OnDeck is an online lender that focuses on small businesses. Since the company was launched in 2007, it has delivered over $1.7 billion in loans. It has an A+ BBB rating and is backed by Google Ventures: the venture capital investment arm of Google Inc.
How Does OnDeck Work?
OnDeck uses proprietary software that allows it to evaluate businesses based on their performance, not on the personal credit of its owners. Applications are approved, or denied, within minutes and funding can be as fast as the next business day. The loans have daily payments, which are collected directly from your bank account each business day.
What Are OnDeck Interest Rates?
Interest rates range from 8% to 39%. The average interest rate is about 15% of the total loan amount. On average, borrowers pay 17 to 33 cents on the dollar in loan interest. For instance, a $25,000 loan paid over 6 months will cost $4,250 in interest. There is also a 2.5% origination fee to consider. However, returning customers only pay an origination fee of 1.25% for a second loan and there is no origination fee on the third loan. Larger businesses with a solid credit history can qualify for larger loans with interest rates ranging from 19.99% to 39.99% APR.
How Much Money Can I Borrow From OnDeck?
Loan amounts range from $5,000 to $250,000 and repayment periods go from three to 24 months. Loan amounts above $50,000 are for larger businesses with an established credit history.
Which States Does OnDeck Operate In?
OnDeck operates in all 50 states.
What Is OnDeck Application Process Like?
The application process only takes 10 minutes to complete and you will receive a reply within minutes. If approved, your cash could be deposited by the next business day. To qualify, you must have been in business for over a year, have a personal credit score of above 500, and an annual revenue of $100,000 or more. Loan amounts of $50,000 and more require borrowers to have been in business for 3 or more years, and have $100,000 or more in monthly revenue.
How Is OnDeck Better than Other Lenders?
OnDeck is a source of fast cash for small business that would otherwise not qualify for traditional bank loans. This is made possible thanks to its automated credit assessment technology, which makes processing small loan amounts financially viable.
Its interest rates are low when compared to other alternative sources of business loans. Another advantage is that OnDeck's eligibility requirements are not as stringent as traditional lenders. For instance, OnDeck focuses on the financial health of the business not on the credit score of its owner, which means successful entrepreneurs can qualify even if they have a sketchy credit history.