Advertiser Disclosure

Reviews, Small Business

OnDeck Small Business Loan Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

OnDeck business loans
iStock

OnDeck is an online lender that has been providing funding to small businesses since 2007 but has recently rolled out partnerships with brick-and-mortar banks, combining OnDeck’s technology with the banks’ deep balance sheets and credit expertise. OnDeck offers term loans and lines of credit to business owners looking to grow their operations. Approval for financing is based on overall business performance, not just credit score. OnDeck has issued more than $8 billion in loans to 80,000 small businesses in more than 700 industries throughout the U.S. OnDeck is based in New York and has been a public company since 2014.

OnDeck small business loan details

Term loans: OnDeck offers up to $500,000 in both short-term and long-term loans.

Short-term loans span three to 12 months and could come with a simple interest rate as low as 9%. OnDeck calculates simple interest as the total amount of interest you would pay as a percentage of your total loan amount. The weighted average rate as of June 30, 2018 was 25.3% simple interest.

Long-term loans have 15- to 36-month terms and could come with an annual interest rate as low as 9.99%. OnDeck determines AIR as the yearly interest percentage you would pay based on your average loan balance, minus fees. To pay back your loan, you would make fixed daily or weekly payments that OnDeck would automatically deduct from your business bank account. The weighted average AIR as of June 30, 2018 was 48.7%.

No matter if you choose a short-term or long-term loan, it’s a good idea to consider the annual percentage rate as well since APR includes the cost of interest plus fees. In 2017, On Deck’s term loan APRs ranged as high as 99.7% with an average APR of 45.2%, according to the company’s annual report.

 Loan amountLoan termAPR rangeFeesTime to funding
Short-term loan$5,000 up to $500,0003 to 12 monthsVaries, with an average rate of 45.2%Origination fee of 2.50% - 4.00%, lower for subsequent loansAs soon as 24 hours
Long-term loan$5,000 up to $500,00015 to 36 monthsVaries, with an average rate of 45.2%Origination fee of 2.50% - 4.00%, lower for subsequent loansAs soon as 24 hours

Lines of credit: Businesses could qualify for a line of credit up to $100,000 with an APR as low as 13.99% though, like term loans, your APR could be higher. The weighted average APR was 32.6% as of June 30, 2018. The credit line amount and your interest rate would be based on your business and personal credit, as well as an assessment of your business as a whole. OnDeck would automatically deduct fixed weekly payments from your business bank account as you pay back the debt.

 Loan amountTermsAPR rangeFeesTime to funding
Line of credit$6,000 to $100,000Fixed weekly payments As low as 13.99% with an average APR of 32.3% $20 monthly maintenance fee, waived if you withdraw $5,000 or more in the first 5 days.As soon as 24 hours

What businesses are eligible for an OnDeck loan?

OnDeck’s minimum qualifications are not as strict as banks’ requirements. OnDeck asks for at least one year in business and at least $100,000 in annual revenue. Business owners must also have a personal credit score of 500 or higher.

In 2017, borrowers had a median annual revenue of about $631,000 with 90% of customers having between $162,106 and $3.8 million in annual revenue.

There are several industries OnDeck does not work with, including the following:

  • Adult entertainment/materials
  • Drug dispensaries
  • Firearms vendors
  • Government and nonprofits
  • Public administration
  • Horoscope or fortune telling
  • Lotteries, casinos, raffles, gaming and gambling
  • Money services businesses
  • Religious or civic organizations
  • Rooming and boarding houses

OnDeck has the ability to change the list of restricted businesses at any time. Additionally, all businesses are individually subject to OnDeck’s approval, regardless of industry.

