OnDeck Business Loans Review
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Pros and cons of
Pros
- Same-day funding available for some term loans, funding within 30 minutes for some lines of credit.
- Reasonable underwriting standards in terms of annual revenue, minimum credit score and time in business.
- Available in all states except North Dakota.
Cons
- High starting APR — this is an expensive way to borrow.
- Maximum loan amounts are on the lower side.
- No SBA lending products available.
small business loans review
is an online lender that’s been in operation since 2006. It offers secured term loans and unsecured lines of credit to businesses in every state except North Dakota.
Depending on where your business is based, can transfer funds at lightning speed, but that efficacy does come at a premium. Starting APRs are quite high, and maximum loan amounts are comparatively low.
’s reasonable annual revenue, time in business and minimum credit score requirements may appeal to businesses that have been turned down by traditional financial institutions, but there are other online business lenders with even lower standards across these arenas. Shopping around for a small business loan is always a good idea — even if you’re in a rush.
- Businesses who need relatively small amounts of funding. ’s maximum loan amounts aren’t incredibly high, but if you need a relatively smaller sum, it can get the job done.
- Business owners willing to pay a premium for speedy funding. can get you business funding fast. Its rates are high, but some business owners may be willing to pay extra for the convenience of same-day or even “instant” funding.
small business financing at a glance
| Product | Loan amounts | Repayment term | Starting APR | Fees |
|---|---|---|---|---|
| Term loans | Up to months |
Minimum APR offered to at least 5% of customers (not the lowest rate offered)
| Origination fee of Fees for late and returned payments may apply |
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| Business line of credit | $6,000 to $100,000 | 12, 18 or 24 months | 40.00%
Minimum APR offered to at least 5% of customers (not the lowest rate offered)
| Fees for late and returned payments may apply |
Term loans
You can borrow anywhere between with an term loan. Terms are up to months, and interest rates start quite high at APR. While this is the minimum rate for at least 5% of customers, and not the absolute lowest rate it offers, that means that up to 95% of customers pay a higher rate.
It’s important to know that payments won’t run on a traditional monthly schedule — they’ll be due either daily or weekly. You will have to put up business assets as collateral as these are secured term loans.
One interesting thing about term loans is that once you’ve paid on time for six months — or paid off 40% of your loan — you’re eligible to renew. At renewal, the remaining interest on your original loan may be waived, but you will have to pay interest according to the new loan renewal agreement. You may not have an origination fee on this loan renewal — in contrast, on your original loan, the origination fee can be as high as .
If you live in the right state and apply for a loan of up to $100,000, you can receive your funding by 5 p.m on the same day as you submit your application — but only if you submit your application by 10:30 a.m. ET on a business day. If you fall outside of those parameters, you can expect funding within 2 to 3 business days.
Line of credit
Businesses that qualify for lines of credit can get between $6,000 to $100,000 worth of credit with repayment terms of months with no collateral required. Depending on your state, you may be required to make a minimum draw of $1,000 from your line of credit at application. Once you draw on your line of credit, payments are due either weekly or monthly.
Once again, the lowest APR with is pretty high. With lines of credit, starting rates are APR. (Again, that’s the lowest APR that’s offered to at least 5% of customers — not the absolute lowest rate offered.
If you draw anywhere between $1,000 and $10,000 from your line of credit, you may be eligible for Instant Funding. Instant Funding requires you to link a debit card that’s associated with your business, but if you qualify funding can be delivered within 30 minutes.
borrower requirements
| Minimum annual revenue | |
| Minimum time in business | |
| Minimum credit score |
As far as business lending requirements go, ’s minimum of one year in business and in annual revenue isn’t a high bar for the industry. Its minimum credit score requirements are also reasonable. only does a soft pull on your credit, which means the inquiry won’t impact your credit score. In addition to meeting these standards, you will need a business checking account at the time of application.
There are some restricted industries. If your business operates in any of the following areas, you will not be able to secure a loan or line of credit from :
| Adult entertainment | Art dealerships | Bail bond services |
| Birth tourism | Boat dealerships | Drug dispensaries |
| Firearms | Gambling | Gold |
| Governmental, civic or public administration organizations | Nonprofits | Horoscope and fortune telling |
| Mobile or manufactured homes | Money service businesses | Mortgage or other loan brokers |
| Any type of motor vehicle dealerships | Multi-level marketing businesses | Outdoor power equipment |
| Pawn shops | Private households as businesses | Religious organizations |
| Rooming and boarding houses | Mobile phones | New or used car dealerships |
Required documents
Paperwork requirements for lending products are typically minimal. Do be prepared with these three items, though:
- The business owners’ Social Security numbers.
- Business tax ID or EIN.
- Business banking statements from the past three months.
Alternatives to
| Minimum credit score | Not disclosed |
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| Loan products offered |
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| Time to funding | Same day | Not disclosed |
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| Starting rates |
| Not disclosed |
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| Maximum loan size |
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| Minimum annual revenue |
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vs.
and offer the same types of business financing: term loans and lines of credit. ’s maximum loan sizes are much larger at for term loans and for business lines of credit, but the details the company shares publicly about time to funding and specific underwriting requirements are scant. To see which option is best for you, you’d have to apply.
does offer a prequalification application, with prequalification typically requiring only a soft credit inquiry. However, if you decide to move forward with the loan, most lenders will perform a hard pull after you’ve moved past prequalification, with hard inquiries potentially impacting your credit score.
vs.
While lends directly to businesses, connects business owners with lenders in its network. Some of ’s lending partners offer interest rates as low as on term loans, but you will want to take the time to convert the rate to APR, which will often push the rate higher as APR also accounts for any origination fees and the loan term. Since does list its rates in terms of APR, the numbers aren’t an apples-to-apples comparison.
Maximum loan amounts aren’t terribly different between the two platforms, but does come with the added bonus of SBA 7(a) offerings.