Frequently asked questions about OnDeck’s Short Term Loan
What is Same Day Funding*?
Same Day Funding is as simple as it sounds. It allows you to receive funds in your account as early as the day you finalize your term loan with OnDeck. There’s no special enrollment and no additional cost.
Can I get a line of credit in addition to my term loan?
We understand a business short term loan and a business line of credit can serve two very different purposes. At OnDeck you can easily apply and if approved, you may be offered a line of credit in addition to your existing term loan or in many cases you can start them at the same time.
What is the SMART Box®?
Transparency is key when it comes to choosing a lender. That’s why OnDeck developed the SMART Box Capital Comparison Tool. In plain English and an easy-to-read format, this tool shows you key terms you need to evaluate potential short term loan offers so that you have a comprehensive, standardized breakdown of your cost of capital. The SMART Box is used by all members of the Innovative Lending Platform Association.
How do loyalty benefits work?
We believe in rewarding you for your loyalty and making it easy to access additional funding. Once your initial or current loan is 50% paid down you have the option to apply to renew your loan and you will not be charged any remaining interest on your existing loan. You may even qualify for a lower or 0% origination fee.
How does payback work?
Paying back your term loan with OnDeck is easy and hassle-free with automatic bank deductions so you don’t have to worry about missing a payment. The daily or weekly payment is based on the amount and term length of your financing and is intended to be a manageable number based on the information you provided to OnDeck in your application.
How much will it cost?
Interest rates start at 11.89% annual percentage rate (APR). The total cost of your short term loan will vary based on a number of factors, including your personal and business credit scores, time in business and annual revenue and cash flow*.
Here’s what business owners like you have to say
*Same Day Funding is available for term loans up to $25K. Eligibility window is 7pm previous day up to 10:30am ET day-of. If checkout is done during eligibility window, funds will be available by 5pm local time. If checkout is not done during eligibility window, funds will be deposited within 1-3 business days.
Eligibility rules around creditworthiness and length of term loan apply. Saving money on outstanding interest is only applicable if a loan is prepaid in full before the end of your payment period. Term loans including the Prepayment Benefit option will have a higher interest rate, and may increase the total cost of the loan. When you pay off your loan early without a Prepayment Benefit, you would owe 75% of the remaining interest that was disclosed in your original loan agreement.
Annual percentage rate (APR) is the interest rate in annualized terms, including fees. Eligibility for the lowest rates is very limited, available only to businesses with the strongest creditworthiness and cash flows, and typically businesses that have shown an excellent payment history on prior loan products with OnDeck. The weighted average APR for term loans is 49.06%. Weighted averages are based on loans originated in the quarter ending December 31, 2019.