OnDeck Australia Review for Borrowers
This review of OnDeck Australia will help you learn more about Ondeck’s straightforward short term small business loans. We try to understand why OnDeck has such a great reputation in the US and around the world, the presence OnDeck has in Australia, and how OnDeck compares with other major Australian online business lenders. Read our OnDeck Review to see if your business is eligible for an OnDeck small business loan.
OnDeck Review – Basic Figures for 2020
|📝 ABN:||28 603753215|
|📝 Credit License:||603 753 215|
|💰 Loan Amount||$5,000 – $250,000|
|⏲️ Loan Term||6 months – 24 months|
|💸 Unsecured Loans?||Unsecured Loans are Available|
|⌚ Lender Requirements|
|📃 Required:||All personal, business, and financial details.|
|⏱️ Response Time:||24h application processing.|
|🌝 Easy to Apply:||Yes, fully online (expedited application here)|
|💌 Online Reviews:||OnDeck is a big company with unanimously positive reviews. A small number of average rated reviews state that OnDeck might be a touch more expensive than lesser known providers.|
|🏆 Awards and Recognition:|
|💳 Minimal Interest Rates:|
|⚖️ Comparison||Compare OnDeck with 20+ Australian Lenders on Lend.com|
Prospa Reviews and Ratings
⭐⭐⭐⭐⭐ Client Reviews
⭐⭐⭐⭐⭐ Interest Rate
90.7% Editorial Rating
American owned OnDeck is one of the best-known lenders in Australia and indeed the world. This company is trusted by banks and large asset management funds and has a large supply of capital, making OnDeck’s lending systems one of the most efficient in the business. OnDeck is also a committed ethical lender, providing clear repayment schedules and levying no early repayment fines.
- Great reputation in Australia and globally
- 95% satisfaction from clients in Australia
- Annual interest rate starts at 9.99%
- Origination fee of 2.5% (lower than most lenders)
- Traded in the NYSE
- Application in 10 minutes
- One of the best known lenders in the world
- Not headquartered in Australia
- Min $100,000 annual turnover
Full Review: Table of Contents
|Table of Contents|
Company Story & Credibility
OnDeck is completely focused on funding small businesses. With no fancy products, they simply offer unsecured business loans to small business owners throughout Australia. Their application process takes around 10 minutes, you can understand your business credit score for free, and OnDeck’s response time is usually 24 hours or less. OnDeck is a huge international lending company. Partnering with big-name organizations such as JP Morgan Chase, CommonWealth Bank, and MYOB.
OnDeck was founded in 2007 in the United States. After experiencing rapid growth in the US the firm then listed on the New York Stock Exchange 7 years later, in 2014. Interestingly, the firm had only issued US$1 billion in small business loans by then – it’s now lent over $13 billion in 2020.
The company was brought to Australia in 2015, extending to Canada at around the same time too. Judging purely by the number of online reviews, it would appear the firm has enjoyed significantly more growth and success in the Australian business loans market.
They are, without a doubt, one of the most established lenders in the Australian online business lending industry. JP Morgan Chase partnered with OnDeck in 2015 to expand their own small business lending products for borrowers. OnDeck is very open to partnerships that boosts their ability to provide lending solutions to small businesses. They partner with both big institutions (CommonwealthBank) and individual advisers.
Their team focuses on creating a professional, friendly environment for their borrowers. At OnDeck, all team members focus on providing responsible loans with transparent information, facilitating the best customer experience and listening to and treating their customers with respect – all conducted with the strictest focus on data security. With the company’s goal not just for employees to abide by these values at work but extending these values into their daily lives too. OnDeck’s super high ratings on the employee platform glassdoor certainly seem to back up the strong company culture built throughout, as does winning the Certified Australia 2019 Award as a great place to work. We generally find that having happy employees will result in the best customer service experience. The CEO of OnDeck Australia, Cameron Poolman, has been with the Australian division of the company since its launch in 2015. It’s evident the firm is proud to be a part of the small business community in Australia and is an accredited member of various Australian finance and small business associations, confirming its commitment as a sustainable lender that’s here to stay down under.
