Are you in the market for a business loan? If so, you’re not alone. Business owners often need financial support to get their ventures off the ground or to help them through tough times.
However, with so many lenders to choose from, it can be tough to know which is the best fit for your business. One option to consider is On Deck loans.
In this article, we’ll take an in-depth look at On Deck loan reviews to help you make an informed decision.
What are On Deck Loans?
Before diving into the reviews, let’s first discuss what On Deck loans are and what they offer. On Deck is an online lender that specializes in small business loans.
The lender offers a variety of options, including term loans, lines of credit, and equipment financing. These loans range from $5,000 to $500,000 and have repayment terms from three to 36 months.
One unique aspect of On Deck loans is that the lender uses alternative data sources, such as social media and transaction history, to assess a borrower’s creditworthiness.
The Pros of On Deck Loans
So, what are the benefits of choosing an On Deck loan? Let’s take a look.
Flexible Repayment Terms
One of the biggest advantages of On Deck loans is that they offer a range of repayment terms, from three to 36 months. This means you can choose a term that fits your business’s needs and budget.
Quick Turnaround Time
On Deck loans boast a fast application and funding process, with some borrowers receiving funds as quickly as 24 hours after approval.
No Prepayment Penalty
If you’re able to pay back your loan early, you won’t have to worry about any prepayment penalties with On Deck loans. This can save you money on interest in the long run.
No Collateral Required
Unlike some traditional lenders, On Deck does not require collateral to secure your loan. This can be a relief for small business owners who don’t have assets to put up.
Online Application Process
On Deck’s application process is entirely online, which means you can apply from the comfort of your own office or home. This can save time and hassle when compared to filling out paper applications.
Transparent Fees and Rates
One common complaint about lenders is hidden fees and rates. With On Deck loans, there are no surprises. The lender is upfront about all fees and rates, so you know what you’re getting into.
Great Customer Service
On Deck has a strong reputation for excellent customer service. Borrowers report that the lender is responsive, helpful, and easy to work with.
The Cons of On Deck Loans
While there are many benefits to On Deck loans, there are also some drawbacks to consider.
Higher Interest Rates
Compared to some other lenders, On Deck loans have higher interest rates. However, this is often the tradeoff for the lender’s fast approval and funding process.
Short Repayment Terms
If you’re looking for a longer repayment term, On Deck loans may not be the best fit for you. The lender’s maximum repayment term is 36 months.
Stringent Qualification Requirements
While On Deck loans don’t require collateral, the lender does have stringent qualification requirements. Borrowers must have a credit score of at least 600, and the business must be at least one year old.
No Secured Loans
If you’re looking for a secured loan, On Deck may not be the lender for you. The lender does not offer secured loans, which can be a dealbreaker for some borrowers.
On Deck charges an origination fee, which can be up to 5% of the loan amount. While this fee is transparent, it can still add up, especially for larger loans.
The On Deck Loan Reviews
On Trustpilot, On Deck has a rating of 4.7 out of 5 stars, based on over 3,000 reviews. Many borrowers praise the lender’s fast turnaround time and great customer service.
The Better Business Bureau gives On Deck an A+ rating. However, some borrowers have lodged complaints about the lender’s high-interest rates and aggressive marketing tactics.
Loan Review Sites
Various loan review sites offer opinions from borrowers who have worked with On Deck. While some reviews are positive, others express frustration with the lender’s stringent requirements and higher interest rates.
On Deck Loan Reviews: The Bottom Line
Overall, On Deck loans are a solid choice for many small business owners. The lender offers a range of loan options, flexible repayment terms, and excellent customer service.
However, the lender’s higher interest rates and stringent qualification requirements may not be the best fit for everyone.
How long does it take to get approved for an On Deck loan?
On Deck loans typically have a fast turnaround time, with some borrowers receiving funds as quickly as 24 hours after approval.
What credit score do you need to qualify for an On Deck loan?
Borrowers must have a credit score of at least 600 to qualify for an On Deck loan.
What loan amounts does On Deck offer?
On Deck offers loans ranging from $5,000 to $500,000.
What are the repayment terms for an On Deck loan?
The repayment terms for On Deck loans range from three to 36 months.
Does On Deck require collateral?
No, On Deck does not require collateral to secure your loan.
What fees does On Deck charge?
On Deck charges an origination fee, which can be up to 5% of the loan amount. Other fees may apply, depending on the loan type.
Can you pay back an On Deck loan early?
Yes, borrowers can pay back their On Deck loan early without worrying about prepayment penalties.
What types of loans does On Deck offer?
On Deck offers various loan types, including term loans, lines of credit, and equipment financing.
Does On Deck offer secured loans?
No, On Deck does not offer secured loans.
What are some alternatives to On Deck loans?
Alternatives to On Deck loans include traditional bank loans, SBA loans, and other online lenders like Kabbage and Funding Circle.
How is On Deck’s customer service?
Borrowers report that On Deck has excellent customer service, with representatives who are responsive and easy to work with.
What are the qualification requirements for an On Deck loan?
Borrowers must have a credit score of at least 600 and have been in business for at least one year to qualify for an On Deck loan.
Does On Deck offer discounts for early repayment?
No, On Deck does not offer discounts for early repayment.
What is the maximum loan amount for On Deck loans?
The maximum loan amount for On Deck loans is $500,000.
Take Action Today
If you’re in need of a small business loan, On Deck loans may be the right choice for you. With the lender’s fast turnaround time, flexible repayment terms, and excellent customer service, it’s easy to see why so many borrowers choose On Deck.
However, it’s important to consider the lender’s higher interest rates and stringent qualification requirements before making a decision.
If you do decide to go with an On Deck loan, be sure to shop around and compare rates and terms from other lenders to ensure you’re getting the best deal.
The information in this article is intended for informational purposes only and should not be relied upon as financial or legal advice. Before making any decisions regarding a small business loan, be sure to consult with a financial advisor or legal professional.
$5,000 – $500,000
3 – 36 months
9.99% – 99.4%
2.5% – 5%
Line of Credit
$6,000 – $100,000
13.99% – 39.9%
2.5% – 5%
$5,000 – $500,000
24 – 60 months
9.99% – 35.9%
0% – 5%