WHAT IS ONDECK?

Watch 1-minute Video or Read 8-minute detailed review below.

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ONDECK VIDEO SUMMARY

 

OnDeck is a publicly-traded leading fintech business lender that has delivered $15 billion in business funding to 80,000 small businesses so far. OnDeck has two divisions:

– OnDeck Capital that provides business loans to businesses in the United States since its inception in 2006, and

– Journey Capital that provides business loans to businesses in Canada since its inception as OnDeck Canada in 2008. Its small business financing products and services are offered in English and French across Canada.

ONDECK CAPITAL CORPORATE STRUCTURE

OnDeck is a subsidiary of the publicly-traded company Enova International, Inc. Enova trades on the NYSE under the ticker symbol ENVA.

Enova acquired On Deck Capital, Inc. (“OnDeck”), which used to be a publicly-traded company on the NYSE under the ticker symbol ONDK, in October 2020.

Enova bought all of the stock of OnDeck for $1.89 per share for a total purchase price of about $122 million.

The purchase price was paid as such to OnDeck shareholders: Each OnDeck shareholder received $0.12 in cash and 0.092 of a share of Enova common stock for each share of OnDeck that the shareholder owned.

After the OnDeck acquisition transaction by Enova was closed, the common stock of OnDeck was delisted and ceased trading on the NYSE.

WHAT IS ENOVA?

Enova is a leading financial technology and analytics company that offers loans to both individuals and businesses across the United States.

The acquisition and combination of OnDeck and Enova created a larger company with product offerings that could deliver consumer and business financing loans to over 7 million individuals and business customers.

ONDECK BUSINESS LOANS

OnDeck is a leader in fast and efficient online lending to small businesses in Canada and the United States.

Qualified businesses can receive business funding of up to $500,000 in as little as 24 hours from when the business submits its OnDeck business loan application form.

ONDECK FINANCING PRODUCTS

OnDeck offers a vast range of business financing products suitable for any business. Detailed explanations of different types of business loans are outlined below in a glossary after the review.

Note that loan amounts can be increased by OnDeck as the business develops a relationship with OnDeck.

The business must be based in Canada or the United States. And it must have a business bank account in its country.

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OnDeck business funding options include:

Business Term Loans

Loan Rates and Terms:

• Starting interest rates of 7.99%
• Loan Amount from $5,000 to $500,000
• Fixed term length from 4 months to 24 months

Requirements:

• At least 6 months to 1 year in business
• Annual Revenue (or revenue within the last 12 months) of at least $100,000
• 550 to 625 credit score

How To Apply:

• Submit the OnDeck Online Application form
• Submit 3 months of business bank account statements

How to Receive Funds:

• Funding can be received in as fast as 24 hours
• Funding is delivered via Direct Deposit to the business bank account

How to Repay the Loan:

• Fixed loan repayments are made daily or weekly from the business bank account

Line of Credit

Loan Rates and Terms:

• Starting interest rates of 19.99%
• Loan Amount from $6,000 to $100,000
• Term length from 6 months to 24 months

Requirements:

• At least 6 months to 1 year in business
• Annual Revenue (or revenue within the last 12 months) of at least $100,000
• 550 to 625 credit score

How To Apply:

• Submit the OnDeck Online Application form
• Submit 3 months of business bank account statements

How to Receive Funds:

• Funding can be received in as fast as 24 hours
• Funding is delivered via Direct Deposit to the business bank account

How to Repay the Loan:

• Loan repayments are made weekly or monthly from the business bank account

Merchant Cash Advance

This is called Flex Funds Advance by Journey Capital in Canada.

