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Small Business Loans

OnDeck Small Business Loan Review

  • Terms loans and lines of credit
  • Borrow up to $250,000
  • Get funds as soon as the same day

OnDeck is an online business lender committed to helping small businesses succeed. The company started in 2006 with a focus on data analytics to expedite lending decisions, which can be quite slow when working with traditional banks instead of an online lender. 

It has made over $15 billion in small business loans in that time. Term loans and lines of credit are available to help small business owners get customized financing solutions that fit their business models.

Your company must meet several requirements to apply, including being in business for at least a year and earning at least $100,000 in annual revenue. You’ll also need a business checking account and a minimum personal credit score of 625. Keep reading to dive deeper into our OnDeck review.

About OnDeck small business loans 

OnDeck offers competitive small business financing in two forms: as a term loan or as a line of credit. Both come with fast funding times so you know how to plan for the future of your company. And in some instances, you may even get funding delivered to your account on the same day you apply. 

Compared to other online small business lenders, OnDeck offers competitive financing amounts. The average APR may be on the higher side, but individual loan term offers will vary. Keep an eye on origination fees, which depend on the strength of your application. 

With strong business and personal credit, OnDeck may not charge you an origination fee. But that can jump if you don’t have much of a proven track record. Also, check for maintenance fees on your line of credit offer.

OnDeck business term loan

OnDeck’s term loans cater to small businesses of all sizes. You can apply to borrow anywhere from $5,000 and $250,000 and see what terms you qualify for without a hard credit pull hurting your score. 

Maybe you own a restaurant and need to finance an emergency kitchen repair for a few thousand dollars. Or perhaps you have a product-based company and need to pay for a six-figure order of new inventory. OnDeck’s wide range of loan amounts suits almost any type of business.

To apply, you must meet a few eligibility requirements. Your company must be in business for at least one year and bring in at least $100,000 in annual revenue. You must also have a business checking account to connect for the repayment process.

Other term loan features include:

  • Online application that takes just minutes to complete
  • Same-day funding for loans up to $100,000
  • Available in 49 states (North Dakota is the exception)

Here’s everything else you need to know about small business term loans from OnDeck. 

Loan amounts$5,000 – $250,000
Rates (APR)60.9% APR (average)
Repayment termsUp to 24 months
Fees0% – 4% origination fee
Minimum credit score625
Funding speedAs soon as the same day
Unique featuresDaily or weekly payments 

OnDeck line of credit

Instead of receiving a lump sum with a term loan, this part of our OnDeck review covers the lender’s line of credit option. A line of credit gives your business access to revolving credit, which is beneficial for certain business models.

For instance, if you have seasonal swings or other types of inconsistent cash flow, a line of credit helps you smooth out those inconsistencies. You choose how much to borrow and only pay interest on the outstanding balance. 

To apply for a line of credit with OnDeck, your business must meet the same basic requirements as a term loan: $100,000 a year in revenue and at least one year of business operations.

Here’s what you can expect when choosing an OnDeck line of credit:

  • Access help from a loan advisor to make the right financing decision
  • Instant funding for credit lines up to $10,000
  • Get more funding by requesting a credit line increase (depending on your cash flow, net income, and repayment history)

See whether you qualify for a small business line of credit from OnDeck:

Loan amounts$6,000 – $100,000
Rates (APR)52.6% APR (average)
Repayment terms12, 18, or 24 months
Minimum credit score625
Funding speedAs soon as the same day
Unique featuresWeekly or monthly payments

How do OnDeck small business loans work? 

OnDeck small business loans and lines of credit start with an online application. You can check your eligibility with a soft credit check, which doesn’t affect your credit score. 

How term loans work

Once you’re approved and you accept the loan agreement, you could get funds on the same day you apply. However, this financing option—like any financing—comes with an element of risk. OnDeck’s term loans are secured through a lien on any business assets you own. You also must sign a personal guarantee.

The loan repayment process is strict, with daily or weekly automatic payments debited from your business checking account.

OnDeck reports payments to the business credit bureaus. So, if you stay on top of them, you’ll build a strong credit history for your company, which can help you qualify for more financing in the future. 

How lines of credit work

Lines of credit from OnDeck are unsecured, lowering the risk for borrowers. As you repay the line of credit, your available credit replenishes for the next time you need funds. Like OnDeck’s term loan, your payments are reported to the credit bureaus. 

Is OnDeck a reputable lender?

