United Capital Source Logo

OnDeck Capital Review: Pros, Cons & How To Apply

OnDeck is widely viewed as one of the most reputable and established online business loan lenders. OnDeck’s business model and products have multiple features that set them apart from the rest of the industry. By incorporating elements of traditional and non-traditional lenders, OnDeck can solve a massive range of cash flow issues.

ondeck capital, ondeck reviews, on deck capital reviews.

OnDeck Capital also has low qualification requirements, making the company an attractive option for small business owners. However, you must know how their products work and the costs involved to determine if it’s the right lender for your business.

In this guide, we’ll answer the following questions and more:

We will help you grow your small business.

Join our Newsletter for great tips and updates.

    What Is OnDeck?

    office, business,

    OnDeck is an online business lender with two products: business term loans and business lines of credit. The company launched in 2006 and has extended over $13 billion to small businesses.

    The online lender specializes in quick funding for short-term financing. OnDeck is also known for approving businesses that can’t qualify for a traditional business loan.

    How Does OnDeck Work?

    money, coin, investment, ondeck line of credit, ondeck funding,

    OnDeck uses a mix of automation and manual oversight to determine borrowing amounts and interest rates. You’ll enter information about your business before speaking to a representative who will ensure there are no surprises during repayment.

    The entire application and funding process usually takes 1-2 business days. Once approved, weekly or daily payments will be automatically deducted from your account.

    Let’s look at how OnDeck’s business lines of credit and term loans work.

    Business Term Loans

    OnDeck’s business loans range between $5,000 and $250,000 with terms of up to 24 months. Based on loans originated in the six months before March 2021, interest rates vary between 29.9% and 97.3%, although some businesses could get a lower rate. Interest rates cap out at 99%.

    Same-day funding is possible for loans up to $100,000, although you might need to meet additional requirements. Most small businesses use the funds for a one-time investment into the business, such as expanding to a new location or a major equipment purchase. Borrowers can repay the loan with weekly or daily payments.

    Business Line of Credit

    OnDeck’s business lines of credit range from $6,000 to $100,000, with interest rates between 29.9% and 65.9%. Most businesses use lines of credit to cover working capital needs such as payroll or rent.

    Lines of credit come with a 12-month term, which resets each time a business draws funds. There is a $20 maintenance fee, but the company waives the fee when a business draws at least $5,000 within the first week of opening the line of credit.

    Same-day funding is possible with instant funding (within 30 minutes) available for draws between $5,000 and $10,000. OnDeck’s business line of credit requires weekly repayment.

    What Do You Need to Apply for OnDeck?

    checklist, check, rectangles, ondeck credit score

    To apply for both products, you will need the following documents and information:

    • Three months of business bank statements
    • Voided business check
    • Copy of your driver’s license
    • Business tax ID number
    • Business owner’s social security number
    • Estimated annual gross revenue
    • Average bank account balance

    Other Important Factors for OnDeck:

    For both products, eligible business owners must have the following:

    • A minimum credit score of 625.
    • At least one year in business.
    • Minimum annual revenue of $100,000

    OnDeck does not have a minimum business credit score, but they will check your score when applying.

    You must also make at least five monthly deposits in your business bank account. If you’ve ever filed for personal bankruptcy, OnDeck will only work with you if the bankruptcy was discharged at least two years ago. OnDeck does not work with businesses with $20,000 plus in total liens and judgments against their business or more than 5.5% of their annual revenue.

    Eligible businesses cannot use their loans to purchase a business and cannot operate out of a home address.

    The individual who fills out the application must sign a personal guarantee. If you default, OnDeck could seize your personal assets to compensate for the loss.

    OnDeck does not report to the personal credit bureaus, but they report to the business credit bureaus. This means that your payment history will only affect your business credit score.

    You can use your loan to refinance existing debt, but only if you borrow 200% of the existing debt. Once you receive your funds, OnDeck will file a UCC-1 blanket lien on your business. In addition to your personal assets, OnDeck could potentially seize your business assets to make up for the loss.

    For OnDeck, You Need to Know That:

    office, business, taking notes.

    Interest rates for both products can range from 12% to 99%. However, the average APR for a business term loan is 49%, compared to 35% for a business line of credit.

    You can choose to make daily or weekly payments for a business term loan. Fixed weekly payments are the only option for a business line of credit. Every time you draw from your credit line, you must pay back the amount within six months, plus interest. There is no fee for drawing funds from your credit line.

    If this is your first business term loan with OnDeck, you’ll be charged a 2.4% to 4% origination fee. Your origination fee for your second loan will be 1% to 3%, and for your third, the fee drops to 0% from 3%.