OnDeck

SEE OFFERS Secured

on LendingTree’s secure website

The pros and cons of an OnDeck small business loan

Pros

  • Credit score isn’t the deciding factor. OnDeck considers your business’s cash flow in addition to your credit score when reviewing your loan application. You wouldn’t be automatically turned down if you have poor credit.
  • Simple application. You may be able to complete OnDeck’s online application in minutes and you could be approved for financing in as little as 24 hours. OnDeck loan specialists are also available if you need assistance.
  • Potential to improve your business credit score. OnDeck reports your term loan payment information to three business credit bureaus, Experian, Equifax and Paynet, each month and reports line of credit information to Experian. Making payments on time and maintaining good credit history with OnDeck would improve your overall business credit profile.

Cons

  • Lowest interest rates are uncommon. The lowest advertised interest rates are usually reserved for borrowers with the strongest creditworthiness and cash flow and those that have previous payment history with OnDeck. The average rate for term loans is 25.3% simple interest and 48.7% AIR.
  • A personal guarantee is required. OnDeck places a general lien on the assets of your business and requires a personal guarantee to secure a loan. Signing a personal guarantee puts you on the hook to pay the debt even if your business defaults.

Application process and requirements

You can apply for an OnDeck loan online or by phone and the process could take a little as 10 minutes. There’s no obligation to accept a loan offer, which is valid for 30 days after you’re approved.

In addition to basic information about your business, OnDeck may ask you to submit the following documents with your application:

  • Business tax ID
  • Bank statements from the past 1-3 months
  • Your Social Security number
  • Your driver’s license and state of issue

If you’re approved, you could receive funding in your business bank account as soon as the next day. OnDeck disperses loans through the Automated Clearing House network or a wire transfer. Customers with a line of credit would receive a debit card connected to the business bank account that OnDeck has on file.

Small business owners could also take advantage of OnDeck’s technology through their existing banks. Chase’s Business Quick Capital allows certain clients to apply for a business loan online and receive funding as soon as the same day. PNC Bank is set to roll out a similar program in 2019 for customers to apply online for loans up to $100,000.

The fine print

Fees. OnDeck charges an origination fee on your first loan that ranges from 2.50% - 4.00%. Each subsequent loan that you get from OnDeck would have a lower origination fee. If you take out a line of credit, you would owe a $20 monthly maintenance fee. That fee can be waived if you withdraw more than $5,000 within one week of opening your line of credit.

No collateral. Although OnDeck puts a general lien on your business assets when you borrow money, you wouldn’t have to offer a specific business asset as collateral. That means you wouldn’t be denied funding solely because you don’t have valuable business assets to use as collateral. Without having to appraise and value particular assets, OnDeck can award funding faster than a traditional bank.

Fixed payments. To collect payments, OnDeck deducts a fixed amount from borrower’s business bank accounts on a daily or weekly basis, depending on the type of loan. These payments could impact your cash flow, but they should be easy to manage because they are predictable and unchanging.

Other alternative small business lenders

LendingClub

Online lender LendingClub offers business loans up to $300,000 and terms of one to five years. Like OnDeck, LendingClub collects fixed monthly payments as you pay back your loan. There are no prepayment penalties and your interest rate could be as low as 5.99%. To qualify for a LendingClub business loan, you would need at least one year in business, at least $50,000 in annual sales and no recent bankruptcies or tax liens. You would also need to own at least 20% of the business and have fair credit or better.

LendingClub

LEARN MORE Secured

on LendingClub’s secure website

Kabbage

Kabbage is an online lender that provides both secured and unsecured loans to small business owners. Kabbage offers term loans, lines of credit and working capital loans, among other financing options. Six-month and 12-month term loans are available, and interest rates range from 8.00% to 24.00%. You could be approved for up to $250,000.

