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We turned to OnDeck when we couldn't get any kind of loan for our new (18 month in operation) business. Their qualification requirements are much easier than traditional lenders. Our credit scores were damaged as a result of opening a business and all that comes with that. They mostly paid attention to our cash flow and deposits to make sure we could handle the payment. They also wanted to make sure the money was going to be used for something that would help the overall revenue generating potential of the business. We were approved quickly and had our funds almost immediately after approval. In fact, we had to ask them to slow down because we weren't quite ready to receive the money!
Bottom line though? It's expensive. We were approved for $45K, but only took $15K. We opted for a 9 month payback period with daily payments (yes, daily) of $100. On the $15K borrowed, we will be repaying $19K. Expensive. The loan helped us to expand our revenues, but obviously those profits are being eaten up by the payment! Good news is, we're almost done with the loan and those profits will then be available to us. Customer service is excellent, although we've never been unable to make a payment or otherwise draw their ire, so I suppose YMMV. Everything was very transparent and easy to understand, so I'm not sure what the negative reviews about misinformation are about.
Overall, I don't regret taking the loan, but I'm not sure I would again. We've now been in business long enough to qualify for more traditional lending, so I'm not sure I would choose this option given the cost. But for those who can't qualify for other lending, I'd say this is a reasonable option. Just make sure you understand what it's going to cost and account for that in your day to day cash flow.
I applied for a Small Business Loan. Easy and quick application process online, and then a few hours later I got a phone call from a Rep from OnDeck, asking more questions about my business. He was very confusing and vague in answering my questions about the loan and the company, and seemed to dodge some of the questions entirely. For example, he asked me how I would like to repay the loan (daily or weekly) before I had been approved and before I had any clue as to what my loan amount would be and what those payments would look like. Very bad communication and very unclear and there is no way I would feel comfortable with borrowing money from this company.
I started an online application and decided to go in a different direction (with a different lender). About a half hour later, I received a phone call that I had missed and was trying to call back. There was a rep who had called on the other number listed. Once I answered the phone he never stated who he was or where he was calling from and it wasn't until after he was asking about my business did I realize that he was from OnDeck. He was inquiring about our recent revenue and then stated an off number about recent sales that OnDeck lends on only.
The number was NEVER stated online during the application and our revenue exceeds that anyway. I knew I wasn't interested when I had started looking into other lenders, so the conversation just turned my attention away even more. Stop looking for a reason to not lend to small businesses! We are the only reason the company is in existence. Additionally, re-introduce yourself on the phone to maintain professionalism.
Having received multiple online spam and snail mail junk mail in recent times from this business loan/line of credit hoax operation, I am somewhat miffed by their changing goal posts and misinformation that they advertise on their website and through media especially television and Shark Tank. Barbara Corcoran, a supposed savvy business person and television celebrity has poor judgment in putting her name to this scam outfit. I enrolled in their application processes and filed their online paperwork, submitted the documentation, only after reading and rereading their application process time and again, to be sure about their minimum requirements.
My business is 11 years old with modest annual revenues, yet this is not enough for this scam outfit. Nowhere in their information does it say that longer, established businesses require greater minimum monthly revenues than younger unproven concerns. I was not applying for a loan, simply a credit line. Their unrealistic demands of minimum $8500 a month in revenues is not stipulated anywhere in their marketing. I am most concerned that they are nothing more than loan sharks preying on the small business and taking advantage of their real desire to improve their lot. OnDeck continue to send almost daily junk mail, throwing buckets of money at advertising and claiming that we qualify, when we don't. The credit report pull, affects our credit rating and inhibits/reduces our credit ratings as a result.
Unfortunately, they are untouchable and beyond prosecution for their dishonesty and attempt to scam small businesses, especially Midwest businesses, that are the backbone of the country and employment, because we are not on Main Street in NYC and do not bring in their required revenue minimums. As far as this small business owner is concerned, I warm any prospective buyer of their **, to be aware that they are not who they advertise they are. It is gross negligence and false advertising, perhaps the illegal bait and switch prohibited in the Lanham Act that bothers me. I am somewhat thankful to not get into bed with them. Be warned, these charlatans are out to con you. Steer clear while you have the chance.
