OnDeck Business Loans Review 2024

OnDeck’s financing options may work well for businesses that need:

• Fast funding. Qualified borrowers can access their loan proceeds or credit lines as soon as the same day they apply for funding. Because paperwork requirements are less stringent compared with other lenders, you may be able to complete an OnDeck funding application online in minutes.
• Easier credit score requirements. You only need a personal FICO score of at least 625 to qualify for an OnDeck business term loan or line of credit. Other lenders may require scores of at least 670 to be eligible for business financing. For some business loans, your company might also need to establish business credit to qualify.
• Capital for emergency expenses. OnDeck does not have the most affordable business financing product on the market. But the online lending platform’s fast funding capability and simple application process could make it a good fit if your business needs access to emergency funds fast and doesn’t have the time to wait through a traditional business loan application and funding process.
• The option to pay off their loan early. OnDeck does not charge a prepayment penalty if you opt to pay off your line of credit or term loan early. Some applicants may also qualify for a Prepayment Benefit where OnDeck waives any remaining interest on your debt. However, if you don’t qualify for the Prepayment Benefit and want to wipe out your debt ahead of schedule you’ll still owe 75% of the remaining interest disclosed in your loan agreement.

Featured Partner Offer

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OnDeck

Loan amounts

$5,000 to $250,000

APR

Not disclosed

Minimum credit score

625

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OnDeck

Learn More

Via Ondeck's Website

OnDeck may not be a good fit for your business if it:

• Has been in business for less than one year. If your business has only been in operation for less than one year, consider other startup business loans.
• Brings in less than $100,000 in annual revenue. Although OnDeck has lenient qualification requirements compared with many traditional business lenders, your business will still need to earn at least $100,000 in gross annual revenue to be eligible for funding.
• Can secure more affordable financing elsewhere. If your business has the ability to satisfy a traditional lender’s borrowing requirements, you might be able to find business loans that feature lower interest rates and fees. U.S. Small Business Administration (SBA) loans, for example, tend to offer more affordable borrowing options (albeit typically after a cumbersome application process).
• Needs long-term financing. The maximum repayment term that OnDeck offers is 24 months. Businesses that require a lengthier repayment schedule may want to look elsewhere.
• Operates in restricted industries. OnDeck issues loans to qualified business applications in more than 700 separate industries. However, there are certain industries that it doesn’t work with, including government and nonprofits, public administration, civic organizations, adult entertainment, drug dispensaries, firearms vendors, horoscope and fortune-telling, gambling organizations, money services businesses, and rooming or boarding houses.

OnDeck offers small businesses the opportunity to obtain financing in two different ways:

• Business term loan. This is a type of installment loan that allows business owners to borrow a lump sum of cash. Borrowers must repay the loan proceeds, plus interest and fees, according to the agreed-upon repayment schedule outlined in the loan agreement. OnDeck offers short-term business loans with repayment periods between 18 and 24 months.
• Business line of credit. This is a revolving account that is similar to a business credit card in several ways. If you qualify for this type of financing, your business will receive a credit limit and will be able to borrow up to that amount. You can reuse your credit limit as you repay your balance during the draw period. You’ll only owe interest on the amount you borrow, not the full credit line.

OnDeck Term Loan

OnDeck Line of Credit

Business loan applications are approved or declined based on a number of factors. All lenders have their own unique underwriting requirements, but these typically include information from an applicant’s credit profile and other factors that demonstrate the ability to repay the loan, such as business revenue. Meeting the requirements below won’t guarantee approval, but they can help you decide if a business loan is the right fit for you.

Personal Credit Score

OnDeck requires a minimum personal FICO credit score of 625 for approval.

Time in Business

Your company needs to be established for a minimum of one year to be eligible for funding. Businesses under one-year-old will need to seek financing elsewhere or wait to apply.

Annual Revenue

OnDeck requires a minimum annual revenue of $100,000 to be eligible for a business loan or line of credit.

Business Checking Account

OnDeck also requires prospective borrowers to have a business checking account. If you qualify for funding, OnDeck will draft daily or weekly payments from this account. A dedicated business checking account is essential for other reasons too, such as managing your taxes and keeping your business and personal finances separate.

One of the big advantages of using OnDeck for business financing is the its simple application process. Many applicants are eligible to provide little to no documentation, but every situation is different. Either way, you should be prepared to share the following information with OnDeck when you apply for a business loan or line of credit.

• Business Employer Identification Number (EIN)
• Social Security number (SSN)
• Annual gross revenue estimate
• Average business bank account balance

OnDeck may also require you to provide copies of your business bank statements for the last three months prior to your application.

Here is an overview of the application process with OnDeck.

1. Fill out the application. You can complete this process online or over the phone with the help of a loan advisor based in the U.S.
2. Receive a decision. After you submit your application, a loan advisor will let you know if you qualify and, if so, what financing options are available to your business.
3. Access business funding. Once you accept a funding option and agree to the repayment terms, you may be able to receive access to the money you borrowed that same day.

Related: Best Small Business Loans

Customer reviews for OnDeck are positive for the most part. It earned 4.8 out of 5 stars with Trustpilot, based on approximately 3,200 reviews. Out of those reviews, 95% of customers ranked the company as “excellent.” OnDeck has been accredited by the Better Business Bureau (BBB) since 2008 and has a BBB rating of A+. Its customer rating is lower with the BBB—3.84 out of 5 stars—but the OnDeck has only received 12 complaints in the last 12 months.

We reviewed OnDeck based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated OnDeck based on the weighting assigned to each category:

• Loan cost: 35%
• Loan details: 25%
• Customer experience: 20%
• Eligibility and accessibility: 10%
• Application process: 10%

Within each major category, we also considered several characteristics, including available loan amounts, repayment terms and applicable fees. We also looked at minimum credit score and time in business requirements and the geographic availability of the lending platform. Finally, we evaluated OnDeck’s customer support tools, borrower perks and features that simplify the borrowing process—like online applications, prequalification options and mobile apps.

To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.