OnDeck

OnDeck is an online lender that serves small businesses in most states with two main products: term loans and lines of credit. Both are secured by a general lien on business assets.

Customers can apply online or over the phone, get a same-day decision and have access to funds as soon as the same day. The company assigns clients a dedicated, U.S.-based loan advisor who’s available six days a week for support throughout the process.

OnDeck works with businesses from more than 700 industries, including retailers, restaurants and contractors, in all states except Nevada, North Dakota and South Dakota. The company was founded in 2006 and is based in New York.

OnDeck makes it easy to apply for a term loan or line of credit. You can get started online or by calling. You’ll need the following:

• Employer Identification Number
• Business bank statements from the last three months
• Social Security number of business owner
• Driver’s license number and state of issue

A loan expert contacts you within one business day to discuss your offers, which are good for 30 days. If you’re approved, you choose your term, amount and repayment schedule. Then, you complete an online checkout process. Once you’re done, you can receive your funds as soon as the same day. Same-day funding is available both with term loans and lines of credit.

OnDeck offers two main products: short-term loans and lines of credit. Each option has its own benefits for small business owners.

Term loan: OnDeck provides a one-time lump sum of cash from $5,000 to $250,000 as soon as the same day you apply. OnDeck offers repayment terms of up to 24 months, with automatic, fixed deductions from a bank account daily or weekly. Term loans may have a prepayment penalty.

Line of credit: The revolving credit line gives you access to money when you need it. Revolving lines of credit range from $6,000 to $100,000. There is a 12-month repayment term that resets after each withdrawal, with automatic weekly payments. You only pay interest on the amount you use, and there are no prepayment penalties.

With both the term loan and the line of credit, OnDeck shows you transparent pricing with the SMART Box capital comparison tool; it gives an easy-to-understand breakdown of key metrics, including:

• The total cost of the loan, including interest, the origination fee and other fees
• The annual percentage rate
• Weekly and monthly payment amounts
• Details about prepayment

OnDeck rates are based on business health, annual revenue, cash flow, credit history and time in business.

The APR on term loans starts at 35% and averaged 54.96% in the first quarter of 2021. There is an origination fee of 0% to 4%. If you qualify for the “100% Prepayment Benefit” option, you can pay back the loan early, and OnDeck will waive all remaining interest without penalty. Otherwise, you may owe 75% of the remaining interest.

OnDeck lines of credit have APRs starting at 35.9% and averaged 47.14% in the first quarter of 2021. There is a $20 monthly maintenance fee; OnDeck waives it if you withdraw at least $5,000 within one week of the line opening. There are no prepayment penalties.

OnDeck is a legitimate lender, with over $14 billion extended to small businesses globally. According to the company, the typical customer has been in business for three years or more and has an annual revenue of at least $300,000. We like OnDeck’s simple, fast application process and the SMART Box loan comparison tool. But you may pay less for a loan from a traditional bank or credit union — we recommend comparing offers from OnDeck and other lenders before deciding on the right loan for your business.