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OnDeck Reviews

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  • Pros
  • Easy application process
  • Innovative qualification methods
  • Fixed payments
  • Funding within as fast as 24 hours
  • Cons
  • May be overall more expensive than bank loans

OnDeck Small Business Loans

If you don't qualify for a bank loan or if you are looking for a short term loan with quick processing OnDeck may be a good option. OnDeck is a lender that exclusively works with 3 month to 3 year loans for small businesses. Like some other alternative lenders, they offer the unique option to qualify you based on several factors instead of just looking at your credit score.

Besides your personal credit score, OnDeck will look at your business's annual revenue. This is great for anyone who has medium to low credit but has still managed to run a successful business. However, in order to qualify you must have at least one year of business under your belt. Because of this, it is not a viable option for anyone who is looking for funding for a brand new business but it is good for expanding current businesses.

Compared to other similar lenders, OnDeck offers relatively high small business loans, from $5,000 to $500,000 in their short-term and long-term categories. In exchange for their quick qualification process and alternative qualifying criteria you may find higher interest rates than with typical bank loans. Terms only last between three months to three years, so be sure that you can afford the overall cost before taking out a loan.

OnDeck also offers business lines of credit of up to $100,000 with APRs as low as 13.99%. When your business requires flexible working capital, draw the cash you need and deposit electronically to your business checking account at any time. Only pay interest on the funds you draw. Pay back your balance early any time.

Details of OnDeck Business Loans

OnDeck can loan your business between $5,000 and $500,000 over a period of 3 to 36 months. You can make fixed payments on your loan on a daily or weekly basis. There are two different loan categories. First, there is the short term loan of up to $500,000 over a 3 to 12 month term, and long term loans of up to $500,000 over a 3 to 36 month term.

Short terms loan are intended to finance projects that have an immediate return on investment, such as marketing campaigns, seasonal hiring or inventory deals with a quick turnaround. Interest rates are as low as 9% total interest percentage, with an average rate of about 19%.

OnDeck calculates "total interest percentage" as the total interest on your loan as you pay it back.

On their short term loans of 12 months or less, the total interest percentage allows you to easily see the total payback amount of the loan. You can think of it as fixed simple interest.

For example, a $10,000 loan over 6 months with 9% total interest percentage and weekly payments, the total payback amount is $10,900 including interest of $900.

The long term loans are targeted at funding projects that pay back over a longer term. This includes equipment purchases, expansion and new locations, new product development and large scale inventory financing. The lowest rate available is a 5.99% annual interest rate, with an average rate closer to 30%.

OnDeck uses the term "annual interest rate to calculate the yearly interest percentage on an average loan balance. The rate does not include fees.

For example a $100,000 loan over 24 months with a 5.99% annual interest rate, the interest cost is $6167, a loan payback amount totaling $106,167.

OnDeck does charge a loan origination fee. For a first OnDeck loan, the fee is 2.5% of loan amount. A second loan incurs a fee of 1.25% of the loan amount, with a third OnDeck loan costing your business a fee of 0 – 1.25% of the loan amount.

To qualify for the lowest rates, you'll need proven cash flow and an excellent payment history with previous OnDeck loans. Other factors affecting your rate include your business and personal credit, number of years in business and the specific industry your business operates in.

The lender requires no collateral, but they do ask for a personal guarantee, making owners responsible for repayment even if the business fails. OnDeck loans originate under California, Virginia or Utah law, depending on your business location.

The Loan Application Process

OnDeck offers a straightforward loan application process. You can apply quickly online or via phone. They claim you can be approved and funded within 24 hours.

For a quick turnaround on your loan, it's best to get your documentation ready prior to applying. OnDeck want to see three months of credit card statements for businesses that accept cards, as well as your business banking statements. They also want a copy of your business tax license. All applicants must show their social security number and driver's license. Depending on your business, they may ask for additional documentation, such as a property lease agreement or title deed.

OnDeck loans to businesses that have been around for at least one year, with at least $100,000 in annual sales. The owners must have a minimum FICO score of 500. Cash flow is the key indicator of creditworthiness to OnDeck. If your business has great cash flow, OnDeck would love to tap into it.

