OnDeck Business Loans 2025 Review

OnDeck loans are easy to qualify for and fast to fund, but the cost of capital can be expensive.
Randa Kriss

Written by

Randa Kriss
Randa Kriss
Sally Lauckner

Edited by

Sally Lauckner
Sally Lauckner

Edited by

Sally Lauckner
Last updated on Dec 10, 2019

Fact checked and reviewed

Why trust NerdWallet

Advertiser disclosure

Randa Kriss

Written by

Randa Kriss
Randa Kriss
Sally Lauckner

Edited by

Sally Lauckner
Sally Lauckner

Edited by

Sally Lauckner
Last updated on Dec 10, 2019

Fact checked and reviewed

Why trust NerdWallet

Advertiser disclosure

OnDeck - Line of credit

Overview

The bottom line:

OnDeck loans are a good option for fast, short-term financing — especially for business owners who can’t qualify for a bank loan.

Loan details

Min. Loan Amount

$6,000

Min. Term Length

12 months

Min. APR

40%

Max Loan Amount

$100,000

Max Term Length

24 months

Max APR

91%

Qualifications

Min. credit score

Min. credit score

625

Min. Time in Business

Min. Time in Business

12 months

Min. Annual Revenue

Min. Annual Revenue

$100,000

Pros & Cons

Pros

    pros icon
    Fast funding.
    pros icon
    Flexible qualification requirements.
    pros icon
    Can be used to build business credit.
    pros icon
    Streamlined application process.

Cons

    cons icon
    Can be expensive.
    cons icon
    Frequent repayments.
    cons icon
    Prepayment may not save on interest costs.
    cons icon
    Not available in North Dakota.
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OnDeck is an online lender that offers business lines of credit and term loans. These small-business loans can be used for a variety of purposes and are well-suited for entrepreneurs who need quick access to capital.
OnDeck is known for its flexible qualification requirements and its streamlined underwriting process, allowing you to apply in minutes and — in some cases — receive financing as fast as the same day.

OnDeck loan qualifications

C redit score : 625 or higher.
Time in business: 12 months
Annual revenue: $100000 or more.

Consider OnDeck if you:

✔️ Need cash fast.
✔️ Don’t meet the eligibility requirements of other lenders.
✔️ Can afford frequent payments over a short term.
Not a fit? Consider these lenders instead.

...

OnDeck small-business loan details

OnDeck offers a business term loan and a business line of credit. Here’s what you can expect from OnDeck’s financing, based on loan type.

OnDeck line of credit

Loan amount
$6,000 to $100,000.
Estimated APR range
40% to 91.1% (based on loans originated in the half-year ending Dec. 31, 2024; minimums provided are rates that at least 5% of customers received) .
Fees
  • $20 monthly maintenance fee. This fee can be waived for your first six months if you withdraw $5,000 or more within one week of opening your line of credit.
  • No draw fees or prepayment penalties.
  • Late payment and returned payment fees may apply based on the information in your loan agreement.
Terms
12, 18 or 24 months.
Repayment schedule
Weekly or monthly.
Funding speed
As fast as the same day. Instant funding (within 30 minutes) may be available for withdrawals between $1,000 and $10,000.

OnDeck term loan

Loan amount
$5,000 to $250,000.
Estimated APR range
31.3% to 99.9% (based on loans originated in the half-year ending Dec. 31, 2024; minimums provided are rates that at least 5% of customers received) .
Fees
  • 0% to 4% origination fee on the total amount of your loan.
  • Late payment and returned payment fees may apply based on the information in your loan agreement.
Terms
Up to 24 months.
Repayment schedule
Daily or weekly.
Funding speed
As fast as the same day for loans up to $100,000. Other criteria may apply to receive same-day funding.
» MORE: How a business line of credit works and where to get one

Where OnDeck stands out

Fast funding

OnDeck is a good option if you need fast access to short-term financing. You can submit an application online or over the phone in as little as 10 minutes by providing basic information about yourself and your business. You may also be required to upload a few pieces of documentation, such as the last three months of business bank statements.
If you’re approved, an OnDeck loan advisor will reach out to help you review your options and complete the checkout process. OnDeck can approve and fund some applications as fast as the same day.
You can access same-day business funding for term loans up to $100,000. For lines of credit, you can draw on your line in amounts ranging from $1,000 to $10,000 and receive funds in just minutes. However, you may need to meet specific eligibility requirements to get same-day financing, so you’ll want to talk to your loan advisor for additional information on funding speed.
In general, OnDeck loans can be available in two to three business days.

💬 From our Nerds: Let your lender know if you’re in a hurry for funding

"As someone who has worked in small-business lending, the best and simplest thing you can do when you’re in need of fast funding is communicate your timeline to your loan officer. They won’t always be able to control every aspect of the process, but they may be able to prioritize your file and advocate for your loan to their underwriting team, which can go a long way."
Face, Happy, Head

Olivia Chen, lead writer, Small Business

Flexible qualification requirements

OnDeck has more lenient eligibility requirements compared with traditional and other online lenders. OnDeck can be a good option for bad credit business loans (FICO score below 630), as you can qualify with a minimum credit score of 625. And although some online lenders will work with younger businesses, startups with at least one year in business can qualify for a loan from OnDeck.
OnDeck considers borrowers with bad credit (the lender requires a minimum FICO score of 625 or higher) and at least one year in business. OnDeck doesn’t require you to put up physical collateral to secure your loan. However, the lender will take a general lien out on your business assets if you opt for a term loan.
» Explore our lists of best business loans for: bad credit | startups | easy qualification

Can build business credit

OnDeck reports your payment activity to three business credit bureaus: Experian, Equifax and PayNet. Therefore, if you make timely payments, you can use your OnDeck loan to build business credit.
Building business credit can help you qualify for larger loan amounts, longer repayment terms and more competitive interest rates in the future.
This benefit differentiates OnDeck from similar online lenders — like Fundbox, for example — which don’t report to the commercial credit bureaus.

