OnDeck Capital

OnDeck Capital
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Let’s have a candid conversation about who OnDeck is, what they do, and why they might be a great fit for your business. OnDeck Capital is one of the most reputable lenders in the country when it comes to small business loans and lines of credit.

Pros and Cons of Ondeck Capital


  • Cash can be available same day
  • Low minimum credit score compared to banks
  • Less paperwork than most lenders
  • Very fast, online process


  • OnDeck offers daily / weekly payments
  • Business lien and personal guarantee

capital business loans

Full Review on OnDeck Capital

OnDeck provides speed, and has looser qualifications than most banks. But, they charge a higher APR than most traditional banks. Having said that, in the small business lending industry they are a beacon of light and have set the standards for success. They are a great fit for your business if you need cash fast, have less than stellar credit, and have big – unexpected, expenses.

You can apply online, or via phone, in as little as 10 minutes. If approved, you can get funded by OnDeck in less than 24 hours for a term loan. Their minimum credit score is 600. Typically, OnDeck borrowers have credit scores between 680 and 720. Moreover, they have a quick turnaround when it comes to funding you. Even if you have uneven cash flow, their line of credit product can help.

capital business term loans

OnDeck Term Loans

They offer as little as $5,000 to $500,000, in addition to offering an APR of 9% to 99%. Their loan is repaid daily, or weekly, for 3 to 36 months. In order to qualify you need a minimum credit score of 600+, and you should be in business for more than a year – with over $100,000 in annual revenue. Ideally, there should be no bankruptcy in the last 2 years – and you should be willing to sign a personal guarantee.

OnDeck Line Of Credit

The loan amount is up to $100,000 – with an APR of 13.99% to 63%. The line of credit is repaid weekly.

In order to qualify you need to have a minimum 600 credit score, and should be in business for over 1 year. It’s also recommended you have over $100,000 in annual revenue. Typical revenue exceeds $500,000. There should be no bankruptcy in the last 2 years. Like their term loan, Ondeck requires a personal guarantee.

Why you should use OnDeck Capital

OnDeck loan applications can be done online, or over the phone in literally 5-10 minutes. You really need some basic information to apply, like your tax ID, 3 months of bank statements, your social security number, and driver’s license number. If you’re approved, an OnDeck loan advisor will typically reach out within 1 business day of finishing the application to review your offer and then complete your online checkout.

OnDeck has looser qualifications than banks
Traditional bank loans typically require collateral like a home, or personal asset. OnDeck does not. Banks typically want you to be in business for at least two years to get funding. OnDeck requires only one year for its term loans and lines of credit. Banks often want borrowers to have a personal credit of 720 or higher. Their minimum is 600.

You should have a personal credit score somewhere between 680 and 720, with annual revenue exceeding $500,000. It’s important for your time in business to be between 4-6 years.

OnDeck can be cheaper for repeat customers.
OnDeck’s term loans have a 1 time origination fee between 2-4% of the total amount on your first loan. This fee drops to 1.25% to 3% on your second loan, and 0 to 3% on your future loans after that.

Build Credit
OnDeck reports your payments to major business credit bureaus. If you make timely payments, it will help build your business credit. This means larger and less expensive small business loans in the future.

OnDeck capital

Why OnDeck Capital could be right for you

If you can’t qualify for a bank loan, then a small business loan from OnDeck may be your option. While their APR is higher than a bank, the fact is – it’s one of the cheapest forms of non-bank lending money. Their APR can vary from 9% to 99%, with this APR fee including the origination fee and monthly maintenance fee. The maintenance fee is waived for the first 6 months if you draw $5000 or more within the first 5 days of opening their credit line. There are no fees to draw the money itself.

Liens are required, in addition to a personal guarantee

Although OnDeck term loans aren’t backed by specific collateral, the company may put a blanket lien on your business assets. Like most lenders, OnDeck also requires borrowers to sign a personal guarantee which says the lender can go after your personal assets in the event you don’t pay back the loan. Failure to pay the loan back could damage your personal credit.

