Small Business Loans
Financing is critical to the health of small businesses. In order to grow, businesses need loans to purchase inventory, maintain cash flow, hire new employees, purchase equipment and invest in their business. Yet, a landmark study by Harvard Business School shows that bank loan availability to small businesses plummeted during the recession and has stayed at these low levels since.
A New Approach to Business Loans from OnDeck
Launched in 2007, OnDeck uses technology to make the small business borrowing process fast and easy. We deliver loan decisions in minutes and funding in as fast as one business day. By focusing on the health of your business rather than your personal credit score, OnDeck has higher approval rates than most banks.
- Over $1.7 billion delivered to small businesses nationwide in approximately 700 industries
- A+ Better Business Bureau rating, backed by Google Ventures, featured in the Wall Street Journal
- Loan amounts from $5,000 to $250,000
Frequently Asked Questions
Q: Why is it so hard for small businesses to get financing?
A: Small business lending has been slow to recover since the recession. Traditional lenders lack an efficient system to underwrite small businesses, so many tend to defer to the personal credit score of the business owner as a measure of creditworthiness. It’s also cost prohibitive to underwrite smaller sized loans – it’s more profitable to make a $3,000,000 loan than it is a $30,000 loan.
Q: How come OnDeck can approve so many more businesses?
A: We use our OnDeck Score™ technology to make financing decisions based on the health of the business, rather than a personal credit score. We look at a variety of data points when analyzing businesses, and are able to deliver decisions in minutes and funding in as fast as 1 business day.
Q: What are the requirements for working with OnDeck?
A: Our minimum requirements are less stringent than traditional lenders. Although we look at a variety of data points when analyzing businesses, we require at least $100,000 in annual revenue and one year in business.
Q: How is an OnDeck loan different from a traditional bank loan?
A: OnDeck is different than traditional lenders in a several ways:
- Our loans are between $5,000 – $250,000, with terms between 3 to 24 months. Bank loans typically have larger sizes – up to $5 million – and can have terms anywhere from 2 – 25 years.
- OnDeck makes funding decisions minutes and can deliver funding in as fast as 1 business day, while banks can take up to 2 weeks to review the application and an addition 30 – 60 days to fund the loan if approved.
- OnDeck also deducts a fixed, daily payment directly from your business bank account each business day, which helps to ensure minimal impact to your cash flow. Traditionally, banks collect payments on a monthly or quarterly basis.