OnDeck Review

OnDeck Review [OnDeck Business Loans 2022]

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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 a while 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.  

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.

According to OnDeck, small businesses are the lifeblood of the US economy and have historically been financially underserved by most financial service providers. As a result, the company’s dedication to creating an efficient and convenient online platform for small businesses to access financing.

Given that small businesses do not have enough hours in the day, OnDeck claims that it has created a unique means for business owners to get their companies back on track by creating a simple online application supported by efficient customer service.

Onto our OnDeck review!

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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.

With OnDeck, you obtain a one-time lump sum of cash via a short-term loan to use for your small business, whether it is in the restaurant, auto repair, retail, contracting, beauty salon, medical office, cleaning services, or some other type of industry; OnDeck is aiming to be the financial services provider for small businesses of all types.

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.

  • Business loans

Small businesses have traditionally relied on banks for financing. Although brick and mortar banks are still a viable choice for organizations that can meet the requirements, banks don’t always work for everyone. These small-town banks determine whether or not a company is eligible for a loan based on a few strict criteria such as collateral and credit scores.

However, in many cases, small businesses are unable to obtain the money they require to stay afloat. Fortunately, with OnDeck business loans, there are extra factors that a company must meet in order to be approved for a loan.

By taking into account more variables, a larger proportion of enterprises will be able to easily secure a loan with the OnDeck platform.

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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, the 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

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OnDeck Competitors

Some OnDeck Capital competitors and alternatives are:

  • LoanBuilder: LoanBuilder is considered a decent alternative to OnDeck as it offers short-term loans to customers in all 50 states. The financial institution provides loans with low origination fees and no prepayment penalties. Borrowers’ monthly payments are fixed, and repayment choices are limited, just like with OnDeck.
  • Fundation: Fundation’s payment terms are flexible, which is a plus. The cash provided by the financial service provider is suitable for firms seeking cheap interest rates and speedy disbursement. However, the organization requires enterprises to meet certain standards, one of which is having at least two employees. Other conditions include a solid credit score of at least 660 and annual income of $100,000 or more.
  • SmartBiz: SmartBiz is a great alternative to OnDeck as it provides a convenient lending facility primarily for debt refinancing and capital. To secure a loan from this lender, firms must demonstrate their creditworthiness by having a strong credit score as well as a $50,000 yearly revenue. Unlike other lenders, SmartBiz assists customers who are qualified to acquire loans by completing a thorough application. The lender’s drawback is that it imposes fees such as a prepayment penalty.
  • Credibly: Credibly, like OnDeck, is quite lenient when it comes to credit scores. Furthermore, due to the website’s convenience, the application process is fairly simple. Apart from the site’s superb interface, all of its features are designed and aligned in such a way that even a first-time visitor can simply secure a loan without assistance. There are two sides to every coin, and Credibly is no exception. Rates are high, and a lien on your property is required to receive a loan for your business. Credibly appears to be a good alternative to OnDeck but be aware of its borrowing fees.

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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. More of our OnDeck review is below.

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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

More of our OnDeck review is below.

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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

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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 the 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.

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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

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OnDeck Reviews & Complaints

OnDeck has a 97 percent excellent rating on Trustpilot. The platform’s efficiency in disbursing loans, as well as the favorable rates received through the platform, have been generally praised by reviewers. The website is also highly praised for its simple and easy-to-use interface.

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. 

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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: Borrower requirements with OnDeck are less stringent than those of most banks. Businesses who have a credit score of at least 600, have been in business for at least 12 months, and have an annual income of at least $100,000 have a good chance of qualifying.
  • Fast and convenient: Because of its user-friendly interface, the OnDeck website is widely accessible to a wide range of people. Furthermore, if all prerequisites are completed, the process from loan application to loan payout is fast and convenient as well.
  • Available to US, Australian, and Canadian small businesses: Businesses in the United States, Australia, and Canada facing financial difficulties can apply for a loan. This outperforms other lenders who limit access to their credit facility to borrowers of a specific country.
  • No hard credit check: Most financial platforms allow you to check your available interest rates without requiring a credit check. OnDeck investigates your eligibility for certain financial services without affecting your credit score.


  • Higher cost of loans: OnDeck’s loans are slightly more expensive than those offered by other lenders. Most of the short-term loans offered by the financial service company have an APR of around 98 percent, with an average APR of around 50 percent. Although this rate appears to be extremely expensive, it might be significantly lower for individuals and businesses with a stronger credit history and score.
  • No repayment Option: OnDeck does not offer any repayment options for its monthly payments. It only offers an 18-month repayment period, which may be inconvenient for most people. The availability of repayment alternatives would have provided borrowers with the option of selecting either a minimum monthly payment, which would require all borrowers to make a little monthly payment during the loan period, or a lower interest rate due to a shorter loan term.

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Frequently Asked Questions (Faq)

Our OnDeck review will answer some of the most common questions below.

Is OnDeck legit?

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

What are the OnDeck interest rates?

  • Term loans rates starting at 11.89% APR**
  • Lines of Credit rates starting at 10.99% APR**

How quickly do Ondeck loans get approved?

The efficacy of a lender is determined by the rate at which loans are disbursed after successful application and approval. Most lenders release loans around a week after they are approved, whereas OnDeck claims to endorse and disburse loans in two to three days.

Will loan professionals be able to see my documents?

Most personal loans are unsecured, which means you don’t have to use any of your assets as security, such as your home, car, or bank account. While your loan specialist may obtain some information regarding your available liquid resources, such as the assets in your bank and investment accounts, they will not often examine all of them.

Will using OnDeck have an impact on my credit score?

An inquiry on the platform would result in a soft pull of your credit. Claiming an offer through a formal application with the lender, on the other hand, will result in a hard credit inquiry, which will affect your credit score.

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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.

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