OnDeck Review

OnDeck Review [OnDeck Business Loans 2021]

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OnDeck Review

OnDeck is an online lending service founded in 2007 making it one of the oldest online lenders in the market. The lending platform has been around for almost 13 years now and during this time has seen the market in its full cycle. Let’s not forget that immediately after its founding, the 2008 financial crash hit, and OnDeck managed to survive through the financial crisis while still managing to be an innovator in the online lending industry.  Onto our OnDeck review!

Over the last 13 years, OnDeck has provided over $13 billion in loans, which is on average $1 billion in loans each year. OnDeck was one of the first companies to introduce a fully automated online platform based on algorithms, improving the online lending process through automation, which is a wonderful achievement.

OnDeck Services  

  • Short-term loans
  • Lines of credit

OnDeck offers lines of credit and short-term loans to small and medium-sized businesses and may at first appear to be slightly more expensive than other lending companies. However, if an applicant has a solid business income and good creditworthiness, then they may be eligible for market competitive rates.

In general, the OnDeck rates are above the market average. The service can be expensive, but the convenience, speed, and service make up for it.

OnDeck Eligibility Requirements

  • Time in Business: 12 months
  • Credit Score: 600
  • Business Revenue: $100,000 per year

To secure loans with OnDeck, a business must make at least 5 bank transactions per month, have a credit score of 600, revenue of 100k, and been in business for over 12 months.

The following industries are prohibited:

  • Drug Dispensaries
  • Firearms
  • Government & Non-Profits
  • Gambling and Casinos
  • Money Services Business (MSB)
  • Religious or Civic Organizations
  • Rooming & Boarding Houses
  • Vehicle Dealers / Used Good Dealers / Auction Houses

OnDeck Competitors

Some OnDeck Capital competitors and alternatives are:

OnDeck Terms & Fees

The terms you receive and the fees that you pay depend on the financial product that you are applying for. Let’s go over the various options.

OnDeck Small Business Loans

OnDeck Loans

The next sections discuss the details of OnDeck small business loans and lines of credit.

Short-Term Loans

The origination fee can be as high as 4% and it is determined by the financial stability of the borrower’s business and is included in the total loan amount. For example, if you get a loan of $40,000 from OnDeck then the 4% origination fee will be included within it, or 4% of it will go towards the origination fee and the remaining 96% will be the loan amount.  

OnDeck has a policy of offering loans with a fixed rate instead of a variable rate. This means that interest on the loan will be charged in a lump sum and then allocated over the loan term. Since your loan will have a fixed rate, the interest rate won’t change over time. 

Repayments of the short-term loans are made on a weekly and monthly basis. There is no early payment penalty and in addition to this OnDeck offers loyalty benefits to returning customers. This means that repeat customers may get their origination fees reduced or waived, depending on their history with OnDeck. 

The OnDeck APR is typically high. This makes borrowing on OnDeck a more expensive service as compared to typical market rates. Lower rates are available but only for borrowers with exceptional profits and a clear record with previous OnDeck loans. If you have a secure business and good creditworthiness then there is the possibility of getting a very good rate from OnDeck, however, if your business is struggling, then you will pay a higher rate for receiving a similar loan.

  • Borrowing Limit: $5,000 – $500,000
  • Term Length: 3 – 36 months
  • Fixed Fee: 0.4% – 0.42% of the borrowing amount per month
  • Origination Fee: 0% – 4%
  • Effective APR: 9% – 98.3%
  • Collateral: UCC-1 blanket lien, personal guarantee

OnDeck Lines of Credit

OnDeck credit lines have a maximum limit of $100,000 and replenish whenever the borrower repays the outstanding amount, thus it is a revolving line of credit. Once a borrower takes out funds from the line of credit, they can repay weekly over six months. Once again, there is no early payment penalty, in fact, it is better to repay the line of credit as early as you can to avoid accruing interest over time. Taking a long time to pay back lines of credit will add interest to the cost. 

The rates for the line of credit depend on your business profitability and creditworthiness. Businesses with strong fundamentals receive very low rates.

There is a $20 monthly maintenance fee that can be waived if the borrower withdraws $5,000 within the first 5 days. This is a way to encourage borrowers to withdraw more than they normally would without the incentive – if $5,000 is withdrawn early then you will have the maintenance fee waived, but you will then need to make sure you repay this amount on time otherwise you risk accruing interest.

OnDeck line of credit particulars:

  • Borrowing Amount: $6,000 – $100,000
  • Draw Term Length: 6 months
  • Draw Fee: None
  • Maintenance Fee: Typically $20 per month
  • APR: 19.9% – 61.9%
  • Collateral: Personal guarantee

Application Process

OnDeck’s application process is simple, convenient, and fast. Applicants can apply either on their phones or using the desktop website. Applicants must fill out a form that’ll require submission of personal and business-related information. This information includes personal state IDs, tax numbers, bank statements, accounting records, and more. The algorithm will gauge the eligibility and creditworthiness of the applicant. As mentioned earlier, this is a completely automated process, however, applicants can use the assistance of the customer service department for filling out the application form properly.

Once the information has been submitted, OnDeck takes around 24 hours to assess the application. If eligible for approval the applicant will be notified with the proposed terms and rates of the loan. If the applicants accept the terms, the funds will be transferred within two to three working days.

Customer Service

OnDeck can be contacted by:

  • Phone
  • Email
  • And live chat

OnDeck offers responsive and customer-focused service where borrowers are assigned a loan representative who will guide them through the process and hear out their complaints. The customer service representatives are also helpful and promptly help customers resolve any issues.

Ondeck phone number:

  • Help with new loans: (888) 269-4246
  • Help with existing loans: (888) 556-3483

OnDeck Reviews

OnDeck reviews are largely positive with users complimenting their fast, reliable, and convenient service. However, some users do have complaints about the cost and the delays in the application process. All in all, the positive feedback significantly outweighs the negative feedback. 

OnDeck Business Loans Pros & Cons

If you are looking for an OnDeck business loan, here are the pros and cons you should consider.


  • Low eligibility requirement
  • Fast and convenient
  • Available to US, Australian, and Canadian small businesses


  • The high cost of capital

Frequently Asked Questions

Is OnDeck legit?

Is OnDeck legitimate? Yes, OnDeck is a legitimate lending company offering short-term loans and lines of credit.

OnDeck Review: Final Thoughts

OnDeck is a good option for businesses with a low credit score. Its services are fast and reliable. The only major issue that most users have is the high lending rates. It’s important to understand that the high cost is compensated by the low eligibility requirements and excellent service provided by OnDeck. 

OnDeck does offer low rates but only to businesses with good finances and creditworthiness, so it is possible to receive favorable loan terms on OnDeck. If you are a borrower who has been rejected by other lenders OnDeck could be a very reasonable option for you. However, if you are a small business with good fundamentals then you may first want to look at other lenders available that can offer you more competitive lending rates.

Get Started With OnDeck

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Enjoy our OnDeck review?

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