Kabbage

SEE OFFERS Secured

on LendingTree’s secure website

The bottom line

Business owners applying for financing from OnDeck have a chance to secure funding without relying on their credit score or collateral. Compared with a traditional bank, OnDeck’s application process is simple and time to funding is fast. However, your interest rate could be higher than what OnDeck advertises if your credit isn’t in great shape. OnDeck collects fixed payments, which could cut into your daily cash flow. If you’re approved for a loan, make sure it has an interest rate and terms that your business could handle. If you feel comfortable with the offering, an OnDeck loan could be a quick solution to meet your funding needs.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Melissa Wylie
Melissa Wylie |

Melissa Wylie is a writer at MagnifyMoney. You can email Melissa at [email protected]

Advertiser Disclosure

Reviews

Review of Green Dot Unlimited Cash Back Bank Account

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Get rewarded for your spending with the Green Dot Unlimited Cash Back Bank Account. The account earns unlimited 3% cash back earned from online or in-app purchases, but unlike most cashback programs, this one prevents you from enjoying your earned rewards immediately. The catch: You can only access and redeem your cashback rewards if your account is in good standing a year after registration. In addition, there is a $7.95 monthly fee, although it’s simple to get around the fee.

While you wait for your account registration anniversary, you can use this account’s other features to your advantage. For one, Green Dot Bank can get you your paycheck up to two days in advance through direct deposit. You can also use the 3%* APY Green Dot Bank High-Yield Savings Account to stash and grow your money.

Green Dot doesn’t have any branch locations of its own, so it relies heavily on its app and participating stores to offer its services to customers. This makes it slightly tricky for users who need quick and easy ATM access.

Read on to learn more about the FDIC-insured Green Dot Unlimited Cash Back Bank Account and its rewards requirements, fees and fine print.

How does the Green Dot Unlimited Cash Back Bank Account work?

 

The Green Dot Unlimited Cash Back Bank Account’s biggest draw is the unlimited 3% cash back earned from online or in-app purchases. There’s no limit to how much cash back you can earn, so long as you’re using your card for online and in-app purchases (there’s more on how Green Dot identifies those purchases in a section below)

Getting access to your cash back is a little trickier, however. While you’ll see the cash back earned on each purchase reflected almost immediately, you’ll have to wait for each anniversary of your account registration to redeem the funds. On each anniversary date, you can transfer your cash back rewards into your Unlimited Cash Back Bank Account. Your registration date is the date you actually register your card no matter where you got it, either at a store or online.

On your registration anniversary, your account must be in good standing. This means it must have a positive balance and cannot be blocked or flagged for any reason. If you have a negative balance, you must bring it to a positive balance before you can redeem your rewards.

Depositing cash into your Unlimited Cash Back Bank Account is also a little unorthodox, as Green Dot doesn’t have any of its own branches or ATMs. To deposit cash, you need to visit a Green Dot participating retailer, including CVS pharmacies and Walmart stores. Cash deposits are free when you initiate the deposit on the Green Dot app and complete them at a retail store. You can also initiate a cash deposit by swiping your Green Dot debit card at a participating retailer, who may charge a cash deposit fee of their own.

As for withdrawals, you can locate free ATMs through the bank’s app. Otherwise, you’ll face an out-of-network ATM fee, in addition to a potential ATM owner surcharge.

Unlimited Cash Back Bank Account features

  • Earns unlimited 3% cash back on eligible online or in-app purchases
  • Get your paycheck up to two days earlier with ASAP Direct Deposit™
  • Links to 3%* APY Green Dot Bank High-Yield Savings Account
  • No overdraft fees

Along with its competitive cash back rate, another big perk of banking with Green Dot Bank is that you can get your direct deposit paychecks up to two days in advance. Typically, employers deposit paychecks into employees’ banks two days before actual payday. So instead of letting your paycheck sit in the Automated Clearing House (ACH) limbo, where payments like these are processed, Green Dot deposits your paycheck on the same day the bank receives it. Exact timing and availability of your direct deposit will depend on when your employer submits your payment information and deposit verification.

Also included with the Green Dot app is the Green Dot Bank High-Yield Savings Account. There is no fee, and the account earns 3%* APY on balances up to $10,000. Once you’ve redeemed your cash back rewards and deposited them into your Unlimited Cash Back Bank Account, you can then transfer those funds into your High-Yield Savings Account for better savings.

As you’ll read below, the Unlimited Cash Back Bank Account is rife with fees, depending on how you use your account and manage your money. But a certain perk of the account is its lack of overdraft fees. So when you make a purchase that your balance cannot cover, Green Dot will decline the transaction, but they won’t charge a fee like most other banks do.

