OnDeck

• Simple Loan Application
• Low Qualification Requirements
• OnDeck Term Loan
• Line of Credit Options
• Fast Access to Money
• Fund Use Options
• Prepayment Benefits
• Customer Service Experience
• Loyalty Advantages
• Positive Reviews

Simple Loan Application

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.

Low Qualification Requirements

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 Term Loan

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. 

Line of Credit Options

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.

Fast Access to Money

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.

Fund Use Options

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.

Prepayment Benefits

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.

Customer Service Experience

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.

Loyalty Advantages

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. 

Positive Reviews

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. 

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• Personal Guarantee Required
• Restricted Industries
• Availability
• No Merchant Cash Advance (MCA) 

Personal Guarantee Required

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.

Restricted Industries

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:

• Adult entertainment/media
• Drug dispensaries
• Firearms vendors
• Government and non-profits, public administration
• Horoscope/fortune-telling
• Lotteries/casinos/raffles/gaming/gambling
• Money services businesses
• Religious, civic organizations
• Rooming and boarding houses
• Vehicle dealers/used good dealers/auction houses

Availability 

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. 

No Merchant Cash Advance (MCA) 

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.