Sometimes, running a small business requires an extra or initial investment in order to get started. OnDeck is a business loan service that provides funding for businesses just for this purpose. It provides a professional team of finance experts that can help your business expand and grow with additional financing. In prior years, businesses took out traditional merchant cash advances, but now companies have more affordable options that can help cover short-term funding. OnDeck is the best short-term loan provider for businesses.
- Best for: Those turned down for traditional loans. OnDeck takes into account the full financial story of your business, which may make it easier for some to be approved for a loan.
- Price: The price will vary based on the size of your loan, but interest rates range from 19.99 percent to 39.99 percent, and there is an additional origination fee of 2.5 percent.
- Loan amounts: Since OnDeck offers business loans, loan amounts are generally pretty significant, ranging from $50,000 to $250,000. How much you are approved for depends on your financial history.
- Loan length: OnDeck offers loans from 12 months to 24 months, so you will have a good amount of time to pay back the loan.
- Qualifications: Your business must have been running for at least a year. You also need to have a $100,000 annual revenue and at least one owner with a credit score of 500 or greater.
|Interest Rate||Loan Length||Loan Amount||STL Rating|
|19.99% to 39.99%||12 months to 24 months||$50,000 to $250,000|
How Does OnDeck Work?
OnDeck provides business loans that can help companies manage cashflow, upgrade an office space, purchase inventory, hire additional employees and more. It features two financing options:
Term Loans: These are loans for up to $500,000, with rates starting at 5.99 percent.
Lines of Credit: These can run up to $100,000, with rates starting at 13.99 percent.
Businesses apply for a loan online or on the phone, and OnDeck’s system then evaluates your application and provides an immediate decision. After that, you sign a contract and can receive money as quickly as 24 hours after approval.
How Can You Get Approved for an OnDeck Loan?
In order to qualify for an OnDeck loan, your business needs to have been in operation for at least nine months and has to have generated more than $75,000 in annual revenue. It’s also a requirement for one of the business owners to have a personal credit score above 500 — and the score must be slightly higher for a line of credit from OnDeck.
How Much Can You Get for an OnDeck Loan?
OnDeck offers terms ranging from three months to three years. You can choose to borrow any amount ranging from $5,000 to $500,000.
OnDeck offers short-term loans from OnDeck for up to $250,000 over three to 12 months.
On-Deck offers long-term loans for up to $500,000 over 15 to 36 months.
Lines of Credit
OnDeck offers credit lines up to $100,000 in flexible cash that you can use right away.
Why Should You Choose OnDeck?
OnDeck is a great choice for businesses that are making more than $75,000 per year. It’s geared toward a wide range of brick-and-mortar and e-commerce businesses, and they will supply loans to companies that sometimes get declined by bigger banks. Loans from OnDeck will run you only half as much as traditional merchant cash advances, so it’s a great way to finance a business without going into more debt.
OnDeck loans can help you build your business credit by reporting your payment history on your loan to business credit bureaus. They also offer additional credit education tools and mentoring from SCORE. They feature 24/7 account access via their mobile app so you can easily draw funds and pay off your monthly rates anytime. OnDeck also provides reduced pricing and fees for returning customers, so you can use them again and again over time to your benefit.
The service is super-quick and hassle-free, which is why many businesses choose it over competitors. It’s a great option for companies that are looking to expand and need cash quickly without a lot of paperwork or intensive financial background checks. OnDeck is willing to jump into action and make decisions quickly in order to close the loan deal and transfer money to you immediately.
They have an A+ rating with the Better Business Bureau. OnDeck also offers flexibility when it comes to loan size and terms. You can select a loan length and amount based on how you plan to use the expected revenue, and budget for a monthly payment accordingly.
What Are OnDeck’s Interest Rates?
The average APR for OnDeck capital term loans is between 40 percent and 80 percent.
How Do OnDeck’s Capital Competitors Compare?
OnDeck’s capital competitors are typically more expensive. OnDeck is usually about half as expensive as merchant cash advances, so your business can save quite a bit of money. The application process is also a plus: While some OnDeck capital competitors take days to approve or reject applications, OnDeck offers a decision online in just a few minutes and can deliver money within one business day. Customers can also arrange regular fixed payments so that large sum payments don’t pile up toward the end of the month. Beyond that, most competitors require higher credit scores and at least one year of operating history in order to be considered for a loan, while others require a two-year business history.
What Are Common OnDeck Capital Complaints?
Though OnDeck capital complaints seem few and far between, some customers do find negative aspects to working with them. The interest rates can be quite high depending on your financial situation and credit scores, as well as other factors. Although they do provide fast cash, it is difficult to make changes to your payment or account settings after arranging the initial loan agreement. There have been reports of difficulties contacting customer service representatives, and making quick and easy changes after the initial loan agreements are outlined and provided.
Common OnDeck Capital Customer Reviews
OnDeck capital reviews are largely positive. They have many repeat and long-term customers who report having fantastic experiences with them without any problems. Small businesses, especially, seem to have a great experience taking out loans with OnDeck when they are getting rejected from other sources. Customers rave about the support staff and account reps and feel like they benefit from the straightforward and honest interactions that OnDeck provides.
One of the main things that customers review positively is the application process — which is quick, easy and painless — as well as the speed and efficiency with which they approve applications and deliver payments. Customers love that there is not a lengthy waiting period between the application and actual receipt of the loan payment; after all, sometimes businesses going through a crunch period can’t afford to wait long for a big loan. Overall, it seems that customers believe OnDeck to be an exceptional finance option.