    Business lines of credit carry a monthly maintenance fee of $20. If you draw $5,000 or more within five days of receiving funds, this fee will be waived for six months.

    If you miss a payment, you will incur a late payment penalty. On the other hand, if you qualify for the “100% Repayment Benefit,” OnDeck will waive the remaining interest when you pay the loan early. Businesses that don’t qualify may end up owing 75% of the remaining interest.

    How To Apply With OnDeck:

    The application for OnDeck’s business term loan and business line of credit can be completed in less than ten minutes. Afterward, funds should appear in your bank account as soon as the next business day.

    Here’s how to get started:

    Step 1: Fill Out the Application

    You can apply for both OnDeck products through United Capital Source. Before applying, a UCS executive will work with you to ensure OnDeck is the right company for your needs.

    Our one-page application requires basic information about you and your business. You’ll also submit your credit score, annual revenue, and last three months of bank statements. Once you provide the required documents and information, OnDeck will perform a soft credit pull. This will not affect your credit score.

    Step 2: Speak to a Representative

    Unlike other online business lenders, OnDeck’s underwriting process is only partially automated. Thus, when you submit the previous information, you’ll have to speak to a representative before moving forward. After applying, you should hear from an OnDeck representative within a day or two.

    UCS will help negotiate rates and terms to ensure you receive the most beneficial arrangement for your business.

    Step 3: Review Your Offer

    After speaking to a representative, you should receive an offer within one business day. The proposal will come in the form of a SMART Box disclosure form. This comparison tool clearly explains everything you need to know about your loan, like the total cost, individual payment amount, fees, etc.

    Your offer will likely amount to approximately 10% of your annual revenue. If you accept the offer, funds will appear in your bank account as soon as the next business day.

    OnDeck: Post Funding

    cash register, money, dollars

    For business term loans, your first payment is due the next business day after you receive funding. Payments will automatically be deducted from your business bank account daily or weekly.

    Your first payment is due the next day after you draw from your credit line for a business line of credit. From then on, fixed weekly payments will automatically be deducted from your business bank account.

    You can renew both products after you’ve paid back 50% of your outstanding balance. If you renew your business term loan or line of credit, OnDeck will waive all interest on the existing loan. Your next origination fee will likely be lower for business term loans. If you renew a third business term loan, you will likely have no origination fee.

    What are the Advantages of OnDeck?

    OnDeck holds several advantages over the majority of the online business lending industry. First off, OnDeck has been funding small businesses since 2006, making it one of the oldest and most experienced online business lenders.

    OnDeck’s growth and experience show that they have the resources to provide excellent service and have earned a trustworthy reputation within the small business world. Speaking of customer service, OnDeck sets the bar pretty high regarding transparency.

    Thanks to the SMART Box model, new borrowers have every piece of information they need before accepting an offer. And it’s not as if you’re relying on a mysterious computer algorithm to determine your rates, terms, and borrowing amount.

    Your representative will carefully explain how your loan is developed and walk you through the repayment process. Unfortunately, many other online business lenders will not disclose this information unless you ask.

    Another significant advantage is cheaper origination fees for returning clients, giving clients less incentive to look for another lending partner down the line.

    What are the Disadvantages of OnDeck?

    Compared to most other online business lenders, OnDeck’s requirements are pretty stringent. Many OnDeck competitors work with businesses that don’t earn $250,000 a year and are less than one year old.

    As an online business lender, OnDeck’s high interest rates shouldn’t come as a surprise. But not every online business lender allows only weekly or daily payments for business term loans, and these payment frequencies could put significant pressure on your cash flow.

    Odds are, if you can qualify for OnDeck’s lowest rates and highest borrowing amount, you can probably be eligible for a much cheaper product from another institution.

    Pros & Cons

    pros, and, cons, green thumb up, red thumb down,


    • Fast funding with same-day funding is possible in certain situations.
    • Lower qualification requirements than traditional business lenders.
    • It’s one of the most well-established and respected online lenders.
    • Excellent customer reviews and praise.
    • Streamlined and simple application process.
    • Companies can use OnDeck loans to build business credit.


    • Interest rates are higher than traditional business loans.
    • Frequent payments (weekly or daily) can put a strain on cash flow.
    • OnDeck products are unavailable in North Dakota, South Dakota, or Nevada.
    • Business owners must sign a personal guarantee.

    Apply for business funding through United Capital Source today.

