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Businesses can qualify for term loans from $5,000 to $400,000 and revolving lines of credit from $6,000 to $200,000. What OnDeck really sells is speed and access: it approves borrowers with credit scores as low as 625 and can deposit funds the same day, which is why it appeals to owners who don’t have three weeks to wait on a bank.Â
That access comes at a price. OnDeck’s own disclosures put the average APR on its term loans at 56.4 percent, so this is financing to reach for when the cost of not having the money exceeds the cost of borrowing it.
While OnDeck can partner with most businesses, there are a few it cannot loan to, including firearm vendors, nonprofits, religious organizations, and room and boarding houses. You can view the complete list of restricted industries here. OnDeck also doesn’t lend to businesses registered in North Dakota.
To view all our recommendations for small business financing, visit our best business loans page.
OnDeck is built for the business owner who needs money now and can’t get it anywhere else at a cheaper rate. We found its qualification bar to be among the most accessible of any direct lender we reviewed: one year in business, $100,000 in annual revenue and a 625 personal FICO score. Most banks want at least two years of history and a stronger credit profile. If you’ve been turned down elsewhere, OnDeck is a realistic option.
We appreciate that OnDeck is upfront about what it offers. You can get a clear understanding of terms, rates and loan types on its website without working through a salesperson first — including a loan comparison tool that spells out APR, total loan cost and cents on the dollar before you sign. That transparency is useful for owners considering several offers, and it compares well against marketplace lenders that can’t quote you a rate until you’ve handed over your financials.
We’re far less enthusiastic about the cost. OnDeck discloses an average APR of 56.4 percent on term loans and 56.6 percent on lines of credit. For comparison, an SBA 7(a) loan runs roughly 9.5 percent to 13.5 percent on a variable rate. You are paying several times the going rate for the privilege of skipping the wait and the paperwork. That trade can be worth making — a restaurant that can’t make payroll on Friday isn’t in a position to wait 60 days — but it’s a trade-off, and owners should treat OnDeck as short-term working capital rather than a way to finance growth.
OnDeck’s application is one of the more straightforward ones we’ve seen. You submit a single application and OnDeck evaluates whether you qualify for the term loan, the line of credit or both — you’re not picking a product blind and reapplying if you guess wrong. The form asks for the basics: business address, tax ID number, years in operation, legal entity type, and estimates of annual revenue and average bank balance. OnDeck says it can be completed in minutes, and nothing we saw suggests otherwise.
OnDeck runs only a soft credit check to determine eligibility, so considering an OnDeck offer costs you nothing in credit score terms. We really like this — and it means you can use an OnDeck quote as a benchmark while you compare financing options.
Once you’re approved, you work with an in-house loan advisor to settle on the amount and terms rather than navigating a self-service checkout alone. Whether that’s a plus depends on your temperament. Owners who want a person to explain the numbers will appreciate it; owners who’d rather click through without a phone call may find it slower than a fully self-service platform. Existing customers manage their loan, payment activity and balance through an online account.
OnDeck’s product line is narrow — two products, no equipment financing, no invoice factoring, no SBA loans. What it does offer, it executes well, and a few features stand out.
This is OnDeck’s headline capability and the main reason to consider it. If you complete checkout before 10:30 a.m. ET on a weekday, term loan funds are typically available by 5 p.m. local time the same day. Miss that window, or apply on a weekend or bank holiday, and you’re looking at two to three business days. Line of credit customers can receive funds even faster: Instant Funding pushes draws of $1,000 to $10,000 to a registered business debit card in seconds, 24/7, including nights and weekends. You’re limited to one Instant Funding draw per day, and larger draws go through standard ACH.
OnDeck reports payments to the business credit bureaus, which means an OnDeck loan repaid on time actively builds your business credit history. For a borrower at the 625 end of the credit range, this is arguably the most valuable thing on offer here — it’s a path toward qualifying for cheaper financing next time. Not every alternative lender does this.
One application covers the term loan and the line of credit, and OnDeck tells you which you qualify for. We found this useful since it spares borrowers from guessing which product they’ll be approved for.
One unique feature OnDeck provides is access to an advisor. Throughout the application and loan process (as well as once you’ve secured funding), OnDeck partners you with company financial advisors so you have access to financial support. OnDeck pairs this with a loan comparison disclosure that breaks out APR, total loan cost, cents on the dollar and average monthly payment — and states whether prepaying will actually reduce your interest. We were impressed by this. Many lenders just quote a factor rate and leave you to work out what it means; OnDeck hands you the APR.
OnDeck’s pricing is transparent and expensive. Rates are set by your business’s health and your cash flow, and OnDeck doesn’t publish a rate range for qualified borrowers. What it does publish is the average: 56.4 percent APR on term loans and 56.6 percent APR on lines of credit. OnDeck notes that its lowest rates are available only to businesses with the strongest credit and cash flow, and typically to repeat customers with an excellent payment history.
Term loan amount | $5,000 – $400,000 |
|---|---|
Term loan repayment | Up to 24 months; daily or weekly payments |
Term loan average APR | 56.4 percent |
Line of credit limit | $6,000 – $200,000 |
Line of credit repayment | 12, 18 or 24 months; weekly or monthly payments |
Line of credit average APR | 56.6 percent |
Origination fee | 0 percent – 4 percent (term loans) |
Line of credit fees | No annual, monthly or draw fees |
OnDeck’s published examples give you a sense of the cost. For example, on a $75,000 term loan over 12 months, its sample disclosure shows a 61.34 percent APR, a $1,875 origination fee and $23,250 in interest — a total loan cost of $25,125. On a $50,000 line of credit, the sample shows a 52.6 percent APR and $15,361.31 in interest. Note that only select borrowers with strong credit profiles and sufficient verified revenue qualify for the full $400,000.