Great job and very efficient. Complete from beginning to end and honored everything they said they would. In addition safe, secure and thorough and very easy to work with the customer. The application process was thorough and efficient with no surprises along the way. In addition they always made me feel welcome and made sure I knew every single thing that was required to be approved. The rates and terms are and were great. Competitive and always identical to what they informed me of. No surprises as well once again which made it perfect. The online tool's fantastic. Very well organized and easy to decipher and thus process. Always online and secure as well. One thing is the website was never down and it's great to be able to reach 24/7.
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It was the easiest loan I have applied for. The people that work there help with the process of getting a loan and make it super easy. I had to give them at least six references and at least one work reference. I also had to give them a copy of my paycheck stub and a copy of my ID. The company has several different rate plans that go with what you are looking for. I choose the lowest interest rate. Their terms are very easy to go by and easy to follow. Their website is very easy to follow if you are a beginner at computers. Their online tools are basically you logging in and you see your account. You can get a loan, pay one back, or see how much you owe.
They were helpful and fast and convenient repayment, low APR, fast and easy to deal with. Fast Response. Good customer service. Great business people. I applied online electronically had together and submit information. Contact the 1-800 number. Representative contacted me and I needed more information. Submitted information and it was kind of quick. That process part could have been faster. The rates are a little high. Could have been better. They could have been more competitive and offer lower rates. The terms are normal. Nothing out of the ordinary. Regular rate term amount of time. I really like the online tools. Easy and convenient to use, save time, make things a lot more convenient and easier and faster to get things done.
They weren't helpful in trying to gather all the information that I need to give them the answer if I qualified. So it became very stressful and I gave up, never received a follow-up or help. The application itself was pretty straight forward. So I found no difficulty. But it was after that process trying to find paperwork they needed that became hard. They seemed reasonable for someone with average credit like myself.
On July 15, our company, which is a nationwide photography and videography company whose primary clients are in the real estate industry, was looking to acquire a Line of Credit from a lender to cover subcontractor payments during a short term gap in our cash flow. We looked on-line and found OnDeck. We chose OnDeck because of what appeared to be the ease of qualification as represented on their website: “Companies in business at least 9 months” (Our company has been in business for almost 10 years), “$75,000+ in gross annual revenue” (For the last couple years, our company’s revenues average about $102,000 per year and we are looking to do upwards toward $150,000 this year), “A majority owner with a 600+ personal credit score” (OnDeck uses Experian, but I just received by latest FICO score which was 776 – I am a 50% owner).
Our next step was inquiring about the loan and our eligibility in a lengthy chat session with “Olivia **.” We saw that there was a limitation with industries, which includes the real estate industry, and because the majority of our clients are in the real estate industry, would our photography and videography company be excluded? The answer was clear: No, our company would not be excluded. Based on this, as well as the promise that OnDeck provides the best rates, we submitted our application.
Rather than being instantly qualified, I logged in to the system to find the following message, “We are having trouble verifying your eligibility and want to make sure you meet our minimum requirements.” I called and spoke to Tyler who said that our company was not in good standing with the Secretary of State based on a search performed by our FEIN. He would look into this and get back to us after the weekend.
On July 19, we received an email stating that our company was denied the Line of Credit. Thinking it had something to so with our company’s standing with the Secretary of State, I called the office of the Secretary of State and they stated that they do not use the FEIN to look up businesses, but rather a Business Entity number. This was a number that was not provided to OnDeck at any point in the application process. After a short discussion, the Secretary of State representative stated that our company is in good standing.
I called OnDeck and spoke to another gentleman who stated we were denied because of our deposits were not quite $8,500 per month. I said that I was not applying for a loan, which demands $8,500, but rather the Line of Credit that demands $6,250 per month, which our company was well above. He said that is for businesses that are younger than 4 years old and because our business was more than 4 years old, our requirement was $8,500 per month. I said the website clearly states it requires a minimum of $75k in annual revenue and makes no stipulation that this is for businesses 4 years old and younger.
Had OnDeck represented on their website that our company would not qualify based on deposits for companies 4+ years old, we would not have applied; however, OnDeck omitted this fact on their website and in my chat conversation prior to submitting an application leading us to believe we would qualify. He said he would have Tyler return my call.
