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OnDeck Review

OnDeck is an alternative loan company with branches in the US, Australia, and Canada. OnDeck has been operating in Canada since 2008, and they specialize in offering loans to small business owners.

This lender offers flexible loans to businesses based on revenue and cash flow. OnDeck considers everyone with a credit score of at least 600 and offers as much as $250,000.

They provide quick responses, and you can get funded within 24 hours of your application once it has been approved.

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Written by: Piggyy

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ondeck - logo

Loan Amount

$5,000 - 300,009
4.3/5
4.3/5

Piggyy Rating

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OnDeck

Loan Term

6 - 18 months

Est. APR

% 8 - 29

Loan Amount

$5,000 - 300,009
Pros
  • Fast funding.
  • Fast approval.
  • No personal collateral is required for approval.
  • Repayment plans and interest rates are adjustable.
Cons
  • Borrowers must have over 600 credit scores.
  • Businesses with weaker finances/credit could be subject to higher interest rates.
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Company information

Time in business: Since 2008 (in Canada).

Office address: 1100 Rene Levesque, Montréal, QC H3B 4N4, Canada.

Business hours:

Monday to Friday: 9:00 AM – 6:00 PM EST

Email: [email protected]

Phone: 1-877-781-0148

 

Loan Products OnDecK offers

 

Fixed-term loans

OnDeck offers fixed-term loans, which can be either short-term or long-term. Both have fixed rates, which means you will make the same payments throughout the loan term. 

  • Short-term loans have a fixed rate of 9% or more and range from 3-6months.
  • Long-term loans have an interest rate starting from 9.99%. In addition, OnDeck charges a one-time origination fee of 2.5% to 4% per loan term. A fixed long-term is more flexible and ranges from 15-36 months. The percentage of the interest on a loan is based on the average loan balance per annum. 

 

Qualifications

  • A credit score of 600 or more.
  • Minimum of 1year in business.
  • At least a $100,000 annual revenue.
  • No record of bankruptcy in the last 2 years.
  • Personal guarantee required.

 

Loan amount: $5000 – $300,000

Interest rate: 9% – 99% APR

Loan term:

  • Short term loans: 3-12months 
  • Long term loans: 15-36 months

 

OnDeck automatically debits your business bank account weekly or daily, depending on the agreement. In addition, lenders make automatic debits to prevent borrowers from missing their payments.

 

Line of Credit

You can get a line of credit of as much as $100,000 from OnDeck. The interest rates are from 11% to 61.9%. For a line of credit, there is a 20% maintenance fee which will be waived if you draw at least $5,000 within the first five days. 

 

Qualifications 

  • A credit score of 600 or more.
  • Minimum of 1year in business.
  • At least a $100,000 annual revenue.
  • No record of bankruptcy in the last 2 years.
  • Personal guarantee required.

 

Loan amount: $6000 – $100,000

Interest rate: 11% – 61.9%

Loan term: Open-ended

 

Why choose OnDeck?

Business loans can be used for different purposes, including staffing, renovation, expansion, repairs, buying of equipment, advertising, working capital, etc. Specifically, OnDeck can be beneficial for your business when you have:

 

Large emergency expenses

Emergencies could occur at any time, and a term loan or line of credit would help cover them, especially when they are significant.

 

Uneven cash flow

Your business may suffer setbacks when you have uneven cash flow. A line of credit would be a suitable buffer in such unfavorable times.

 

Fair personal credit score

OnDeck offers loans to borrowers with less than perfect credit scores. The minimum credit score you need is 600. Most OnDeck borrowers have a credit score of 680-720.

 

Time-sensitive expenses

If you need quick cash between $1,000 to $10,000, you can apply for a term loan or line of credit in under 10 minutes. If your loan is approved, you will receive the funds within 24 hours.

pros

Advantages

  • The fast and simple application process  – The application process usually takes less than 10 minutes to complete. Once your loan has been approved, an Ondeck loan advisor will contact you to review your offer and finish the online checkout. You receive your funds within 24 hours of approval or 1 business day.
  • Less strict qualifications than banks – To qualify for a traditional bank loan, you have to have a credit score of above 700. Also, apart from the excessive paperwork, banks require collateral in the form of your assets. To get an OnDeck loan, on the other, you need to have a minimum credit score of 600. So, in essence, qualification for OnDeck is not solely based on your credit score but your business performance.
  • Cheaper loans for repeat customers – If you apply for an OnDeck loan for the first time, you will be required to pay an origination fee of 2.5% to 4% on your loan amount. However, the fee drops to 1.25% to 3% on your second loan and further drops to 0% to 3% on your subsequent loans.
  • Flexible repayments –  OnDeck offers flexible repayments based on your daily card sales.
  • Improve credit profile – OnDeck reports to credit bureaus; Equifax, Experian, and Paynet. Suppose you make regular and timely payments for your loan. In that case, you build your business credit, which increases your chances of getting bigger business loans with lesser interest rates from future lenders.
cons

