OnDeck Review – Support for Growing Your Business

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Last Updated:June 28, 2024

OnDeck Review – Support for Growing Your Business

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Fast Facts

Flexible Lending:

Lines of credit up to $100,000 and term loans up to $250,000.

Quick Funding:

Same-day funding.

Credit Requirements:

Minimum FICO score of 625.

Short Terms:

Up to two years.

Revenue Requirement:

At least $100,000 in annual revenue.

No Business Credit Needed:

Accepts personal credit scores for business loans.

Every small business needs money to pay workers, invest, and stay open. Some business owners invest their personal funds into the company to help it get started, but other business owners need to take out loans to get started and maintain operations. The small business lending landscape has many solutions, and OnDeck is among the top choices. This Ondeck small business loan review will help you decide whether it is worth it.

What is OnDeck?

OnDeck is a small business lender that has delivered over $15 billion to U.S. businesses. The lender has an A+ rating from the Better Business Bureau and a 4.6 average rating from over 4,200 Trustpilot reviews.

Complete A Funding Application. Get Finance Options That Fit.

Big Think Capital provides business borrowers with a straightforward and transparent funding platform.

Business lines of credit from $10k – $1m
Term as long as 5 years
Rates as low as 7%
Decisions as fast as 24 hours
Quick access to your funds once approved
Applying won't affect your credit score

Big Think Capital

How does OnDeck work?

OnDeck offers two loan options. It lets business owners choose between small business term loans and lines of credit. The business term loan has a maximum term of two years, while the business line of credit must be repaid within 12 months. Consumers can borrow $6,000 to $100,000 for a line of credit and $5,000 to $250,000 for a small business loan.

OnDeck allows small business owners to apply for additional cash on a business term loan after paying off half of the balance. This can help business owners realize halfway through a project that they need additional business funding.

The small business lender delivers funds as soon as the next day, but you have to qualify first. OnDeck makes their minimum requirements easy to find to avoid confusion, resulting in unnecessary hard credit checks. You need to fulfill the following parameters to qualify for an OnDeck term loan or line of credit:

At least one year in business
Personal FICO score of 625 or higher
$100k in annual business revenue
You need a business bank account

A representative from the company can guide you through the small business loan application process. You can contact them via email or call their business line, which is available on weekdays from 9:30 a.m. to 7:30 p.m. Eastern.

The online lender has worked with over 700 industries but doesn’t work with everyone. It lists restricted industries it cannot work with and does not give loans to Nevada, North Dakota, or South Dakota businesses.

How much does OnDeck cost?

It doesn’t cost any money to submit an online application and see what loan offers you get. However, you must pay an origination fee and other expenses to get the loan. These payments can add up to 4% of the loan’s value. You will also have to pay interest on the loan. The interest rate you receive depends on your credit score, annual revenue, term length, loan amount, and other details. It’s free to see what you can get, but the expenses of obtaining a loan vary.

OnDeck features

Term loan

Receive a lump sum and pay it back over fixed monthly payments. Depending on when they apply for the loan, some borrowers get same-day funding. Borrowers can get $5,000 to $250,000 from an OnDeck loan with a repayment term of up to two years.

Line of credit

Access a loan amount of $6,000 to $100,000 that resets after each withdrawal. You have one year to repay the Ondeck line of credit. It is optimal for short-term expenses and managing cash flow.

SMART Box Comparison Tool

OnDeck’s SMART is an acronym that stands for Straightforward Metrics Around Rate and Total Cost. This tool helps borrowers compare lenders and determine their cost of capital. The SMART Box Comparison Tool makes the loan application process more straightforward.

Complete A Funding Application. Get Finance Options That Fit.

Big Think Capital provides business borrowers with a straightforward and transparent funding platform.

Business lines of credit from $10k – $1m
Term as long as 5 years
Rates as low as 7%
Decisions as fast as 24 hours
Quick access to your funds once approved
Applying won't affect your credit score

Big Think Capital

Who is OnDeck best for?

