Why are On Deck loans more expensive than bank loans?
There is a reason traditional banks will only lend to small businesses with high credit scores – small businesses can be pretty risky. We know that every small business owner works hard to protect and grow their business, but many close their doors each year. On Deck Capital wants to give small businesses a chance – because sometimes all they need is a bit of working capital to occasionally boost their cash flow and succeed. With this mission to help small businesses comes risk, and we price accordingly. On Deck Capital loans are still typically up to 50% less than cash advances and the next best alternative to a traditional bank loan.
