Ondeck Review (2021)

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RATED:

43.3

With Ondeck, if your business has a minimum credit score of 500, you can apply for business loans of up to $250,000. Ondeck loans come with flexible loan terms of 6 to 24 month and require no security. The lender’s application process is fast, with funds in your business account possible within 24 hours.

OnDeck is one of the first small business lenders to rely on technology for approving loans. Their technology uses algorithms, so loan approval takes just minutes, which allows OnDeck to provide funding in a quick time.

🗺️ ProductsBusiness Loans
💰Funding Amount$10,000 to $250,000
📊 Loan Terms6 to 24 Months
💰 Min. Trading Period12 Months
💰 Min. Trading Turnover$10,000 per annum
🛍️ Unsecured/Secured Unsecured
💳 Funding SpeedApproval within 24 hours
Funding within 24 hours of approval

ondeck logo with words ondeck review under it

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Loan ProductsShort-term business loan
Loan Terms & Funding Size
💰 Loan Amount$10,000 to $250,000
⏳ Loan Length6 to 24 months
📆Payment scheduleDaily, Weekly
💳 Line of Credit Option?❌
Loan Costs
💸Fees (exc. interest)2.5% Origination Fee
Interest Rate TypeOn application
🔓 Unsecured Loans?✔️
👍 Early Repayment✔️ (provided a minimum 6 monthly deposits are made
Loan Qualification
🎓 Qualification BasicsABN or ACN, Australian bank account, Australian citizen or permanent resident
🛍️ Min. Trading Qualification12 Months
📅 Mini. Turnover Qualification$100,000 gross annual turnover
🗎 Low Doc Loans
😕 Bad Credit OK?Min. business credit of 500
No prior bankruptcy
Approval & Funding Speed
🏍 Fast Online Application✔️ Approval with 24 hours
💨 Funding SpeedFunding within 24 of approval

OnDeck has the following features which make them stand out from other online lenders

OnDeck Pros and Cons

Pros

  • First Fintech lender in the Australian
  • SMART Box™ loan statements
  • Fintech Australia award-winning
  • Loyalty Discounts
  • Loans Best For: All industries

Cons

  • Not for start-ups
  • No personal loans
  • $250,000 maximum may not be enough
  • No live chat customer support
  • No line of credit or Merchant Cash Advance

OnDeck Review - Products Available

  1. Unsecured short-term business loans

OnDeck only offers unsecured short term small business loans. The good thing about this loan product is that it can be used for any business purpose which keeps things simple. Ondeck loans can be up to $250,000 with a repayment period of 6 to 24 months.

Ondeck Short Term Business Loan Qualification

Minimum Time Business Operating

Minimum Time In Business

12 Months

Minimum Turnover

Minimum Turnover

$100,000 Per Annum

Credit History

Credit History

Business Credit Score Over 500
No Bankruptcy

Other

Other

ABN or ACN
Business Is Not An Non-Eligible Industry

Our Ondeck review found the lender requires that your business has been operating for 12 months and turns over $100,000 per year in revenue.

Ondeck requires that your business has a credit score of at least 500 and no history of bankruptcy.

To help you determine your credit score, Ondeck provides a credit score check run by Equifax. This tool is free, secure and done on the spot and will not impact your credit score. Your credit score check does not require any obligation on your part to take a loan from Ondeck.

OnDeck Short Term Business Loan Funding And Loan Terms

Loan Amount

Loan Amount

$10,000 to $250,000

Term Length

Loan Terms

6 – 24 Months

Payment Schedule

Payment Schedule

Daily, Weekly

Low Doc Loans

Low Doc Loans

?

Unsecured-Secured

Unsecured Loans

✓

Loans of up to $250,000 are available with a repayment period of 6 to 24 months.

Your loans have a daily or weekly payment schedule with a fixed rate and automatically direct debit from your business account.

Short-term loan costs and interest rates

Origination Fee

Origination Fee

2.5 – 3% Origination fee
1.25% on renewal loans

Interest Rate

Interest Rate

Fixed Daily, Weekly Debit

Other Costs

Other Costs

None

No Hidden fees

No Hidden fees

✓

Early Payment Permitted

Early Payment Permitted

✓

OnDeck has an upfront fee of 3% of the loan. This fee is part of the principal, which means you only receive the disbursement amount (loan – origination fee).

OnDeck doesn’t provide their interest rates or annual percentage rate (APR). This may be because OnDeck aims to be flexible with loan terms, which can mean a wide variation in interest rates. This makes OnDeck a good option if you have a weak credit score as OnDeck try to find terms that will suit.

Instead of interest, OnDeck charges a fixed rate (also referred to as the total interest percentage) on term loans. This can save you on costs as the interest doesn’t compound.

While OnDeck doesn’t advertise their interest rates, they are a signatory to the ‘AFIA Code Small Business Lends Code of Practice’. This means they comply with the AFIA code of conduct to give transparency about their products.

When you apply for a loan, OnDeck (and any brokers that comply with the AFIA code of conduct) will provide you with SMART Box™ statement at your request.

SMART Box™ allows you to compare loans between small business lenders. A SMART Box™ statement sets a standard pricing disclosure format for brokers to use.

