OnDeck Capital is an online lender that offers short-term business loans and lines of credit. OnDeck’s small business lending products are great for access to fast financing, especially for business owners with fair or better credit.
In July 2020, OnDeck was acquired by the online financial services company, Enova. The acquisition was completed in October 2020. Nevertheless, all of OnDeck’s products, services, and customer support remain the same under the Enova acquisition.
Pros and Cons
- Simple, streamlined application process
- Fast access to funds
- Products can meet wide range of financing needs
- Relatively affordable
- More flexible qualifications than bank or SBA loans
- No prepayment penalties; option for OnDeck Prepayment Benefits or prepayment discounts for term loans
- Can be used to build and improve business credit
- Interest rates can be high; more affordable alternatives for businesses that can qualify
- Origination fee for term loans; monthly maintenance fee for credit lines
- Frequent repayment schedule (daily or weekly)
- Personal guarantee and blanket lien required
OnDeck Business Loans
With two distinct loan products, OnDeck can meet a wide variety of small business financing needs. As we mentioned briefly above, OnDeck offers both short-term business loans and business lines of credit.
OnDeck Short-Term Loans
OnDeck’s short-term loans are ideal for specific investments in your business, such as expansions, big purchases, or even larger, unexpected emergencies.
$5,000 to $250,000
Up to 18 months
APRs as low as 35.1%
OnDeck Lines of Credit
OnDeck’s lines of credit, on the other hand, are better suited for working capital needs—such as buying inventory, making payroll, and managing cash flow.
Credit line amounts
$6,000 to $100,000
Line of credit terms
12 months, resets after each withdrawal
APRs as low as 31%
OnDeck Line of Credit/Loan Requirements
OnDeck has the same basic qualifications for both their business line of credit and short-term loan products.
Time in business
OnDeck Borrower Eligibility
In addition to these standard OnDeck loan requirements, there are some other criteria that will determine whether or not your business is eligible for financing from OnDeck Capital. Here are the qualifications you’ll want to keep in mind:
OnDeck does not offer their small business lending products to businesses in the following industries:
- Adult entertainment and materials
- Drug dispensaries
- Firearms vendors
- Government and nonprofits
- Public administration
- Horoscopes and fortune telling
- Lotteries, casinos, raffles, gaming, and gambling
- Money services business (MSB)
- Religious, civic organizations
- Rooming and boarding houses
- Vehicle dealers, used good dealers, and auction houses
- OnDeck requires that you have a business bank account.
- OnDeck cannot work with businesses that have total liens and judgments against their business amounting to more than $20,000 or more than 5.5% of their annual revenue.
- OnDeck requires two years to have passed since discharge if you’ve ever filed for personal bankruptcy before they will approve you for financing.
- OnDeck will check your business credit score, but they don’t require a minimum.
- OnDeck will allow borrowers to use financing to refinance debt, but they’ll require the loan amount to be 200% of the existing debt.
- OnDeck does not lend to businesses in Nevada or North Dakota.
- OnDeck does not lend to businesses that operate out of a home address.
As you might expect, OnDeck will also use the information you provide in your loan application to evaluate your business as a whole and decide whether or not you qualify for one of their term loans or lines of credit.
What You Need to Apply
- Basic information about you (the business owner) and your business
- Three months of business bank statements
- Voided business check
- Copy of your driver’s license
- Business tax ID number
- Social security number of business owner(s)
- Estimated annual gross revenue
- Average bank account balance
How to Get a Loan With OnDeck
If you think an OnDeck line of credit or loan might be right for your business, you’ll be able to apply quickly and easily online—or, if you prefer, over the phone. With this in mind, though, most business owners choose to apply online and take advantage of OnDeck’s automated application process.
In many cases, OnDeck can give you a decision the same day you apply—and fund applications as fast as one business day.
Application and Underwriting Process
Overall, applying for an OnDeck loan or line of credit should take no more than 10 minutes. You can fill out OnDeck’s one-page business loan application on their website, provide identifying and financial information, and submit your last three months of bank statements.
OnDeck leverages technology to make their underwriting process very simple. After you fill out your application and provide any necessary documents, they will authorize a soft credit pull, which won’t affect your credit score. Along with your credit history, OnDeck reviews your bank statements, cash flow, and annual revenue during the underwriting process.
As we mentioned, because the process is so automated and simple, OnDeck can give you an offer as soon as the same day you apply. If they have an offer for you, OnDeck will send you a SMART Box disclosure form, which breaks down the cost of your loan, repayment term, and other details.