Even if a business lender’s eligibility and loan terms look like a fit, it’s smart to check out real-life customer reviews. This gives you a sense of the actual experience you can expect when working with the lender. Here’s what customers have to say in their OnDeck reviews. 

SourceCustomer rating (out of 5)Number of reviews
Better Business Bureau2.89118
Collected on February 6, 2024.

OnDeck customers appreciate fast funding times and an easy application process. Many also commend how the lender’s helpful customer service representatives make it easier to understand available financing options. Borrowers also appreciate the weekly payment schedule, which they say helps with budgeting.

However, some customers and applicants note high interest rates from OnDeck. And in reviews from the Better Business Bureau (BBB), many mention that OnDeck doesn’t offer hardship repayment plans. 

OnDeck is BBB-accredited and has an A+ rating. Accreditation can help prove a small business loan lender’s reputability by demonstrating its commitment to ethical business practices and customer satisfaction, as endorsed by a recognized and respected organization focused on advancing marketplace trust.

See how OnDeck compares to our other best small business loans.

Does OnDeck have a customer service team?

When you apply for a business term loan or line of credit with OnDeck, you get paired with a dedicated loan advisor to answer any questions about your financing. OnDeck has customer service teams in the U.S., Canada, and Australia. 

Advisors are available Monday through Friday from 9:30 a.m. to 7:30 p.m. Eastern time. Here are all the ways you can contact OnDeck customer service:

  • Email: [email protected] 
  • Phone number: 888-269-4246
  • Mailing address: ATTN: Customer Service Inquiry, 4700 W. Daybreak Parkway, Suite 200, South Jordan, UT 84009

How to apply for an OnDeck small business loan 

Submitting a full application is simple and can usually be completed in 10 minutes or less. Here’s what to expect. 

  1. Check your eligibility: Your company must be in business for at least one year and earn $100,000 in revenue annually to apply. 
  2. Get preapproved: This step involves a soft credit check on the business owner’s personal credit score. Then, you can see what type of loan terms your company qualifies for.
  3. Submit documentation: To move forward with the full application, you must submit your business tax ID, business bank statements, and the business owner’s Social Security number.
  4. Review financing terms: Loan offers are valid for 30 days, so you can take your time before making a decision. Otherwise, you’ll need to reapply. 
  5. Receive your loan funds: Once you agree to the financing terms, you’re ready to get the funds. Loan funds are sent to your business bank account via ACH. 

What if I’m denied a small business loan from OnDeck? 

First, check to make sure you meet the basic financing eligibility requirements, including revenue and time in business thresholds. 

Also, find out your credit score. Unlike consumer lenders, business lenders aren’t required to disclose the credit report they pull. You may ask OnDeck about your credit score, but it isn’t required to share details.

If you’re still unsure why you were denied, review OnDeck’s list of restricted industries. It will not lend to certain types of businesses. Finally, consider reapplying later. You can try again once you address any issues.  

OnDeck FAQ

What kind of small business loans does OnDeck offer?

OnDeck offers two types of small business loans: short-term loans and line of credit loans. Short-term loans are from $5,000 to $250,000 and have terms of three to 12 months. 

Line of credit loans afford businesses flexibility with revolving credit from $6,000 to $100,000. Both types are geared towards helping businesses manage their cash flow, respond to opportunities, or address any immediate business need.

Does applying with OnDeck hurt my credit?

Applying for a loan with OnDeck initiates a hard credit pull, which may lower your credit score by a few points. However, before this, OnDeck runs a soft pull, which doesn’t affect your credit score. This allows OnDeck to provide a quick loan decision—often in less than 10 minutes. 

But remember, a single hard inquiry isn’t significant enough to affect your credit score much unless you apply for multiple loans within a short time frame.

What can OnDeck small business loans be used for?

OnDeck has few restrictions on how you use small business loans. Whether it’s for managing everyday expenses, investing in inventory, or expanding to a new location, OnDeck loans are there to fuel your ambitions. 

However, OnDeck stipulates that the funds can’t be used for illegal activities or anything that could harm the business’s stability or reputation. The idea is to use these loans strategically for growth-enhancing or revenue-generating projects to maximize the benefits.

How long does it take to receive funds from OnDeck?

OnDeck is known for its speed in processing and delivering business loans. After your application is approved, you could get funds as soon as the same day. In some cases, it may take up to a few business days for the funds to reach your account. 

The speed depends on various factors, including the loan amount and the time it takes to fulfill any additional paperwork or address any other specific business circumstances. However, compared with traditional lenders, OnDeck’s quick turnaround is advantageous for businesses needing immediate funding.