OnDeck Business Loan Review

What are some of the downsides to using Ondeck Business Loans?

There are no perks or benefits to paying off your loan early.

There are many similar lenders who do offer incentives to those who pay off loans early such as the ability to save on the money that would have been spent on interest. While Ondeck does not charge fees to those who pay back their loans early, borrowers will not save any money or receive any benefits for doing so.

Loan terms may require weekly or possibly daily repayments.

Many lenders will require bi-weekly or monthly payments and while Ondeck may offer you that repayment schedule, they may also require a weekly repayment schedule especially for those with lower credit scores. Those in certain situations may even be required to make daily payments. You will be informed as to these repayment terms before you accept your loan so you can be fully informed as to what you are agreeing to.

You will need a personal guarantee and business lien.

Ondeck, like other lenders, requires a personal guarantee for all business lines of credit, which means you (the borrower) will be personally liable for repayment if your company defaults on a loan. To secure the line of credit, borrowers must consent to a general lien on their business assets which means that your business or aspects of it may serve as collateral should you default on the loan.

Do I need a credit check to take out a business loan with Ondeck?

The prequalification process does not require a hard credit check - that comes later when you select a loan and complete your application process.

Are there any hidden costs and fees associated with Ondeck business loans?

There are two types of fees you may encounter when borrowing money with Ondeck. First, you may be required to pay an origination fee when your loan is funded. These fees will be anywhere from 0% to 4% of your total loan amount and will be deducted from the funds before they are deposited into your account.

Lines of credit may also be subject to monthly maintenance fees which can be around $20 but may be waived for the first six months if you withdraw at least $5,000 per month.

How is Ondeck’s customer service and support?

Ondeck offers multiple customer support phone lines so you will be able to quickly be directed towards the correct representative depending on if you are in the process of applying for a loan or if you already have one. (888) 269-4246 is for those who need help with a new loan and (888) 556-3483 is for those who already have a loan with Ondeck.

How to qualify for a Business Loan through Ondeck

The qualifications to borrow from Kabbage may vary but generally you will be able to qualify if you have:

• Personal credit score of at least 600
• Be located within the United States
• Annual revenue of at least $100,000
• Have been in business for at least one year
• No bankruptcies within the past two years

How to Apply for a Business Loan with Ondeck

The application process for a business loan through Ondeck is simple and usually quick.  You can apply online or call Ondeck at (888) 269-4246. You will have to provide some basic information about your personal financial history as well as your business’s financial history and once Ondeck receives that information they will be able to analyze it and determine if they are able to lend you the funds you need.

Is Ondeck Legit and Trustworthy?

When it comes to business loan lenders, Ondeck is as trustworthy and legitimate as you can get. They offer exactly what they say they will offer and promote high security standards amongst their staff and users. If you are interested in a comprehensive outline of their security procedures, you can find them listed on Ondeck’s website.

Ondeck has been a Better Business Bureau Accredited business since 2008 and currently holds an A+ rating.

Conclusion

Ondeck offers reliable business loans and financial education that allows small businesses to grow and thrive. The application process is quick and easy and you can often receive your funds within just a few hours. Individuals with low credit scores can still qualify although higher risk borrowers will likely see higher fees and more frequent payments. That said, the service offered through Ondeck is reliable and can be a great option for those looking to get their small business off the ground.