If you are looking at OnDeck for a business loan, the three things to get first are its current credit score minimum, its total cost and whether its application runs a hard credit check. OnDeck sets those terms and they can change, so ask the company for them in writing before you apply. Federal benchmarks give you a yardstick: the SBA microloan program lends up to $50,000, with interest that generally runs between 8% and 13%.
Is OnDeck legit?
Start by confirming the legal name of the company on the contract you would sign. The New York Attorney General’s Yellowstone Capital settlement page notes that “Sometimes the name at the top of the contract is a doing-business-as (DBA) name, and not the legal name.” Search the legal name in your state’s business records before you send any money or personal information.
Then check what kind of product you are being offered. The Texas Senate Research Center’s analysis of H.B. 700, dated May 22, 2025, reproduces the sponsor’s statement of intent. It describes merchant cash advances as products that “provide an upfront cash payment in exchange for a percentage of future sales revenue,” and says they “are currently not disclosed as loans.” The same analysis says the bill would add disclosure and registration rules, a civil penalty of $10,000 for each violation, and an effective date of September 1, 2025. Check the bill’s final text and status at capitol.texas.gov before you rely on any of it. If your contract takes a share of future sales, read it closely to see whether it is a loan at all. For a side-by-side look at that structure, see revenue-based financing vs traditional business loans.
Past enforcement cases show what to watch for. The FTC’s Seek Capital settlement, November 2025, concerns a different company. The FTC alleged that its advertising promised 0% interest terms and that it “charged clients thousands of dollars simply to open credit cards.” In a separate case, a February 2024 FTC press release reports that a jury found an operator knowingly deceived small businesses about the amount of funding it would provide and collect. Compare the cash you receive with the total you repay, line by line.
What credit score do you need for OnDeck?
OnDeck sets its own credit score minimum, so ask for the current number and the approval range before you apply. An SBA procedural notice on credit history analysis (5000-876777) says that if an SBA lender uses a scoring model, the score and acceptable approval range must be stated in its credit memorandum. That is a lender documentation rule, not a borrower disclosure. Ask any lender you consider for the score and approval range it uses, in writing.
Can you get a business loan with a credit score of 600?
The SBA’s 7(a) loan page says that key eligibility factors are based on “what the business does to receive its income, its credit history, and where the business operates.” Whether a score of 600 is enough is a question for each lender. Ask whether 600 falls inside its approval range, and ask what other factors could offset a lower score.
Can a start-up LLC get a loan?
The SBA’s microloan program page says the program “provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand.” The same page lists “Be an operating business” as an eligibility requirement. Ask the intermediary directly whether an LLC that has not opened yet qualifies. Microloan proceeds cannot be used “to pay existing debts or to purchase real estate.”
For SBA 7(a) loans, an SBA procedural notice sets owner rules. It says that “All entity owners (whether direct or indirect) must be created, organized, or incorporated in the United States, its territories, or possessions,” and that owners must be “U.S. Citizens or U.S. Nationals who have their Principal Residence in the United States, its territories, or possessions.” An SBA information notice says SOP 50 10 8.1 “will become effective October 1, 2026, and will apply to all applications that are issued an SBA loan number on or after that date.” Separately, SBA Procedural Notice 5000-876777 says that when a lender is underwriting a 7(a) Small loan for an applicant “not currently in operation and has no commercial debts or obligations,” the lender is not required to obtain two months of commercial bank activity. That waives only one documentation requirement. It does not mean a start-up qualifies for a 7(a) loan.
This is general information, not legal advice. For questions about your own rights or obligations, talk to a lawyer.
How much would a $50,000 business loan cost?
The table below uses the figures the sources give. The first row is the SBA’s range for microloans, which vary by intermediary lender.
| Figure | What it says |
|---|---|
| SBA microloan interest | Varies by intermediary; generally 8% to 13% (SBA microloan page) |
| SBA microloan maximum term | Seven years (SBA microloan page) |
| Short-maturity loan rate paid by small owners, September 2026 | 8.2% average (NFIB Small Business Economic Trends, September 2026) |
| Online lender borrowers with higher-than-expected costs | 60%, a greater percentage than among firms that borrowed from other types of lenders (2026 Report on Employer Firms) |
On a $50,000 balance, one year of simple interest is $4,000 at 8% and $6,500 at 13%. Those are one-year figures on the full amount, not your total cost. Your total depends on the term, the fees and how the balance drops as you repay, so ask for the full repayment schedule and every fee in writing. The Federal Reserve’s October 28, 2026 FOMC statement kept the federal funds target range at 3-3/4 to 4 percent. That is a benchmark for rates in general, not a quote for any loan. To compare short-term working capital structures before you choose, read working capital loans vs lines of credit.
The Federal Reserve Banks’ 2026 survey notes that “The SBCS is not a random sample,” so read its percentages as directional. Within that limit, it reports that among firms that borrowed from online lenders, 60% reported higher-than-expected borrowing costs.
Does OnDeck do a hard credit pull?
Ask OnDeck before you submit anything: “Does this application pull my credit report, and is it a hard inquiry?” Get the answer in writing, and compare it with the answers from other lenders you are considering.
How can I get a startup business loan with bad credit?
Start with the SBA’s microloan network. The SBA says its approved intermediaries “make all credit decisions and set all terms,” so each one will weigh your credit history on its own terms. Use the SBA’s find a microlender list to contact intermediaries in your area and ask each one what it needs from a new business owner.
Be careful with any offer that leads with speed or with low-looking fees. The FTC alleged in the Seek Capital case that clients often did not get the promised 0% interest terms, and in the Braun case a jury found deception about the amount of funding provided and collected. Before you accept, get the total repayment amount and every fee in a document you keep.
Where to file a complaint about a business lender
The New York Attorney General’s Yellowstone settlement page, last updated April 16, 2026, tells people with a problem with a Yellowstone merchant cash advance to file a complaint on the office’s website. Those instructions are written for Yellowstone. The same page also has a section on problems with other MCA companies, which you should read directly. The page says the OAG cannot provide legal advice, so questions about your own rights belong with your own lawyer. For a problem with OnDeck or any other lender, put your complaint in writing, keep copies of every contract and statement, and ask the company to confirm the legal name on your contract.
Before you apply: a short checklist
- The legal name of the company on the contract.
- Whether the product is a loan or a merchant cash advance that takes a share of future sales.
- The full repayment amount and every fee, in writing.
- OnDeck’s current credit score minimum and approval range.
- Whether the application is a hard credit inquiry.
- Whether a business that has not opened yet qualifies.
Start with the first two items. They take a few minutes, and they tell you whether to keep going.
USPatriotNews.com publishes this page for general information only. It does not recommend OnDeck or any other lender. USPatriotNews.com may earn commissions from affiliate offers that appear on its pages.
By USPatriotNews.com Editorial Team
