OnDeck Review - Business Loans
Application & Approval Process
Customer Support & Benefits
Launched in 2007, OnDeck is a prolific online lending service from New York, facilitating small businesses facing financial issues. The company combines cutting-edge technology and mainstream financial solutions to evaluate enterprises on their performance in addition to the business owner’s credit scores.
OnDeck has provided over $13 billion in loans and has served more than 700 industries across the United States. They have facilitated 100,000+ small businesses by extending a line of credit via business loans to help them grow into thriving enterprises.
OnDeck business loans are a suitable option for companies looking for immediate access to cash. It is all due to algorithms and decision-making technology that offers convenience to get loans in minutes instead of days or weeks. It is ideal for businesses struggling to get loans from traditional banks and other lenders due to a low credit score.
This lender is transparent and incredibly easy to contact, and most of their consumers report positive reviews. In addition, they offer cheaper loans to repeat customers. Another good thing about OnDeck is that all of their business loans are unsecured, which means borrowers do not require collateral.
- Offers same-day funding
- Low minimum credit score
- Lower costs for repeat customers
- Fast and easy application process
- A bit pricier
- Requires business lien and personal guarantee
- Award-winning online lending service, OnDeck is the recipient of LendingTree’s Customer Satisfaction Award.
- Issued over $13 billion in loans and continues to serve more than 700 industries across the country.
- Minimum credit score requirement of 600, and does not require collateral or some type of personal asset like banks.
- Fast cash, you can apply online or via telephone in as little as 10 minutes, and if approved, the funds will be transferred within 24 hours.
- Focuses on its customers’ privacy and data security, OnDeck has received TRUSTe’s Privacy Seal.
Application & Approval Process
OnDeck’s application is relatively simple compared to other online lenders. Any business owner can apply and complete their business loan request online or over the phone. It takes as little as 10 minutes.
The applicant must share information such as their personal details, type of business, and the purpose of the loan. The applicant can stay in touch with OnDeck’s loan specialist via call or live chat while completing the claim.
Following submission, a representative from OnDeck will contact the business owner to confirm all the details they have provided. Their purpose is to make sure that the borrower understands the loan and its terms and conditions, as well as answer any questions or concerns. Their representative will also gather any additional information required to process the loan application, such as a business tax ID, recent bank statements for the last three months, driving license as proof of ID, and their social security number. OnDeck reports any loan payment activities of the borrower to business credit bureaus such as Experian, Equifax, and PayNet.
OnDeck then proceeds to the next step, and if the loan is approved, they will reach out to the applicant on the next business day. The loan advisor will work with the applicant to review the loan offer, and if the borrower agrees, they can accept it from their OnDeck account.
Rates & Fees
OnDeck business loans require a one-time origination fee. This fee is between 2.5% and 4% of the loan amount for first-time borrowers. However, it reduces to 1.25% to 3% for the second time borrowers and 0% to 3% for third and any future loans.
That said, business loans by OnDeck are a little bit expensive. Their short-term loans usually have APRs ranging from 9% to 98.3%; whereas, their line of credit APRs can range from 19.9% to 61.9%. Keep in mind that the rate offered to the businesses will depend on its strength and performance.
The maximum repayment term offered by OnDeck is 36 months, with no exceptions. Plus, they deduct fixed payments on a daily or weekly basis directly from the business’s bank account. Their term loans take daily or weekly payment, whereas the line of credit business loans only has weekly payment options. Therefore, businesses will have to stay on top of their cash flow to keep up with the repayments.
There are two types of business loans offered by OnDeck, which are:
With their short-term business loan, a borrower can get a loan amount from $5,000 to $500,000 with a repayment term length of 3 to 36 months. These loans come with a fixed monthly fee of 0.4% to 0.42% of the total loan amount. The effective APR of short-term business loans is 9.0% to 9.83%, and the business will have to provide a personal guarantor or UCC-1 blanket lien.
Line of Credit
OnDeck offers a line of credit business loan option allowing a company to borrow from $6,000 to $100,000 with a draw term length of 6 months. There is no draw fee; however, they do charge a maintenance fee of $20 per month. The APRs for the line of credit falls between 19.9% and 61.9%, and the borrower will have to provide a personal guarantee.
Customer Support & Benefits
OnDeck’s customer service is available via phone, email, and live chat, and businesses can also get in touch using their social media accounts. There is an FAQ section on their website which answers basic questions such as what OnDeck offers, their loan types and benefits of using OnDeck, etc.
Generally, there is a positive consensus amongst their clientele about OnDeck’s proactive customer support. But there is no mention of the opening times when a person can contact them. A positive aspect is that each merchant gets a dedicated loan specialist for the full loan term. The dedicated representative will walk the applicant through the whole process and make it an exclusive experience, providing an adequate level of knowledge and helpfulness.
Address: 1400 Broadway, New York, NY
Email: [email protected]
Social Media: Facebook and Twitter