Where OnDeck falls short

Can be expensive

OnDeck loans can have high interest rates compared with traditional and other online lenders. The lender charges interest as a factor rate, which can range from 1.037 to 1.45 for term loans and 1.10 to 1.30 for lines of credit.
These term loan factor rates translate to annual percentage rates ranging from 31.3% to 99.9%, while rates for lines of credit translate to APRs ranging from 40% to 91.1% (based on loans originated in the half-year ending Dec. 31, 2024; minimums provided are rates that at least 5% of customers received) .
These APRs also include origination fees on term loans and a $20 monthly maintenance fee on lines of credit. If you draw $5,000 or more within one week of opening your credit line, you can waive the maintenance fee for the first six months. However, some business line of credit lenders don't charge an account maintenance fee.

Curious about the true cost of an OnDeck business loan?

User our business loan calculator to estimate the full cost of a term loan or line of credit from OnDeck.

Frequent repayments

OnDeck’s term loan and working capital line of credit have shorter repayment terms — up to 24 months — which results in higher payment amounts. Term loans are repaid daily or weekly, while lines of credit are repaid weekly or monthly.
This high frequency of payments can be difficult for businesses with uneven cash flow.
OnDeck term loans will require automatic daily or weekly payments (depending on the loan amount and term length). Repayment terms max out at 24 months. With an OnDeck line of credit, on the other hand, you’ll have automatic weekly or monthly payments with a 12-, 18- or 24-month term.

Early repayment may not save interest costs

OnDeck doesn’t assess prepayment penalties, but repaying your loan early won’t necessarily save you money on interest costs.
In order to prepay your loan and have 100% of the remaining interest waived, you need to qualify for OnDeck’s prepayment benefit. Loans with the prepayment benefit will have a higher interest rate, which may increase the total cost of your financing.
If you don’t qualify for the prepayment benefit, but you still pay off your loan early, you’ll owe 75% of the remaining interest that was disclosed in your original loan agreement.
Other lenders may allow you to simply prepay your loan, without penalty, which will save you on interest costs.

Alternatives to OnDeck lines of credit

Headway Capital

  • Loan type: Line of credit.
  • Max. loan amount: $100000.
  • Terms: Up to 24 months.
  • APR: Starting at 35%.
  • Min. credit score: 625.
  • Min. time in business: 6 months.
Headway Capital's line of credit details mirror OnDeck's in many ways, including credit score minimum, maximum loan amount and starting APR, but with one key difference: Headway will consider borrowers with only 6 months of business history, versus OnDeck's required 12 months. Headway is also faster to fund than OnDeck, typically depositing your funds by the next business day after approval. This lender may charge a draw fee, though, depending on the location of your business.
» Read our complete Headway Capital review

Fundbox

  • Loan type: Line of credit.
  • Max. loan amount: $250000.
  • Terms: Up to 6 months.
  • APR: Starting at 36%.
  • Min. credit score: 600
  • Min. time in business: 3 months.
Fundbox offers business lines of credit of up to $150,000 with terms of 12 or 24 weeks. Although the terms are shorter than OnDeck, Fundbox may be more affordable, with an estimated APR ranging from 36% to 99%. And unlike OnDeck, Fundbox does not charge an account maintenance fee and you can repay your credit line early to save on interest costs.
Fundbox is a good option for both startups and businesses with bad credit. You’ll need a minimum credit score of 600 and at least 3 months in business to qualify. Fundbox can approve and fund applications in as little as 24 hours.
» Read our complete Fundbox review

Alternatives to OnDeck term loans

QuickBridge

  • Loan type: Term loan.
  • Max. loan amount: $500000.
  • Terms: Up to 18 months.
  • APR: Undisclosed; charges a factor rate.
  • Min. credit score: 600
  • Min. time in business: 6 months.
If you’re looking for a larger amount of financing and have stronger annual revenue, QuickBridge offers business term loans of up to $500,000. To qualify, you’ll need a minimum credit score of 600, a minimum annual revenue of 250000 and at least 6 months in business.
QuickBridge offers terms of up to 18 months, daily or weekly payments and no prepayment penalties. Loans can fund in as little as 24 hours after approval.
» Read our complete QuickBridge review.

Fora Financial

  • Loan type: Term loan.
  • Max. loan amount: $1500000
  • Terms: Up to 18 months.
  • APR: Undisclosed; charges a factor rate.
  • Min. credit score: 570.
  • Min. time in business: 6 months.
If you're looking for a large term loan, even if you don't have great credit and/or you're a new business, then Fora Financial may be able to help you. But the generous maximum loan amount and highly accessible credit score requirement come at a cost of higher rates, which Fora also calculates using a factor rate rather than APR. You'll also have less time, 18 months, to pay off your loan with Fora than you will with OnDeck. Plus, you'll need to prove a minimum annual revenue of $240000.
On the upside, Fora offers prepayment discounts, which help this lender stand out among many other online lenders.
» Read our complete Fora Financial review

Frequently asked questions

Frequently asked questions

To qualify for a term loan or line of credit from OnDeck, you’ll need a minimum personal credit score of 625. A strong credit score will help you qualify for a loan with the most competitive rates and terms.
Some of the benefits of OnDeck include a streamlined application process with minimal documentation required, a low minimum credit score requirement of 625, cash can be available within the same day and loans can be used to build business credit.
OnDeck is a direct provider of business loans and does not offer peer-to-peer lending, which allows you to borrow directly from an individual or a group of investors instead of a lender.