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OnDeck Small-Business Loans: 2024 Review
OnDeck loans are easy to qualify for and fast to fund, but the cost of capital can be expensive.
Writer | Small business, business banking, business loans
Randa Kriss is a small-business writer who joined NerdWallet in 2020. She previously worked as a writer at Fundera, covering a wide variety of small-business topics including banking and loan products. Her work has been featured by The Washington Post, The Associated Press and Nasdaq, among others. Randa earned a bachelor's degree in English and Spanish at Iona College.
Sally Lauckner has over a decade of experience in print and online journalism. Before joining NerdWallet, Sally was the editorial director at Fundera, where she built and led a team focused on small-business content. Her prior experience includes two years as a senior editor at SmartAsset, where she edited a wide range of personal finance content, and five years at the AOL Huffington Post Media Group, where she held a variety of editorial roles. She has a master's in journalism from New York University and a bachelor's in English and history from Columbia University. Email: slauckner@nerdwallet.com.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Our Take
4.9
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 is an online lender that offers business term loans and business lines of credit. 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.
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 is best for borrowers who:
Need cash fast: You can apply for a loan from OnDeck, online or over the phone, in as little as 10 minutes. If you’re approved for a term loan ($100,000 or less), you may be able to qualify for same-day funding.
Don’t meet the eligibility requirements of other lenders: 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.
Can afford frequent payments over a short term: 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
OnDeck offers a business term loan and a business line of credit.
The term loan is available in amounts up to $250,000 and is well-suited for one-time investments in your business, such as opening a new location or renovating your space. The line of credit is available in amounts up to $100,000 and is a good option for working capital needs, like buying inventory or covering payroll.
Here’s what you can expect from OnDeck’s financing, based on loan type.
Term loan
Line of credit
Loan amount
$5,000 to $250,000.
$6,000 to $100,000.
Estimated APR range
27.2
% to
99.9
% (based on loans originated in the half-year ending March 31, 2024; minimums provided are rates that at least 5% of customers received).
35.9
% to
84.9
% (based on loans originated in the half-year ending March 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.
$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
Up to 24 months.
12, 18 or 24 months.
Repayment schedule
Daily or weekly.
Weekly or monthly.
Funding speed
As fast as the same day for loans up to $100,000. Other criteria may apply to receive same-day funding.
As fast as the same day. Instant funding (within 30 minutes) may be available for withdrawals between $1,000 and $10,000.
OnDeck loan requirements
To qualify for a term loan or a line of credit from OnDeck, you’ll need to meet the following minimum criteria:
Minimum credit score:
625
or higher.
Minimum time in business:
12
months.
Annual revenue: $
100000
or more.
OnDeck also requires that you have a business checking account. Financing from this lender is not available to businesses located in North Dakota.
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."
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 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
27.2
% to
99.9
%, while rates for lines of credit translate to APRs ranging from
35.9
% to
84.9
% (based on loans originated in the half-year ending March 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.
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
Fundbox
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.
If you’re looking for a larger amount of financing and have a more established business, iBusiness Funding, which acquired Funding Circle in 2024, offers business term loans of up to $500,000. To qualify, you’ll need a minimum credit score of
660
and at least
24
months in business.
iBusiness Funding offers terms of up to
84
months, set monthly payments and no prepayment penalties. Loans can fund within two days from your initial application, with APRs starting as low as
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.
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.