck began offering loans to small businesses in 2007. Since their founding, they have lent over $7 billion to over 700 industries. Today, OnDeck is one of the top sources for business term loans and business lines of credit.

In addition to having a generally positive reputation among borrowers, OnDeck was part of the Fortune 50 Best Small and Medium Companies to Work For in 2016. Many people who have taken out business loans with OnDeck have left positive reviews for OnDeck at the bottom of this page.

 

The Good

  • Easy Application
  • Low Requirements
  • Fast Access to Cash
  • Prepayment Benefits
  • Customer Service Experience

Easy Application

OnDeck makes applying for a business loan quick and straightforward. Business owners simply upload qualifying documents to OnDeck and wait 1-3 business days to hear if they have been approved. Business owners can also apply over the phone, but will need to send their qualifying documents at a later time.

Low Requirements

OnDeck's requirements are transparent and comparatively minimal. Banks and many other alternative lenders typically do not consider customers with a personal credit score of 500. Most of these lenders also require your business to be at least two years old. The average borrower has been in business for about seven years and exceeds roughly $450k/year in gross revenue. Lower qualification requirements open the door for more business owners to receive critical funding and grow their business.

OnDeck clearly outlines the exact minimum qualifications your business needs to meet before you apply for a loan:

  • 500 personal FICO score
  • One year in business
  • $100k in annual revenue
  • Established in the United States and Canada

Fast Access to Cash

Business owners looking for fast access to cash will find it with OnDeck; they can provide funding in as little as 24 hours. Small businesses can generally fill out the online application within 10 minutes, and owners will know if they have been approved in as fast as one day. OnDeck will loan you about 15 percent of your annual revenue at a time, but that can fluctuate based on credit scores and other factors.

Prepayment Benefit

OnDeck offers a prepayment benefit waving up to 25 percent of the remaining interest if a loan is paid off early.

Customer Service Experience

OnDeck gives you the option to apply and checkout entirely online, but they have dedicated Loan Specialists to walk you through the application process and Customer Service Representatives to answer questions or resolve issues six days a week. Further, the company has a Customer Success team whose purpose is to ensure its customers' voices are heard and acted upon.

Learn more about OnDeck

The Bad

  • Rates are Higher than Banks
  • Personal Guarantee
  • Fees

Rates are Higher than Banks

Compared to banks and some other alternative lenders, OnDeck has high borrowing rates. With OnDeck, the AIR for term loans start at 9.99% with an average of 23.6% simple interest and 49.7% AIR as of June 1, 2017. For this reason, when we calculated the cents on the dollar for a $100k loan over 12 months, we took the average interest rate we found (23.6 percent) to prepare business owners for the worst case scenario. However, they stand behind their claim to be transparent. The company's SMARTBOX rate comparison tool allows small businesses to understand and assess the costs of their finance options.

Personal Guarantee

When you take out a loan with OnDeck, they place a general lien on your business's assets and require a personal guarantee for the loan. While we agree that a general lien on your business's assets protects both the borrower and the lender, a personal guarantee is a concern.

Fees

Finally, OnDeck financing charges an origination fee, although they are upfront about it. Check their website for more specifics on their current fees.

The Bottom Line

OnDeck is a good alternative lending source for small businesses that do not qualify for an SBA or bank loan. It will be difficult for you to find a company that is more upfront about their loans. If you meet the minimum application requirements, we strongly recommend you consider OnDeck for a business loan. The company makes applying for a loan easy, has flexible term lengths and amounts, and reasonable qualification requirements. See if you qualify.

User Reviews

4.8

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  • 10

    September 15th, 2017 Decatur, GA

    You guys made the whole experience real easy. I have done this twice now and both times went smoothly. Thank you very much.

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  • 10

    September 15th, 2017

    Robert always kept me updated thru the process, I couldn't be happier with his customer service.