A lien or judgment against you or your business will likely disqualify you for a loan from OnDeck.

For many borrowers, OnDeck debits your payments on a daily or weekly basis, making payments manageable. If your cash flow varies, this can be easier than a big monthly debit. OnDeck also has lower loan origination fees than many competitors. The trade off is that their interest rates can be quite high.

OnDeck History

OnDeck was founded in 2006 and has an A+ rating with the BBB. Recently they have expanded into Australia and Canada. OnDeck's founder Mitch Jacobs has a background in financial software. He founded a merchant payment system at Dartmouth college in 1993. The company went public in December, 2014.

Verdict - Great

This is another good option for anyone who is looking for an alternative to their local bank with a quick application process. However, interest may be higher than a typical bank loan. As payment terms are on the short side, be sure you can afford the high monthly draw on your cash flow.

Last Updated:

OnDeck Consumer Reviews

Average Customer Rating

5 out of 10 rating 5 9 User Reviews

User Rating Distribution

Ratings: 10 - 9 0
Ratings: 8 - 7 3
Ratings: 6 - 5 4
Ratings: 4 - 3 2
Ratings: 2 - 1 0
5 out of 10 rating 5 Customer support team Interest rates are too high

Knowledgeable and friendly customer support team, but other then that I would not recommend Ondeck. The interest rates are sky high, so much better companies out there for business loans.

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6 out of 10 rating 6 Knowledgable staff Interest rates

Previously has a loan from my bank, and OnDeck are much quicker and with the whole process, and their staff know what they are doing, but the interest rates are too high.

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5 out of 10 rating 5 Helpful customer service Slow payment

From the start everything was going well and I was approved within 24 hours, the staff are really helpful and friendly, but it took over 3 weeks before I got the funds. If you're in a rush for the funds, find another company!

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4 out of 10 rating 4 Good rates Slow process

I would not recommend OnDeck if you're looking for a business loan. They may have good rates, but their process is so slow. It took them 2 weeks to come back to me with an approval, and that was after I had chased them! No communication at all.

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5 out of 10 rating 5 Low rates and fast approval Sell your data

I signed up to Ondeck and was really pleased with the loan, but a few months after taking out the loan I am getting inundated with calls and emails from other companies offering loans, I later found out that they pass your details on and now I'm stuck with getting hassled with cold calls.

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4 out of 10 rating 4 None Terrible customer service

Terrible terrible customer service! Not only were they trying to give me a loan with an extremely high interest rate, but the guy I spoke to was so rude and unhelpful.

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7 out of 10 rating 7 Quick process Not very competitive rates

Everything is done efficiently and quickly, which is so important for me. Great customer service.

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8 out of 10 rating 8 A great short term fix High interest rates

This is the second time i've used this company and I have had no problems with them. Yes, their interest rates are higher then a lot of other companies, but as a short term fix it is brilliant. The support team are always on hand if you have any questions.

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7 out of 10 rating 7 Easy application Slow in receiving funds

Great customer service and support, and the application is easy. It took a long time to get the money in my bank account though.

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In order for MoneySavingPro to remain a consumer free service, many of the companies covered in our industry reviews compensate MoneySavingPro for new sign ups.

However, the results of our comparison tools, the rankings of the providers and the information presented is not affected by compensation. Indeed, many of these companies approach us for an advertising partnership after we have already written a published their reviews.

While we try to research and review as many providers as possible in the 100+ industries we cover, we have not reviewed every company available.

Our rating system is independent of compensation and reflects our true understanding of the industry and the company based on a variety of factors. The companies that receive the highest rating will always be the providers that we believe offer the best value to the consumer.

Advertiser Disclosure

In order for MoneySavingPro to remain a consumer free service, many of the companies covered in our industry reviews compensate MoneySavingPro for new sign ups.

However, the results of our comparison tools, the rankings of the providers and the information presented is not affected by compensation. Indeed, many of these companies approach us for an advertising partnership after we have already written a published their reviews.

While we try to research and review as many providers as possible in the 100+ industries we cover, we have not reviewed every company available.

Our rating system is independent of compensation and reflects our true understanding of the industry and the company based on a variety of factors. The companies that receive the highest rating will always be the providers that we believe offer the best value to the consumer.