Tyler called back shortly thereafter, he stated that it wasn’t the standing with the Secretary of State or the amount of deposits, but our company was denied based on industry because it was real estate. I told him our industry is not real estate, our industry is photography. Many of our clients are in the real estate industry, but we take on many different types of clients. He said there was nothing else he could do. Had the OnDeck represented that our company would not qualify based on industry, we would not have applied; however, OnDeck expressly stated our photography industry would qualify in our chat sessions.
OnDeck enticed our company to spend the time, energy and resources to submit personal and sensitive information as part of an application based on false pretenses which included expressed and implied misrepresentations. I contacted OnDeck customer service requesting that our loan application be based on what was represented to me and that upon approval we should receive a good rate based on my stellar credit score and the longevity of our business. Their customer service representative, Kristin **, reiterated the denial and wrote, “For our Lines of Credit, have a minimum requirement of $200K a year in gross revenue.” So, the requirement went from $75,000 to $102,000 to $200,000 in the matter of several hours.
She then stated it was that our company is in the real estate industry and that was the issue. I told her that we are a photography company and we inquired prior to submitting an application about many of our clients being in the real estate industry and it was expressly stated that would not have an effect, and she responded, “I understand that you are not in real estate, but you work with real estate agencies which is a conflict of interest.” So, I asked if they deny every company that does business with real estate agents? Do they deny Dry Cleaners? Landscapers? Sign Companies? Etc. No. Even so, it was told to our company that we would not be denied for that reason, prior to submitting an application.
A manager, Cameron **, did call me back. He admitted to the misinformation by the representatives and that he would have a talk with them. I stated that the information that was represented to our company enticed a submission of an application because we knew that we would not be denied based on that factor. He stated that no contract was entered upon, so there was no wrong doing on their part and no recourse for our company. I stated that our company engaged with OnDeck based on this information and I have subsequently come to learn that an application is a legal document. Cameron’s analogy was that if Walmart incorrectly prices a bucket of balls for much less than they retail, Walmart is under no obligation to sell you those balls at the incorrect price.
My response was that the lending industry is held to a higher standard than Walmart and my analogy was that if an insurance agent represents something to a person, and later underwriting states otherwise, the insurance company is on the hook for what the representative stated. The same principles apply and that is why errors and omissions exist. I told him all we wanted was reconsideration based on what was represented to our company. He said he went to underwriting twice with industry issue and both times were denied because, as he stated, our company supports the real estate industry. Again, no application would have been filed had the OnDeck representatives not expressly stated that our industry, which primarily serves the real estate industry, would not be denied based on our industry.
I found it fascinating and interesting. Customer support was very well versed with information for me and I was impressed with the high quality of service. I would recommend them any day. Great time processing when I intended to help with the thing and wanted a thing for the other thing. It was great and I was happy with it all, it takes time to do that and it will help and help more and more. Rates were fair. Terms were fair... Online tools were great.
I did not end up taking the loan even though I was approved. The interest rate was just okay & I decided to go in a different direction. The rep I spoke to was very professional. Was approved in 24 hours with minimal documentation & 1 phone call. Not quite as smooth as other lenders but more than acceptable. If I was in need of a loan I would consider them again. Rates were just okay and it was one of the higher quotes I received. In a competitive market it was an easy decision to go in a different direction. It was smooth with no problems. Very high quality, professional website which is modern enough to match most others companies. Process only took a few minutes.
I needed a loan to expand and OnDeck came through. Less than 2 days 15k in the bank. My loan officer was great. My bank said NO. They said yes. I must say the application process was very easy. At first, you think, is that all but it was great and I found a way to fund my big projects. Great experience. It was a pleasure working with Joshua. He gave me the confidence to move forward with the funding I needed for my payroll. I was surprised how fast and easy the process was. I am excited, as I will be able to meet my payroll, and build company credit for the future. I will definitely reach out again when the time comes for future funding. Thank you for helping me and meeting my business needs.
I am a small business owner and have used other companies before and it was always excruciating with back and forth asking for more paperwork and signing 30 pages of documents. This company and my agent was super easy to deal with. I simply emailed the requested information and signed some paperwork online and LESS than 24 hours later the funds were available to use. I couldn't have asked for an easier transaction. I can't say enough about how they have helped my practice grow, especially during these economic times when it can be difficult to be approved for a small business loan from traditional lending institutions. I highly recommend OnDeck. They are AWESOME!