Experienced small business owners

OnDeck requires a small business owner to have at least one year of experience. Your business must also make over $100,000 in annual revenue to qualify for an OnDeck loan. You must meet both parameters and have a business bank account.

Small business owners without business credit scores

Some small business lenders require business credit scores, but OnDeck makes an exception. If you fulfill the other requirements, you can get an OnDeck loan or line of credit with a 625 FICO score. While many business owners have personal FICO scores, not as many of them have the minimum credit scores for the business.

Small business owners who can quickly repay loans

You only have one year to repay a line of credit and two years to pay a small business term loan if you get them with OnDeck. You can borrow anywhere from a few thousand dollars to $100,000 for a line of credit and $250,000 for a small business term loan. If you can take on debt and pay it back quickly, OnDeck maybe the right small business lender.

Who shouldn’t use OnDeck?

Small businesses deep in debt

OnDeck loans have short terms, so you’ll have to make high monthly payments to pay off your loans. If you already have a lot of debt, it can be more difficult to manage a one- to two-year loan term.

Small businesses in non-eligible industries or states

OnDeck posts a list of industries the lender does not work with. If you are in one of those industries or located in Nevada, North Dakota, or South Dakota, you must seek another small business lender.

People without business bank accounts or low credit

You must have a business bank account and a 625 personal FICO score to qualify for an OnDeck loan. Business owners with low credit scores and no business bank accounts will have to seek another small business lender.

Related: Best Business Lines of Credit.

Pros and cons

Pros

Some borrowers get same-day funding.
Business owners can borrow up to $250,000 with a small business term loan.
You don’t need a business credit score to get a loan.

Cons

You can only get a loan term of up to two years which means higher monthly payments.
A good credit score is required to get a loan.
You need to have at least $100,000 in annual revenue. Startups should look for another small business lender.

OnDeck vs. competitors

OnDeck has been helping small business owners get the capital they need since 2006. However, OnDeck isn’t the only small business lender. Here’s how the company compares with some of its competitors.

Small Business Lender	Maximum Loan Amount	Maximum Term Length	Credit Score Requirement
OnDeck	$250,000	2 years	625 FICO score
SmartBiz	$500,000	5 years	650 FICO score
Fundbox	$150,000	1 year	600 FICO score

SmartBiz

SmartBiz is a small business lender that offers lines of credit, term loans, and other types of financing. The company also offers SBA loans and lists its interest rates, loan amounts, and repayment terms for each financial product.

Fundbox

Fundbox offers lines of credit and working capital loans for borrowers with lower credit scores. You still need a 600 FICO score, but it’s a more generous requirement than the requirements for an OnDeck or SmartBiz loan. The company has helped small businesses access over $3 billion in cattail and has an A+ rating from the Better Business Bureau.

Complete A Funding Application. Get Finance Options That Fit.

Big Think Capital provides business borrowers with a straightforward and transparent funding platform.

Business lines of credit from $10k – $1m
Term as long as 5 years
Rates as low as 7%
Decisions as fast as 24 hours
Quick access to your funds once approved
Applying won't affect your credit score

Big Think Capital

FAQs

Does OnDeck report payments to personal credit bureaus?

OnDeck does not report your payment history to personal credit bureaus. However, they will report your payments to the business credit bureaus: Experian, Equifax, and PayNet.

Are OnDeck loans secured?

OnDeck loans are secured. OnDeck places a lien on the borrower’s business and requests a personal guarantee before giving out the funds.

Is OnDeck a lending marketplace?

No. OnDeck is a direct lender. The company originates its own business loans.

The bottom line

OnDeck pairs small business owners with the capital they need to grow their businesses. The lender lets you use your personal credit score to obtain a business loan or line of credit that you have to pay back within one to two years. OnDeck has been giving out small business loans for over 15 years and has many satisfied customers based on the company’s Trustpilot reviews.

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Marc Guberti is a business freelance writer who specializes in personal finance, digital marketing, and entrepreneurship. His award-winning book "Content Marketing Secrets" teaches readers how to create, promote and optimize content for growth and revenue. Marc also hosts the "Breakthrough Success Podcast," where listeners learn how to master content marketing and get more clients.

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