OnDeck Business Loan Review

Who It’s Best For / Not For

Who OnDeck Is Best For:

• Owners with at least one year in business

• Borrowers with less-than-perfect personal credit scores

• Business owners seeking operating capital or fast cash

• Owners who have been declined by traditional lenders

• Businesses with sufficient cash flow to manage frequent payments

Who Should Consider Other Options

• Borrowers with stronger credit scores who may qualify for lower rates

• Businesses whose cash flow doesn't align with daily or weekly payments

• Borrowers seeking lower interest rates and minimal origination fees

• Companies needing repayment terms longer than two years

• Business owners interested in SBA loans or a broader selection of financing products

Key Facts

Loan amounts, eligibility requirements, repayment terms, and funding availability depend on the financing product and applicant qualifications.

OnDeck Business Loan Review: Editorial Rating

Trusted Company Reviews Rating Score for OnDeck: 7.3

OnDeck earned a respectable score in our evaluations due to its business financing options, flexible repayment terms, and ability to offer loans to borrowers with lower credit scores than many traditional lenders.

The company has earned an A+ rating from the Better Business Bureau (BBB), and its customers generally report positive experiences with customer service and fast funding times.

We also liked OnDeck's application process —users report that it's easier to complete and faster than many others. 

OnDeck earns its highest scores for application, approval, and funding speed, along with borrower accessibility. However, its relatively high borrowing costs and limited flexibility reduce its overall rating. 

How We Calculated Our OnDeck Rating

We use weighted rating criteria to evaluate each business loan provider fairly and systematically. Each category reflects a different part of the borrowing experience, with greater emphasis on borrowing costs, financing flexibility, accessibility, and transparency.

The weighted scores produce an overall OnDeck rating of 7.3 out of a possible 10, rounded to one decimal place.

What Makes OnDeck Different?

Many business lenders require owners to have top-tier personal credit scores, but that isn't the case with OnDeck. The company may offer loans to borrowers with personal credit scores as low as 625, and many customers appreciate its convenient application process and flexible financing options.

OnDeck also stands out for its funding speed. Qualified borrowers may receive their money as soon as one business day after completing the approval process.

However, this convenience comes at a cost. We found that OnDeck's interest rates and fees can be higher than those of several competitors, and its frequent payment requirements may create challenges for businesses with inconsistent revenue.

OnDeck Term Loans

OnDeck offers business term loans that provide a lump sum of funding for operating expenses, inventory, equipment, and other business needs.

Repayment terms generally range from 12 to 24 months, with payments commonly required daily or weekly.

These loans can be useful for businesses that need capital quickly and have predictable revenue. However, short repayment periods can produce relatively high payment amounts.

OnDeck Business Lines of Credit

OnDeck also offers business lines of credit, allowing approved borrowers to access funds as needed rather than taking out a new loan for every expense.

This financing structure can be helpful for managing temporary cash-flow shortages or unexpected operating expenses.

However, borrowers should carefully evaluate the costs and repayment requirements associated with individual draws.

Features and Benefits

There's a lot to like about OnDeck's loan products, but it can be hard to get past some of the fees and frequent repayment dates. That said, its offerings can fit a range of business situations, particularly when fast access to capital is a priority.

• Fast funding: Approved loans may fund as soon as one business day after final signing.

• Multiple financing options: Business term loans and lines of credit are available.

• Loan amounts: Qualified businesses may access financing of up to $400,000.

• Repayment terms: Term loans generally offer 12-, 18-, or 24-month repayment periods.

• Credit accessibility: Borrowers may qualify with personal credit scores as low as 625.

• Business age requirements: Companies generally need only one year of operating history to apply.

• Convenient application: OnDeck offers an online application process designed to provide relatively fast decisions.

OnDeck's combination of speed and accessible requirements may appeal to businesses that struggle to qualify for conventional financing. However, approval isn't guaranteed, and loan costs depend on the applicant's qualifications.

Pricing & Value

OnDeck is sometimes more expensive than competing business lenders, particularly when considering origination fees, interest charges, and repayment schedules.

The company offers convenient financing, but business owners should understand the total cost before accepting a loan.

• Interest rates and fees may be higher than those offered by traditional lenders.

• Some repayment plans require daily or weekly payments, which may not align with business cash flow.

• Loan terms are relatively short, potentially increasing individual payment amounts.

• Some loans may require payment of remaining interest even when the borrower repays early.

• Borrowers with stronger credit profiles may qualify for lower-cost financing elsewhere.

Is OnDeck Worth the Price?

OnDeck can be worth the additional expense for businesses that need money quickly and cannot qualify for more traditional financing.

However, its higher borrowing costs and frequent payments can create financial pressure, especially for businesses that experience seasonal revenue changes or occasional slow periods.

Before accepting an offer, compare the total repayment amount, fees, payment frequency, and early payoff provisions with those of competing lenders.

OnDeck Customer Reviews

Business lenders often receive mixed reviews because of the complexity of the application and approval process. However, OnDeck's customers are generally positive about their experiences. The company earns 4.6 stars on Trustpilot. 

Many praise the company's fast funding times, saying they received loan funds in as little as one business day.

Others report that OnDeck's application and approval processes are faster and easier than those of comparable lenders. Customers also frequently mention helpful representatives and clear explanations of loan requirements.

Despite these positive experiences, some borrowers report concerns about financing costs and repayment obligations.

Common Complaints

OnDeck has accumulated negative feedback alongside its positive customer reviews. Common complaints include:

• Higher interest rates and borrowing costs than expected

• Frequent payment requirements that create cash-flow challenges

• Daily or weekly payments that become difficult during slower business cycles

• Persistent sales calls and follow-up emails

• Early payoff provisions that don't always reduce the remaining interest owed

Some borrowers describe OnDeck's sales approach as aggressive, particularly when receiving repeated calls or emails after submitting an inquiry.

It's also important to understand the company's early payoff policies. Some loan agreements may require borrowers to pay remaining interest charges even when they repay the principal ahead of schedule.

This isn't necessarily the case with every OnDeck loan, so carefully review the agreement before signing.

OnDeck Alternatives

OnDeck offers fast funding and relatively accessible credit requirements, but its costs and repayment terms aren't ideal for every business.

Several companies in our overview of the best private lenders for business loans and startups offer alternatives worth considering.

• LendingTree: An online marketplace that allows business owners to compare potential financing offers from multiple lenders rather than applying with only one provider.

• Credibly: Offers multiple business financing products, fast funding, and potentially more accessible credit requirements for certain borrowers.

• Fundbox: Specializes in business lines of credit and may appeal to newer businesses with lower annual revenue.

• Fora Financial: Provides business financing of up to $1.5 million for qualifying businesses, including those with less-than-perfect credit.

• Taycor Financial: Offers a broad selection of financing products, including equipment financing, leasing, term loans, and lines of credit.

• National Funding: Provides short-term working capital and equipment financing, with fast funding available to qualified businesses.

OnDeck Information and Data

Should You Choose OnDeck?

OnDeck is a good choice for some borrowers, particularly those with limited business histories or lower personal credit scores.

The company also makes sense for business owners who need quick access to capital and have predictable revenue to manage frequent repayments.

However, OnDeck isn't for everyone. Its relatively high borrowing costs and short repayment terms can make financing expensive, while daily or weekly payments may create problems for businesses with inconsistent cash flow.

• Consider OnDeck if: You have a lower personal credit score, at least one year in business, and need fast financing with manageable repayment obligations.

• Probably not if: You qualify for lower-cost financing elsewhere, need longer repayment terms, or have difficulty managing frequent payments.