OnDeck is an online small-business lender offering term loans and lines of credit. The company, founded in 2006, uses data analytics and digital technology to assess the creditworthiness of small businesses. It has served more than 114,000 small businesses with more than $14 billion in loans, the company says.
Ondeck Best Features
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Choose from term loans or lines of credit.
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Apply with a minimum personal FICO credit score of 625.
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Qualify for loan amounts from $5,000 to $250,000 and revolving lines of credit from $6,000 to $100,000.
Which Business Loans Does OnDeck Offer?
OnDeck offers business term loans, lines of credit and SBA loans.
A term loan may be best if you are borrowing for a specific investment, such as a new project or large purchase, according to the lender. You will get a lump sum of cash and repay it over a fixed term.
On the other hand, a line of credit may be better if you need quick access to working capital for short-term needs, such as purchasing inventory or paying bills. OnDeck’s revolving line of credit allows you to withdraw money as needed up to a certain amount, and the line replenishes as you repay it. You only pay interest on what you borrow.
How Can OnDeck Loans Be Used?
OnDeck cannot serve certain restricted industries – such as nonprofits, money services businesses and firearms vendors – and does not lend to businesses in Nevada, North Dakota or South Dakota.
How Do OnDeck Loans Work?
Start by completing an application for an OnDeck business loan either online or by phone at 888-269-4246.
Be prepared to provide basic information about yourself and your business. OnDeck may ask for your business tax ID number, last three months of business bank statements, Social Security number, and driver’s license number and state of issuance.
You may receive a decision in minutes. If you are approved for a loan and accept the offer, you may receive your money in as little as 24 hours.
What Are OnDeck’s Terms, Fees and Conditions?
OnDeck’s line of credit starts at $6,000 and goes up to $100,000, while term loans start at $5,000 and go up to $250,000.
OnDeck’s short-term loans have repayment terms of up to 24 months, and lines of credit come with 12-month terms that reset with each withdrawal. Rates are determined by your company’s creditworthiness and cash flow.
Loans carry origination fees of 0% to 4%. Once you’ve paid off half of your loan, you can apply to renew the loan and will not be charged any remaining interest on it. You may also qualify for a lower or 0% origination fee.
An OnDeck line of credit’s $20 monthly maintenance fee is waived for the first six months if you withdraw at least $5,000 in the first week.
How Can You Qualify for an OnDeck Business Loan?
These are the minimum requirements for an OnDeck business loan or line of credit:
- Operate your business for at least a year.
- Have a personal FICO credit score of 625, which falls in the fair range.
- Make $100,000 in annual gross revenue.
What Credit Score Do You Need?
A business owner who wants an OnDeck term loan or line of credit will need a minimum FICO credit score of 625.
Where Does OnDeck Operate?
OnDeck lends everywhere in the U.S. except Nevada, North Dakota or South Dakota.
Is OnDeck Reputable?
OnDeck has an A+ rating with the Better Business Bureau and an excellent rating of 4.7 out of 5 stars with Trustpilot, based on more than 3,700 reviews.
How Is OnDeck’s Customer Service?
OnDeck provides customer service by phone and email. For help with a new loan, call 888-269-4246 between 9:30 a.m. and 7:30 p.m. Eastern Time Monday through Friday, or email sales@ondeck.com. If you have questions about an OnDeck loan, call 888-556-3483 or email customerservice@ondeck.com.
What Are Some of OnDeck’s Online Features?
Your online account lets you monitor your loan and payment activity. OnDeck also has a mobile app that allows borrowers to check account balances and transaction history, make payments, and contact customer service.
OnDeck Business Loans Are Best for:
- Businesses that prefer to choose between a term loan and a line of credit.
- Businesses that want up to two years to pay off term loans.
- Businesses at least 1 year old with $100,000 in annual gross revenue.