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Business Loan Settled with OnDeck Capital for 15%

If you’re overwhelmed with debt owed on business loans, it’s time to stop losing sleep and call our office to learn how we can help. As you'll see in this case highlight, our office will leave no stone unturned in working to get the best results possible for our client's.

Defaulted Business Loan with OnDeck Capital, Inc.

Our office was contacted by a distressed business owner that took a loan with OnDeck Capital in New York. Although the borrower had already paid back nearly $80,000 on the business loan, he wound up defaulting with an outstanding balance of about $57,000.

OnDeck Capital had filed a Uniform Commercial Code (UCC-1) statement in connection with the financing arrangement. The purpose of filing the UCC-1 is to perfect the lender’s security interest in collateral.

This small business owner was experiencing cash flow problems and had several other loans, both personal and business. If he couldn’t get help quickly, he’d be at risk of running out of the capital needed to operate his business. Not knowing who to turn to for reliable guidance, he consulted with the Law Office of Simon Goldenberg PLLC and retained us for help with restructuring and reducing business debts.

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Letter From On Deck Capital Threatening Litigation

The borrower received a letter from OnDeck Capital’s general counsel threatening to possibly file a lawsuit if the loan debt wasn’t resolved. The letter further threatened that if a lawsuit is initiated, the borrower might be obligated to pay additional interest, court costs, and attorney’s fees.

Furthermore, the letter stated that it is providing information pursuant to the Fair Debt Collection Practices Act (15 U.S.C. 1692g). However, attempts to collect business debts are generally exempt from the FDCPA, and the disclosures on the letter did not appear to conform to anything required under the FDCPA. In the opinion of our lawyer, the inclusion of the confusing statutory reference made in the letter was most likely to increase the tone of seriousness in order to encourage prompt repayment by the borrower.

Resolving the Defaulted Business Loan with OnDeck

In our communications with the agents at OnDeck Capital Inc., we painted a picture of the hardships our client’s business is experiencing. We feel it’s important to let the lender know that the borrower is trying to act in good-faith to resolve the debt and that the intentions are sincere. If OnDeck would think that the borrower is acting in bad-faith, they may be more reluctant to discuss a resolution, and might consider taking more drastic collection action sooner (such as seizing secured assets or bringing a lawsuit).

Ultimately, On Deck Capital agreed to accept a one-time payment of nearly $8800.00, which reflects a reduction of 85% from the balance. Upon satisfying the settlement, OnDeck filed a UCC-3 statement which essentially terminated the security interest on the collateral.

Negotiating Business Loan Settlement Reductions

At our firm, we understand the unique challenges faced by businesses and we work to provide solutions catered to our client's particular needs. If your business is struggling to stay afloat and you're interested in negotiating business loans, call us to learn if we could help reduce your business loan debts and keep your business operating, all while avoiding bankruptcy.

Contact our firm at (888) 301-0584 to schedule your free business debt relief evaluation.


Results vary; prior results do not guarantee similar performance. While we strive to maintain accuracy and provide relevant case histories, in order to protect the confidentiality of our client(s), all numbers are approximations and are offered for illustrative and general informational purposes only. This page does not purport to contain any legal advice. We make no allegation of wrongdoing by the entities discussed on this page. Call us for an evaluation of your situation.

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