OnDeck: An Excellent But Pricey Online Business Lender
OnDeck loans are easy to qualify for and fast to fund, but the cost of capital can be expensive.
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
39%
Max Loan Amount
$200,000
Max Term Length
24 months
Max APR
99%
Qualifications
Min. credit score
625
Min. Time in Business
12 months
Min. Annual Revenue
$100,000
Pros & Cons
Pros
Fast funding.
Flexible qualification requirements.
Can be used to build business credit.
Streamlined application process.
Cons
Can be expensive.
Prepayment may not save on interest costs.
Not available in North Dakota.
OnDeck is an online lender that offers business lines of credit and term loans. These small-business loans
OnDeck is known for its flexible qualification requirements and its streamlined underwriting process, allowing you to apply in minutes. In some cases, you can receive financing as fast as the same day.
Consider OnDeck if you:
- Need cash fast. OnDeck’s line of credit can fund within four days from application and approval. After your first draw, you can receive future draws instantly via a debit card. Same-day funding is available in some states for OnDeck term loans up to $200,000. Otherwise, your term loan can be funded within a few business days.
- Don’t meet the eligibility requirements of other lenders. OnDeck has a low credit score requirement of 625. Most banks require at least 24 months in business, but OnDeck requires only 12 months.
- Can afford frequent payments over a short term. OnDeck’s line of credit comes with the flexibility to choose between weekly or monthly payments, but the term loan comes with daily or weekly payments. For some businesses, that repayment schedule may be aggressive and impact cash flow.
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
OnDeck line of credit
| Loan amount | $6,000 to $100,000. |
| Estimated APR range | 39% to 99% (minimums provided are rates that at least 5% of customers received) . |
| Fees | 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 | 35% to 99% (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 $250,000. 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
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 startups with at least one year in business can qualify for a loan from OnDeck (though some online lenders will work with younger businesses).
» 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 Fora Financial, 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. Annual percentage rates for the term loan range from 35% to 99% and include the origination fees
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
Daily or weekly payments can be difficult for businesses with uneven cash flow.
Early repayment may not save interest costs
OnDeck doesn’t charge prepayment penalties
Specific to OnDeck’s term loan, you can pay your loan off early and have 100% of the remaining interest waived, but only if you qualify for OnDeck’s prepayment benefit. 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
4.8
Max Loan Amount
$100,000
Apply now with Fundera by NerdWallet
Fundbox
Fundbox
Fundbox - Line of credit
NerdWallet Rating
4.7
Max Loan Amount
$250,000
with Fundera by NerdWallet
Alternatives to OnDeck term loans
QuickBridge
QuickBridge
QuickBridge - Online term loan
NerdWallet Rating
4.1
Max Loan Amount
$500,000
with Fundera by NerdWallet
If you’re looking for a larger amount of financing and have stronger annual revenue, QuickBridge
Fora Financial
Fora Financial
Fora Financial - Online term loan
NerdWallet Rating
4.7
Max Loan Amount
$1,500,000
with Fundera by NerdWallet
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