OnDeck Business Loan Review
Janet Schaaf is a freelance writer, editor and proofreader who considers reader advocacy to be her calling. After taking a few roads less traveled, Janet completed a bachelor’s degree in English Literature from the University of Missouri-Kansas City, with English Department Honors. She has been correcting grammar and checking facts since she could string a sentence together. For the past three years, Janet has focused on making personal finance topics understandable and relatable. Loan terms and credit card agreements can look overwhelming, but understanding what you’re agreeing to is paramount in grasping the impact debt can have on your life.
 | Starting APR: 35.40% APR Best for: Business owners with fair to low credit looking for large borrowing amounts and fast funding. |
Pros and cons of OnDeck
| Pros | Cons |
|---|---|
Fast funding Large borrowing amounts Fair to low credit accepted | High-interest rates Origination fee and monthly maintenance fee Funds not available for all industries |
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OnDeck small business loans review
OnDeck is an online small business lender offering business term loans and business lines of credit. Small business owners who qualify for OnDeck business loan products can receive funds fast — if you’re applying for a term loan of $100,000 or less, you may be able to get funding as soon as the same business day in some states. But before you apply, be aware that OnDeck’s products can come with high business loan interest rates and additional fees which can add up.
Who is OnDeck for?
- Small business owners with fair to low credit. Borrowers only need a 625 credit score to apply for OnDeck’s loan products.
- Need funds fast. Small businesses can receive funds the next business day, but certain restrictions apply.
- High borrowing options. Loan amounts can reach $250,000 for term loans and $100,000 for lines of credit.
OnDeck small business financing at a glance
| Product | Loan amounts | Repayment term | Estimated APR range | Fees |
|---|---|---|---|---|
| Term loan | $5,000-$250,000 | Up to 24 months | 35.40% | origination fee of 0.00% - 4.00% |
| Line of credit | $6,000-$100,000 | 12, 18 or 24 months | 39.90% | $20 monthly maintenance fee |
Term loans
OnDeck offers short-term business loans with up to 24 months for repayment. Loan amounts can range from $5,000 to $250,000 depending on how much you qualify for. However, the maximum repayment term is 24 months, which can be a short amount of time to pay such a hefty sum. The starting APR is also on the high side at 35.40%, though the average APR is 60.9%.* Loans also come with an origination fee of 0.00% - 4.00%.
Line of credit
Rather than receiving a lump sum as with a term loan,OnDeck’s business line of credit provides a form of flexible funding that you can draw from when needed. Loan amounts range from $6,000 to $100,000 with a 24-month repayment plan. Each time you withdraw funds, the repayment plan resets. There is a monthly maintenance fee of $20 for OnDeck’s lines of credit but can be waived if you withdraw $5,000 or more during the week you open the account. This fee can be waived for the first six months. The APR for the line of credit starts at 39.90%, but the average APR is 52.6%*
*Average APRs for each loan product are based on loans originated in the half-year ending March 31, 2023.
OnDeck borrower requirements
| Minimum annual revenue | $100,000 |
| Minimum time in business | 1 year or more |
| Minimum credit score | 625 |
To be eligible for a loan or line of credit with OnDeck, you must have a personal FICO Score of 625, and your company also needs its own business bank account. Your business must also have been in operation for at least a year and make at least $100,000 in annual revenue, so it may be a bit challenging for newer or startup businesses.
Businesses located in Nevada, North Dakota, or South Dakota are ineligible for OnDeck funding. In addition, OnDeck does not lend to some industries: adult entertainment, drug dispensaries, firearms vendors, gaming and gambling and rooming and boarding houses, among others. Be sure to review OnDeck’s website to see all the industries that are not served.
Required documents
When applying for a small business loan with OnDeck, you’ll likely need to supply a few documents during the application process. These required documents are relatively standard in terms of applying for business loans with alternative lenders and include the following:
- Business tax ID number (EIN)
- Business owner’s social security number
- Estimated annual gross revenue
- Bank balance
- 3 months of most recent bank statements for business
Alternatives to OnDeck
| OnDeck | Fundbox | Funding Circle | |
|---|---|---|---|
| Minimum credit score | 625 | 600+ |
|
| Loan products offered |
| Business line of credit |
|
| Time to funding | Same business day | The next business day | Three business days |
| Starting rates | 35.40% APR | 4.66% simple interest |
|
| Maximum loan size |
| $150,000 |
|
| Minimum annual revenue | $100,000 | $100,000 |
|
OnDeck vs. Fundbox
Business owners looking for a line of credit might find Fundbox as another solid option. Fundbox offers a higher credit line of $150,000 but with shorter repayment terms of either 3 or 6 months for its standard line of credit option. Since Fundbox only requires a 600 credit score to qualify and less time for a business to be operating (3 to 6 months) compared to OnDeck, Fundbox might be a better fit for newer businesses.
OnDeck vs. Funding Circle
Funding Circle is another alternative to OnDeck that offers term loans and lines of credit, in addition to also offering SBA loans. Funding Circle’s loan amounts for both term loans lines of credit and term loans – $250,000 and $500,000, respectively – are higher than OnDeck’s offerings. The APR rates are much lower for all of OnDeck, but you will need a slightly higher credit score of at least 660 for term loans or 650 for SBA loans. Borrowers looking to get funds fast may want to stick with OnDeck as Fundbox can take three business days for the money to hit your account.