On Deck Business Loans Review & Interest Rates [2019]

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Key Features

  • Fix Term Loans from $5K-$500K 
  • Lines of Credit from $6K-$100K
  • Online Application, Dedicated Loan Advisors
  • APRs Start from 9.99% 


The average rate for term loans is 25.3% simple interest and 48.7% AIR. You will be eligible for lower rates if your credit ratings are strong and you have an excellent repayment history. If you meet this criteria and are granted a loan of up to $500, 00, the interest rate could be as low as 9.99%.

The interest rate is worked out as a percentage of the amount borrowed and does not include fees. To qualify for a loan you must be in business for at least a year and earn a minimum of $100,000 in annual revenue. A once off fee is charged, on signing the agreement, to cover the cost of servicing and processing the loan. Repayments are made with fixed daily or weekly payments. There is a $20 monthly maintenance fee, which is waived for 6 months if you draw $5,000 or more in the first five days after opening your account.

Things To Note

There are some types of businesses that will not qualify for a loan with OnDeck. These include Adult Entertainment, Gambling, Drug Dispensaries, Government & Non-Profit business and Firearms vendors. Loans will be granted to qualifying merchants giving them the chance to take advantage of new opportunities and manage unexpected expenses. Interest rates charged are decided by OnDeck and depend on your company and personal credit history. Once the loan is granted you will be able to draw the amounts you need and only pay interest on the money you use.

In A Nutshell

Qualifying long-term loans for 15 – 36 months will be granted for funding large projects, expansion or new locations, equipment purchases or new product development. For short-term loans with a 3 – 12 month term you could use the funds for small projects, renovations, inventory deals and projects that have an immediate return on investments. Whether you are granted the loan will depend on your credit rating, reliability, type of business and location. Currently OnDeck services the US, Canada and Australia.

Let’s Dive Deeper

For businesses that need funds and require a loan, it is best to do some research as to the most cost-effective way you can obtain the money, but also make sure you will be able to cover the repayments. Many businesses have fallen into the trap of over financing and then not being able to cover their obligations. To qualify for a loan from OnDeck, you must have a clean track record with a good credit rating and also have been in business for over one year. You should consider the total cost of the loan and the term of payment very carefully. If you take out a long term of over a year, you can use the annual interest rate to compare loans of similar duration.  

When you compare loans and interest it is obvious that the longer the term, the more the loan will cost you in the end. For some businesses, this is the only option as the shorter term loans will have a higher repayment amount.  As an example, a short term loan of 6 months for an amount of $10,000 with a 9% simple interest and weekly payments, will amount to $10.900 costing you $900 interest. For a longer term of 24 months on a $100,000 loan with a 9% annual interest rate and weekly payments, your interest cost will be $10,418.15, for a total loan payback amount of $110,418.15.

Looking at rate definitions, Annual Interest Rates are calculated on the yearly interest percentage you pay, based on your average loan balance. Total Interest Percentage, which is also referred to as Fixed Simple Interest, is not an annualized rate. Annual Interest rates are annualized terms excluding fees and Annual Percentage Rates are annualized terms including fees.

For merchants that have taken out loans before and have successfully met their obligations with repayments, an application for a second or third loan will get you dramatically reduced interest rates. Once you have met all the criteria that OnDeck requires to grant you a loan, it is fairly simple to proceed with your application and loans are granted quite quickly. Your personal credit rating as the owner of the business will also be taken into account and you must have a 500 plus personal credit score.

Repayment options and reductions on interest are based on your business and personal credit ratings. For up to $100,000 and APRs it could be as low as 13.99%. Once the loan is granted you will be able to draw cash into your business bank account at any time and you will only be charged on what you draw. You will also have the option to pay back your loan earlier and pay less. Payments are automatically deducted from your bank account on a weekly basis.

OnDeck provides a wide range of educational content and resources for all types of businesses. This makes for some interesting reading and can serve you well with advice on how to secure financing and achieve your business goals. You can also connect with a mentor for advice on how to run your business and get helpful tips on everything including regulations and business credit.

OnDeck Best Features

  • Long term loans – for larger projects and expansion
  • Short term loans – for an immediate quick return of investment
  • A line of credit – to use as needed
  • Highly rated – A+ BBB rating
  • Cost effective – interest rate depends on your credit rating
  • Online application – quick response within 24 hours
  • Online resources – educational tips and mentor help
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