OnDeck Small Business Loans: 2024 Review

Who OnDeck is best for

You don’t need perfect credit to get approved for an OnDeck loan, which makes it a good fit for fair-credit borrowers. Furthermore, startups who have trouble getting approved elsewhere because they haven’t been operable for over a year may have better luck with OnDeck. The lender’s fast funding times also make it worth considering if you need working capital right away, despite the hefty borrowing costs.

Who OnDeck may not be best for

If you’ve been in business for more than a year and have a solid credit rating, you may qualify for a better loan offer elsewhere. Borrowers seeking a long-term financial solution should also look beyond OnDeck for a business loan since the maximum loan term is just 24 months. If you've failed to qualify for a loan with reasonable rates, SBA loans offer low interest rates and long repayment periods. These loans may be a better option if you have time to wait the typical 30 to 90 days for funding. 

OnDeck: in the details

OnDeck pros and cons

Business loan types offered

OnDeck provides term loans and lines of credit to small business owners with fair credit.

What we like and what we don’t like

OnDeck business loans are accessible even if you don’t have perfect credit, and you could receive funding the same business day.  But convenience comes with a cost.

What we like

• Same-day funding: It's possible to get a fast business loan of up to $100,000 if you apply and are approved before 10:30 a.m. EST on weekdays. 
• Build business credit: OnDeck reports account activity to the business credit bureaus, so making timely payments could help improve your business credit rating. 
• Early repayment incentives: Select borrowers qualify for the Prepayment Benefit option that waives the remaining interest if the balance is paid in full before the loan term ends. But if you don’t get this option, you’ll owe 75 percent of the remaining interest if you repay early.

What we don't like 

• Low loan amounts. OnDeck’s business loans only go up to $250,000, and lines of credit only go up to $100,000. Many lenders go up to $500,000 or more for business loans and at least $250,000 for lines of credit.
• Not available in all 50 states: OnDeck does not offer business loans in North Dakota.
• Steep APRs: The average APR for business term loans is 56.10 percent, and the average APR for the business line of credit is 55.90 percent as of August 2024. If your business is well-established and has good credit, you’ll likely find better business loan rates elsewhere.

How OnDeck compares to other lenders

OnDeck loans are good for those with fair personal credit needing fast funding. Along with same-day funding in select states, OnDeck has early repayment discounts. However, if it doesn’t offer a 100 percent repayment benefit, you’ll be on the hook for 75 percent of the interest even if you do repay early. OnDeck also has high APRs, so if you have good to excellent credit, you’ll likely find a better rate with other lenders. 

How Bankrate rates OnDeck