Our Take
5.0
NerdWallet rating
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.
OnDeck - Line of credit
Max Loan Amount
$100,000
Min. credit score
625
Apply now
with Fundera by NerdWallet
Pros & Cons
Pros
- Fast funding.
- Flexible qualification requirements.
- Can be used to build business credit.
- Streamlined application process.
Cons
- Can be expensive.
- Frequent repayments.
- Prepayment may not save on interest costs.
- Not available in North Dakota.
Full Review
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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
Credit score:
625
or higher.Time in business:
12
monthsAnnual revenue: $
100,000
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.
How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
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
5.0
NerdWallet ratingLoan 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 |
|
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
4.8
NerdWallet ratingLoan 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 |
|
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. |
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."
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.
» MORE: Business loan calculator
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
Headway Capital
Headway Capital - Line of credit
NerdWallet Rating
4.7
Max Loan Amount
$100,000
Read Review
Apply now
with Fundera by NerdWallet
- Loan type: Line of credit.
- Max. loan amount: $100,000.
- Terms: Up to24months.
- APR: Starting at35%.
- Min. credit score:625.
- Min. time in business:6months.
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
Fundbox
Fundbox - Line of credit
NerdWallet Rating
4.9
Max Loan Amount
$250,000
Read Review
Apply now
with Fundera by NerdWallet
- Loan type: Line of credit.
- Max. loan amount: $250,000.
- Terms: Up to6months.
- APR: Starting at36%.
- Min. credit score:600
- Min. time in business:3months.
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
QuickBridge
QuickBridge - Online term loan
NerdWallet Rating
4.1
Max Loan Amount
$500,000
Read Review
Apply now
with Fundera by NerdWallet
- Loan type: Term loan.
- Max. loan amount: $500,000.
- Terms: Up to18months.
- APR: Undisclosed; charges a factor rate.
- Min. credit score:600
- Min. time in business:6months.
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 250,000
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
Fora Financial
Fora Financial - Online term loan
NerdWallet Rating
4.7
Max Loan Amount
$1,500,000
Read Review
Apply now
with Fundera by NerdWallet
- Loan type: Term loan.
- Max. loan amount: $1,500,000
- Terms: Up to18months.
- APR: Undisclosed; charges a factor rate.
- Min. credit score:570.
- Min. time in business:6months.
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 $240,000
. On the upside, Fora offers prepayment discounts, which help this lender stand out among many other online lenders.
» Read our complete Fora Financial review
Apply now
with Fundera by NerdWallet
Methodology
NerdWallet’s review process evaluates and rates small-business loan products from traditional banks and online lenders. We collect over 30 data points on each lender using company websites and public documents. We may also go through a lender’s initial application flow and reach out to company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer small-business friendly features, including: transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to business credit bureaus and responsible lending practices. We weigh these factors based on our assessment of which are the most important to small-business owners and how meaningfully they impact borrowers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodology for small-business loans and our editorial guidelines.
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.