OnDeck review
- Interest Rate
- 8.00% – 29.00%
- Loan Amount
- $5,000 - $300,000
- Loan Term
- 6 - 18 months
- Minimum Revenue
- $100,000/year
- Minimum Time in Business
- 6+ months
Our verdict
Get a business loan or line of credit in 24 hours with no collateral and flexible repayment options.
OnDeck is an online business loan provider that offers fixed and flexible term loans as well as lines of credit. It has an easy application process and friendly customer service. Get the funds your business needs in as little as 24 hours.
Make fixed repayments, or pay back your loan with a percentage of your daily card sales. Minimum requirements include $100,000/year in annual revenue, 6+ months in business and a credit score of at least 600.
Best for: Fast term loans or flexible loans
Pros
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Easy, fully online application
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Fixed or flexible repayments
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Quotes with no impact to credit
Cons
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Not suitable for bad credit borrowers
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Personal guarantee required
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More expensive than banks
What is OnDeck?
OnDeck is an online business loan provider that operates in the US, Canada and Australia. The company offers fixed-term loans and flex funds (funding with flexible repayment terms) ranging from $5,000 to $300,000. It also offers lines of credit ranging from $6,000 to $50,000. You can apply entirely online or by phone.
Founded in 2007, OnDeck is headquartered in New York City but has offices in Colorado, Toronto, Montreal and Sydney. The company began offering loans to Canadian businesses in 2015.
Is OnDeck legitimate?
In 2020, the company was acquired by Enova, a Chicago-based financial services company that also owns CashNetUSA, NetCredit, Headway Capital, The Business Backer, Simplic and Pangea. Enova stock trades on the New York Stock Exchange under the ticker symbol “ENVA.”
In August 2022, Forbes recognized OnDeck in its list of the Best Small Business Loans. Specifically, OnDeck was awarded “Best for short-term loans.” The company’s Canadian headquarters is located at 1100 Rene Levesque, Montréal, QC H3B 4N4.
Summary of OnDeck business loans
| Term loan | Flex funds | Line of credit | |
|---|---|---|---|
| APR ranges | 8.00% – 29.00% | 8.00% – 29.00% | Average APR is 25.27% |
| Interest rate type | Fixed | Fixed | Fixed |
| Loan security | Unsecured (OnDeck has a lien on business assets) | Unsecured (OnDeck has a lien on business assets) | Unsecured (OnDeck has a lien on business assets) |
| Min/max loan amount | $5,000 – $300,000 | $5,000 – $300,000 | $6,000 – $50,000 |
| Loan terms | 6 months – 18 months | 6 months – 18 months | Ongoing funding (no term; repay funds within 6 months to increase your limit) |
| Fees | None | None | Origination fee and monthly maintenance fee may apply |
What we like about OnDeck
- Easy to apply. Apply online in around 10 minutes with a simple and straightforward application.
- High loan amounts. OnDeck provides loans of up to $300,000.
- Get funds quickly. Once you’re approved, funds are disbursed in as little as 24 hours.
- Flexible repayment option. With flex funds, you can make repayments daily with a percentage of your card sales. The amount is calculated based on what your business can afford to pay.
- No personal collateral required. Loans are secured by your business assets, not personal assets like your house or car.
What to watch out for
- High sales requirements. To qualify, your gross revenue has to be at least $100,000/year. Most borrowers actually earn more than this.
- Credit score requirements. You’ll need a credit score of at least 600, even if your business has high revenue.
- Startups can’t apply. You won’t be able to get approved for funds if your business is less than 6 months old.
Summary of OnDeck reviews
| BBB accredited | No (OnDeck Capital Canada is not accredited, but its US entity is) |
| BBB rating | A+ |
| BBB customer reviews | 3.64 out of 5 stars based on 130 reviews |
| Trustpilot Score | 4.5 out of 5 stars based on 76 reviews |
| Customer reviews verified as of | September 7, 2022 |
Many customers describe the process of getting an OnDeck loan as fast and easy. Company representatives are frequently described as friendly and helpful. However, the occasional review mentions high rates.
Compare OnDeck to other business loans
Am I eligible for a loan?
To be eligible for an OnDeck loan, your business must be:
- Based in Canada
- Operating for at least 6 months
- Earning at least $100,000 in annual revenue
You must also have a business bank account and a Beacon score of at least 600.
OnDeck reports that the average customer has been operating for 4-6 years and earns between $500,000 and $1 million in annual revenue. Beacon scores typically fall between 640 and 720.
How to apply for OnDeck business loans
You can apply online or by phone. You’ll need the following information:
- Business number (BN)
- Social Insurance Number (SIN)
- Estimated annual gross revenue
- Average bank balance
- You may need to upload business bank statements from the last 3 months
The online application process is simple. Here’s how it works:
- Visit OnDeck’s website.
- Provide details such as the amount you want to borrow and how you plan to use the money.
- Enter information about your business like the name, contact info, tax ID (Business Number) and estimated annual revenue.
- Provide personal information like your name, contact info, date of birth, SIN and how much of the business you own (as a percentage).
- Submit your application. Within a few minutes, you’ll receive a decision. If approved, you’ll have to phone OnDeck to complete the process. Additional information may be required.
How much will an OnDeck loan cost?
OnDeck’s interest rates start at 9.99% (AIR) for term loans and 19.99% (APR) for lines of credit. There is no origination fee for setting up a term loan or flex funds loan.
Types of OnDeck business loans
OnDeck offers 3 different loan products with different terms and repayment schedules. Once approved, you typically receive funds in as little as 24 hours. Your interest rate varies based on factor like your credit history and the amount of revenue your business earns.Fixed term loan
Borrow between $5,000 and $300,000, and make daily or weekly repayments over 6 - 18 months. Interest rates range from 8% to 29%.
Line of credit
You can get a line of credit of up to $50,000. Average interest rates sit around 25%, but you may be able to qualify for lower rates depending on your credit history. You’ll only pay interest on the amount you borrow rather than on the full amount you qualify for, and you’ll top this up as you go with regular minimum payments.
Flex funds
Flex funds (a type of merchant cash advance) allow you to pay back your loan daily with a percentage of your credit/debit card sales. You can borrow between $5,000 and $300,000 and pay it back as quickly or slowly as your business brings in revenue.
Bottom line
OnDeck provides fast, convenient business loan options. Fixed term loans provide predictable repayments, while flex funds let you adjust repayments according to your daily earnings—a good option if your business’s cash flow is uncertain. You’ll have to look elsewhere if you’re a startup or have less-than-good credit.
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