OnDeck small business loans review
Fair-credit borrowers may be able to get funds as fast as the next business day.
finder.com’s rating: 4.7/ 5.0
Bottom line: OnDeck offers a fast alternative to bank loans to businesses that struggle to qualify for a loan. But the relatively high rates combined with daily or weekly repayments can put a strain on your budget.
- Accepts 600 credit scores and year-old businesses
- Uses soft credit pull that doesn’t affect your score
- Discounts for repeat customers
- Only requires bank statements
- Weekly or daily repayments
- High starting APR, compared to a bank
- Not all industries can qualify
OnDeck offering fewer loans, due to COVID-19
OnDeck paused its regular loans in April 2020 to help business lenders connect with Paycheck Protection Program lenders. It reopened its lending program on June 8, but not at the same scale as before. This likely means that fewer loans are available — and those that are may be harder to qualify for.
And in July 2020, OnDeck was acquired by Enova, which also owns the short-term lenders CashNetUSA and NetCredit. No new changes have been announced, but we will update our information if there are any shifts in OnDeck’s lending practices.
OnDeck rates, fees and terms
OnDeck term loans come with rates starting at 11.89% APR. Its lines of credit start at 10.99% APR — but you can expect to pay more. The weighted average for term loans at the end of 2019 was 49.06% APR for term loans and 35.2% APR for a line of credit.
The APR includes an origination fee for term loans and a $20 monthly maintenance fee on lines of credit. Its term loans come with terms of three to 36 months. The credit line is revolving, but you have 12 months to repay each withdrawal. Use the calculator to see how much an OnDeck loan might cost you.
Business loan calculator
See how much you'll pay
|Loan terms (in years)|
There are a couple ways to get lower rates and fees with OnDeck. It waives the line of credit maintenance fee waived for six months if you withdraw at least $5,000 within five days of opening your account. And OnDeck offers loyalty benefits to customers who borrow again, like reduced or waived origination fees.
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Select the loan amount, revenue, time in business and credit score range to see how OnDeck stacks up to other similar providers.
How to qualify
You’re eligible for an OnDeck business loan if you and your business meet the following criteria:
- Personal credit score of 600 or higher
- Business is at least 12 months old and based in the US
- At least $100,000 annual revenue
- Eligible industry
- No bankruptcies in last two years
- No unresolved liens or judgments
The average OnDeck customer has a business that’s been around for over three years and earns $300,000 annually. The majority of OnDeck customers also have a credit score of at least 650.
Many lenders have some restrictions on which industries it does business with, but OnDeck's list is extensive. Flea markets, funeral services, farms and more are just a few of the restricted industries. Be sure your business isn't on this list before you apply.
OnDeck reviews and complaints
|BBB customer reviews||3.6 out of 5 stars, based on 127 customer reviews|
|BBB customer complaints||29 customer complaints|
|Trustpilot Score||4.9 out of 5 stars, based on 2,599 customer reviews|
|Customer reviews verified as of||13 October 2019|
OnDeck customer reviews are mostly positive. Most are happy with the relationships they developed with the OnDeck team. Several mention working with the same loan specialist for multiple loans. But a handful report that they didn't get sufficient relief after their business was affected by COVID-19. Others mention the high cost.
How the application works
You can apply for a loan online or over the phone by calling 888-545-8382. If you apply online, the application only takes a few minutes to complete — and you only have to submit three months of bank statements. You can get your funds as soon as the next business day after approval.
After receiving your funds, OnDeck will start taking daily or weekly “micropayments” out of your business’s bank account. They’re intended to have as little impact as possible on your cash flow, but you could end up in trouble if your bank account has low funds for a short period of time.
What sets it apart
OnDeck looks at your whole business’s profile — not just your business’s credit score — when considering your application. By using alternative data like your business’s success and cash flow, OnDeck opens up financing to business owners who’ve had trouble getting funding from a bank in the past.
It’s also very user-friendly — you can apply on your phone in just a few minutes.
Is OnDeck legit?
Yes, OnDeck is a legitimate online lender. It uses Transport Layer Security encryption to protect your personal and financial information on its website. And like most online lenders it's not federally regulated and isn't required to meet the same requirements as a bank or credit union. This partly helps OnDeck fund more borrowers who can't qualify for bank funding. But if you want that extra layer of legitimacy, consider applying with a federally-insured institution.
See how OnDeck compares to more providers
OnDeck vs …
Gauge the financial health of your business before applying, and compare different business loan options to see if OnDeck is the right choice for you. If you like what OnDeck offers but still aren’t 100% sure, you can always browse lenders similar to OnDeck to make sure you’re making the right decision.
Frequently asked questions
Business loan ratings
We rate business loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews.
Read the full methodology of how we rate business loan providers to get a better picture of what goes into each star rating.