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.