When using SMART Box™ a range of metrics is available to simplify your loan assessment. These include:

  • Total Cost of Credit
  • Average Month Payment
  • Total Interest Percentage (TIP)
  • Annual Percentage Rate (APR)
  • Cents on the Dollar
  • Early Repayment terms and fees

The SMART Box™ is an innovative solution to improve transparency and protect small business owners looking for external financing.

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OnDeck Ease Of Application

OnDeck application process is fast, with just 4 steps. Should you prefer, a team of OnDeck loan specialist can fill an application on your behalf should you wish to apply by phone.

The application process comprises 4 steps.

  1. Login registration
  2. Business information
  3. Personal Information
  4. Bank information
  • Short term business loans
    Quick and accessible loans to help fun your business needs
  • Apply online in 10 minutes
    The application is fast, easy and obligation
  • Receive funding fast
    If you’re approved for a loan funds can be available in as fast as one business day

OnDeck requires your most recent 6 months of bank statements. You can do this by providing OnDeck with your bank customer reference number or by uploading file attachments of your statements.

If OnDeck has all the application information, then you will know if you are eligible for a loan within hours. Depending on what time you submit your application, this can be the same day. If you pre-qualify for a loan, a financial advisor from OnDeck will contact you in less than 24 hours to discuss your loan options.

If the loan terms are to your satisfaction, the loan advisor will guide you through the checkout process. Your business account will receive funds within 1 business day.

What Information Does One Need To Apply?

OnDeck requires the following information when applying::

Business information

  • Business (legal) name
  • Business address
  • Business entity type (sole trader, partnership, company, trust)
  • Year business started
  • Industry division / Industry subdivision
  • ABN number
  • An estimate of your gross annual revenue and average bank balance
  • Business bank statement for the past 6 months (must be most recent)

Information about the loan

  • How much you intend to borrow
  • How soon you will need capital
  • How you will use the loan

Personal Information (usually the business owner) to review owners’ personal credit score

  • First/Last name
  • Address
  • Date of birth:
  • Driver’s licence (to confirm identity)
  • % of business applicant owns

OnDeck only offers term loans, other types of loans such as a line of credit and merchant cash advances are not available.

Ondeck Funding Speed

Online Application

Online Application

Under 10 Minutes

Approval

Approval

Within 1 business day of application

Funding

Funding

Within 24 hours of signing offer

Applications take less than ten minutes with a decision made within one business day. Your business can receive funds within 1 business days of signing the loan offer.

What Can You Use The Small Business Loan For?

While you will need to show OnDeck how you plan to use the loan, there are no published restrictions on how you use the loan.

As long as you are using the loan for legitimate business purposes, the loan will be approved.

Reasons OnDeck provide for a loan include:

  • Purchase of equipment
  • Remodelling/expansion
  • Refinancing of debt
  • Hiring employees
  • Purchase of inventory
  • Marketing
  • Other business needs

Ondeck Review – Discounts

OnDeck has loyalty discounts, should you wish to renew your loan, the origination fee will be 1.25%. You can apply for a loan once you reach 50% payment of your existing loan.

The lender also offers a discount for early repayment. Should you pay your loan off early, then you will not need to pay 25% of the remaining interest.

Ondeck Review – Non-Eligible Businesses

OnDeck will not lend to the following industries:

  • Agriculture, Forestry and Fishing
  • Art and Recreation Services
  • Electricity, Gas and Water Services
  • Financial And Insurance Services
  • Mining
  • Public Administration And Safety

OnDeck Review – Customer Service And TrustPilot

Customer service with Ondeck is available during business hours via email and phone. No live chat is available. The Fast Business Loans team sent some email inquiries, to find out information as part of our review. We were disappointed no to receive a reply, despite multiple follow-ups.

Trustpilot gives Ondeck a rating of 4.8 out of 5 from  592 reviews. This means 5 Stars or Excellent.   OnDeck Comments on Trustpilot are highly complimentary about their application process and customer service.

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Our Ondeck Review Conclusions

Our Ondeck review found the lender offers up to $250,000 in term loans with a repayment period range of 6 to 24 months. Overall, if your business credit score is only average and you need the cash fast, OnDeck can be a good option. This is especially so if your loan is not of substantial size.

We like that OnDeck is a member of SmartBox. This makes it easy to compare OnDeck loans with other lenders that also offer SmartBox. It’s a good sign of the lender’s transparency,

About OnDeck

Since its foundation in New York of the United States in 2007, OnDeck has provided $13 billion in capital financing to 114,000 small businesses in 700+ different industries across 3 countries. OnDeck believes that the internet can simplify and make funding for business easier.

In 2015, OnDeck started operations in Australia while also expanding into Canada at the same time. By the end of June 2021, OnDeck aims to have made $150 million in loans to Australian small businesses.

OnDeck is one of the first lenders to rely on technology to automate the application and approval process. This ability to provide quick responses to loan application is a large factor in their success.

In July 2020, the American division of Ondeck was acquired by Enova for 122 million. This makes Ondeck one of the premier Fintech lenders in the American market.