On Deck Review

Loan Types: Small Business Loans

Availability:

Securities: Unsecured - Personal Guarantee

Loan amount: $5,000 to $250,000 ($20,000 For Revolting Credit Lines)

Interest: APR: 20% and up. Line of Credit Interest: 30% to 36%

Overall Rating

Solid Choice

Same Day Approval
Average User Rating 9.6 in TrustPilot, Media Critics
Requirements: FICO Score 500+ Only

About OnDeck


Founded in 2006, OnDeck has supplied business loans to thousands of small-to-medium sized US companies. It is one of 2 public companies of its kind (ONDK: NYSE), which also makes it one of the most credible and trustworthy companies to engage in business with.
The average loan they supply is $45,000 and interest rates are typically above 50% according to Bloomberg.
Strong Investment Opportunity

Strong Investment Opportunity

Up 118% in profit since last year. Stock is performing greatly. Investors are happy. That signifies to us that the model is working properly, and more small businesses as using On Deck’s services.

Quick Decision

Quick Decision

It takes between 4 minutes and 10 hours to get approved or declined for a loan. No one does it quite as fast in the USA, and this is one of the strongest selling points for On Deck.

Trusted & Secure

Trusted & Secure

As  a public company OnDeck has to comply with the highest standards of security, data integrity, and automatically gains higher levels of trust from us.

The Good and the Bad


Fast. OnDesk really is poised to meet the financial needs of real small businesses. They work fast, and loans are funded promptly.

Credible. Superb user reviews, a publicly traded company, low chances anything will go wrong.

Expensive. Loans like the ones offered by OnDeck are more expensive than bank loans due to their short term nature and broader acceptance criteria.

Which type of companies/ individuals do they apply to?


To be approved, a business must have been in operation for at least one year. It must also have yearly revenue of $100,000+ and at least one owner with a FICO credit score of 500 or more.

Are bad credit businesses accepted?


OnDeck will not issue a loan to anyone with a FICO credit score below 500. You’ll see the occasional complaint about this, though OnDeck is quick to respond to these individuals.

Early repayments & Comparison


OnDeck requires a long-term payment schedule. It is still not clear to us whether early repayments are allowed, but since it is not specifically mentioned on their FAQ we assume there is not early repayment option. 

Feedback


On the surface, OnDeck has a good reputation, boasting a 9.6 on Trustpilot. There are countless positive reviews you could from satisfied business owners, who were happy to receive their loan so quickly and efficiently. Unlike with other companies, there’s little time to waste with On Deck — the qualifying guidelines are clear, and the loan’s structure is also clear.

 

On the other hand, some mainstream media have been negative towards On Deck over years (while other companies like Lending Club have been receiving nothing short of glorifying reviews from them).  Smarter Finance has suggested that the way they work with brokers makes their loans more expensive, and Bloomberg wrote a negative piece about they brokers they work with, named The Wolf of Wall Street.

Bottom line is to skip brokers at all costs and contact the company directly.

Credible company by all means, good user feedback, definitely serves its purpose, but the minimum requirements are high, and lending could be expensive

Bottom Line


OnDeck’s products have clear requirements and a clear repayment schedule. Although there has been several negative things written about it in media, especially about the pricing methodologies they use with brokerages, Business owners seem to be content with the services given to them (with a 9.5 / 10 rating from TrustPilot).
​ ​As OnDeck grows, and grows, and grows, we get a feeling the business model is working well there.

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