OnDeck Business Loan review
Get transparent rates and personalized repayment options on a small business loan with OnDeck.
This reputable private lender has a high rating on Trustpilot and offers various types of loans with fixed and flexible repayment terms. You’ll need a credit score of at least 600 and a minimum revenue of $10,000 /month to qualify.
If you want to borrow money to grow your business, you may be able to qualify for a loan with OnDeck.
In December 2018, OnDeck combined its Canadian lending operations with Evolocity Financial Group to become OnDeck Canada.
What types of loans does OnDeck provide?
OnDeck offers a number of different loan options with different terms and repayment schedules. You can typically access the funds you receive in as little as 24 hours, and you’ll get competitive pricing based largely on your credit score and the revenue that your business earns.
- Business loan. You can borrow anywhere from $5,000 to $300,000 with a term loan lasting from 6 - 18 months. You’ll have to repay the amount you borrow with fixed daily or weekly amounts, and your interest rates will range from 8.00% – 29.00%. The interest you have to pay will depend on a number of factors like the state of your credit, how much you borrow and the length of your term.
- 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.
- Merchant cash advance. Also called “flex funds,” merchant cash advances allow you to pay back your loan with a percentage of your credit/debit card sales. You can borrow as much as $300,000 and pay this amount back as quickly or slowly as your business brings in revenue. There’s no interest on this type of product.
Quick comparison of loan types
|Type||Best for||How it works||Sales needed to qualify||Size of loan||Interest rates|
|Business loan||Paying for a large, one-off expense||Borrow a lump sum with interest and pay it back over a fixed term.||$10,000 /month||Between $5,000 to $300,000||Ranging from 8.00% – 29.00% depending on various factors.|
|Line of credit||Day-to-day expenses and working capital||Tap into a “wallet” of funds that lets you borrow money as needed||$100,000 annual revenue||Between $6,000 and $50,000||Fixed interest charged on the amount you take out of your line of credit (usually around 25)|
|Merchant cash advance||Funding daily expenses with future sales income||Get an advance on your future sales and pay it back with a percentage of daily revenue||$100,000 annual revenue||Between $5,000 and $300,000||No interest charged|
Before applying for a loan, browse the industries list to determine whether or not you might be eligible for a loan.
- Restaurants, cafes and bakeries
- Fast food restaurants
- Bars, taverns, lounges and nightclubs
- Convenience stores, grocers and speciality markets
- Retail – Clothes, shoes, accessories and cosmetics
- Retail – Pet stores, products and supplies
- Retail – Electronics
- Retail – Gifts, games, hobbies and books
- Retail – Sporting goods and supplies
- Automotive – Parts, accessories, service and repairs
- Health Care – Private clinics, dentists, pharmacies
- Hotels and motels
- Hair and nail salons, spas
- Dry cleaning and laundry services
- Florists, nurseries and gardening supplies
- Optical centres, glasses and contacts
To be considered, you’ll need to have at least 8 deposits a month, average monthly sales of $50,000+ and have been in business at least two years.
- Transportation services
- Computer repairs
- Retail – Antique stores
- Retail – Vape products and accessories
- Auction houses
- Travel agencies
- Recruitment/employment agencies
- Automotive sales (previously owned)
- Construction – General contractors
- Vacation rentals
Applications from the following industries will be automatically declined:
- Oil and gas services
- Gas stations with no convenience store attached
- Non-profit, political, religious, social and professional organizations
- Gaming – Gambling, lottery and game services
- Online database sites
- Financial services
- Money transfer services
- Payroll companies
- Pawn shops
- Adult entertainment/materials
What should I know before I apply?
How to apply
If you think that you qualify for a loan with OnDeck, it’s quick and easy to apply online. Just follow a couple of simple steps to get started.
- Click the green ‘Go to site’ button to be securely redirected to the online application.
- Complete the loan application with your personal details and submit proof of ID and relevant documents.
- Review and submit your application.
- Get verified and approved if you’re eligible for a loan.
Pros and cons
- Easy to apply.
You can apply online in a matter of minutes with a simple and straightforward application.
- Quick distribution of funds.
If you meet the eligibility requirements, you can usually be approved and get access to funds in as little as one to two days.
- Transparent rates.OnDeck outlines how much you’ll need to pay and is honest about what’s required to get the lowest rates possible.
- High loan amounts
You can apply for a loan of up to $300,000 with very little documentation required.
- No collateral.
You won’t need to put up an asset like your house or car to secure your loan.
- Several loan types
You can choose from flexible or fixed repayment options depending on what makes the most sense for your business.
- Less competitive interest rates.
The lowest interest rates on offer are less competitive than some other private lenders.
- High sales requirements.
Your revenue will have to be at least $10,000 /month, with many clients expected to earn more than this.
- Credit score requirements.
You’ll need a credit score of at least 600, even if your business makes a significant amount of revenue.
- Startups can’t apply.
You won’t be able to get approved for funds if your business is less than 6 months old.
You can find out if you qualify for a loan with OnDeck quickly and easily by filling out an application online. Get approved today to borrow up to $300,000 with decent interest rates and fixed or flexible repayment options.