OnDeck is one of the industry's most trusted and well-established online business loan lenders. OnDeck's business model and products offer several unique characteristics that distinguish OnDeck from the competition. Combining elements of traditional lenders with non-traditional lenders, OnDeck can address various cash flow challenges.

Businesses must have at least one year of annual revenue of at least $100k. Term loans have up to 24-month repayment terms. Lines of credit are also revolving. Loans amount to $250k. Lines of credit amount to $100k. Interest rates and origination fees apply.

In this OnDeck small business loans review, we'll look in-depth at OnDeck’s top fast business loan options to help you decide if this lender is right for your business.

What Type Of Loans OnDeck Offers?

Business Line Of Credit

A revolving business credit card is similar in many ways. If your business qualifies for this financing, you’ll be given a credit limit and can borrow as much or as little as you need. You can use your credit limit again as you pay off your balance during the drawing period. The only difference is that you’ll only pay interest on the borrowed amount, not the entire credit line.

Business Term Loan

This installment loan lets business owners borrow a fixed amount of money. The borrower has to repay the loan amount plus interest and charges as per the agreed repayment schedule in the loan contract. OnDeck provides short-term business loans with terms ranging from 18 to 24 months.

Features Of OnDeck Small Business Loans

Supports Low Credit Score

OnDeck will consider you for a loan if you have a lower credit score. Most traditional business credit lenders will only consider you if your credit score is mid-range fair (625 FICO or higher). You will need to have been active for at least one year before you can apply for a loan with OnDeck. You will also need to have a business checking account. You should be able to demonstrate a gross annual income of $100,000 or more to be eligible for a loan offer.

Fast Funding

Once you’ve accepted a funding option and agreed to the repayment terms from OnDeck, you may have access to the money you’ve borrowed on the same day. You’ll be notified that you now have fixed loan funding available. You can then withdraw the amount you need for your project from your chosen account. Once you’ve drawn from that line of credit, the clock begins ticking to make fixed weekly repayments. OnDeck’s same-day funding is only available for term loans of $100,000 or more and is available in select states only.

Covers Emergency Expenses

OnDeck doesn’t offer the cheapest business financing product available on the market. However, its fast funding capability and straightforward application process could make OnDeck a viable option for your business if you need to access emergency funds quickly and don’t want to wait through traditional business loan applications and funding processes.

Quick Application Process

OnDeck's online application process makes it easy for business owners to apply for a loan. However, you will need to prepare some documentation before you can apply. You will be asked for your business EIN and social security number, an annual gross revenue estimate, and average business bank account balance. You may also be asked to provide documentation on your business's financials for the preceding three months.

Early Repayment

OnDeck doesn’t charge you a prepayment fee if you pay off your lines of credit or term loans early. Some borrowers may also be eligible for OnDeck’s Prepayment Benefit, where OnDeck forgives any interest remaining on your debt. If you’re not eligible for the OnDeck Prepayment Benefit and want to pay off your debt early, OnDeck will still cover 75% of the interest remaining on your loan, as outlined in your loan agreement.

How to Apply For an OnDeck Loan?

To apply for OnDeck business loans, you must fill out an online application form. You must provide your business tax ID number, the latest business bank statements, and your social security number. You will also need to state the type of business loan you seek. OnDeck will review all of your application forms. You may receive funds within 24-48 hours if approved for a loan.

Several factors determine whether a business loan application is approved or rejected. Each lender has its own set of underwriting criteria. Still, they generally involve information from an applicant's credit profile and other information showing the borrower's ability to repay the loan, including business income.

Here’s what you need to know about the OnDeck application process:

• How to submit your application online
• How to contact a loan advisor
• How to receive a decision
• How to qualify for financing
• How to access business funding
• How to accept a financing option and agree on repayment terms
• How to get access to money you borrowed on the same day

OnDeck Small Business Loans | Pricing Factor

OnDeck term loans are between $5,000 and $250,000. OnDeck business credit loans are between $6,000 and $100,000 The OnDeck term loan interest rate starts at 29.99% The interest rate you pay on your OnDeck loan depends on your credit score, your annual revenue, your cash flow, and the length of time you’ve been operating as a business. OnDeck loan origination fees There are origination fees associated with OnDeck loans, so be sure to review your loan terms to determine how much fees affect the total loan cost.

Summary

As a licensed lender, OnDeck issues small business loans and business lines of credit to companies across the United States. With multiple loan repayment terms, OnDeck allows you to extend your loan repayment by 24 months. OnDeck also offers revolving lines of credit. This platform doesn’t come without some downsides. You’ll face higher interest rates, and you’ll have to make more payments than you would with a bank loan. However, it’s easy to ignore these drawbacks.