OnDeck Business Loans
- Upfront Fee
- 3% of loan amount
- Max. Loan Amount
- $250,000
- Loan Term
- 6 months to 2 years
Summary
Get the funds your small business needs with a fast online business loan from OnDeck.
Getting a small business loan doesn't have to be a long, complicated process. OnDeck lets you apply online for an unsecured business loan, and if you're approved, smaller loans can be funded in as little as a few hours, while larger loans may take around a business day.
Details
Product details
| Product Name | OnDeck Business Loans |
| Min. Loan Amount | $10,000 |
| Max. Loan Amount | $250,000 |
| Loan Security | Unsecured |
| Upfront Fee | 3% of loan amount |
| Loan Term | 6 months to 2 years |
How does a small business loan from OnDeck work?
You can apply online for an unsecured loan between $10,000 and $250,000, with no assets needed as security. OnDeck assesses your application based on factors such as your business credit score, time in business, turnover and recent bank statements. Loans up to $200,000 can get a decision in minutes, while larger loans up to $250,000 can get a decision within hours. Loan terms range from 6 months to 2 years, and repayments are automatically deducted from your business bank account weekly.
What features come with an OnDeck small business loan?
Various features are on offer with this loan, including:
- Loan options. Ondeck offers unsecured business loans, short term business loans, cashflow loans and working capital loans.
- Quick application and turnaround. OnDeck can process applications quickly online. For larger loans you could wait a full business day to receive funds, but smaller loans can take as little as 2 hours.
- Loan specialists. OnDeck has lending specialists who can give you personal help over the phone.
- Loan amount. You can apply for a loan between $10,000 and $250,000.
- Loan terms. You can choose loan terms between 6 months and 2 years, depending on what best suits your needs and budget.
- Fees and rates. OnDeck charges an origination fee of 3% of the loan amount for new customers, or 2% if you're renewing a loan. This fee is deducted from your loan amount when it's paid out. There's no application fee. OnDeck doesn't publish its interest rates. Your rate is set individually based on your business credit score, annual revenue, industry and time in business.
OnDeck eligibility criteria
If you'd like to apply for a loan from OnDeck, your business will need to meet the following criteria:
- Be an Australian business that has operated for at least 12 months
- Turn over at least $100,000 a year (gross)
- Have a business credit score of at least [400/500, confirm with OnDeck]
- Have no recent or prior bankruptcy
- Not be in one of OnDeck's restricted industries
You'll also need 6 months of business bank statements. For loans over $175,000, you'll need your latest accountant-prepared financials.
High-cost financing and APR
- Financing category: Borrowers should be aware that OnDeck is often categorised as a provider of high-cost financing.
- Effective APR: While the lender focuses on transparency, the effective Annual Percentage Rate (APR) can be significantly higher than traditional secured bank loans.
- Debt sustainability: This type of financing is designed for short-term capital needs rather than long-term debt sustainability, making it crucial for business owners to calculate the total repayment amount before committing.
Interest rates and the total cost of borrowing
- OnDeck doesn't publish a rate range and sets your interest rate individually based on your business credit score, turnover, industry and time in business.
- According to OnDeck Australia, rates are determined by factors such as business credit score, annual turnover and overall cash flow.
- For businesses with exceptionally strong credit histories, rates may be comparable to traditional bank lending, while higher-risk profiles may see rates align more closely with those of a business credit card.
- It is important to note that because these are unsecured loans with short terms, the total interest paid over the life of the loan can be substantial relative to the principal.
OnDeck won't lend to businesses in what it calls temporarily restricted industries. Check if your business is eligible before you apply.
While OnDeck provides a competitive option for small business owners to consider, remember to compare all of your loan options before submitting your application.
Frequently asked questions
Your reviews
Elizabeth Finder
Journalist
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Joshua Finder
March 11, 2019
Hi Kourosh,
Thanks for getting in touch with Finder. I hope all is well with you. 😃
If you are referring to OnDeck, here are the answers:
1. Yes, it is possible for you to borrow money from OnDeck and use that money to purchase a greenhouse. However, you would need to meet the eligibility requirements of OnDeck. They are the following:
– Have been operating for at least one year
– Currently be operating in Australia
– Have had an annual revenue of at least $100,000 in the past 12 months
– Not be operating in a restricted industry (check OnDeck’s website)
You can know more about the details by visiting OnDeck’s website. Click on the “Go to site” green button above to be redirected to their official page.
2. Yes, the status and financial situation of your business could potentially affect your ability to get approved. However, OnDeck would also base their decision on your personal credit score.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
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Kourosh
March 08, 2019
HI, I have questions:
1. Can I have a loan to purchase a rural business, like a greenhouse? if yes, I need detail.
2. My company has worked for two years and 4 months. The first year was a loss; the second was a loss. Will it impact eligibility to receive a loan?