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  • 10

    September 13th, 2017 Appleton, WI

    They are very fast and they show they actually care about small businesses and growing.

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  • 10

    August 30th, 2017 West Monroe, LA

    Great and quick turnaround time.. Love the follow up didn't just fund and wait to collect. They followed up with education of what to expect and answered all my questions.

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  • 10

    August 29th, 2017 Mesa, AZ

    They we're very helpful and made the process super easy!

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  • 10

    August 25th, 2017 Payson, UT

    This was the best experience I have ever had. Very easy. Easy to understand. Customer service was amazing. Thank you On Deck for the great experience!!!

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  • 10

    August 25th, 2017 Piscataway, NJ

    I have used On Deck a few times for small business loans. It is a quick and easy process most times. Only once did it take a little longer to get loan processed as they were asking for some more information from me to verify my business. But this is understandable to protect both mine and their security of getting and giving the loan. I will continue to do business with them in the future. Also want to give my own personal loan rep Taylor Buske a shout out. She is really good to work with and makes the loan process easy for me!

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  • 10

    August 25th, 2017 San Bernardino, CA

    On Deck worked very fast on the process of the loan and were very helpful all thru thru the process. Great job.

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  • 10

    August 24th, 2017

    I was given really good customer service and great communication I would highly recommend these people that anyone looking for business capital

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  • 10

    August 24th, 2017 NY

    Very timely service and the production of information was excellent.

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  • 10

    August 22nd, 2017 Murrieta, CA

    We are a small field repair and installation company that needed some funds for some larger jobs coming up. On Deck's approval process was very simple and they clearly have their processes down to a science. We shopped other lenders as well. On Deck required less paperwork where other required just about everything except a DNA sample. Most importantly, the funds from On Deck cost us 40% less than their closest competition. Their customer service is outstanding. They truly understand our (small business) needs, and the level of knowledge is great. We will only use On Deck for future funding.

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  • 10

    August 22nd, 2017

    OnDeck literally gave me the kick start we needed. Up until we got our loan from OnDeck, we had been "recycling" money. We would be making money, but then have to invest in inventory for the following season and it seemed like we were just going in circles. OnDeck BELIEVED we could do it - they gave us capital when no one else would because my business is small and only four years old. Tegan - who I worked with, was beyond the greatest!! It was simple, fast, and easy.

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  • 3

    August 25th, 2016 Renton, WA

    Be careful with Ondeck fine print. Please make sure you completely understand what you are getting into. Here are some learnings for me: 1. Don't get tempted by fast funding. While Ondecj was superbas the in funding, they had some fine print which caused problems later. 2. They will charge interest on the day you take the loan. For example, if you take 40k loan with interest of 19% , on day 1 of your loan, you are legally obligated to pay 47,600$ 3. Record all your conversations and deal with only Ondeck employees and no third party. 4. Don't fall into the trap of reducing interest rates in 6 months. They will not reduce the interest rates no matter how well you pay off the loan

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  • 10

    June 15th, 2015 Washington, VA

    I spent lots of time trying to get financing for my three businesses and when I finally came across On Deck I was able to get the funding I wanted, quickly, without the typical hassles of endless paperwork and the funding came through just as promised.

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  • 10

    June 15th, 2015 Pleasant Grove, UT

    We are a truly small company with no working capital and not enough cash flow to get a loan from our own bank. OnDeck reviewed our bank statements and tax returns along with our application (a simple one!) and we had a loan within a few days. It wasn't huge but it helped us get a new piece of much needed equipment. These folks are not running a scam. The terms of the loans are simple and easy to understand and the process goes like they say it will. If you have a small business and need a small to medium sized loan, check it out.

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  • 10

    June 12th, 2015 UT

    OnDeck helped me get the money I needed for some long overdue construction projects. I really didn't want to dip into my savings for the project or mess up my cash flow. OnDeck helped out in every way. The process was easy and the people I dealt with were professional and top notch. Thanks a million

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