OnDeck Small Business Loan Review

What Is OnDeck?

OnDeck is an online business lender that allows borrowers to receive funding within just one business day. While their application process is fast and easy, this company’s rates can be higher than some of its competitors’.

OnDeck might be a good fit if:

You might want to consider OnDeck if you need fast cash to fill in the gaps if you’re managing an uneven cash flow or major, unexpected expenses. Additionally, this lender can be easier to qualify with if you have a low personal credit score or less than two years in business.

OnDeck Review

Loan Amounts $5,000 to $500,000
APR Range As low as 9.99%
Repayment Terms Term loans up to 3 years
Time to Funding As fast as 1 day
Click “Check Rates” to apply to OnDeck

» MORE: Compare Business Loans For Fast Cash

» MORE: Compare Bad Credit Business Loans

Interest rates: OnDeck’s annual percentage rates range from 9% to 99% for term loans and start at 13.99% with a maximum of 63% for lines of credit.

Cost: If you take out a term loan with OnDeck, you’ll be charged a one-time origination fee between 2.5% and 4% of the total amount. However, OnDeck rewards repeat borrowers by decreasing the origination fee on your second loan to between 1.25% and 3%, and your third loan’s fee to between 0% and 3%.

Short-Term Loans: OnDeck offers short-term loans starting at $5,000, with a maximum amount of $250,000. This lender’s loan terms range between three and 24 months.

Line of Credit Options: The maximum amount for an OnDeck line of credit is slightly smaller than a short-term loan, with lines ranging between $5,000 and $100,000. Their loan terms are also shorter, with repayment terms ranging between six and 12 months.

How to Qualify for OnDeck – Looser Qualifications: OnDeck’s credit requirements are significantly lower than many of its competitors; You should have a credit score above 500 to qualify for a short-term loan with this lender, and a score above 600 to qualify for a line of credit.

Whereas most lenders require more than two years in business, OnDeck only requires one year to be eligible for either of their products. The minimum annual revenue is also just $100,000.

Loan Example: If you borrow a short-term loan of $300,000, with a seven-month repayment term and a 65% annual percentage rate, your minimum monthly payment will come out to $52,631.55.

Requirements: You should have a credit score above 500 to be eligible for a short-term loan with OnDeck, and a score above 600 if you’re applying for a line of credit. Additionally, your annual revenue should exceed $100,000 and you should have at least one year in business.

OnDeck Pros and Cons


  • Quick application process
  • Option to apply online or over the phone
  • Loose qualifications
  • Rewards for repeat borrowers
  • Good way to build business credit


  • Expensive loans : With APRs on short-term loans ranging up to 99% and rates on their credit lines reaching 60.8% a loan from OnDeck can be an extremely expensive financing option compared with many of this lender’s competitors. In addition to their origination fees on term loans, OnDeck also charges a $20 monthly maintenance fee for its lines of credit. However, this fee can be waived for six months if you take out more than $5,000 within five days of opening the line.
  • Lien required: OnDeck backs its loans with a blanket lien on all of a business’ assets, meaning that there is a risk of asset seizure if a borrower defaults on the loan. Additionally, if you decide to take out a loan or line of credit with this lender, you’ll have to sign a personal guarantee which gives OnDeck permission to pursue your assets if you are too late in re-paying what you owe.
  • Daily/Weekly Payments – Frequent payments: While many borrowers and businesses prefer to make monthly payments on loans, OnDeck requires a fixed daily or weekly payment from a borrower’s business account. Term loans may come with a daily repayment requirement.

What You Need To Apply:

Before applying for a loan or line of credit with OnDeck, you should have a voided business check, a copy of your driver’s license, your social security number and three months of business bank statements available. You should also be U.S. citizen or permanent resident.

Why Use OnDeck?

Fast & Easy: OnDeck streamlines the borrowing process by providing an easy, fast application. Potential borrowers can apply online or over the telephone in as little as 10 minutes, and if approved, can receive funding within 24 hours.

OnDeck For Bad Credit

With a credit score requirement for short-term loans as low as 500, and a minimum credit score of 600 for a line of credit, OnDeck’s minimum qualifications are some of the lowest in the industry.

How Does OnDeck Compare – Vs Kabbage, Vs LendingClub

A Kabbage line of credit has an even lower required credit score than OnDeck, with a minimum score of 550. They also offer a wider range of amounts, with lines reaching $250,000. If you want to take out a line of credit for your business and need more than just $100,000, Kabbage may be worth looking into.

If you want to compare different loans without filling out several applications, LendingClub might be a good place to start. This online service connects a wide range of borrowers with investors and banks offering loans of up to $300,000 and can be a good platform to apply to if you want to weigh a variety of offers.

Compare all business loans

If you’re considering other business loans, PrimeRates offers comprehensive reviews of several other business loan types and lenders.  Even if you own a young business or don’t have a high annual revenue, it’s still important to compare different lenders’ rates and types of financing options. Because an OnDeck line of credit comes with much higher costs than many of its competitors, this lender’s product is best for fulfilling immediate or one-time financial needs. Take the time to understand all of your financing options before deciding on the loan that’s right for you.  

Compare Business Loans

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