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On Deck vs CAN Capital
With all the difficulties in today's economy, many people are choosing to open their own business instead of working for a traditional employer. Whether you're just starting your business, expanding your already-established business, or even hanging out a shingle as an online company, it's likely that at some point you'll need a business loan to successfully meet your customer's needs and your business goals.
In the past, small business owners relied heavily on traditional brick-and-mortar banks in order to finance their business loans. Often that meant that borrowers had to rely on their own reputation and relationship with their local bank. Getting the lowest possible interest rate was also more challenging, since there were few lending options from which to choose.
OnDeck started in 2007 to focus on helping small businesses with a major issue: Financing. Since then, they have helped more than 50,000 small businesses across more than 700 industries in both the US and Canada with more than $8 billion in business loans and lines of credit.
There are three primary types of small business loans offered by OnDeck:
OnDeck's business loan application process is straightforward and only takes about 10 minutes to complete. You enter simple information such as your business history, your desired loan amount, and similar details. Once that is complete, OnDeck's online system evaluates your business and provides a decision in a matter of minutes. Funding can take place as soon as 24 hours later.
In order to qualify for a loan from OnDeck, there are a number of basic requirements that must be met. For example, businesses must have at least 1 year of history, one of the business owners or partners must have a personal credit score of 600 or higher, and the business must demonstrate revenue of at least $100,000 in annual revenue. While this means that OnDeck would not be suitable for pure startups, many businesses should still be able to meet Ondeck's starting conditions and quickly be on the way to securing their business loan.
One unique aspect of OnDeck's loan repayment terms is that payments are made on a daily or weekly basis, rather than the traditional monthly payments one would expect from a loan. We think this is a good feature for both the lender and the borrower. The business owner can better stay on top of their repayments, rather than experiencing the snowball effect that can occur when trying to make larger monthly payments. OnDeck benefits by lessening their risk of repayment. This may be one contributing factor to the low rates that OnDeck passes on to their borrowers.
Another feature we liked about OnDeck is their transparency with regards to fees charged. OnDeck charges low loan origination fees that top out at 2.5%, with discounted fees on subsequent loans to help build customer loyalty. Their loan interest rates are extremely competitive in the industry, averaging around 15% on their term loans and 10% on business lines of credit.
We're impressed with OnDeck's A+ rating with the Better Business Bureau, and by numerous positive reviews across a wide spectrum of businesses who recommend OnDeck's simple process, helpful customer service, and overall loan experience. For all these reasons, OnDeck is a fantastic option for businesses in need of a business loan, and they earn our highest rating.
Established in 1998, Georgia-based CAN Capital offers business loans ranging from $2,500 to $150,000 or more with terms from 4-24 months. CAN Capital focuses specifically on small business owners, with tools, resources, and blog posts directed towards helping them to grow their businesses and succeed.
Unfortunately, CAN Capital is not one of the lenders in our review who make business loans to startups: they require borrowers to have been in business for at least four months and have monthly revenue that is relatively stable.
The application process is relatively simple and is comparable to other lenders' in our review: enter basic information about the business, such as the gross monthly sales, number of months or years in business, and the business' location. Once the application is approved, funds can be sent is as little as two business days.
While CAN Capital doesn't publish their APR during any part of quote or application process, there is a calculator that allows prospective borrowers to enter the amount of their monthly sales, the desired loan amount and term, and see the weekday payment, principal amount and the total repayment amount. Of course, this is just an estimate; the final loan offered would naturally depend on the business' history, creditworthiness, and actual loan terms. Customers should make sure to read the fine print: both when we ran our own theoretical scenarios and when we considered CAN Capital's reviews, we saw interest rates around 30%, all the way up to 85%! Given that CAN Capital focuses on small businesses, particularly those who haven't been able to qualify for a traditional loan, we wonder if such high interest rates will actually help a business to succeed instead of being overburdened with (additional) debt.
Another possible downside of having a business loan with CAN Capital is the effect on one's personal credit; one customer complained that CAN Capital pulled a hard inquiry on their personal credit every six months for the duration of their loan, even though the customer had no late payments or any other issues with the loan.
On the other hand, CAN Capital has been accredited with the Better Business Bureau since 1998 and carries an A+ rating. In our opinion, this carries a great deal of weight and would indicate that, overall, CAN Capital is doing a good job of providing loans to almost 140,000 small businesses in ways that are honest and trustworthy.
Fortunately, business owners today can choose among many lenders to find the best terms and interest rates available. In addition to the old local options, small business borrowers now have much more and better choices through various lenders on the Internet that specialize in small business loans.
There are many factors that you should consider before selecting a lender for your business loan. Some of these include:
TopConsumerReviews.com has reviewed and ranked the best Business Loan programs available today. We hope this information helps you find the best loan for your small business at an affordable rate!
Business Loans In The News
BEIJING/SINGAPORE, April 25 (Reuters) - Chinese banks have extended more loans at lower interest rates to small firms in the first quarter, heeding Beijing's call to support the economy, banking ...
Published: Thu, 25 Apr 2019 00:18:00 GMT
It is not unusual for a business to need a loan. It does not matter the size or time that it has been in operation. Companies ask for loans every other day. Managing all costs in business may not ...
Published: Tue, 23 Apr 2019 06:24:00 GMT
LendingClub is shutting down its 5-year-old business lending arm, which was dwarfed by its flagship consumer loan unit, and will refer prospective commercial borrowers to two partner companies. Under ...
Published: Tue, 23 Apr 2019 11:17:00 GMT
Shetland Islands Council has approved a loan of £300,000 to building firm BA Builders to allow for new homes to be constructed in rural areas. The loan is designed to create 13 modern and energy ...
Published: Thu, 25 Apr 2019 01:17:00 GMT
ALBANY - The U.S. Small Business Administration has Economic Injury Disaster Loans available to several New York counties, including Livingston and Wyoming, as a result of excessive precipitation that ...
Published: Thu, 25 Apr 2019 02:55:00 GMT
But FHLBs have been evolving. For instance, despite the "home" in the banks' name, members can now borrow from their regional FHLB to support loans for small business or community development and ...
Published: Thu, 25 Apr 2019 03:10:00 GMT
As Business Insider's Hillary Hoffower reported ... sooner than millennials did while trudging through a sluggish economy. Gen Z still has student loan debt, but it doesn't seem to be a major ...
Published: Wed, 24 Apr 2019 08:59:00 GMT
WMC Mortgage sought bankruptcy protection to resolve remaining legal liabilities over defective loans it originated before the 2008 financial crisis. General Electric has put its defunct subprime ...
Published: Wed, 24 Apr 2019 05:33:00 GMT
London-based Iwoca was founded in 2011 and offers online loans of up to £200,000 to small ... to set up a £775m fund to boost competition in business banking in the same year.
Published: Thu, 25 Apr 2019 00:21:00 GMT
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