The origination fee runs from 0 percent to 4 percent on term loans, and repeat borrowers can earn reductions — though a 0 percent fee is available only to customers who have renewed once, and no discount applies at all if you accept a 24-month renewal. Lines of credit carry no annual, monthly or draw fees, but require a minimum $1,000 draw at origination.
If you qualify for OnDeck’s 100 percent prepayment benefit, paying off early waives all remaining interest with no penalty. If you don’t qualify, you still owe 75 percent of the remaining unpaid interest — which means paying early saves you very little. Loans carrying the prepayment benefit typically come with higher rates, so you’re choosing between the two rather than getting both.
Compared to rivals, OnDeck is more costly. Fora Financial, our pick for short-term loans, uses factor rates that work out to effective APRs in the 20 percent to 40 percent range with a 3 percent origination fee — cheaper, though it wants $240,000 in annual revenue against OnDeck’s $100,000. BriteCap will approve credit scores as low as 500 with $75,000 in revenue, and lets borrowers save up to 100 percent on remaining interest by paying off early. Both are worth considering along with OnDeck; see our Fora Financial review and our BriteCap review.
There’s no software to install here, so onboarding means getting from application to funded. OnDeck’s automated system evaluates applications quickly, a loan advisor walks you through your options, and once you complete online checkout the money moves — same day if you finish before the 10:30 a.m. ET cutoff on a weekday, two to three business days otherwise. Term loans fund by ACH into your business checking account.
Documentation is minimal, which is part of the appeal. OnDeck typically asks for your business tax ID, the last three months of business bank statements and the Social Security number of the business owner. Three months of statements verifies your revenue and demonstrates you can repay. Other lenders want two or three years of tax returns and a business plan.
There are two setup details worth knowing. Line of credit customers who want Instant Funding have to register an active business debit card tied to the bank account OnDeck has on file — personal debit cards won’t work, and not every bank supports the push-to-debit transfers that make it possible. Also, depending on your state, your loan may be issued by OnDeck directly or by its bank partner, Celtic Bank; your agreement identifies the lender before you sign.
OnDeck partners you with company financial advisors throughout the application and loan process, as well as once you’ve secured funding. The U.S.-based loan advisors are reachable at (888) 269-4246, Monday through Friday, 9 a.m. to 7 p.m. ET. Existing customers have a separate line at (888) 556-3483 for payment questions, bank information changes and account access. Some account tasks can’t be done online — updating your bank details requires a phone call — so this is a lender where you should expect to talk to someone.
As for digital resources, OnDeck is better than most. Its FAQ database is thorough, covering products, applications, funding, repayment and account management, and it goes into real troubleshooting detail on things like failed Instant Funding. There’s also a free business credit score tool, a business loan calculator, a small business trend report and an active blog. We appreciate that the loan comparison tool sits alongside all of this rather than being buried — it’s the resource that actually helps you decide. None of it costs anything.
OnDeck’s biggest limitation is cost. An average APR of 56.4 percent on term loans is roughly four to six times what a qualified borrower would pay on an SBA 7(a) loan, and OnDeck is candid that its lowest advertised rates go to few borrowers. If you have decent credit and the time to wait 30 to 90 days, you will almost certainly do better elsewhere. If you don’t, this cost is the price of speed — but go in with your eyes open, and consider the total loan cost rather than the rate.
The 24-month ceiling means OnDeck can’t finance anything with longer payback needs, and its term loans are repaid daily or weekly rather than monthly. Lines of credit are easier, offering weekly or monthly payments. If you need a longer runway, our review of BusinessLoans.com covers a marketplace with terms stretching to five years and beyond.
OnDeck’s term loans are secured. Technically, you don’t need to put up specific assets to get a loan, but the company requires a general lien on your business assets, backed by a personal guarantee — a legally binding financial document that says you’ll pay off the loan. OnDeck doesn’t take the guarantors’ personal assets as collateral, and there’s no appraisal, but the lien still reduces your flexibility if you run into financial hardship. OnDeck’s line of credit is unsecured, so if that matters to you, it’s the product to ask about.
OnDeck is accredited by the Better Business Bureau and holds an A+ rating; it has been accredited since 2008. Recent BBB reviews skew in two directions: borrowers praise the speed and the advisors, while critics focus almost entirely on the cost of borrowing — which squares with what OnDeck’s own rate disclosures show. OnDeck has a Trustpilot score of 4.6 out of 5 across roughly 5,780 reviews.Â
The company has funded more than 185,000 businesses and delivered over $25 billion since 2006, and it’s owned by publicly traded Enova International. This is not a fly-by-night operation; the concerns here are about price, not legitimacy.
OnDeck’s term loans are ideal for both quick cash and big purchases. You can use them to cover everyday business expenses like payroll, short-term marketing pushes, inventory purchases, tax bills or new hires, and larger one-time investments like equipment, renovations or an expansion. The line of credit is also ideal for fast business purchases and can function as a quick way to draw funds when you need them, which makes it the better fit for smoothing seasonal dips or bridging a gap while you wait on invoices.
To evaluate OnDeck, we examined the types of funding it offers along with its rates, terms, fees and qualification requirements, drawing on the company’s own rate disclosures, loan comparison tool and FAQ documentation as primary sources. We assessed the ease of its application process, whether personal guarantees and special documentation are required, and how quickly funding arrives.Â
We also reviewed third-party feedback on the Better Business Bureau and Trustpilot, and compared OnDeck’s published average APRs against SBA 7(a) rates and against the other lenders in our best business loans roundup. Our approach weighs both the advantages and drawbacks of each lender so readers can make an informed decision based on the facts.
We recommend OnDeck for:
We do not recommend OnDeck for:
