OnDeck Review: Here’s How the Largest Online Lender Measures Up

OnDeck Review: Here’s How the Largest Online Lender Measures Up
Lauren Ward
on August 2, 2017
Read in 4 min

This popular alternative lender has provided $6 billion in financing worldwide since its launch in 2007.

That makes them the largest online lender in the country dedicated to small businesses, working with more than 50,000 companies to date.

With a strong reputation for customer satisfaction, an A+ rating with the Better Business Bureau and a 9.4/10 rating on TrustPilot, OnDeck Capital is known for serving up the term loans and lines of credit that small businesses need to grow and expand.

Read this OnDeck review to find out whether this is the lender for you and how you can qualify.

A Review of Funding with OnDeck Capital

Part of OnDeck’s success comes from its commitment to customer service and support.

Loan officers are well-trained to help guide you through your financing decision and the process.

They have the flexibility to understand your unique business needs; in fact, they’re versed in more than 700 industries.

Plus, advisers are quick to respond to both calls and emails so you’re not left wondering about a time-sensitive question or concern.

So what kind of financing options does OnDeck offer?

OnDeck Capital Review of Loan Options

Term Loans

The first type is a term loan, which can be as large as $500,000.

There are short and long-term lengths available, ranging from 3 to 36 months, but in either case loans are generally used to fund initiatives that grow your business.

Just be aware that when you take out an OnDeck term loan, you’ll be charged a one-time origination fee anywhere between 2.5% and 4% of the total loan amount.

Lines of Credit

In addition to a term loan, you also have the option to request a line of credit up to $100,000.

The benefit of this choice is that you’re only charged interest when you actually draw funds.

The money can be used for working capital, both expected and unexpected, especially if it’s something that can’t be charged on a credit card.

When you get a line of credit, you’ll be charged a $20 monthly maintenance fee, which is waived  for six months if you make a draw of $5,000 or more within the first five days of opening your account.

Each credit line draw must be paid off within six months, so keep that in mind when choosing a line of credit over a term loan.

Rates can be high depending on your business financials and other factors, starting off as low as 8.5% and going as high as 79% APR.

Still, even customers with higher rates state that the value for their business was a positive one.

OnDeck Review of Requirements – How to Qualify

You must be in business for at least one year; however, the median business age of all OnDeck customers is actually seven years.

Your annual revenue for the last 12 month period should be $100,000 or more, and many have a gross revenue of at least $450,000.

Additionally, you must have a minimum personal credit score of 500, but again, the typical customer skews higher with a credit score of 660 or higher.

While OnDeck boasts lending to 700 industries, there are some restricted business types that it won’t lend to.

If your company falls into one or more of these categories, you’ll need to look elsewhere for a business loan.

OnDeck Review of the Request Process

Like most online lenders, requesting a loan or line of credit with OnDeck is easy.

You can complete the request directly on their website, or by calling them directly.

You’ll receive a decision in a matter of minutes and are not obligated to actually take out the loan at that time.

Prepare ahead of time with business bank statements from at least the last three months, a voided check, and a copy of your driver’s license.

You’ll also need to give you social security number so OnDeck can access your personal credit information.

In most cases, everything can be done entirely online and you don’t even have to talk to anyone on the phone (unless you want to!)

How You Receive Your Loan Funds from OnDeck

Once you sign the loan contract, you can receive your loan funds in as little as 24 hours.

An origination fee is deducted from the loan amount before you receive your funds, so make sure this is part of your budget when allocating your money.

For term loans, you’ll have either daily or weekly payments automatically deducted from your business account.

For a line of credit, your bank account will have weekly deductions taken out.

To keep track of your financing, you can take advantage of constant account access through OnDeck’s web platform or mobile app.

You can also make extra payments, which can save you money on interest over the life of the loan.

It’s also important to know that like some other lenders, OnDeck files a UCC-1 lien on your business during funding.

This is fairly common, but should still be taken into account so it doesn’t affect your overall business strategy.

OnDeck Review – The Final Word

If your small business has strong revenue numbers and your personal credit is decent, OnDeck Capital can provide you with flexible financing opportunities.

