OnDeck Reviews: 6 Things the Ratings Do Not Tell You

OnDeck reviews are predictable, although not always accurate. The overall pattern is that they say OnDeck is fast. Most of them also say that the lender is fair and easy to work with. A general review gives you OnDeck’s overall reputation for speed and customer service. But that’s not all that matters. How much does their loan cost compared to other options? How will weekly debits work for your business? If you want to payoff the loan early and save some of the interest charges, is that allowed? A common mistake is overlooking the personal guarantee requirement when comparing different loan options. There are at least six things that a general OnDeck review does not tell you and which could put your company at risk. Some are written into the loan terms or disclosed to you; some are not.

1. What the grade measures

The Better Business Bureau grades are assigned by the BBB itself, unlike the user reviews that are assigned by past and present customers or clients. In determining the grade, the BBB evaluates the business’s complaint history, time in business, transparency and a number of other factors. The overall star rating and the star scores are not the same as the company’s official BBB rating. In large part, customer reviews rate the company for its speed: For lending money to Main Street companies that have trouble getting it, fast is good, and some OnDeck customers say it is that quick. Others say they talk to a helpful loan advisor and come away satisfied after getting what they needed. Business borrowers with online lenders generally report much faster decisions than those with bank loan applications, according to the Federal Reserve’s Small Business Credit Survey. However, the same survey finds that they are much less satisfied with the interest rates they get.

2. The real price

True interest rate (or APR) is the figure that counts, and is calculated to reflect all charges, not just the interest. OnDeck’s own figures say the average was 56.4% for term loans and 56.6% credit lines in January-June 2025. Actual rates range from the near 35% rates advertised for very strong companies to as high as 99%, according to NerdWallet.

OnDeck discloses its origination fee is 0% to 4%. For renewals the fees can be lower. Say a caterer borrows $22,000 for 12 months at an effective cost of 56.4% annual interest. With a 3% origination fee, it is $660, coming off first before the $21,340 is transferred to the business account. The weekly payments are about $560 over the year, and by the time that is done the company has paid back about $29,150, roughly $7,800 of which is the cost.

3. How you pay it back

You are repaying a fixed amount each business day or week on a term loan, for up to 24 months, by direct automatic debit from your business checking account. There is no break. Many business borrowers find the daily or weekly debits are disruptive to their business finances. That could cause problems if your business does not get revenue from clients on a steady basis.

The OnDeck credit line’s terms include 12-, 18- or 24-month terms with payments weekly or monthly. There is a $20 monthly maintenance fee, with an initial $1,000 draw at signing. A credit line of this type is useful for recurring gaps in company finances, such as payroll when a receivable is slow to clear, and you tap it, repay it and may tap it again next week if you need to.

4. Paying it off early

Under some agreements the company waives 100% of the remaining interest if you pay early. But some agreements call for you to pay the lender 75% of the remaining disclosed interest, even if you pay early. That means you save very little of the remaining interest. With 50% of the total payments still to be made, only about 25% or $890 of the $3,560 in interest remaining to be paid is saved by the prepayment option. To get the break, OnDeck must add it in your loan contract. In writing, get it confirmed that OnDeck will waive 100% of the remaining interest.

5. What you put on the line

OnDeck takes a lien on business assets. Of course, OnDeck term loans also require personal guarantees by owners. Any personal guarantee puts you at extra risk of the lender coming after your personal assets in case the business fails. Truth in Lending (Regulation Z), a set of federal consumer protections, covers loans taken for personal use. It does not cover credit taken mainly for business. What is written in the loan agreement counts.

6. Whether it fits you

The floor is a 625 personal FICO, 12 months in business, and $100,000 annual revenue. It is not the rate-determining level. But your deposits shape the offer. And borrowers landing on the high-cost offers are typically those who come in just over the line. OnDeck checks your eligibility using a soft credit inquiry only, not denting your credit report. Accepting the offer triggers the hard inquiry.

Expensive Money

The general rule is that you don’t use expensive money unless it makes a return for you. If you pay an interest rate in the 50s, what you use it for must bring you more than that. Inventory that flies off the shelves earns you a healthy return on the money. It is risky money if you invest it in anything except something that pays you a substantial return quickly.

Banks and SBA loans are available to stronger credits and offer lower costs, but you have to document your finances and wait weeks for the money. If you have strong credit and time, start pricing banks first, unless the deadline presses. You want to go into the decision with your eyes wide open and know what everything costs.

A free contract review costs nothing and takes a day or two. Call (888) 837-7053, or send the agreements to Delancey Street for a straight read on your options.