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Table of Contents
Full Review
OnDeck is known for its flexible qualification requirements and its streamlined underwriting process, allowing you to apply in minutes and — in some cases — receive financing as fast as the same day.
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
OnDeck is best for borrowers who:
-
Need cash fast: You can apply for a loan from OnDeck, online or over the phone, in as little as 10 minutes. If you’re approved for a term loan ($100,000 or less), you may be able to qualify for same-day funding.
-
Don’t meet the eligibility requirements of other lenders: OnDeck considers borrowers with bad credit (the lender requires a minimum FICO score of
625
or higher) and at least one year in business. OnDeck doesn’t require you to put up physical collateral to secure your loan. However, the lender will take a general lien out on your business assets if you opt for a term loan.
-
Can afford frequent payments over a short term: OnDeck term loans will require automatic daily or weekly payments (depending on the loan amount and term length). Repayment terms max out at
24
months. With an OnDeck line of credit, on the other hand, you’ll have automatic weekly or monthly payments with a 12-, 18- or
24
-month term.
OnDeck loan features
OnDeck offers a business term loan and a business line of credit.
The term loan is available in amounts up to $250,000 and is well-suited for one-time investments in your business, such as opening a new location or renovating your space. The line of credit is available in amounts up to $100,000 and is a good option for working capital needs, like buying inventory or covering payroll.
Here’s what you can expect from OnDeck’s financing, based on loan type.
|
Term loan |
Line of credit |
|
|
Loan amount |
$5,000 to $250,000. |
$6,000 to $100,000. |
|
Estimated APR range |
35.4 % to 99.9 % (based on loans originated in the half-year ending March 31, 2023; minimums provided are rates that at least 5% of customers received). |
39.9 % to 77.9 % (based on loans originated in the half-year ending March 31, 2023; minimums provided are rates that at least 5% of customers received). |
|
Fees |
|
|
|
Terms |
Up to 24 months. |
12, 18 or 24 months. |
|
Repayment schedule |
Daily or weekly. |
Weekly or monthly. |
|
Funding speed |
As fast as the same day for loans up to $100,000. Other criteria may apply to receive same-day funding. |
As fast as the same day. Instant funding (within 30 minutes) may be available for withdrawals between $1,000 and $10,000. |
OnDeck loan requirements
To qualify for a term loan or a line of credit from OnDeck, you’ll need to meet the following minimum criteria:
-
Minimum credit score:
625
or higher.
-
Minimum time in business:
12
months.
-
Annual revenue: $
100000
or more.
OnDeck also requires that you have a business checking account. Financing from this lender is not available to businesses located in North Dakota.
Where OnDeck stands out
Fast funding
OnDeck is a good option if you need fast access to short-term financing. You can submit an application online or over the phone in as little as 10 minutes by providing basic information about yourself and your business. You may also be required to upload a few pieces of documentation, such as the last three months of business bank statements.
If you’re approved, an OnDeck loan advisor will reach out to help you review your options and complete the checkout process. OnDeck can approve and fund some applications as fast as the same day.
In general, OnDeck loans can be available in two to three business days.
Flexible qualification requirements
625
. And although some online lenders will work with younger businesses, startups with at least one year in business can qualify for a loan from OnDeck.
Can build business credit
Building business credit can help you qualify for larger loan amounts, longer repayment terms and more competitive interest rates in the future.
This benefit differentiates OnDeck from similar online lenders — like Fundbox, for example — which don’t report to the commercial credit bureaus.
Where OnDeck falls short
Can be expensive
35.4
% to
99.9
%, while rates for lines of credit translate to APRs ranging from
39.9
% to
77.9
%. These APRs are based on loans originated in the half-year ending March 31, 2023, and rates change slightly each quarter. Minimum rates are those that at least 5% of customers received.
Frequent repayments
24
months — which results in higher payment amounts. Term loans are repaid daily or weekly, while lines of credit are repaid weekly or monthly.
This high frequency of payments can be difficult for businesses with uneven cash flow.
Early repayment may not save interest costs
OnDeck doesn’t assess prepayment penalties, but repaying your loan early won’t necessarily save you money on interest costs.
In order to prepay your loan and have 100% of the remaining interest waived, you need to qualify for OnDeck’s prepayment benefit. Loans with the prepayment benefit will have a higher interest rate, which may increase the total cost of your financing.
If you don’t qualify for the prepayment benefit, but you still pay off your loan early, you’ll owe 75% of the remaining interest that was disclosed in your original loan agreement.
Other lenders may allow you to simply prepay your loan, without penalty, which will save you on interest costs.
Alternatives to OnDeck
Fundbox
36
% to
99
%. And unlike OnDeck, Fundbox does not charge an account maintenance fee and you can repay your credit line early to save on interest costs.
600
and at least six months in business to qualify. Fundbox can approve and fund applications in as little as 24 hours.
Funding Circle
660
and at least two years in business.
15.22
%.
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