Public companies tell the truth—they just bury it in the footnotes. Enova International, parent company of OnDeck, is one of the few major players in small business lending that still publishes detailed performance data. And if you know how to read between the lines, their 2024 annual report (filed February 2025) reveals exactly how—and why—“fast” business funding costs what it does.
The Numbers They Actually Report
In Enova’s 2024 10-K, the company discloses that its small business installment loans (OnDeck’s bread and butter) have terms ranging from 3 to 24 months, with an average contractual term of approximately 14 months. It also reports an average annualized yield of 46% for that portfolio.
That 46% figure is what Enova earns—its yield on the receivables it owns. It’s not what the average merchant pays.
Here’s why that distinction matters:
- OnDeck’s 46% yield represents Enova’s interest and fee income relative to its average outstanding balances.
- It doesn’t include any broker markups or lead-gen commissions paid by the merchant.
- When a broker inserts themselves into the deal, they’ll typically inflate the cost from a 1.27 factor rate (what OnDeck might originate directly) to something closer to 1.37. Over the same 14-month term, that pushes the borrower’s effective APR from the mid-40s into the 60%+ range.
So Enova’s 46% yield tells us two things: how profitable OnDeck’s core product is to them, and how wide the gap is between what the lender earns and what the business owner actually pays when a broker is involved.
Reconstructing the “Average” OnDeck Deal
If we reverse-engineer from Enova’s disclosures:
- Average term: 14 months
- Average yield: 46%
- Equivalent payback multiple: roughly 1.25–1.28× of principal
That means a $100,000 OnDeck loan—without a broker—might carry a total repayment between $125,000 and $128,000 over about 14 months.
Add a broker’s 10-point markup (turning that into a 1.37× deal), and the total repayment balloons to $137,000—for the exact same loan, from the exact same lender, delivered through a middleman who claims to “get lenders to compete for you.”
Why the Rates Are So High
It’s not greed—it’s math. Enova’s own filings show net charge-offs near 8–9%, about ten times a typical bank’s loss rate. High default risk forces high yields. And the company’s financial statements make clear that it spends hundreds of millions of dollars per year on sales, marketing, and lead acquisition. Those costs don’t come out of Enova’s pocket—they’re priced into yours.
Put differently: you’re not just paying for capital, you’re paying for the system built to find you.
What Business Owners Should Take Away
- 46% is the lender’s yield—not your cost. If a broker’s involved, your effective APR is almost always higher.
- A 1.27 factor over 14 months ≈ 35–40% APR. That’s the benchmark for OnDeck-type direct funding.
- Brokers turn 1.27 into 1.37. That same loan can cross 60% APR once their markup is baked in.
- Speed and marketing cost money. Enova’s spending shows how much of your rate goes to acquiring, not underwriting, you.
- Transparency is your leverage. Always demand total payback, term, APR, and disclosure of anyone getting a commission.
The Bottom Line
OnDeck’s filings give us a clear, verifiable picture of what “first-position” alternative business lending looks like in the real world:
~14-month terms, ~1.27 payback multiples, ~46% portfolio yields, and risk-adjusted pricing that’s high but rational.
What isn’t rational is the broker tax layered on top—an invisible 10%–12% premium that buys you nothing but a middleman. That’s why understanding the filings matters. They show what the lender earns. The rest is what the broker takes.
When the market tells you the truth, believe it. Then use it to keep every possible dollar in your own business—where it belongs.
Take the Next Step
- Use our APR Calculator to translate your offer’s payback and term into a true annualized cost. No more guessing.
- Talk to Diogenes to see if borrowing even makes sense for your business right now, and to find lenders who actually fit your situation—without paying a broker tax.