OnDeck Small Business Loans: 2023 ReviewCheck Your Rate
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Overview of OnDeck
Pros and Cons of OnDeck
Types of Small Business Loans Offered by OnDeck
Short-Term Business Loan
Business Line of Credit
OnDeck Small Business Loan Terms, Rates, and Fees
Who May an OnDeck Small Business Loan Be Right For?
Needs cash fast. You can apply online in as little as 10 minutes. If approved, you may be able to access your loan proceeds or credit line that same day. Has been turned down by traditional lenders. OnDeck considers business owners with bad credit (625 and higher) and only one year in business. Plus, you don’t need to have a valuable business asset to put up as collateral. The lender will take a general lien or all assets and requires a personal guarantee. Wants the option to pay off their loan early. OnDeck does not charge a prepayment penalty. Some applicants may also qualify for a Prepayment Benefit where OnDeck waives any remaining interest on your debt. Can manage frequent payments over a short term. OnDeck term loans require automatic daily or weekly payments (depending on the loan amount and term length) for up to 24 months. With their lines of credit, you’ll have automatic weekly payments with a 12-month term.
Who OnDeck May Not Be Right For
Operates in certain industries. The following businesses or industries may not be eligible for OnDeck loans: government and nonprofits, public administration, civic organizations, adult entertainment, drug dispensaries, firearms vendors, horoscope and fortune-telling, gambling organizations, money services businesses, and rooming or boarding houses. Is just starting a business. OnDeck will only work with you if your business has been in operation for at least a year, so startups seeking funding will need to look elsewhere or wait to apply. Has less than $100,000 in annual revenue. While OnDeck has more flexible qualification requirements than many traditional lenders, your business needs to earn at least $100,000 in gross annual revenue to be eligible for funding. Can qualify for more affordable financing. If your business has the ability to qualify for a business loan or line of credit from a bank, or a U.S. Small Business Administration (SBA) loan, you will likely pay a lot less in interest and fees. (The application process and time to funding, however, will be longer.)
OnDeck Loan Fee Structure
OnDeck Loan Repayment
OnDeck Funding Eligibility Requirements
Businesses need to have been established for at least one year Annual minimum business revenue of $100,000 Borrowers’ personal FICO® score need to be at least 625 Businesses must have a business checking account Businesses may not be located in Nevada, North Dakota, or South Dakota As with many lenders, a strong revenue and repayment history can help applicants qualify for more competitive OnDeck interest rates.
Applying for a OnDeck Small Business Loan
Business tax ID number Social Security number of the business owner Estimated annual gross revenue for the business Average bank balances for the business The last three months of bank statements
OnDeck Alternatives to Consider
Bank of America If your business is well-established, you may want to look at the term loans and lines of credit offered by Bank of America. Compared to OnDeck, qualification requirements are stricter and the application process is generally slower. However, rates and terms will likely be more competitive. Fundbox Fundbox offers business lines of credit of up to $150,000 with terms of 12 or 24 weeks. Although the terms are shorter than OnDeck’s, interest rates can be lower, and (unlike OnDeck) Fundbox does not charge an account maintenance fee. Kabbage Like OnDeck, Kabbage offers fast and flexible business lines of credit. The difference is that Kabbage offers larger lines of credit and longer terms, as well as fixed monthly payments (versus OnDeck’s daily or weekly repayments). However, Kabbage does not offer a short-term loan product, which allows you to get a larger amount of money for a longer period of time. Lantern by SoFi: Unlike OnDeck, Lantern by SoFi is a lending platform that connects borrowers to small business loans offered by a variety of trusted lenders. By filling out a single application, you get access to multiple loan options, including short-term loans, business lines of credit, term loans, invoice financing, and commercial real estate loans. Loans up to $2 million are available to help you grow your enterprise.
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