SMART Box® Loan Comparison Tool
OnDeck is committed to transparency in lending.
SMART Box® makes loan terms easy to understand.
SMART Box® is an easy-to-read disclosure form that shows a breakdown of your cost of capital.1 It provides several ways to measure the cost of your loan so you can compare it to other offers.
Your SMART Box® will show the following cost calculations:
- Total cost of capital
- Annual percentage rate
- Average monthly payment amount
- Cents on the dollar
Your SMART Box® will also state whether the loan comes with any charges for early repayment and whether repaying early will potentially reduce your total interest charges.
How to read your SMART Box® disclosure.
When you receive a loan offer from OnDeck, you’ll be shown a SMART Box® comparison like the one below. It provides you with the information you need to do an apples-to-apples comparison with other loan offers.
To read your SMART Box® disclosure, review each of the metrics for a cost breakdown of your loan. Compare each metric to those of other offers you may have received — for instance, you can compare loan offers according to annual percentage rate or average monthly payment.
Please note: The calculations below involve certain key assumptions about this loan, including that the loan is paid off in its entirety according to the agreed payment schedule and that no repayments are missed.
Example Loan Amount
$75,000.00
Disbursement Amount
$73,125.00
Repayment Amount
$98,250.00
Term
(Repaid Weekly)
12 Months
Metric
Metric Calculation
Metric Explanation
Total Cost of Capital
$25,125.00
Metric Calculation
Interest Expense:
$23,250.00
Origination Fee:
+ $1,875.00
Other Fees:
+ $0.00
Total Cost of Capital:
$25,125.00
Metric Explanation
This is the total amount that you will pay in interest and other fees for the loan.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.2
Annual Percentage Rate (APR)
61.34%
Metric Calculation
Your loan will have weekly payments of:
$1,889.42
APR:
61.34%
Metric Explanation
This is the cost of the loan – including total interest and other fees – expressed as a yearly rate. APR takes into account the amount and timing of capital you receive, fees you pay, and the periodic payments you make.
While APR can be used for comparison purposes, it is not an interest rate and is not used to calculate your interest expense.3
Average Monthly Payment Amount
$8,187.50
Metric Calculation
Repayment Amount:
$98,250.00
Term (in months):
12 Months
Average Monthly Payment Amount:
$8,187.50
Metric Explanation
This is the average monthly repayment amount of the loan, which does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.2
The actual repayment frequency for the loan will be weekly. This is an estimate for comparison purposes only. If the actual payment frequency for the loan is monthly, the average monthly payment amount may equal the actual monthly payment amount displayed above.
Cents on the Dollar
(excluding fees)
$0.31
Metric Calculation
Interest Expense:
$23,250.00
Loan Amount:
$75,000.00
Cents on the Dollar: (excluding fees)
$0.31
Metric Explanation
This is the total amount of interest paid per dollar borrowed. This amount is exclusive of fees.
Prepayment
Does prepayment of this loan result in any new fees or charges?
No
Does prepayment of this loan decrease the total interest of loan fees owed?
Yes
Metric
$25,125.00
Metric Calculation
Interest Expense:
$23,250.00
Origination Fee:
+ $1,875.00
Other Fees:
+ $0.00
Total Cost of Capital:
$25,125.00
Metric Explanation
This is the total amount that you will pay in interest and other fees for the loan.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.2
61.34%
Metric Calculation
Your loan will have weekly payments of:
$1,889.42
APR:
61.34%
Metric Explanation
This is the cost of the loan – including total interest and other fees – expressed as a yearly rate. APR takes into account the amount and timing of capital you receive, fees you pay, and the periodic payments you make.
While APR can be used for comparison purposes, it is not an interest rate and is not used to calculate your interest expense.3
$8,187.50
Metric Calculation
Repayment Amount:
$98,250.00
Term (in months):
12 Months
Average Monthly Payment Amount:
$8,187.50
Metric Explanation
This is the average monthly repayment amount of the loan, which does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.2
The actual repayment frequency for the loan will be weekly. This is an estimate for comparison purposes only. If the actual payment frequency for the loan is monthly, the average monthly payment amount may equal the actual monthly payment amount displayed above.
(excluding fees)
$0.31
Metric Calculation
Interest Expense:
$23,250.00
Loan Amount:
$75,000.00
Cents on the Dollar: (excluding fees)
$0.31
Metric Explanation
This is the total amount of interest paid per dollar borrowed. This amount is exclusive of fees.
Does prepayment of this loan result in any new fees or charges?
No
Does prepayment of this loan decrease the total interest of loan fees owed?