Unlimited Cash Back Bank Account fees and fine print

Unlimited Cash Back fees
Unlimited Bank Account purchase — online $0
Unlimited Bank Account purchase — in store$1.95 or less
Monthly fee$7.95, waived when you spend $1,000 or more in the previous monthly period
Deposit cash with Green Dot app & participating locations$0
Direct deposit$0
Out-of-network ATM withdrawal$3 per transaction
Teller cash withdrawal$3 per transaction
Out-of-network ATM balance inquiry$0.50
Foreign transactions3% of total transaction amount
Paper checks (pack of 12 checks)$5.95

There are quite a few fees to keep an eye out for when you have a Green Dot Unlimited Cash Back Bank Account. For starters, note that there is a fee when you open the account in a store. You can easily avoid this fee by opening the account online instead.

The account charges a $7.95 monthly fee. This can be waived when you spend at least $1,000 in the previous monthly period. This excludes transactions like ACH payments or prepaid card purchases. This may be easier if you do much of your shopping online, since you’re more likely to reach the minimum balance. If you’re betting the cash back you earn will offset this monthly fee, you’d have to spend $3,180 in a year to earn enough to pay off a year’s worth of the monthly fee. Plus, you’d have to wait for each anniversary to take advantage of that cash back bonus.

It also helps to keep your account activity online. You can initiate the deposit through the Green Dot app then depositing cash at a participating retailer at no charge. However, if you want to deposit cash without the app by swiping the debit card at a participating retailer, then the retailer may charge a service fee for cash deposits. Note that direct deposits are free.

As for the fine print, there is some room for error when it comes to determining which purchases are eligible for the 3% cashback. Green Dot identifies online and in-app purchases through unique merchant category codes (MCC) and “other identifying information,” according to the Green Dot website.

However, Green Dot acknowledges that sometimes online or in-app merchants use an MCC that does not properly identify themselves as online or in-app. On Green Dot’s part, the bank states that it “does not determine which MCC a merchant chooses to classify itself as and has no way of changing a merchant’s identifying information.” So if merchant misidentification is the case, your purchase won’t register as online or in-app and won’t earn 3% cash back.

Cash back also does not apply to airline tickets or to products and services that are redeemable for cash, such as gift cards, online funding of accounts, credit card cash advances, P2P funding, prepaid cards, money orders and traveler’s checks.

Opening an Unlimited Cash Back Bank Account

You can open an Unlimited Cash Back Bank Account either online or in-store at Green Dot participating retailers. When you open an account online, you’ll need to provide your full name, address, email address, phone number, Social Security number and date of birth. If you open an account in store, you’ll need to register your new debit card online or through the Green Dot app. There, you’ll need to provide your personal information.

Who is the Green Dot Unlimited Cash Back Bank Account best for?

The Green Dot Unlimited Cash Back Bank Account seems to be a better option for those who aren’t chasing a quick reward. Green Dot requires you to wait a year after account registration to redeem your cash back rewards, which may not be much of a reward for some. It’s more of an added perk than a real primetime feature since you have to wait so long.

The Unlimited Cash Back Bank Account may also be better for those who are tech savvy enough to manage their accounts largely online and in the app. Accounts are more easily opened and registered online and even cash deposits work best when done through the app.

That said, this account could be a potential hassle who want the ease and speed of ATM access. Green Dot requires you to visit a participating store to deposit cash, whether you use the app or not. For many, navigating a physical store just isn’t as convenient. When it comes to withdrawals, it may be difficult to find a free ATM nearby in order to avoid the out-of-network ATM fee.

In all, the Green Dot Unlimited Cash Back Bank Account seems to hold a lot of promise. But there’s a few hoops to jump through to earn rewards and use the account efficiently that detract from the eye-catching 3% cash back.