Loan Rates and Terms:

• Rate: Not Applicable
• Loan Amount from $5,000 to $500,000
• Flexible term length

Requirements:

• At least 6 months to 1 year in business
• Annual Revenue (or revenue within the last 12 months) of at least $100,000
• 550 to 625 credit score

How To Apply:

• Submit the OnDeck Online Application form
• Submit 3 months of business bank account statements

How to Receive Funds:

• Funding can be received in as fast as 24 hours
• Funding is delivered via Direct Deposit to the business bank account

How to Repay the Loan:

• Loan repayments are made daily as a percentage of business sales debited from the business bank account

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GLOSSARY: TYPES OF BUSINESS LOANS

Small businesses need business loans for either short-term or long-term business expenses. OnDeck business loans can be used for any of these purposes.

Short-term Expenses are covered by working capital loans. These are funds that are needed for day-to-day business expenses such as rent, utilities, or any other immediate cash needs. These loans normally have shorter repayment terms of less than 1 year and also have higher interest rates.

Long-term Expenses include the purchase of long-term assets such as vehicles or equipment for the business. These loans normally have longer repayment terms of over 1 year and even up to 10 years. These loans have lower interest rates.

Merchant Cash Advance

A merchant cash advance is probably the most common type of loan sought by small businesses.

It allows even businesses that don’t have high creditworthiness to borrow money based on the debit and credit card revenue receipts of the business.

The lender offers an “Advance” against the merchant account revenue receipts of the business.

As the business receives future revenue receipts each week or month, the lender withdraws the loan payments directly from the bank account of the business borrower.

This form of advance funding is technically not a loan and comes with higher interest rates and short repayment periods.

But it allows millions of small businesses worldwide to get cash early upfront in return for a portion of the future revenues of the business.

Business Term Loan

A business can obtain a term loan that is repaid in regular installments over a specific period of time called its “term”.

Term loans for businesses usually last between 1 and 10 years. They can be as long as 30 years for real estate transactions.

In a term loan, the borrower pays a fixed or variable interest amount plus the principal loan amount.

The fixed or variable interest rate depends on the credit rating of the borrower.

Line Of Credit

A line of credit is a credit facility provided by a financial institution to a borrower. It provides a certain maximum amount of money that the borrower can use whenever it needs the funds over a specific period of time.

It is not a loan with fixed interest payments. It is simply an extra source of funds in a bank account that can be used if or when the borrower decides to.

Interest, which depends on the borrower’s credit rating, is only paid on money that is actually withdrawn from the bank account.

As with credit card debt, it’s always advisable for the borrower to pay off the balance of any funds drawn from the credit line early if possible, in order to avoid paying the interest charge.

A line of credit can be secured by some form of collateral. Or it can be unsecured with no collateral.

Inventory Loan

A business that has unsold inventory can obtain a loan secured by a percentage of the value of the inventory.

The inventory is used as collateral for the loan.

Examples of such businesses include retail stores and wholesalers.

Vehicle and Equipment Financing

A business that needs vehicles or equipment to operate its business can obtain a loan to purchase the vehicle or equipment. The loan is secured by a percentage of the value of the vehicle or equipment that will be purchased.

The vehicle or equipment is used as collateral for the loan.

Examples of such businesses include farms and manufacturers that need vehicles and factory equipment.

Accounts Receivable Financing

A business that has not yet received payment from its customer invoices can obtain accounts receivable financing or invoice factoring.

This is a form of short-term financing where the business will sell its outstanding unpaid invoices to a lender at a discount.

The lender will immediately deliver the funds for the invoices to the business. And it then becomes the lender’s responsibility to collect payment from these customers in order to recoup and profit from its investment.

Business Acquisition Financing

An individual or business that seeks to buy a business can obtain some of the purchase price of the business by obtaining a loan in business acquisition financing.

Effectively, the assets of the business that is being acquired will be the collateral for the loan.

ONDECK REVIEW CONCLUSION

These are just a few of the many types of business loans, business funding, and business financing products provided by business lenders in the marketplace.

Your business can obtain an OnDeck loan to use for these business purposes.

If you have any questions about business financing, business funding products, or how to obtain business loans, Contact our business loan brokers here.

Or apply for a business loan directly from OnDeck Capital above.