Yes
Example Credit Limit
$50,000.00
Disbursement Amount
$50,000.00
Repayment Amount
$64,544.30
Term
(Repaid Weekly)
12 Months
Metric
Metric Calculation
Metric Explanation
Total Cost of Capital
$14,544.30
Metric Calculation
Interest Expense:
$14,544.30
Draw Fee:
+ $0.00
Origination Fee:
+ $0.00
Other Fees:
+ $0.00
Total Cost of Capital:
$14,544.30
Metric Explanation
This is the total amount that you will pay in interest or draw fees and other fees for the draw.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.2
Annual Percentage Rate (APR)
52.6%
Metric Calculation
Your draw will have weekly payments of:
$1,241.24
APR:
52.6%
Metric Explanation
This is the cost of the draw in terms of total periodic interest expressed as a yearly rate. APR is computed by multiplying the periodic rate by the number of periods in a year.
While APR can be used for comparison purposes, it is not an interest rate and is not used to calculate your interest expense or draw fee.3
Average Monthly Payment Amount
$5,378.69
Metric Calculation
Repayment Amount:
$64,544.30
Expected Term (in months):
12 Months
Average Monthly Payment Amount:
$5,378.69
Metric Explanation
This is the average monthly repayment amount of the draw, which does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.2
The actual repayment frequency for the draw will be weekly. This is an estimate for comparison purposes only.
Cents on the Dollar
(excluding fees)
$0.29
Metric Calculation
Interest Expense or Draw Fee:
$14,544.30
Draw Amount:
$50,000.00
Cents on the Dollar: (excluding fees)
$0.29
Metric Explanation
This is the total amount of interest or draw fee paid per dollar borrowed. This amount is exclusive of fees.
Prepayment
Does prepayment of this draw result in any new fees or charges?
No
Does prepayment of this draw decrease the total interest or draw fees owed?
Yes
Metric
$14,544.30
Metric Calculation
Interest Expense:
$14,544.30
Draw Fee:
$0.00
Origination Fee:
+ $0.00
Other Fees:
+ $0.00
Total Cost of Capital:
$14,544.30
Metric Explanation
This is the total amount that you will pay in interest or draw fees and other fees for the draw.
The amount does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.2
52.6%
Metric Calculation
Your draw will have weekly payments of:
$1,241.24
APR:
52.6%
Metric Explanation
This is the cost of the draw in terms of total periodic interest expressed as a yearly rate. APR is computed by multiplying the periodic rate by the number of periods in a year.
While APR can be used for comparison purposes, it is not an interest rate and is not used to calculate your interest expense or draw fee.3
$5,378.69
Metric Calculation
Repayment Amount:
$64,544.30
Expected Term (in months):
12 Months
Average Monthly Payment Amount:
$5,378.69
Metric Explanation
This is the average monthly repayment amount of the draw, which does not include fees and other charges you can avoid, such as late payment fees and returned payment fees.2
The actual repayment frequency for the draw will be weekly. This is an estimate for comparison purposes only.
(excluding fees)
$0.29
Metric Calculation
Interest Expense or Draw Fee:
$14,544.30
Draw Amount:
$50,000.00
Cents on the Dollar: (excluding fees)
$0.29
Metric Explanation
This is the total amount of interest or draw fee paid per dollar borrowed. This amount is exclusive of fees.
Does prepayment of this draw result in any new fees or charges?
No
Does prepayment of this draw decrease the total interest or draw fees owed?
Yes
1 In states with specific commercial financing disclosure laws, we will use the state-required disclosure rather than the SMART Box (e.g. CA, UT and soon to be NY).
2 Your business may incur other fees that are not a condition of borrowing, such as late payment fees, returned payment fees, or monthly maintenance fees. Those fees are not reflected here. See your loan arrangement for details on these fees.
3 APR should be considered in conjunction with the Total Cost of Capital. APR may be most useful when comparing financing solutions of similar expected duration. APR is calculated here according to the principles of 12 C.F.R. § 1026 (Regulation Z), using 52 payment periods of equal length and 52 payment dates per year for weekly pay products.
© 2023 Innovative Lending Platform Association. All rights reserved. Innovative Lending Platform Association is not responsible for any misuse of the SMART Box® or any inaccuracies in the calculations or information included therein.
Why SMART Box®?
OnDeck believes in lending transparency. Having the right information empowers you to make the right financial decisions for your business, but not all lenders provide the same information — making straightforward comparisons difficult.
That’s why OnDeck led a multi-lender initiative to establish the Innovative Lending Platform Association (ILPA). The ILPA launched a first-of-its-kind capital comparison tool called “SMART Box®.”
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Straightforward
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Metrics
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Around
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Rate and
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Total Cost