A loan to help your business grow at the speed you need.
|Product Name||OnDeck Small Business Loans|
|Requirements||600+ personal credit score, 1+ years in business, $100,000+ annual revenue|
- Company must have been in business at least one year
- Company must be based in the US
- $100,000+ in gross annual revenue
- At least one owner with a 600+ personal credit score
- No bankruptcy in last 2 years
- No unresolved liens and judgements
First, do I qualify?
You’re eligible for an OnDeck business loan if you and your buisness meet the following criteria:
- Personal credit score of credit score is 600 or higher
- Business is at least one year old
- At least $100,000 annual revenue
The average OnDeck customer has a business that’s been around for seven years and earns $450,000. The majority of OnDeck customers also have a credit score of at least 660.
What makes OnDeck business loans unique?
OnDeck is an online lender that looks at your whole business’s profile — not just your business’s credit score — when considering your application. By using alternative data, OnDeck opens up financing to business owners that have 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.
What’s an OnDeck business loan?
Getting financing from OnDeck works in three simple steps. You apply online and receive your decision once your application has been process. If approved, your loan funds will be transferred to your selected bank account. Funding can be quick, and you can use your loan to build your business’s credit history by making timely payments.
OnDeck looks at at cash flow and business success when determining a decision, rather than just your credit score. You can choose between short- and long-term loans, ranging from $5,000 to $500,000. Loan terms run from 3 to 36 months, giving you a flexible payment period that suits your business.
OnDeck line of credit
In addition to offering business loans, OnDeck has a line of credit for working capital expenses like managing accounts receivables and ongoing projects.
Credit limits run up to $100,000 with APRs starting at 13.99%. Like with a credit card, you only pay interest on the funds you borrow and repay your balance with fixed, weekly repayments.
There’s a $20 monthly maintenance fee, though OnDeck waives it for the first six months if you withdraw $5,000 within five days of opening your account. There are no draw fees.
What are the benefits of an OnDeck business loan?
- Fast funding. You may be able to receive your loan as soon as the next business day.
- Dedicated specialists. US-based specialists are available to help with customer questions six days a week.
- Loyalty perks. Customers who return to the company for additional services may receive reduced fees.
- Availability. Businesses from all 50 states and Canada, excluding Quebec Provence, can apply to get funding.
- Loan terms. You can repay your loan over a short period of time, or a bit longer depending on your qualifications and what you need. Terms run from 3 to 36 months.
Compare more business loan providers
What to watch out for
- Weekly or daily repayments. Shorter periods of time between repayments might now work for businesses that don’t have an even cash flow or want to make a large purchase that could temporarily clear out their bank accounts for a few days or weeks.
- Restricted industries. While many lenders have restrictions on which industries it does business with, OnDeck’s 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.
- No prepayment benefits on short-term loans. While OnDeck doesn’t charge prepayment penalties, the way it calculates how much you owe in interest and fees means that you won’t be able to save by paying your short-term loan off early.
- Not for starting a business. Your business must be around for over a year and make at least $100,000 annually to qualify for an OnDeck loan.
What do borrowers say about OnDeck?
OnDeck has mostly positive customer reviews as of April 2019. It’s been accredited with the Better Business Bureau (BBB) since 2008, which gives it an A+ rating. The BBB bases its rating on criteria including complaint history, transparent business practices and government actions against the business.
The majority of BBB and TrustPilot customer reviews are mostly positive. BBB users gave it nearly 4 out of 5 stars, while with 94% of nearly 2,000 TrustPilot reviewers rating it as “Excellent.” They gave it an average 9.7 out of 10. Most were happy with the relationships they’d developed with the OnDeck team.
Is OnDeck legit?
Yes, OnDeck is a legit lender with two features that make it a safe option for your business loan:
- A+ BBB rating. BBB accredited since 2008, OnDeck now boasts an A+ rating.
- TLS encryption. OnDeck uses Transport Layer Security encryption to protect your personal and financial information on its website.
How do I apply?
Before applying for a business loan with OnDeck, be sure you meet the following eligibility criteria:
- Your business has been around least one year and is based in the US
- You generate $100,000+ in gross annual revenue
- You have a personal credit score of at least 600
- No bankruptcy in last 2 years
- No unresolved liens or judgments
After confirming you’re eligible and preparing your documentation, you can start the application by phone or online. Call 888-545-8382 to start the process by phone. If you want to apply online, follow these steps to keep your application quick:
Steps to apply online
- Click the Go to site button on our page to be directed straight to OnDeck’s website and then click Apply Now.
- Fill in OnDeck’s four-page application with information on your loan, your business and your personal information. Carefully read and check off the application agreement and e-signature agreement before submitting your application.
- Wait for OnDeck’s automated underwriting software to process your information and do a soft pull on your credit score. You should find out if you’re approved for funding within minutes.
- An OnDeck loan specialist will call you to go over the details of your application and ask for additional documentation if needed.
Once your loan is finalized, you can receive funding as quickly as one business day.
What documents do I need to apply?
You’ll also need to gather a few documents to confirm you and your business:
- Business tax ID
- Credit card statements for the previous three months
- Bank statements for the previous three months
- Social Security number for business owner or owners
- Driver’s license number and state of issue
I got the business loan from OnDeck. Now what?
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.
Try to avoid making large purchases that might temporarily drain your account and keep a close eye on your balance. If you have any trouble with repayments you can call the customer service line, which is open 8am to 9pm ET Monday through Friday and 9am to 5pm on Saturdays.
I didn’t get the loan. What can I do?
First, don’t panic. There are other loans out there and you can always reapply after tweaking your finances. Turn it into a learning experience: Contact OnDeck to find out why your application was rejected. Knowing your weaknesses — and making the appropriate changes — is a great way to get ready for your next loan application.
See how OnDeck compares to its competitors
OnDeck may be a fit for business owners with fair personal credit or better who is looking for a business loan to be repaid within three years. But its loans come with some features that have the potential to hurt cash flow, like daily repayments.
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. And 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.