Published By Janet Gershen-Siegel at June 4, 2018
Written by Janet Gershen-Siegel
Are you looking at the OnDeck online lender? OnDeck is one of several online lending companies. They offer short term loans and lines of credit. We look at the specifics and drill down into the details.
OnDeck is located online here: https://www.ondeck.com/.
Their American physical address is:
New York, NY 10018.
You can call them at: (888) 269-4246. You can also email them at: [email protected]. There is no contact page but you can chat with customer service directly on their site.
This online lender has been in business since 2007.
OnDeck Online also has a Canadian division, located online here: https://en-ca.ondeck.com/. There is, in addition, an Australian division, located online here: https://www.ondeck.com.au/. There is even a Spanish version of the American site.
OnDeck also receives some small business loan referrals from Prosper. See: https://www.prosper.com/borrower/#/prospect/pre-registration.
Amounts available range from $5,000 – $250,000. You can get terms of 3 – 24 months. Your company must have annual revenue of $100,000 or more.
Also, your own personal FICO score has to be 500 or better. Your company must be in business for 12 months or more.
In the Australian part of their site, the amounts available range from $10,000 – $150,000, and those terms are 6 – 24 months.
This type of financing comes with an 8.5% – 79% APR.
Amounts available range from $5,000 – $100,000. The term is 6 months. Your company has to have annual revenue of $100,000 or more.
In addition, your own personal FICO score has to be 600 or better. Your company must be in business for 9 months or more.
This particular financing comes with a 13.99% to 36% APR.
Advantages include the rather low FICO score requirement for term loans. Plus there is some flexibility when it comes to term lengths.
In addition, few United States-based online lenders will loan outside of the country. Whereas OnDeck will loan to Canadian and Australian businesses.
The Spanish version of their website is another welcome touch.
Disadvantages are the maximum APR for both term loans and lines of credit are extremely high. Therefore, if your company cannot pay back a loan or line of credit, it could potentially sink you financially. In addition, OnDeck will require a personal guarantee.
Business owners with bad personal credit would do well to take a second look at the OnDeck online lending company.
However, with qualification comes a steep APR price tag and the requirement of a personal guarantee.
However, this is somewhat understandable. This online lender, of course, wants to be able to get something, anything, in the event that you and your company default on a loan.
Borrowers in Canada and Australia can also work with OnDeck, although Canadian borrowers also have NUGROWTH/IBIS (http://www.nugrowthcapital.com/) as an option, although NUGROWTH/IBIS has a higher minimum personal FICO score requirement.
Business owners would probably do better building business credit. Business credit could be a significant asset for many business owners, startup business owners in particular.
Or they could try for unsecured business financing or microloans if their financial requirements are small.
And finally, as with every other lending program, read all of the fine print and do the math. Go over the details carefully and take your time if you can.
Only you can decide if this option will be good for you and your company.
In addition, consider alternative financing options that go beyond lending. These include building business credit, to best decide how to get the money you need to help your business grow.