    OnDeck Capital Frequently Asked Questions

    How Do I Choose Between Kabbage vs. OnDeck?

    faq, ask, often

    OnDeck and Kabbage are two of the most popular and well-reviewed online business lenders. Before getting into the differences between products, it’s important to note that Kabbage has much looser requirements. There’s no minimum credit score, and you only need $50,000 in annual revenue.

    While OnDeck offers business term loans and lines of credit, Kabbage only provides lines of credit. Kabbage’s product carries a credit limit of $250,000, compared to $100,000 for OnDeck’s line of credit. Also, Kabbage offers monthly payments, whereas OnDeck requires weekly or daily payments. However, Kabbage front-loads interest for six-month and twelve-month terms, so your first few monthly payments will be considerably larger than your remaining payments.

    As you can see, both options could be detrimental to your cash flow. Thus, it would be best to determine whether your cash flow will be more affected by Kabbage’s front-loaded interest or OnDeck’s payment frequencies.

    What are OnDeck Interest Rates?

    entrepreneur, idea, competence

    Interest rates for OnDeck depend on typical factors like credit score, revenue, cash flow, etc. You’ll have to enter this information into OnDeck’s website to see your interest rate. But for both products, the lowest possible annual interest rate is around 11%-12%, and the highest is 99%. If you can barely meet OnDeck’s requirements, your line of credit or business term loan could be costly.

    Does OnDeck Report to Credit Bureaus?

    OnDeck does not report payments to personal credit bureaus, but it reports to three business credit bureaus: Equifax, Experian, and PayNet. So, while your payments won’t impact your personal credit score, they will impact your business credit score. Business credit plays an even more significant role for some business lenders than personal credit for application decisions.

    What if OnDeck Declines My Loan Request?

    If OnDeck declines your application, it might be because your cash flow cannot handle the combination of interest and weekly or daily payments. Thanks to OnDeck’s excellent customer service, you can contact the company to find out exactly why you weren’t approved. If cash flow turns out to be the culprit, you may still have several options for business term loans or lines of credit.

    Other business lenders are more flexible with repayment structures and have more than two products to suit different cash flow cycles. For example, you wouldn’t necessarily have to make daily or weekly payments solely because you have poor credit or less time in business. Other available business loan programs include bad credit business loansaccounts receivable loansequipment financing, and merchant cash advances.

    In summary, it’s important to remember that OnDeck has some of the most stringent requirements in the online business lending space. Hence, failing to qualify for their products doesn’t mean you’ll see the same outcome as one of their competitors.

    Making Your Decision

    king, chess, checkmate,

    OnDeck is the go-to online business lender for more established businesses. They cater to companies that want the speed of non-traditional lending with the borrowing amounts and customer service of traditional lending. If you don’t belong to this group, you might seek other small business loan options with similar products. And there’s a lot to choose from.

    On the other hand, if you can qualify for an OnDeck loan, you might not find a more reputable and trusted online business lender in today’s market. For this reason, we at UCS give Ondeck Capital a 4.8 out of 5 rating and highly suggest working with them if you qualify.

    Disclaimer: The OnDeck trademark is owned by On Deck Capital, Inc. and its use herein is for reference purposes only and it does not indicate sponsorship or endorsement from On Deck Capital, Inc.

    Apply for business funding through United Capital Source today.

    Why Choose United Capital Source?

    Why businesses choose UCS:

    Quick funding options that won’t affect credit
    Access to 75+ lenders with multiple products to choose from
    Financing up to $5 million in as few as 3 days
    1500+ 5 star reviews from happy clients!

    Ready to grow your business? See how much you qualify for:

      Current monthly sales deposit average to your business bank account?

      How much Working Capital would you like for your business?

      Need Instant Help?
      Call Us Now At:

        Current monthly sales deposit average to your business bank account?

        How much Working Capital would you like for your business?

        At UCS, we understand the value of your time and want to ensure that your application has a great chance of approval. Please take note of the following details before applying:
        • To be eligible, it’s necessary to have a business bank account with a well-established U.S. bank such as Chase, Wells Fargo, Bank of America, Citibank, or other major banks. Unfortunately, online-based bank accounts like PayPal, Chime, CashApp, etc., are not permitted.
        • When describing your current average monthly sales deposits to your business bank account, please provide accurate information. Our approval process is based on your current business performance, and it’s essential to provide accurate details about your current sales in the first question on the application form. We cannot approve applications based on projected revenues after receiving funding.
        We appreciate your understanding and cooperation in ensuring a smooth and successful application process.
        1500+ 5 star reviews
        1500+ 5 star reviews

        Take a minute, Get a FREE Consultation

        Your Connection is
        securely encrypted

        $1.3+ Billion Matched to US Businesses