As recently as October 2020, OnDeck ceased trading on the NYSE when the financial analytics company Enova International became majority shareholder. In the move, Enova paid $1.89 per share and completed a $122 million purchase of the online business lender.
Credibility Score: ⭐⭐⭐⭐⭐
OnDeck Products & Services
OnDeck can support your business with a business loan offered on these terms:
|Maximum Loan Amount:||$250,000|
|Minimum Loan Amount:||$10,000|
|Loan Term||6-24 Months|
Established businesses are likely to prefer the 24 month loan term on offer, compared to Capify’s 12 month term – providing more flexibility to extend the period you wish to borrow. You’ll likely pay more interest overall with a 24 month loan vs a 12 month loan but weekly repayments will be smaller.
OnDeck does not provide lines of credit, invoice finance or equipment finance – just straightforward and easy to understand small business loans. That’s not to say you can’t use a short term business loan from OnDeck to purchase equipment of course. An OnDeck small business loan can be used for virtually any business purpose.
Businesses seeking a simple solution provided by a trusted lender will be attracted to an OnDeck online business loan.
OnDeck Client Reviews
– TrustPilot Australia: 695 Reviews, 87% Excellent, 9% Great, 2% Average, <1% Poor, 1% Bad – 4.7 / 5 Total Score (Excellent)
– 4.9 / 5 OnDeck America (2,697reviews)
– 4.7 / 5 OnDeck Canada (73 reviews)
All OnDeck Australia reviews provide verified positive feedback, including:
“Just great people who understand the constraints of small business”.
“Can highly recommend OnDeck. They were great to deal with and were able to give me an answer and had the money in my bank the same day. Would definitely use them again”.
There are two bad reviews which jump out at us from our research. In the first, the user questions OnDeck’s lending practices as their business has great cash flow and large deposits with the bank but due to personal credit card debt is unable to attain a loan. The focus on personal credit of small business owners is not uncommon with online business lending but it’s certainly worth considering before you apply for an OnDeck loan if you find yourself in a similar situation. The other bad review which jumps out at us is of an existing client who asked for a payment holiday over christmas. OnDeck was running a payment holiday promotion for all NEW clients and unfortuntely didn’t offer it to this existing client. It can be a little disheartening when firms don’t prioritise existing clients as much as new but it has to be said this review is not consistent with the 96% positive reviews who praise the ongoing support that OnDeck provides throughout their repayment period. OnDeck does also reward repeat customers with a drastically lower origination fee as well (more on this later). This bad review could have just been down to one individual agent on the OnDeck customer service team.
In the vast majority of cases OnDeck reviews seem to have one common theme – clients are very happy with the service received.
Analysis of Client Reviews:
OnDeck is a big lending company. This can occasionally mean a gap in service quality – but that doesn’t appear to be consistently happening here. The overwhelming majority of OnDeck Australia reviews clearly state their stellar service as one of the reasons they’re so wonderful to work with. Other reviewers state that there are no hidden fees, the transactions are fast and straightforward, and that problems were dealt with easily. Clients also praise OnDeck’s partnership with MYOB offering discounts with MYOB and $500 in vouchers. On the other side of things, the bad reviews seem to be isolated cases where a member of the OnDeck team didn’t handle a particular situation correctly – perhaps not unwholly surprising given the sheer volume of small business loans that OnDeck processes. On the whole, OnDeck’s global credibility and top-class customer service shines through in the overwhelming majority of OnDeck reviews we could find online. In virtually all cases clients believe the loan coast is well worth the value and appreciate there are no ongoing hidden management fees.
Client Reviews Score: ⭐⭐⭐⭐⭐
ondeck.com.au – Online Platform
Ondeck.com.au is a slick, easy-to-use website. Their lending criteria and customer expectations are clearly set so customers know exactly what they should expect from dealing with OnDeck. As well as a quick 10 minute application, OnDeck shares various customer success stories to give potential borrowers a better understanding of OnDeck as an online lending partner.
The loan calculator is simply presented and assists business owners in gaining an estimation of the weekly repayments on a small business loan from OnDeck – just bung in your desired loan amount and desired loan term.
