A loan to help your business grow at the speed you need.
Tired of the rigid eligibility requirements of banks or the cost of other short-term business financing options? OnDeck could be a helpful alternative. It bases its loan decisions on cash flow and performance, rather than just on credit score. And it can deliver funds with the speed of a short-term loan without the expense.
|Product Name||OnDeck Small Business Loans|
|Min Loan Amount||$5,000|
|Max. Loan Amount||$500,000|
|APR||9.99% (As low as)|
|Interest Rate Type||Fixed|
|Requirements||Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.|
- 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 500+ 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 your credit score is 500 or higher, your business is at least one year old and it makes at least $100,000 annually. However, 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.
How does a small business loan through OnDeck work?
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.
Top three benefits of OnDeck small business loans
- 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.
More features of OnDeck small business loans to consider
- Availability. Businesses from all 50 states and Canada, excluding Quebec Provence, can apply to get funding.
- Industries served. OnDeck serves over 700 different industries, including retailers, restaurants, auto repair shops, healthcare providers and more.
- Automatic payments. You pay for your small business loans through fixed and automatic daily or weekly payments.
- 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.
- Rates. Term loans can have an AIR as low as a 9.99% while the starting APR for lines of credit is 13.99%.
- Origination fee. You will have to pay a one-time origination fee that helps service and process the loan. The origination fee for the first loan is 2.5% to 4% of the loan amount, 1.25% to 3% for the second loan and 0% to 3% for the third loan.
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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 great for startups. Your business must be around for over a year and make at least $100,000 annually to qualify for an OnDeck loan.
How do former borrowers rate OnDeck?
OnDeck has 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.
OnDeck also fares well when it comes to customer reviews. The majority of BBB and TrustPilot customer reviews are mostly positive, with 93% of over 1,000 TrustPilot reviewers rating it as “Excellent.” They gave it an average 9.7 out of 10.
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 500
- No bankruptcy in last 2 years
- No unresolved liens or judgments
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
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.
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 OnDeck’s 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.