Struggling to Pay Back Your OnDeck Capital Loan? We Can Help With Debt Relief
If you took out a loan from OnDeck Capital to help fund or grow your small business, but are now struggling to make the monthly payments, you’re not alone. Many business owners have found themselves in a similar situation, especially in recent years with the economic uncertainty caused by the COVID-19 pandemic.At our financial services company, we understand how stressful and overwhelming it can be when you owe significant debt on a business loan but don’t have the cash flow to pay it back. We’ve helped numerous clients who were in default on their OnDeck Capital loans negotiate settlements for a fraction of what they owed. Don’t lose hope – there are options available to find relief.
How OnDeck Capital Loans Work
OnDeck Capital provides online small business loans up to $500,000. They market themselves as offering a fast and easy application process with funding in as little as 24 hours for approved borrowers.While the quick access to capital can be tempting, it’s important to understand the downsides before taking out an OnDeck loan:
- High interest rates – OnDeck loans typically have APRs ranging from 9.99% to 99%, which are much higher than rates from traditional bank loans. This means you pay significantly more in interest costs over the lifetime of the loan.
- Short repayment terms – OnDeck offers term loans from 3 months to 4 years. The shorter terms mean your monthly payments will be higher compared to longer-term loans.
- Costly penalties for late/missed payments – You’ll face fees up to $15 for late payments and up to $15 for failed payments from insufficient funds in your account. These add up quickly.
- Personal guarantee required – If your business defaults, OnDeck can come after your personal assets.
While OnDeck advertises that they can fund you quickly based on your business’s financial performance rather than just your personal credit score, you still need to be cautious borrowing at their often exorbitant rates. It’s wise to explore all your business financing options and compare lenders before deciding OnDeck is your best choice.
Warning Signs It’s Time to Seek OnDeck Debt Relief
If you’re experiencing any of the following issues with your OnDeck Capital loan, it’s a sign you should reach out to discuss debt relief solutions:
- You’ve missed multiple monthly payments in a row
- You’re relying on credit cards or new loans to cover the OnDeck payments
- Your loan is in default status and OnDeck is threatening collections
- You’ve received a court summons about a lawsuit filed by OnDeck
- You’re worried you’ll have to close or sell your business to pay off the loan
- Your finances are consumed by the weight of this debt
The further behind you fall on payments to OnDeck Capital, the harder it will be to negotiate a settlement. Don’t wait until you’ve exhausted all your savings and credit trying to keep up with unaffordable payments. Seek help early on to stop the debt from snowballing even further.
Benefits of Settling Your OnDeck Capital Loan
Here are some of the advantages that make debt settlement worth considering:
- Pay a fraction of what you owe – We’ve settled OnDeck loans for clients before for as low as 15% of the remaining balance. The further behind on payments you are, the more willing OnDeck will be to accept a steep discount rather than get nothing.
- Avoid bankruptcy – Settling your debt allows you to resolve what you owe and move on while avoiding the long-term consequences of bankruptcy.
- Stop collections harassment – Once you settle, OnDeck Capital will stop the collections calls and letters demanding payment.
- Improve cash flow – Your monthly expenses will go down freeing up cash flow to rebuild your business.
- Prevent lawsuit – OnDeck is often quick to sue delinquent borrowers. Settling removes this risk.
As long as you can pull together the lump sum payment amount agreed on, settling your OnDeck loan for less than you owe will relieve a lot of financial stress.
How We Help Clients Settle OnDeck Loans
The attorneys and financial experts at our company have successfully reduced OnDeck Capital loans by as much as 85% for clients in similar situations as you. Here is an overview of how we can help:
- Free case review – We’ll review your loan agreement, payments, and finances to understand your situation. There is no charge for this initial consultation.
- Negotiate with OnDeck – We’ll contact OnDeck Capital on your behalf and negotiate firmly but fairly to reach a settlement agreement. We know what terms are realistic to expect.
- Debt management tips – If needed, we can provide guidance on managing other debts while you save up to fund the OnDeck settlement.
- Payment plans – If you can’t pay the full settlement amount upfront, we can try to work out a payment plan with OnDeck at no additional fee to you.
- Ongoing support – Even after your settlement is reached, we’re available to answer any other debt-related questions you have down the road.
What to Expect When Settling Your OnDeck Loan
Here is an overview of what the process entails if you decide to move forward with settling your OnDeck Capital debt:
- Stop making payments – Once you retain us, stop making monthly payments to OnDeck. This will show them you’re serious about seeking relief options.
- Get terms in writing – We won’t agree to any settlement terms without written documentation from OnDeck. Verbal promises won’t protect you.
- Come up with lump sum – Whether using savings, borrowing from friends/family, or taking out a separate loan, you’ll need to come up with the agreed upon settlement amount in a lump sum.
- Sign agreement – You’ll sign a settlement letter that stipulates paying the lump sum by a specific date settles the debt. OnDeck will likely ask you to sign a tax form for any amount forgiven.
- Get proof – Once you pay, OnDeck must provide written confirmation that your debt is settled and you now owe $0. Keep this for your records.
Throughout the process, we will advise you on next steps and what to expect. We won’t take any action without your approval.
Do You Qualify for Debt Settlement?
Debt settlement is not the right solution for everyone with debt issues. In general, you may be a good candidate for settling your OnDeck Capital loan if:
- You owe at least $10,000 and are 3+ months behind on payments
- You have some savings or access to funds to put towards a lump sum
- Your business has potential to recover if freed up from this debt burden
- You aren’t planning to apply for financing in the next couple years
Settlements require a lump sum payment, so you must have cash available either on hand or through borrowing. If you have little disposable income left each month after basic expenses, you may need to consider other options beyond settlement.
Don’t Wait to Get Help with Your OnDeck Loan
The further you fall behind on an OnDeck Capital loan and the more penalties and interest accumulate, the harder it will be to resolve what you owe. Don’t let fear or shame keep you from seeking help – you did not take out this loan expecting to default. Many good business owners have found themselves in financial circumstances out of their control.Our dedicated debt relief team understands how stressful and hopeless debt can feel. We provide judgement-free assistance focused on finding the optimal solution for your unique situation.We want to help you move forward and rebuild your financial health. Reach out for a free case review so we can start working on options for resolving your OnDeck Capital loan. The sooner you contact us, the more leverage we have to negotiate a favorable settlement on your behalf.The call is free – let’s talk through your options together.