💰 Loan Amount
|$5,000 to $500,000
💸 Loan Term
|3 to 36 months
|Secured by a general lien on business assets
⭐ Client Reviews
🌝 Easy to Apply:
💳 Minimal Interest Rates
💌 Online Feedback:
|4.9 / 5 Trust Score on TrustPilot
🏆 Awards and Recognition:
OnDeck is a trusted, reliable lender to established businesses in the US, Canada and Australia. The company has been operating since 2006, which is impressive for this industry. It takes hundreds of millions in revenue, though their stock price did decline heavily since 2015.
Overall, the website is extremely clear and easy-to-use and applications take ten minutes. The biggest restriction is needing to be running your business for 3 years, and have over $250,000 in annual revenue if you wish to be approved for their loan.
OnDeck was founded in the US in 2006 by Mitch Jacobs, and was later listed on the New York Stock Exchange in 2014, just before they had entered new markets overseas (i.e. Canada and Australia). 2007 was when its first short-term loan was issued, and within 3 years, it had lended over $50m.
Now the company hits almost $300m in yearly revenue, and it has loaned over $13 billion across 700 different industries within the US, Canada, and Australia. Within the US, OnDeck has locations in New York, Denver, and Arlington. The company now has a staggering number of employees — almost 1,000. They have one Australian office and two Canadian, giving them an impressively global reach.
Despite being a New York company, Mitch himself resides in California where he runs another fintech startup, Fanbank, which is a commerce automation platform that transforms existing PoS terminals used by small businesses.
Being partnered with JP Morgan, OnDeck is certainly up there as an industry leader. They have a high market capitalization of $86 million, though this has quite significantly fallen over the years since 2015.
Being partnered with JP Morgan, of course, built credibility and trust among future investors. Since its beginnings, OnDeck has raised a staggering $1.2bn in funding.
Since the 2014 IPO, OnDeck has been made public. There are over 58m in shares outstanding, with a Price/Earnings of 4.03 and an Earnings per Share of $0.367. Currently, the share price is $1.50 as it got hit hard by the March stock crash — actually, it got hit harder than the market average.
OnDeck serves to be a versatile financing company that tries to accommodate different needs. For example, their loans range from short to medium term (3 to 36 months), and they offer both loans and credit lines. Credit lines are capped at $100k, whilst loans can be up to $500k — quite a substantial amount as far as SMEs are concerned and with repayment schedules up to 36 months that’s certainly above the industry average for online small business lenders.
In one 10-minute application, you can technically receive next-day funding after being approved. OnDeck uses its own algorithms to assess cash flow, risk and how much (if any) finance you’re going to be offered. There are some strong features too, such as loyalty perks, dedicated specialists in the US and prepayment benefits.
In 2015, it was discovered that the average annual interest rate across all OnDeck loans in that year was 51%. This is very high, and it’s something OnDeck has been criticized for publicly. This tarnishes OnDeck with the brush of being a PayDay loan company (but for businesses), as some rates were of course even higher than this 51% average.
OnDeck has quite snappy repayment schedules (daily or weekly) but this is the norm for short-term unsecured business loans. This can make it hard for businesses to comply with every repayment if cash flow is bumpy but on a positive note there is no penalty for early repayment, you can save 100% of the remaining interest if you qualify for the Prepayment Benefit.
OnDeck’s Line of Credit product is also very useful for businesses. This revolving line of credit allows you to pay interest only on what you borrow. The line of credit has the exact same requirements as the term loans, though small amounts can be borrowed that may not be suitable for a mid-sized and above company.
As it stands there are currently 2,408 OnDeck reviews on TrustPilot, 95% of them being ‘excellent’, 2% ‘great’ and only 2% ‘bad’.
It is not easy to find something negative in any of the OnDeck reviews, as the absolute majority of their clients are happy with the service. Here are some of the comments:
We have been working with OnDeck for several years now. As we grow and respond to the cyclical up and downs of our market they have been consistent in working with us and making arrangements quickly without issue. Rachel has been a pleasure to work with.
These guys are the best. They have kept our business going for several years. I’m on fourth loan with OnDeck and would highly recommend them for your financial needs. They will fund your loan usually on the same day or within 24hrs for sure. The process is quick and easy and they have the best customer service.
There are a great number of OnDeck reviews online – 2,408 can provide enough information to trust the company. An impressive 97% of all OnDeck reviews are positive which is a great indicator that OnDeck provides excellent and transparent service as well as great customer support. Many of their clients have been working with OnDeck for several years, which proves them to be very trust-worthy.
OnDeck’s website is one of the best. It’s just really clear what the company does and it’s easy to navigate. As we can see from the picture, it’s fantastically presented. The FAQ page is helpful, as is the About Us page. At the bottom, you can select the Canadian or Australian version of the site too — something that many companies aren’t as clear about.
Given that it’s not as easy to get an OnDeck loan compared to some of its competitors (600+ credit score, $250k+ annual revenue, and 3 years in business), it’s not a cheap option. However, with next-day funding, a 100% prepayment benefit, a 10-minute application process, and solid customer experiences, there are certainly many reasons to opt for OnDeck. The website is as good as they come, but be mindful of rates. That being said, OnDeck may charge slightly higher interest rates but with 97% of SMEs reporting a positive experience in their OnDeck reviews it would appear most businesses feel they are worth the premium given the exceptional service and ease in attaining an OnDeck loan.
Submit an Expedited Application to OnDeck the link below.