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OnDeck Small Business Loans: 2024 Review

Updated Feb 01, 2024

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At a glance

4.6
Rating: 4.6 stars out of 5
Bankrate Score
Caret Down
Accessibility
Rating: 4.8 stars out of 5
Affordability
Rating: 3.4 stars out of 5
Customer experience
Rating: 4.4 stars out of 5
Transparency
Rating: 5 stars out of 5
Flexibility
Rating: 5 stars out of 5
How Bankrate Scores work Arrow Down

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.

Lender Details

  • Moneybag

    Loan amount

    $5,000-$250,000

  • Rates

    Interest rate

    52.60%-60.90% average APR

  • Clock Wait

    Term lengths

    12-24 months

  • Dollar

    Min. annual revenue

    $100,000

  • Business

    Min. time in business

    1 year

Who OnDeck is best for

You don’t need perfect credit to get approved for an OnDeck loan, 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 over 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. If you've failed to qualify for a loan with reasonable rates, SBA loans offer low interest rates and long repayment periods. These loans may be a better option if you have time to wait the typical 30 to 90 days for funding. 

OnDeck: in the details

OnDeck pros and cons

Pros

  • Checkmark

    Same-day funding

  • Checkmark

    Build business credit

  • Checkmark

    Early repayment incentive

Cons

  • Low loan amounts

  • Not available in North Dakota

  • Steep APRs

  • May pay a loan origination fee

Business loan types offered

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

Loan quick facts

  • Amounts: $5,000 to $250,000
  • Terms: 24 months
  • APR: Varies; Average is 60.90%

OnDeck business term loan overview

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 you have held your loan for six months or paid down at least 40 percent, you could be eligible to reapply for a loan. Reducing the origination fee isn’t available for 24-month loans, so you could only get the reduced fee with a business line of credit. 

Same-day funding only applies to term loans of up to $100,000 approved on weekdays before 10:30 a.m. EST and isn't available in every state.

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.

Loan quick facts

  • Amounts: $6,000 to $100,000
  • Terms: 12, 18 or 24 months, revolving 
  • APR: Varies; Average is 52.60%

OnDeck business line of credit overview

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 to 24 months to repay each draw, and there is no draw fee. Loans are secured by a general lien on business assets.

Do you qualify? 

Here are the eligibility guidelines for OnDeck business term loans and lines of credit as well as ineligible industries: 

What we like and what we don’t like

OnDeck business loans 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: It's possible to get a fast business loan of up to $100,000 if you apply and are approved before 10:30 a.m. EST on weekdays. 
  • 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 

  • Low loan amounts. OnDeck’s business loans only go up to $250,000, and lines of credit only go up to $100,000. Many lenders go up to $500,000 or more for business loans and at least $250,000 for lines of credit.
  • Not available in all 50 states: OnDeck does not offer business loans in North Dakota.
  • Steep APRs: The average APR for business term loans is 60.90 percent, and the average APR for the business line of credit is 52.60 percent. If your business is well-established and has good credit, you’ll likely find better business loan rates elsewhere.

How OnDeck compares to other lenders

OnDeck loans are good for those with fair personal credit needing fast funding. Along with same-day funding in select states, OnDeck has early repayment discounts. However, if it doesn’t offer a 100 percent repayment benefit, you’ll be on the hook for 75 percent of the interest even if you do repay early. OnDeck also has high APRs, so if you have good to excellent credit, you’ll likely find a better rate with other lenders. 

Rating: 4.6 stars out of 5
4.6

Bankrate Score

  • Loan amount

    $5,000-$250,000

  • Interest rate

    52.60%-60.90% average APR

  • Term lengths

    12-24 months

  • Min. time in business

    1 year

  • Min. business annual revenue

    $100,000

Rating: 4.6 stars out of 5
4.6

Bankrate Score

  • Loan amount

    $5,000-$10 million

  • Interest rate

    1.11 Factor rate

  • Term lengths

    3 months-10 years

  • Min. time in business

    6 months

  • Min. business annual revenue

    $300,000

Rating: 4.5 stars out of 5
4.5

Bankrate Score

  • Loan amount

    Up to $150,000

  • Interest rate

    N/A

  • Term lengths

    12 or 24 weeks

  • Min. time in business

    6 months

  • Min. business annual revenue

    $100,000

Read our review

on Bankrate

OnDeck vs. Credibly

OnDeck doesn’t require perfect credit, but you will need a score of at least 625. On the other hand, Credibly only requires a score of 550 to apply for a loan or line of credit. 

When it comes to rates, OnDeck and Credibly have higher rates than traditional lenders. Credibly uses factor rates that start at 1.09, whereas the average APR for OnDeck’s term loans is 60.90 percent. If you’re considering using Credibly, be sure to convert your factor rate to an interest rate to determine the true cost of borrowing. 

Both lenders offer short-term loans. OnDeck has terms of up to 24 months, with Credibly offering loan terms of up to 10 years for its long-term loan. That said, you can borrow more from Credibly; maximum borrowing limits reach $400,000 for its short-term loan or $10 million with a long-term loan through the lender. OnDeck tops out at $250,000.

OnDeck is better for established businesses with decent credit who can pay off their loan quickly. You may want to consider Credibly if you have a hard time getting approved elsewhere or you’re a new business that wants a variety of loan options. 

OnDeck vs. Fundbox

Both OnDeck and Fundbox are good options for people with poor to fair credit, while businesses with excellent credit may be able to find a better rate elsewhere. While both offer business lines of credit, Fundbox’s terms are significantly shorter. They only offer 12- or 24-week terms. OnDeck has borrowing limits of $250,000, while Fundbox’s limit is $150,000. 

One area where the two lenders diverge is fees and interest. If you take out a loan from OnDeck, the average APR for a business term loan is 60.90 percent and 52.60 percent for its business lines of credit. Fundbox charges fees instead of interest, starting at 4.66 percent per week for 12-week loans or 8.99 percent for 24-week loans. 

Borrowers looking for short-term, fast loans will likely find that OnDeck and Fundbox are comparable options. However, OnDeck is a better option for fair-credit businesses that need a longer term to repay the loan.

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.

Required application information:

  • Driver’s license number and state of issuance
  • Social Security number 
  • Business tax ID
  • Three most recent business bank statements

OnDeck frequently asked questions

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

Clock Wait
47
years in business
Credit Card Search
30+
lenders reviewed
Loan
22
loan features weighed
Rates
770+
data points collected

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 30 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.