*Rate accurate as of August 21, 2019

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

Advertiser Disclosure

Reviews

Fitness Bank Savings Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Fitness Bank’s savings account option

Fitness Savings Account

This unconventional savings product offers customers the chance to earn an outstanding APY when they are physically active. The daily average number of steps you took in the previous month determines the APY you earn on your account balance. The table below outlines the five earning tiers that this bank currently offers:
APY Tiers*Minimum Balance to Earn APYSteps Required
0.50%$1000-4,999
1.25%$1005,000-7,499
1.75%$1007,500-9,999
2.50%$10010,000-12,499
3.00%$10012,500+

If you are a US citizen age 65 or older, you qualify for a different rate schedule:

APY Tiers*Minimum Balance to Earn APYSteps Required
1.25%$1000-4,999
1.75%$1005,000-7,499
2.50%$1007,500-9,999
3.00%$10010,000+
  • Minimum opening deposit: $100
  • Minimum daily balance to earn APY: $100
  • Monthly account maintenance fee: $10, waived by maintaining the minimum daily balance.
  • ATM fee: N/A
  • ATM fee refund: N/A
  • Overdraft fee: $40

These rates truly are outstanding if you live an active lifestyle. The first month, everyone gets highest APY regardless of number of steps they take. After that, your APY will be assigned based on your daily average number of steps over the course of the prior month. Needless to say, if you don’t live a very active lifestyle, or if you have a health condition that would prevent you from meeting the step requirements, this may not be the best account for you.

This bank charges a $10 monthly maintenance fee if you don’t maintain a minimum average daily balance of $100. If you’re not confident you can maintain this minimum, you may want to look at a checking account rather than a savings account — keep in mind, however, that Fitness Bank only offers a savings account. If you meet the minimum balance requirement, the monthly maintenance fee will be waived.

This savings account does not come with an ATM card or checks. You are limited to six certain withdrawals and/or transactions per month, per Regulation D, which is enforced by the federal government, although banks do have some flexibility in allowing more than six per month in certain cases. At Fitness Bank, if you make more than six withdrawals per month you will be charged a $10 fee for each additional withdrawal.

If you want to go above and beyond achieving the highest APY available from this account, you can join one of Fitness Bank’s challenges. Every month, there is a step challenge where you can compete with all other participating Fitness Bank members to get the highest number of average daily steps. Top competitors will be awarded with prizes at the end of the month. You can also set up challenges just for your family or friend group, or for a group of employees participating in a workplace challenge.

How to get Fitness Bank’s savings account

Opening a savings account at Fitness Bank is a straightforward process. The bank boasts account setup will take you less than two minutes.

You’ll fill out a quick online application, supplying basic information like your name, address and Social Security number, along with documentation of your driver’s license or passport. Then you’ll need to provide funding information, namely your bank account number, credit card or debit card.

LEARN MORE Secured

on FitnessBank’s secure website

Member FDIC

magnifying glass

How Fitness Bank’s savings account compares

This bank offers phenomenal rates. At the time of writing, they offer the highest savings account rate in the market — if you can rack up the steps needed to earn it. In addition, you will have to be comfortable doing your banking 100% online with this savings account. You will not receive a checkbook or ATM card – all of your withdrawals and deposits will be completed via electronic transfer. If you’d prefer ATM access or the ability to visit a physical branch, Fitness Bank is not the right match for you.

The minimum deposit required to open and maintain an account without incurring a monthly maintenance fee isn’t outrageous. But you can find savings accounts offering somewhat competitive rates without these requirements. And to repeat, you’ll have to meet the step requirements; if that challenge goes unfulfilled, the advantages of saving with Fitness Bank wane. Its rates get progressively less competitive the fewer steps you take.

Overall review of Fitness Bank’s banking products

This bank offers a unique financial product aimed at promoting wellness. Its minimum balance and deposit requirements are fairly average for the industry, as are its fees. While its offerings are fair and get more generous as you take more steps, you will likely find better rates elsewhere if you cannot realistically meet these specific fitness standards. If you can, though, you’re in for some of the best rates on the market.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here