They were easy to reach as well as knowledgeable and friendly. Everyone was very eager to help. They made the whole process, which I thought would be a painstaking event, seem very easy and fast. They made sure I had all the help I needed which ensured a seamless process. The rates were reasonable and the terms were flexible allowing us to get the loan that was best for our business and wouldn't add financial strain trying to pay back. The online tools allowed for quick and easy access to information. It really made me feel like I was able to find all the information I needed and when I needed without a ton of work.
They were very helpful, thorough, and explained all my options for the best deal possible, in easy to understand language. They basically made the process as painless as they could. They worked with me to make the entire experience as easy to understand and as least time consuming as possible. The rates were comparably less than I expected. It was also over a bit longer period of time than a regular banking institution would lend, but the extra time allowed us to put more capital into the business and generate more profit. The online tools include the ability to monitor your balance, payments and interest rates as well as get immediate help from customer support at all times of the day.
Our customer support was very good at times, but for the most part, it was adequate. Getting through to support and wait time for response was adequate, but I would say not great. It was average and has room for improvement. The application process was fairly quick and easy. Information needed was spelled out simply and understandable. The person taking the information was well informed and knowledgeable. Made it a comfortable experience. The terms were more flexible than some others however the rates were the same and slightly higher depending on the terms. The online tools available are equal to most other lenders that we looked into. After dealing with the website more and more it seems to be easy to navigate and offers several options to aid you in all aspects of their company.
The customer service when I applied for my business loan were great. They were there to help me with my every need. I would recommend this company to anyone trying to get a business loan. The application process for my business loan was fast and easy. I'd been turned down by other companies, but this company went the extra mile to help with the approval of my loan. The rates and terms of my business loan are extremely good. I can't believe how low the finance rates are and it won't take long for me to pay my business loan off. AWESOME! The online tools I used when applying for my business loan were great. I don't think I could've done the loan online if they weren't available. The online tools and support staff go hand in hand. They're great!
They were very quick processing my application and I was approved without any issues. The funds were available to me much sooner than I ever expected so they get 5 stars from me without a doubt. The application process is very simple and can be submitted online. The application was then reviewed and approved and I was notified in less than 24 hours. It was so much easier than I ever expected it to be. They offer short term and long term loans. Funding is available soon after approval of application. They have flexible terms for repayment so you figure out what works for you and I'm sure they will be able to figure something out that makes everyone happy. The easiest application process and the website is user friendly. Also, they have a live chat feature for anyone who would rather be helped by a person. Or you can call them. But the online tools are excellent.
OnDeck expert review by Barbara Friedberg
OnDeck was founded in 2007 and is a publically traded company. It’s headquartered in New York City. Since it began, the company has provided over $4 billion in capital to small businesses. They base their application approval on both a business’ gross revenue and the owner’s credit history.
Scalable: OnDeck offers small business loans in amounts from $5,000-$500,000 and lines of credit from $6,000-$100,000. The scalable size of loans and lines of credit allows clients to only take out and pay interest on the amount of money they need.
Extended hours: Loan specialists are available to help interested consumers and clients during extended business hours. They can be reached by phone or instant messaging between 8 a.m. and 8 p.m. six days a week.
Single application: When business owners submit an application to OnDeck, the lender determines which type of loan will best suit the business. This means that by filling out a single application the business owner applies for every type of financing OnDeck offers. This policy makes the application process simple and allows business owners to get advice about which funding option is the best choice.
FAQs: The FAQ section of OnDeck’s website offers detailed answers to many questions interested customers might have. They can learn about exactly which documents they will need to have when applying, minimum qualifications for financing and typical rates and fees.
Returning customer rates: Previous OnDeck customers qualify for a lower origination fee when they receive a second loan. After a business’ third loan, they may not pay any origination fee.
Best for: OnDeck caters specifically to small businesses, and they offer scalable loans and lines of credit.
Personal Finance Contributing Editor
Barbara Friedberg, MBA, MS is a former investment portfolio manager with decades of financial experience. Friedberg taught Finance and Investments at several universities. Her work has been featured in U.S. News & World Report, Investopedia, Yahoo!Finance and many more publications.
OnDeck Company Information
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- 1400 Broadway
- New York
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- United States
- (888) 269-4246