Online SME lender OnDeck is entering the equipment financing business, the company announced this week. The move will enable OnDeck to take advantage of the small ticket (less than $250,000) equipment loan and leasing financing market, a market that saw $35 billion in small ticket equipment loan financing originated in the U.S. in 2017 alone.

“With more than a decade of success and over $10 billion funded to small businesses online, we believe OnDeck’s technology is primed to revolutionize how small businesses finance their equipment needs,” OnDeck CEO and chairman Noah Breslow said. “We expect OnDeck equipment finance loans to quickly become a vital source of online financing for small business owners seeking simple, transparent equipment financing they can understand and utilize.”

The company noted in a press release that the new offering builds on an existing pilot referral program OnDeck launched this summer. The program involved OnDeck referring SMEs looking for equipment financing to a third party lender to originate and service the loans. OnDeck plans to begin its own direct equipment financing next year, offering SMEs from $5,000 to $100,000 for equipment finance loans, with terms ranging from 24 to 60 months.

“I look forward to working with the team to leverage OnDeck’s online originations and underwriting technology to deliver speed and convenience for small business owners seeking equipment finance loans,” OnDeck Equipment Finance VP Mark Erickson said. “With speed, service, and transparency, we are poised to transform this market to the benefit of small businesses.”

Founded in 2007 and based in New York, OnDeck is the largest online small business lender in the U.S., with more than $8 billion in SME loans issued. The company serves more than 700 industries through the U.S., providing financing to more than 80,000 small businesses.

OnDeck participated in our developers conference, FinDEVr New York 2016, discussing some of the trends influencing small business lending. In addition to being a veteran of our developers conferences, the company demonstrated its OnDeck Connect solution at FinovateSpring 2012.

OnDeck trades on the New York Stock Exchange under the ticker “ONDK,” and has a market capitalization of $470 million.

Starting in 2019, PNC Bank will offer digital business lines of credit up to $100,000 within one to three business days. This expansion of its current online lending business comes courtesy of a partnership with OnDeck, whose OnDeck Platform-as-a-Service (ODX) solution – launched earlier this month – will simplify and speed up the loan origination process for PNC Bank’s SME customers.

“Small and medium-sized business owners are continually searching for simpler, easier and quicker means to apply for and receive funding and to that end, PNC is investing in this new avenue to find solutions that work for them,” Head of Retail Lending at PNC Bank Lakhbir Lamba said. “Our relationship with OnDeck is PNC’s first opportunity to leverage the services of a fintech company in a platform-as-a-service model that will make it easier for businesses to borrow from us in order to support their growth.”

PNC Bank, National Association, is a member of The PNC Financial Services Group, one of the largest diversified financial services institutions in the U.S. PNC Bank has more than eight million retail and small business customers who use its deposit, lending, credit card, cash management, and investment services. With branches and ATMs in 19 states plus the District of Columbia, PNC Bank provides a variety of asset management and corporate/institutional banking services, and is a minority owner in investment management firm, BlackRock.

Headquartered in Pittsburgh, Pennsylvania, and founded more than 160 years ago, PNC Bank has $293 billion of assets under administration.

Since inception in 2006, OnDeck has delivered more than $10 billion in loans to small business borrowers in 700 different industries throughout the U.S., Canada, and Australia. The company leverages its advanced technology and underwriting platform to help SMEs get the “responsibly-priced and right-sized” short-term financing they need to grow. OnDeck estimates that its support of small businesses has helped create 74,000 jobs across the U.S. And via its newly-launched subsidiary, ODX, OnDeck offers banks a new way to better service their SME customers and encourage even more economic activity

“ODX is the next generation service provider for the digital lending era,” OnDeck chairman and CEO Noah Breslow said earlier this month when ODX launched. He added, “(ODX offers) a bank-ready origination platform, analytic support, and implementation services that speed product and process transformation to help banks better meet the evolving needs of their customers.”

One of Finovate’s earliest alums, OnDeck most recently participated in our developers conference, FinDEVr New York 2016. At the event, OnDeck SVP for Technology Pamela Rice discussed how the company’s engineering team and engineering-driven culture were “key differentiators” in OnDeck’s ability to innovate.

This summer, OnDeck announced closing two revolving credit facilities totaling $93 million to help fund small businesses in both Australia and Canada. This spring, the company appointed Kenneth Brause as its new CFO, replacing long-time financial chief Howard Katzenberg. Brause was previously EVP and treasurer at CIT Group.

OnDeck is a publicly-traded company on the New York Stock Exchange under the ticker symbol “ONDK.” The company has a market capitalization of $500 million. Noah Breslow is CEO.

Online small business lending platform OnDeck has always served as an alternative to traditional banks. This week, however, the company has made a new move to further its bank-fintech ties. The New York-based company announced the launch of a new subsidiary aimed to help banks serve small businesses.

Dubbed ODX, the new platform-as-a-service entity is an extension of OnDeck’s platform services and will focus entirely on helping banks digitize their small business lending efforts via a combination of software, analytic insights, and professional services.

ODX is as much about helping banks reach small business clients as it is about helping small businesses interact with their bank. The new subsidiary recognizes the hassle that comes with applying for a loan at a traditional bank, many of which still rely on labor-intensive, paper-based processes that take an average of 26 hours over the course of several weeks to complete. In comparison, banks leveraging ODX can offer a fully-digital application and underwriting process that provides the business with funding within 24 hours.

In a statement, OnDeck CEO Noah Breslow said, “ODX is the next generation service provider for the digital lending era, delivering a bank-ready origination platform, analytic support, and implementation services that speed product and process transformation to help banks better meet the evolving needs of their customers.”

Brian Geary, who formerly served as VP of OnDeck’s bank partnership unit, has been appointed to president of ODX. The company hired on Raj Kolluri, former VP of  Product & Engineering at SS&C Primatics, as head of product and technology for ODX.

Founded in 2007, OnDeck has loaned more than $10 billion to small businesses in 700 different industries across the United States, Canada, and Australia since launch. The company, which demoed at FinovateSpring 2012,  leverages its OnDeck Score that uses advanced analytics to make real-time lending decisions and deliver funds to small businesses in as little as 24 hours. Earlier this year, OnDeck closed a pair of revolving credit facilities totaling $93 million.