Frequent payments could be an issue

OnDeck deducts a fixed daily or weekly, payment from your business. Term loans are repaid daily or weekly typically. Their lines of credit are repaid weekly. If you have uneven cash flow, you must anticipate and build these payments into your financial planning.

OnDeck Approval By Industry

Top Industries Served

  • Restaurants
  • Spas
  • Bars
  • Auto Repair
  • Contractors
  • Retail
  • Doctors
  • Salons
  • Gift Stores
  • Gas Stations
  • Dentists
  • Groceries

Restricted Industries

  • Non-profits
  • Arms & Ammunition
  • Adult Material
  • Gambling
  • Escorts

What To Do If You Have Been Declined By OnDeck Capital

Lenders offer a lifeline to small businesses when they need it the most. Many small businesses are usually cash-strapped due to many debts, too many orders that they can’t meet, and unexpected expenses. If a small business is not able to meet their obligations, it could mean trouble for their continuity. Hence, a small business loan will always save the business during one of these times. However, a lender like OnDeck can decline your application for various reasons that you don’t expect. Here is what to do when you get declined by OnDeck.

Reasons for Decline

OnDeck provides only two funding programs for businesses. These are business lines of credit and business term loans. Borrowers require paying fixed or minimum payments each month until they clear the debt. Companies can get a line of credit of up to $100,000 and a term loan of up to $500,000. The lenders will also be offering equipment financing soon. To verify if an applicant can manage to pay the debt of the requested product, the lender checks the monthly cash flow and revenues.
In addition to these requirements, borrowers need to make at least 8,500 each month in revenue. It is easy to make $100,000 every year but hard to earn $8,500 per month for a whole year. Small businesses face cash flow challenges due to changes in demand, delays in payments from partners, and extreme seasonality. These businesses cannot do anything to avoid the natural conditions of their industries. However, if there is any indication that the business cash flow is not smooth, the lender could reject the application.


Upon being rejected, a small business can always find another lender. You can look for lenders that offer over two programs unlike the ones offered by OnDeck. With the proper small business loan to solve the cash flow problem, you could achieve the same objectives you would have achieved with a business line of credit or term loan. You could also find a loan that accommodates the fluctuation of sales in your business, enabling you to make payments without straining your cash flow during off-peak seasons.

A lender like DelanceyStreet offers a broad spectrum of business loan programs with flexible repayment systems. These loan programs include merchant cash advances, business cash advance, SBA loans, short-term working capital loans, and accounts receivable factoring. A majority of these programs can be accessed by applicants who have a low credit score. Similar to
OnDeck, DelanceyStreet offers loans within 1-2 days with minimal paperwork. However, unlike OnDeck, the lender will not dismiss businesses that have fluctuating revenue.

How Delancey Street Handles Fluctuating Sales

In case your business faces cash flow problems, you can go for business financing programs that lack minimum or fixed monthly payments. With a revenue-based business loan or merchant cash advance, significant payments are only deducted when sales are high. Slow months face smaller payments and fail to increase the interest or amount payable. These make both financing programs ideal for seasonal businesses that find it problematic to cover normal costs after demand reduces for some months.

The lender also handles numerous service-based companies that are not paid until the completion of their projects. The significant expenses required for these projects deplete their cash reserves, in spite of having to pay workers in the meantime. A similar challenge faces health institutions, which normally receive most of their sales from insurance companies. Dentists and doctors need to wait for months or weeks for the filing of payments by providers. In these cases, accounts receivables factoring is ideal for financing. The business cycle of the borrower would be reduced to 2-3 business days, making the collection of debts the role of the lender.

Hence, if OnDeck has declined you, there is no reason to believe that you cannot qualify for funding with other lenders. As long as your business is operational, a few months of a drop in revenue should not deny you the chance to get financing. There are many options for you to pick from, and the lender will gladly aid you in choosing the suitable one for you.

