OnDeck

4.5/5 stars

OnDeck is an online lender that offers approval for loans in as little as 10 minutes with funds arriving as soon as the same day.

Pros

Fast Funding: Often provides funding within 24 hours of approval.
Easy Application: Simple online application that takes minutes to complete.
Transparent Fees: No hidden fees; terms and costs are clearly laid out.
Flexible Repayment: Daily or weekly payment options that can help with cash flow management.
Customer Service: High ratings for customer support and clear communication.

Cons

High Interest Rates: Compared to traditional loans, OnDeck’s rates can be high, especially for businesses with lower credit scores.
Frequent Repayments: Daily or weekly repayments can strain cash flow, particularly for businesses with inconsistent income.
Short Loan Terms: Terms are relatively short, which can lead to high repayment amounts over a short period.
Collateral Requirement: While most loans are unsecured, OnDeck often requires a personal guarantee, which puts personal assets at risk if the business cannot repay.

The Bottom Line

If you need cash quickly and are confident you can start repaying soon and consistently, OnDeck is a good option for those who don’t qualify for a traditional bank loan.

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Loan Types

Term Loans

Description: Fixed loan amount with regular payments over a set term.
Loan Amounts: $5,000 to $250,000.
Terms: 3 to 24 months.
Interest Rates: Annual percentage rates (APR) starting at 29.9%.
Repayment: Daily or weekly payments.

Lines of Credit

Description: Flexible credit line that allows businesses to draw funds as needed.
Loan Amounts: $6,000 to $100,000.
Terms: Revolving line of credit with no fixed term.
Interest Rates: APRs starting at 29.9%.
Repayment: Weekly payments on the amount drawn.

Pricing information is retrieved from publicly accessible pricing materials. The actual cost may vary based on specific plans chosen. Always check directly with the seller for the final quote.

Pricing information last updated March 7, 2024.

Qualifications

Credit Score: Minimum 625 personal credit score.
Time in Business: At least one year.
Annual Revenue: Minimum of $100,000.
Additional Requirements: A business checking account, and OnDeck may require a personal guarantee.

Application Process

To apply for a loan from OnDeck, you’ll need to prepare basic information about yourself and your business. Note that when determining eligibility, OnDeck will perform a soft credit check on the business owner’s personal credit.

Make sure you have the following documents:

Business Tax ID
Last three months of business bank statements
Social Security number(s) of business owner(s)

You can apply online or over the phone, and the process typically takes about 10 minutes. With one application, OnDeck will evaluate which type of loan is the best fit for you and give you a loan offer if you qualify. Once you receive your loan offer, it will be valid for 30 days. Funding can be delivered as soon as the same day you apply, though most report taking 2-4 business days to receive the funds.

Product Review

OnDeck is a popular online lender that provides small businesses with fast access to capital. It is known for its quick application process, transparent terms, and focus on helping small businesses that may not qualify for traditional bank loans. As one of the pioneers in online small business lending, OnDeck has a strong reputation and track record, having provided billions of dollars in loans to small businesses.

Some of its key features include:

Speed and Convenience: OnDeck’s primary advantage is its speed. The application process is quick, and businesses can receive funds rapidly, making it a good option for urgent capital needs.
Repeat Borrower Benefits: OnDeck offers perks for repeat borrowers, such as reduced fees and streamlined renewals.
Customer Loyalty Benefits: Returning customers often get better rates and terms based on their repayment history with OnDeck.
Flexibility: Offers both term loans and lines of credit, allowing businesses to choose the financing structure that best fits their needs.
Technology-Driven: OnDeck uses data analytics to make lending decisions, allowing them to approve loans quickly without the extensive paperwork required by traditional banks.

Best for: Businesses that need cash fast, but can start repaying quickly

OnDeck is a suitable choice for small businesses needing quick access to capital, especially those that may not qualify for traditional bank loans due to lower credit scores or shorter time in business. However, the cost of borrowing can be high, so it’s important for businesses to carefully consider the impact of frequent repayments on their cash flow. OnDeck is really worth it for businesses who are confident in their ability to turn the initial investment into a profit that can not only cover the interest, but still put you ahead at the end of the day.

The flexibility, speed, and transparency offered by OnDeck make it a standout option in the alternative lending space.

OnDeck

If you need cash quickly and are confident you can start repaying soon and consistently, OnDeck is a good option for those who don’t qualify for a traditional bank loan.