Since there’s no obligation to take out a loan and the decision process is so quick, it’s worth submitting a request if you’re in the market for small business funding.

It will likely result in an inquiry on your credit report, but if you’re actively seeking financing in a short window of time, all of your credit checks should register as a single pull.

Below are some other popular alternative lenders you can check out and make a request from one by one:

If that sounds like a lot of work, you can always start the process with LendGenius’ simple online form to potentially connect with a lender fast.

Your call!

How to Get a Small Business Loan - LendGenius

See Business Lenders

Lauren Ward Finance Journalist

Lauren Ward is a freelance content writer focusing on personal finance, real estate, and lending.

Her work has been featured on Huffington Post, CBS News, and Kiplinger.

She previously worked at the Federal Reserve Bank of Richmond as well as several national non-profit organizations.

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Important Disclosures. Please Read Carefully.

Persons facing serious financial difficulties should consider other alternatives or should seek out professional financial advice. This website is not an offer to lend. Lendgenius.com is not a lender or lending partner and does not make loan or credit decisions. Lendgenius.com connects interested persons with a lender or lending partner from its network of approved lenders and lending partners. Lendgenius.com does not control and is not responsible for the actions or inactions of any lender or lending partner, is not an agent, representative or broker of any lender or lending partner, and does not endorse any lender or lending partner. Lendgenius.com receives compensation from its lenders and lending partners, often based on a ping-tree model similar to Google AdWords where the highest available bidder is connected to the consumer. Regardless, Lendgenius.com’s service is always free to you. This service is not available in all states. If you request to connect with a lender or lending partner in a particular state where such loans are prohibited, or in a location where Lendgenius.com does not have an available lender or lending partner, you will not be connected to a lender or lending partner. You are urged to read and understand the terms of any loan offered by any lender or lending partner, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you. By submitting your information via this website, you are authorizing Lendgenius.com and/or lenders and lending partners in its network or other intermediaries to do a credit check, which may include verifying your social security number, driver license number or other identification, and a review of your creditworthiness. Credit checks are usually performed by one of the major credit bureaus such as Experian, Equifax and Trans Union, but also may include alternative credit bureaus such as Teletrack, DP Bureau or others. You also authorize Lendgenius.com to share your information and credit history with its network of approved lenders and lending partners. For qualified consumers, our lenders offer loans with an Annual Percentage Rate (APR) of 35.99% and below. For qualified consumers, the maximum APR (including the interest rates plus fees and other costs) is 35.99%. All loans are subject to the lender’s approval based on its own unique underwriting criteria. Example: Loan Amount: $4,300.00, Annual Percentage Rate: 35.99%. Number of Monthly Payments: 30. Monthly Payment Amount: $219.36. Total Amount Payable: $6,581.78 Loans include a minimum repayment plan of 12 months and a maximum repayment plan of 30 months. In some cases, you may be given the option of obtaining a loan from a tribal lender. Tribal lenders are subject to tribal and certain federal laws while being immune from state law including usury caps. If you are connected to a tribal lender, please understand that the tribal lender’s rates and fees may be higher than state-licensed lenders. Additionally, tribal lenders may require you to agree to resolve any disputes in a tribal jurisdiction. You are urged to read and understand the terms of any loan offered by any lender, whether tribal or state-licensed, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

Lender’s or Lending Partner’s Disclosure of Terms.

The lenders and lending partners you are connected to will provide documents that contain all fees and rate information pertaining to the loan being offered, including any potential fees for late-payments and the rules under which you may be allowed (if permitted by applicable law) to refinance, renew or rollover your loan. Loan fees and interest rates are determined solely by the lender or lending partner based on the lender’s or lending partner’s internal policies, underwriting criteria and applicable law. Lendgenius.com has no knowledge of or control over the loan terms offered by a lender and lending partner. You are urged to read and understand the terms of any loan offered by any lenders and lending partners and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

Late Payments Hurt Your Credit Score

Please be aware that missing a payment or making a late payment can negatively impact your credit score. To protect yourself and your credit history, make sure you only accept loan terms that you can afford to repay. If you cannot make a payment on time, you should contact your lenders and lending partners immediately and discuss how to handle late payments.