When you receive your loan or line of credit offer from OnDeck, you’ll want to make sure you understand all of the terms and conditions before making a decision. That said, it’s important to mention a few points about OnDeck Capital’s funding agreements:
- OnDeck charges an origination fee of 0% to 5% on their short-term loans. (If you renew your loan there may be subsequent fee deductions.)
- For lines of credit, OnDeck charges a $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.
- OnDeck requires a personal guarantee from the owner who has signed the application.
- OnDeck will also secure your loan by filling a UCC-1 blanket lien on your business assets after you’ve been funded.
With this in mind, if you choose to accept an offer from OnDeck, you’ll be able to see the funds in your bank account as soon as the next business day. And unlike most lenders, OnDeck won’t require that you wait a certain amount of time to reapply if your application is rejected.
For both the line of credit and short-term loan products, you’ll be able to access an OnDeck online account that will automatically update to indicate the status of your loan repayment. You’ll also have access to a mobile app that will allow you to check the status of your credit line or loan on the go.
Line of Credit
With the line of credit product, your first payment will be due the next business day after you draw from the credit line. After that, OnDeck will automatically deduct fixed weekly payments from your business bank account.
In addition, it’s worth noting that the OnDeck line of credit is a true revolving line of credit—funds replenish as you pay them back—and additional draws on your line are consolidated into your loan with one weekly payment.
For OnDeck term loans, on the other hand, you’ll have either daily or weekly payments depending on your specific loan and payment schedule. Similar to the line of credit, however, your first payment will be due the next business day after you receive funding and OnDeck will automatically deduct payments from your business bank account.
That said, it’s important to mention that OnDeck’s loans come with a prepayment discount—if you prepay your short-term loan, OnDeck will forgive 25% of the remaining interest due on your loan.
Plus, certain loans may be eligible for OnDeck’s Prepayment Benefits. If you qualify for this unique option and pay your loan off early and in full, OnDeck will waive all remaining interest without a fee. Loans that include the Prepayment Benefit option, however, will have a higher interest rate.
Finally, once your loan is 50% paid down and you’re 50% through your payment schedule, you may be eligible for additional funding. In this case, you can reach out to your loan specialist to talk about your renewal options.
OnDeck Customer Service
OnDeck customer service is available by phone, email, or live chat. If you’re looking for assistance with an application or have general questions, you can call their customer support line at (888) 269-4246. If you’re an existing customer, you can call their support line at (888) 556-3483.
You can also use the live chat feature on their website.
OnDeck’s customer service team is available Monday through Friday from 9:00 a.m. to 8:00 p.m. ET.
OnDeck Customer Reviews
What do borrowers have to say about working with OnDeck Capital?
Overall, OnDeck has a pretty impressive reputation among online review sites. To start, OnDeck is a BBB-accredited business, with an A+ rating and a 3.7 out of 5 stars based on reviews left on that site. Although OnDeck has a handful of complaints on the BBB site, it seems that their team responds to each complaint and tries to resolve the issues left by borrowers.
That said, across other review sites, you’ll see that OnDeck reviews tend to average out on the positive side—which is notable for an online, alternative lender. OnDeck has 4.9 out of 5 stars on Trustpilot, 4.2 out of 5 stars on ConsumerAffairs, 3.5 out of 5 stars on Yelp, etc.
Of course, if you dig a bit deeper, you’ll find both positive and negative reviews, so let’s break down some highlights.
In terms of positive OnDeck reviews, you’ll find that customers frequently mention:
- Fast and efficient process
- Quick access to funds
- Knowledgeable and helpful representatives who explain things thoroughly and are available to answer questions
- Generally good and attentive customer service
On the other hand, more negative OnDeck reviews tend to focus on:
- High interest rates and origination fees
- Pushy and aggressive sales and marketing tactics (piles of OnDeck marketing received in the mail, emails, sales calls, etc.)
- Problems with paused products or issues making payments due to COVID-19
To OnDeck’s credit, their customer service team does seem to try to respond to many negative reviews on some of these sites (particularly Trustpilot) in an attempt to work through issues with borrowers.
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Frequently Asked Questions
Is OnDeck in Fundera's Network?
OnDeck Capital is in Fundera’s Lender Network. The Fundera team has carefully vetted OnDeck Capital and determined that their offering is one of the best in their product category. When working with OnDeck Capital, you can be sure you’re getting transparent, fair pricing on a best-in-class product.
Randa Kriss is a senior staff writer at Fundera.
At Fundera, Randa specializes in reviewing small business products, software, and services. Randa has written hundreds of reviews across a wide swath of business topics including ecommerce, merchant services, accounting, credit cards, bank accounts, loan products, and payroll and human resources solutions.