OnDeck business loans: 2023 review

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Updated on Mar 08, 2023

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At a glance

Overall Score	4.5
Overview	Since 2006, OnDeck has funded $15 billion in small business loans. It currently offers term loans and lines of credit to borrowers with fair credit.
Loan amount:	$5,000-$250,000
APR from:	29.90%
Term lengths:	12-24 months
Minimum credit score:	625

Who OnDeck is best for

You don’t need perfect credit to get approved with OnDeck, which makes it a good fit for fair-credit borrowers. Furthermore, startups who have trouble getting approved elsewhere because they haven’t been operable for at least a year may have better luck with OnDeck. The lender’s fast funding times also make it worth considering if you need working capital right away, despite the hefty borrowing costs.

Who OnDeck may not be best for

If you’ve been in business for more than a year and have a solid credit rating, you may qualify for a better loan offer elsewhere. Borrowers seeking a long-term financial solution should also look beyond OnDeck for a business loan since the maximum loan term is just 24 months. And, of course, if you operate in a state or industry OnDeck doesn’t serve, you’ll have to try another lender.

OnDeck pros and cons

PROS

Same-day funding
Build business credit
Early repayment incentives

CONS

Not available in all 50 states
Steep APRs
Loan origination fee

Business loan types offered

OnDeck provides term loans and lines of credit to small business owners.

Term loans

Amounts: $5,000-$250,000

Terms: 18-24 months

APR from: 29.90%; average is 62.10%

OnDeck features a customizable short-term loan for business owners looking to make a specific purchase or one-time investment. Funds are dispersed in lump-sum as soon as the same day. You’ll make fixed daily or weekly payments as you repay the loan.

If your loan is in good standing after you’ve paid off 50 percent of the balance, you could be eligible for a renewal that waives any remaining interest. Plus, the new loan may come with a reduced or waived origination fee.

OnDeck charges an origination fee of up to 4 percent. Additionally, if your loan doesn’t come with OnDeck’s Prepayment Benefit, repaying early means you’ll still owe 75 percent of the loan’s remaining interest. Loans are secured by a general lien on business assets, and you’ll have to sign a personal guarantee.

Line of credit

- Amounts: $6,000-$100,000
- Terms: 12 months, revolving
- APR from: 29.90%; average is 48.90%

A business line of credit from OnDeck gives you access to a pool of cash you can borrow from to cover business-related expenses. Funds are disbursed within seconds, and you’ll only pay interest on the amount you borrow. You’ll get 12 months to repay each draws, and that term resets if you make a new draw.

There is no draw fee, but a $20 monthly maintenance fee applies. However, you can have it waived for the line’s first six months if you borrow $5,000 within the first week of opening the account.

Loans are secured by a general lien on business assets, and you’ll have to sign a personal guarantee.

Do you qualify?

Here are the eligibility guidelines for business term loans and lines of credit:

625 FICO score
$100,000 in annual business revenue
One year in business
Active business bank account in good standing
Operate outside Nevada, North Dakota or South Dakota

Note that even if you meet minimum requirements, you aren’t guaranteed to be approved for funding.

Companies operating as any of the following or in these industries are unable to access funding:

Adult entertainment or materials

Boarding or rooming houses

Civic organizations

Drug dispensaries

Firearms vendors

Gambling (i.e., casinos, gambling, gaming, lottery or raffles)

Fortune-telling or horoscope providers

Money services businesses

Non-profit organizations

Public administration entities

What we like and what we don’t like

Small business loans from OnDeck are accessible even if you don’t have perfect credit, and you could receive funding the same business day. But convenience comes with a cost.

What we like

Same-day funding: This option is available in select states for loans up to $100,000 approved on weekdays before 10:30 a.m. EST.
Build business credit: OnDeck reports account activity to the business credit bureaus, so making timely payments could help improve your business credit rating.
Early repayment incentives: Select borrowers qualify for the Prepayment Benefit option that waives the remaining interest if the balance is paid in full before the loan term ends. But if you don’t get this option, you’ll owe 75 percent of the remaining interest if you repay early.

What we don't like

Not available in all 50 states: OnDeck does not offer business loans in Nevada, North Dakota and South Dakota.
Steep APRs: The average APR for business term loans is 62.10 percent, and the average APR for the business line of credit is 48.90 percent. If your business is well-established and has good credit, you’ll likely find better business loan rates elsewhere.
Loan origination fee: Some borrowers pay an origination fee of up to four percent. A $20 monthly maintenance fee also applies to lines of credit unless you draw at least $5,000 in the first week.

How to apply for a loan with OnDeck

You can apply for a loan with OnDeck online or by phone at 888-269-4246. Most applicants receive a decision in minutes, and funds are available as soon as the same business day or within one to three days.

Live support is available to applicants by phone at 888-269-4246 Monday through Friday from 9:30 a.m. to 7:30 p.m. EST. You can also send an email to sales@ondeck.com to receive assistance or the answer to any questions you may have regarding business loans and the lending process.

Driver’s license number and state of issuance

Social Security number

Business Tax ID

Three most recent business bank statements

OnDeck FAQs

Despite its steep APRs, OnDeck could work if you’re a small business owner that can’t get approved elsewhere and desperately need funding. Be sure to only borrow what you can comfortably afford to repay. Also, inquire about the Prepayment Benefit, which could help you save a bundle in interest if you’re eligible.
OnDeck’s business loan offerings come with steep interest rates and brief repayment periods, making them riskier for borrowers. Depending on the amount you borrow, you could get an unaffordable monthly payment, creating cash flow problems in your business.
Borrowers need a minimum credit score of 625 to qualify for a business term loan or line of credit with OnDeck. However, a higher credit score likely means you’ll be eligible for more competitive terms.
The interest rate for business term loans starts at 29.90 percent. That said, the rate you receive is determined by your creditworthiness, cash flow and your company’s overall financial health. OnDeck states that access to the best rates is limited, and based on the average rates OnDeck discloses, most borrowers pay much more.

How Bankrate rates OnDeck

Overall Score	4.5
Accessibility	4.8	OnDeck offers low maximum amounts, generous eligibility requirements and lightning-fast funding.
Affordability	3.4	OnDeck charges sky-high APRs, alongside origination fees.
Transparency	5.0	Qualification requirements are clear, and you can qualify with just a soft credit pull.
Customer experience	4.4	Customers can apply for and manage their loans online.
Flexibility	5.0	OnDeck offers two loan types and the option to renew your term once it’s 50 percent paid.

Methodology

To select the top small business lenders, Bankrate considers more than 20 factors. These factors include loan amounts, approval and funding times, credit requirements, APR or factor rate ranges, fees, and easy-to-find rate and fee disclosures. Bankrate reviewed more than 20 lenders and gave each a rating, which consists of five categories:

Accessibility: Factors considered in this category include minimum loan amounts, approval and funding speed, minimum annual revenue and minimum credit score.
Affordability: This section measures interest or factor rates and fees.
Transparency: How easy it is to find important rates, fees and eligibility requirements are considered in this category.
Customer experience: Customer service hours, online applications and app availability are considered in this category.
Flexibility: This category considers factors like the number of loan products and ability to change payment due date.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.