In partnership with Equifax, OnDeck has its very own business credit tool that’s completely free to use and has no impact on your credit score. Typically in Australia, your credit score can be negatively impacted each time you check it through a bank. With OnDeck’s ‘Know Your Score’, you can check your business credit score without leaving a footprint. This way, you can establish the health of your business without the risk of damaging your business credit score. If you don’t know your business credit score, it’s well worth using OnDeck’s free credit score service, even if you plan on actually applying with another online business lender.
Website Score: ⭐⭐⭐⭐⭐
OnDeck Loan Compatibility
- Startup: No, OnDeck only works with businesses who have been operating for 12 months.
- Bad credit: OnDeck does accept Australian businesses with ‘poor credit’ – your business credit score just has to be 500 or more. See our client review section of this OnDeck Review for information about applying for an OnDeck business loan with poor personal credit.
- Sole trader: Yes, OnDeck works with sole traders.
- Established business: Yes, OnDeck works with established businesses. Make sure your business does not fall on their restricted businesses list.
- Turnover: OnDeck requires $100,000/year in revenue.
*OnDeck doesn’t serve financial services or investment businesses, forestry or fishing, electricity/gas or water services, and a few other specific industries.
Flexibility Score: ⭐⭐⭐⭐
OnDeck Pricing & Rates
In terms of origination/establishment fees, OnDeck charges exactly that of all the leading online business lenders in Australia. A business loan with Prospa will set you back an origination fee of 3%, likewise a business loan with Capify will be charged a 3% origination fee, so you guessed it OnDeck charges a 3% origination fee too.
Something definitely unique to OnDeck is its loyalty to existing business loan customers. Repeat customers are charged a 1.25% origination fee on any additional loans they take out with OnDeck. Drastically lower than the industry average for business loans in Australia, particularly for such an established brand as OnDeck.
OnDeck makes no real mention of the interest rates they offer but does say this in its disclaimer, “Eligibility and approval are subject to a standard credit assessment and your business circumstances which may include information such as industry, time in business, estimated revenue and other data.” So we can assume, just as with all business lenders, these sorts of factors will ultimately influence the rate you’re able to achieve with OnDeck.
We have been able to identify a recent OnDeck review which specifically mentions OnDeck’s rates: “Great rates, easy process, quick settlement, perfect for small cash injections when you need equipment or shop improvements etc.” Based on the 99% positive reviews it would appear clients are happy with the rates their achieving through OnDeck.
Pricing Score: ⭐⭐⭐⭐
OnDeck Australia Review Summary
- Credibility - 100%100%
- Client Reviews - 94%94%
- Website - 90%90%
- Requirements to Apply - 86%86%
OnDeck is one of the most trusted lenders in the Australian small business loans space, and beyond. The company has been operating in the USA for more than 10 years now, has traded on the New York Stock Exchange and has recently been acquired by Enova International,a major finance and analytics company. It has more than 500 employees and turns $500m in revenue just in the USA.
In other words, American owned OnDeck is one of the best-known lenders in the world, not only in the Australian market. This company is trusted by banks and large asset management funds and has almost endless resources, making their lending systems one of the most efficient in the business.
Our OnDeck review reveals that this lender may prove tougher to get approval for a loan from, in comparison to the industry, but when you do become eligible for one, it is a streamlined and comfortable process with clear and efficient terms and conditions. There are no early repayment penalties or other cheap tricks that some other lenders are trying to pull and all of your contact is with Australian based small business loan specialists. We conclude it is definitely worth spending the estimated 10 minutes filling in their application form.
The maximum loan amount is smaller than other lenders but with good reason – Ondeck focuses on being small business loan specialists, serving over 700 industries. OnDeck has business financing that is tailored for today’s small businesses, with fast access to capital, a streamlined and efficient application process, and a service that customers rave about. Their mission is to be the first choice lender for small businesses. Thus their annual turnover requirements are lower and encourage businesses who have been operating for 12 months or longer to apply.
✓ Restaurants & Retailers
✓ Doctors & Dentists