Ondeck's Startup Loan Options: What You Need To Know

OnDeck is an online small business lender offering business term loans and business lines of credit of up to \$250,000. The company provides rapid funding with one-on-one support from a team of loan advisors. To be eligible for a loan, you must have a personal FICO score of 625 or higher, your company must have been in operation for at least a year, and you must have at least \$100,000 in annual revenue. OnDeck does not require physical collateral to secure your loan, but your business must have a business bank account and you may need to supply a business license, financial statements, and personal financial information.

OnDeck's eligibility requirements

OnDeck offers small business loans to support small businesses with a variety of loan options. The company's minimum loan qualifications are less intensive than those of banks, and it prides itself on transparency.

To be eligible for a loan from OnDeck, you must meet the company's minimum requirements and not be operating in one of its restricted industries. An important factor in qualifying for a loan is demonstrating the ability to repay the borrowed funds. This can be shown by protecting and maintaining a healthy cash flow.

Before applying for a loan, it is recommended that you verify whether your company has a credit file with major business credit reporting bureaus, such as Dun & Bradstreet, Equifax Small Business, and Experian Business. While OnDeck does not solely rely on credit scores to determine eligibility, it does report to Experian. Additionally, your personal credit may be taken into consideration during the application process, so it is important to monitor both your personal and business credit scores.

To complete the application, you will need to provide basic information about your company, including recent bank statements (typically the last 3 months), your business license, business bank account, financial statements, and personal financial information. OnDeck's streamlined application process can be completed online or over the phone in just a few minutes.

How to apply for an OnDeck loan

OnDeck is an online small business lender offering business term loans and business lines of credit. It supports small businesses with a variety of loan options, including startup business loans.

Before applying for an OnDeck loan, it is important to check that your business meets the minimum qualifications. OnDeck has more lenient eligibility requirements than traditional lenders and other online lenders. However, to qualify for a loan, your business must have been in operation for at least a year and have at least $100,000 in annual revenue. Additionally, you must have a personal FICO score of 625 or higher, and your company needs its own business bank account.

If you meet these basic qualifications, you can begin the application process by determining your funding needs. Calculate your expenses and produce a firm number for the amount of financing you require. Remember that you will owe interest on what you borrow, so it is important to only finance what you need.

Next, gather the required documents. This typically includes your business license, business bank account information, financial statements, and personal financial information. Review the lender's requirements carefully to ensure you have all the necessary paperwork.

Then, complete the application form. OnDeck only requires some basic information about your company, including recent bank statements. This is a much simpler process compared to other lenders.

Once you have submitted your application, you will receive a decision from an expert loan advisor, who will help you choose the best option for your business. If approved, you will sign a contract and receive your funds, often as soon as the same day.

Throughout the process, you can work with OnDeck's team of U.S.-based loan advisors, who are available Monday through Friday from 9:30 a.m. to 7:30 p.m. They will guide you through each step and ensure you have the support you need.

OnDeck's repayment terms

OnDeck offers short-term business loans and lines of credit with fast funding times, but interest rates can be quite high. The company provides rapid funding with one-on-one support from a team of loan advisors. OnDeck's quick and easy application process takes only minutes to complete, and you could receive an approval decision just as fast.

OnDeck offers short-term business loans with up to 24 months for repayment. Loan amounts can range from $5,000 to $250,000 depending on how much you qualify for. The maximum repayment term is 24 months, which can be a short amount of time to pay a large sum. The starting APR is on the high side at 31.30%, with an average APR of 60.9%. Loans also come with an origination fee of 0.00% - 4.00%.

OnDeck's business line of credit provides a form of flexible funding that you can draw from when needed. Loan amounts range from $6,000 to $100,000 with a 24-month repayment plan. Each time you withdraw funds, the repayment plan resets. The APR for the line of credit starts at 40.00%, with an average APR of 52.6%.

OnDeck does not require that loans be secured by specific collateral, relying instead on a general lien on the assets of the business. A business line of credit provides access to a fixed amount of funding that borrowers can tap as needed. Funds are repaid through a regular schedule of payments, with borrowers replenishing their available credit as they repay.

To be eligible for a loan or line of credit with OnDeck, you must have a personal FICO score of 625 or higher, and your company must have its own business bank account. Your business must also have been in operation for at least a year and make at least $100,000 in annual revenue, so it may be challenging for newer or startup businesses.

OnDeck's interest rates and fees

OnDeck offers small business loans of up to $250,000 with rapid funding and one-on-one support from a team of loan advisors. The company provides two types of loans: term loans and lines of credit.

Term Loans

Term loans from OnDeck range from $5,000 to $250,000 with term lengths of 18 to 24 months. The interest rates for these loans, or APR (annual percentage rate), are determined by the health of the borrower's business and cash flow. OnDeck's term loans have an APR between 29.9% and 97.3%. The company charges an origination fee of 0% to 4% on the loan amount, and a monthly maintenance fee of $20.

Lines of Credit

OnDeck's lines of credit provide flexible funding that businesses can draw from when needed. Loan amounts range from $6,000 to $100,000 with a 24-month repayment plan. The APR for these lines of credit starts at 40.00%, with an average APR of 52.6%. Interest rates for lines of credit range from 29.9% to 65.9%, and there is also a monthly maintenance fee.

OnDeck does not charge additional fees such as prepayment penalties or draw fees. The company offers same-day funding for term loans up to $100,000, with no extra fees or special enrollment required.

OnDeck's loan alternatives

OnDeck is an online lender that offers business lines of credit and term loans. These small-business loans can be used for a variety of purposes and are well-suited for entrepreneurs who need quick access to capital. OnDeck is known for its flexible qualification requirements and its streamlined underwriting process, allowing you to apply in minutes and — in some cases — receive financing as fast as the same day.

However, if you are looking for alternatives to OnDeck, there are several other online lenders that offer small business loans. Here are some options to consider:

LendThrive

LendThrive offers small businesses fixed-rate loans of up to $150,000. They provide fast and easy access to funds and are part of the AVANA Family of Companies, which includes AVANA Capital, an Arizona-based company with an A+ rating.

Kabbage Funding

Kabbage is an online lending company owned by American Express that offers small business financing options, including a business line of credit.

Funding Circle

Funding Circle has been providing businesses with affordable financial assistance since 2010. They offer SBA (7a) Loans, small business loans up to $500,000, and lines of credit. Their term loan rates start as low as 4.99%, and they claim to provide faster funding than the industry average.

Credibly

Credibly offers small- to mid-sized businesses up to $400,000 in funding with financing solutions tailored to fit your needs. They assess the health of a small business before deciding if its loan is the right fit, and funds are deposited directly into your bank account once approved. Interest rates start as low as 9.99%.

These are just a few examples of OnDeck alternatives, and there may be other lenders that better suit your specific needs. It is important to research and compare different lenders before making a decision.

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