Disadvantages

  • It is expensive – Term loans have an APR between 9% to 99%, and lines of credit have an APR of 11% to 61.9%. The interest rate, origination fees on term loans, and the monthly $20 maintenance fee on lines of credit make up these APRs. You will not be required to pay the monthly maintenance fees if you withdraw at least $5000 in the first five days of opening the line of credit. After that, APRs are slightly modified quarterly.
  • Requires lien and personal guarantee – OnDeck loans are not backed by specific collateral as in traditional banks but instead need a lien. The company takes an umbrella lien on all your business assets. In addition, you will also be required to sign a personal guarantee, which states that the company can confiscate your assets if you are unable to repay your loan. 
  • Frequent repayments – The loan term for OnDeck is not always favorable, especially for businesses with uneven cash flow. For term loans, OnDeck deducts a fixed amount from your business bank account weekly or daily and, for a line of credit, repayment is weekly.
  • No early repayment benefits – Repaying your loan early will not save you money or give you access to other benefits. This is because OnDeck has a fixed fee requirement, unlike other lenders who offer their customers the opportunity to save up on interest through early loan repayments.
  • Late repayment fees – If you miss your scheduled repayment, you will be required to pay a late repayment fee. Missed and late payments can also damage your credit score.
  • Not suitable for all businesses types – OnDeck is not ideal for businesses with an annual income of less than $100,000. While small business types like doctors, spas, beauty salons, and restaurants can get loans, OnDeck does not give out business loans to car dealers and drug stores, amongst others. 

How to Sign Up

OnDeck has a quick and easy application and approval process. You can either fill out an application online or call OnDeck to get connected to a loan specialist who will help you fill out an application. The entire application process takes just a few minutes to complete. 

 

To apply online:

1

Click the button below

2
ondeck 1

Go to the OnDeck official website Visit the website and click on the “Apply Now” icon.

3
ondeck 2

Fill in the required information Fill in your name, address, social security number, driver’s license number, tax ID number, legal entity, estimated annual gross revenue, and average bank balance.

4

OnDeck requires that you provide your bank statements for the last three (3) months. There are two ways you can go about this:

  1. One way is to authorize your bank to send OnDeck your bank statements through one-time import. This is an easier and faster method because OnDeck can easily examine your data, thereby hastening the application process.
  2. The second way is to send copies of your bank statements to OnDeck by mail, email, or fax. This could lengthen the time it takes for your loan to be processed.
5

After you have submitted your application, the next step is to wait for the approval. You can get approval on your loan within a few minutes if you electronically transfer your bank statements.

6

Once your loan is approved you will receive your money directly into your account within 24 hours. How fast you get funded depends on fast your loan gets approved. 

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Frequently asked questions

Is OnDeck a bank?

OnDeck is not a bank but an alternative lender that offers loans of up to $500,000 to small businesses. Unlike banks, the criteria for getting an OnDeck loan are less strict.

Is OnDeck safe?

Yes, OnDeck is a safe and legitimate company with a BBB rating of A+. They have over 100,000 customers all over the world with $14 Billion delivered to businesses. OnDeck has been featured in reputable publications and they also have an excellent 4.7 out of 5 stars customer rating on Trustpilot.

How do I qualify for an OnDeck loan?

To qualify for an Ondeck loan, your business must be in operation for a minimum of one year, you must have a revenue of at least $100,000 in the past year and you must not have records of bankruptcy in the past two years.

What fees does OnDeck charge?

OnDeck charges a one-time origination fee on each term loan and a $20 maintenance fee for lines of credit. You can find out more about how the fees apply from your loan advisor before making your final decision.

What documents do I need to apply for an OnDeck loan?

Your last three months’ bank statements are the only documents required to get a term loan or a line of credit. 

When can I apply for an OnDeck loan?

You can apply online for an OnDeck loan any day in the week and at any time of the day because of its automated system. The OnDeck customer service department however responds to calls and emails during business hours; Monday to Friday (9 am to 6 pm).

How fast can I get a loan?

It takes an average of ten minutes to apply for an OnDeck term loan or line of credit online. You get your money within 24 hours once it has been approved.

What credit score do you need for Ondeck?

The minimum credit score requirement for OnDeck is 600. Most OnDeck customers have a credit score ranging from 680 – 720.

Does OnDeck perform credit checks?

OnDeck only performs soft credit checks which do not negatively affect your credit score like a hard inquiry would.

Does OnDeck report to credit bureaus?

OnDeck reports to three business credit bureaus; Equifax, Experian, and Paynet. This way, potential future lenders can see your good business credit profile when you settle your loans fully and timely and they can also see your bad credit profile when you have late or missed repayments.

Conclusion

Very few lenders offer loans to businesses with poor credit. OnDeck is one of the top alternative lenders that offer as much as $500,000 to businesses with a credit score of 600. In addition, their application process is simple, with basic requirements and less paperwork than other financial institutions. Their efficient customer service and their flexible terms have continued to earn them loyal customers as well as great reviews.

Piggyy

״The secret of happiness, is not found in seeking more, but in developing the capacity to enjoy less״ - Socrates

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