OnDeck Reviews

We think that their video reviews are the best source of information we can possibly provide about the company, and why so many business owners choose them.

Background about OnDeck Capital

OnDeck is a global small business lending company. It has offices in NY, Arlington, Denver, Colorado, etc. It was founded in 2006, by Mitch Jacobs. The company originally got funding from some big league funds, like First Round Capital, Khosla, Village Ventures, SAP Ventures, Google Ventures, and Tiger Global Management.

OnDeck uses proprietary software in order to aggregate data about a business. This information is then processed in order to understand if the company is eligible to get working capital. It started in 2007, when it first introduced its short-term loan products. After Jacobs left OnDeck in 2012, and Noah Breslow became CEO.

In 2014, the company completed its IPO, and became listed under the symbol ONDK – raising $230 million in its offering. In 2015, the company extended its operations into Canada and Australia.

In 2016, the JPMorgan Chase partnered up with OnDeck to offer lending to its small business customers. The bank used OnDeck’s origination and loan servicing technology to supply small businesses with funding fast. OnDeck has a number of referral partners like QuickBooks, Angie’s List, Prosper, Credit Karma, and more.

OnDeck’s Top 10 FAQs

OnDeck tries to make business financing easy and fast. Below are some of the top questions asked by small business owners trying to get financing for their business.

What products do you offer

OnDeck has small business term loans and lines of credit. There is one simple application for both term loans and lines of credit. They will present you with all of the financing options available to you and your business.

What are your loan amounts and terms

OnDeck offers term loans $5000 – $500,000 over a 3 to 36 month period. They have lines of credit up to $100,000 with payback as you draw up to 12 months. The liens of credit are revolving. As you pay it back, the amount of funds available increase.

How does the OnDeck app process work?

The application takes minutes to complete. You can apply online, or over the phone. They only need your basic information, about the business, about the owner, and 3 months of the most recent bank statements.

Does applying to OnDeck impact credit?

Typically they do a soft pull, which doesn’t impact your personal credit – unless the credit file is restricted. If its restricted, they will reach out to you to lift the restriction, and then do a hard pull.

What are the minimum requirements?

OnDeck has some basic minimum requirements.

1 year in business. Most customers are in business for 7 years according to them.

$100,000 in gross annual revenue. Most businesses exceed $450,000 in gross annual revenue

The business owner must have a minimum credit score of 600. Most owners have scores of 650 or higher.

You should have over 5 deposits to your business checking account each month.

What information do you need to apply?

There’s little to no paperwork needed to apply. Before you start filling out the application, you should have some basic information available like your EIN, SSN, Estimated Gross Annual Revenue, and Average Bank Balance.

What are OnDeck’s rates?

The cost will depend on several variables. The actual rate is determined by OnDeck’s proprietary score technology. They look at numerous data points, and base it on the health of your business – not just your personal credit.

How does payback work?

OnDeck uses daily or weekly payments to payback. Many vendors prefer this instead of one big monthly payment, which banks and others lenders insist on. This is a little different, but works for OnDeck’s customers. The daily/weekly payment is based on the amount, and term length.

How can OnDeck help with business credit?

If you get a loan from OnDeck, they report it to business credit bureaus. If you make timely payments it helps build your business credit profile. This can lead to better offers if you apply again in the future.

How long does it take to get funded?

OnDeck offers approvals in minutes, and funding as fast as 1 day.

What’s a business line of credit?

A line of credit is SUPER helpful when you have an ongoing project with expenses.

ondeck capital business loans

5 questions to ask when considering a business line of credit

Before your business takes a line of credit, you should ask yourself some questions.

Can you afford it? This is a huge question you really must ask yourself. It’s the main factor in your decision. Before you take on ANY type of debt, you should calculate all of the associated costs and make sure your cash flow is capable of handling the potential daily/weekly repayment. It’s super easy to take on extra capital, but sometimes if your margins are contracting – it can get difficult to pay it back.

For example Jan 13,2020, a report came from Nasdaq showing that Urban Outfitters’ Profits shrunk by 20% in 2019, despite their revenue growth. This was attributed to higher operating expenses, and the cost of manufacturing. Bottom line, if you’re going to take a line of credit, make sure you can still afford it after your margins contract otherwise you’re going to be in deep trouble!

How much can I borrow: Different lenders will give varying amounts of money. The most you can borrow will depend on many factors, like your credit history, the credit limit, cash flow, your assets, and your liabilities.

When will I get the line of credit?: Lenders like OnDeck provide almost immediate access to capital, if not within 24 hours. If you plan on getting a line of credit make sure you know what’s going to happen – in terms of timelines. If the lender you’re speaking to is slow, then it’ll be a waste of time and money. This is especially important if you’re going to continuously draw money from your line of credit.

How much will the line of credit cost?: Besides the interest rate of the line of credit, you will need to also look at what fees are charged, like the application fee, the origination fee, etc. Depending on which lender you speak to, there are other loan service fees, and annual fees as well. It can all depend.

How much is the repayment?: Your monthly repayment, with a line of credit, isn’t fixed, and will depend on how much your business can pay down. As long as you pay the interest, and other fees for the month, most lenders will provide great flexibility on how much of the balance they require you to pay back.

Things to consider when comparing lenders like OnDeck

After you’ve looked at a few different lenders, you really have to get down to “brass tacks,” and think about the decision you’re about to make. You really need to look at a number of different factors about the line of credit, like the interest rate, the fees, whether the lender allows monthly repayment, and whether the loan is secured or not.

Some lenders charge a variable interest rate, whereas others charged a fixed interest rate. Keep in mind that you’re only going to be charged interest on the amount you actually borrow – not on the amount you’re initially approved for. Usually a line of credit will have one-off fees, of one sort or another. Some lines of credit allow for monthly repayment, whereas others – like OnDeck, will insist on a weekly, or daily, repayment. Some business lines of credit also require an asset as collateral.

Who is OnDeck?

OnDeck is an online small business lender founder in 2007. They are one of the first lenders to primarily rely on technology to make major lending decisions. With their proprietary algorithm, the company is able to make a decision in minutes that usually took days or weeks. Currently, they have two options for funding: small business term loans and revolving lines of credit.

What should a business have to qualify?

Businesses should be in business for at least 12 months, and make at least $100,000 annually in order to qualify. It's recommended you have a personal credit score over 600.

What are OnDeck's terms and fees?

Typically OnDeck does funding between $5000 and $500,000 - with terms of 3-36 months. Their fees will vary depending on the type of financial loan you take from them. They have an origination fee of 0-4%. Aside from the factor rate, the only fee you have to worry about is their origination fee which is taken directly out of the principal before you get the loan. For example, if you take a $10,000 loan - you could have a 2.5% origination fee - which means OnDeck will subtract $250 and you'll net $9,750. OnDeck doesn't charge interest on their term loans. The repayment amount is a fixed rate, also called a % interest rate.

How does OnDeck's line of credit work?

Typically the line of credit ranges from $6000 to $100,000, with a term length of 6 months. You can draw from your line at any time. The term lengths are 6 months per draw. You can repay the funds early without any penalty. Unlike the term loans, the OnDeck lines of credit do not accrue interest. The earlier your repay the line of credit, the more money you save. Aside from the interest charged, OnDeck has a $20 monthly maintenance fee, but no origination or draw fees. If you withdraw at least $5000 within the first 5 days of opening an account, the company will waive your maintenance fees.

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Ondeck Capital
Average rating:  
 1 reviews
by Joanna on Ondeck Capital
Ondeck is amazing

Ondeck is a fantastic lender. We love them. They are fast and easy to work with.

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