OnDeck Capital explained

OnDeck Capital, Inc.
Type:Subsidiary
Industry:Financial services
Genre:Financial Technology
Founder:Mitch Jacobs
Location City:Chicago, Illinois
Location Country:United States
Products:Small Business Loans, including Term Loans and Lines of Credit
Revenue:$291.3 million (2016)
Parent:Enova International

OnDeck Capital is an American small business lending company with offices in Chicago, IL; New York, NY; Denver, CO, and South Jordan, UT.[1] OnDeck provides its loans exclusively online and uses proprietary software to aggregate data about a business’ operations, which is processed by an algorithm that determines loan eligibility.[2] [3]

History

Mitch Jacobs[4] founded OnDeck in 2006 and headquartered the company in New York City.[5] Jacobs sought funding from venture capital companies, with early investors including First Round Capital, Khosla Ventures, Village Ventures, Contour Venture Partners, RRE Ventures, SAP Ventures (now Sapphire Ventures), Google Ventures and Tiger Global Management.[6] [7] [8] [9] [10]

In 2007, the company introduced its short-term loan product and made its first loan, and by early 2010, the company had made over $50M in loans to small businesses in the U.S.[11]

Jacobs left OnDeck in 2012, and Noah Breslow became the company's CEO. OnDeck completed its IPO in December 2014 and became listed on the New York Stock Exchange under the symbol ONDK, raising $230 million in the offering.[12] In 2015, the company expanded its operations into Canada and Australia,[13] the latter operating as OnDeck Capital Australia Pty Ltd in partnership with MYOB.[14] [15]

In July 2020, OnDeck was acquired by Chicago consumer lender Enova International.[16]

Partnerships

In June 2016, JPMorgan Chase made a deal with OnDeck to offer an online lending process to its small business customers.[17] The bank uses OnDeck’s origination and loan servicing technology to supply small businesses with same or next-day funding.[18] [19] JPMorgan Chase and OnDeck announced an extension of their collaboration in August 2017.[20] The JPMorgan Chase partnership ended in July 2019.[21]

OnDeck’s referral partners include Intuit QuickBooks, Angie’s List, Prosper Marketplace, Credit Karma, and WEX Inc.[22] [23] [24] [25] [26] [27]

OnDeck is a founding member of the Innovative Lending Platform Association (ILPA), a trade organization representing online lending and service companies that serve small businesses.[28] In 2016, the ILPA, in partnership with the Association for Enterprise Opportunity, launched The SMART Box, a “model small business pricing disclosure...focused on empowering small businesses to better assess and compare finance options.”[29]

OnDeck also partners with SCORE, an American non-profit that provides small businesses with free advice and mentors.[30]

Criticisms

OnDeck Capital has been criticised for its high interest rates. In 2015, its average loan had an annual 51% interest rate.[31] In 2014, Bloomberg BusinessWeek called OnDeck "payday lending for businesses", relying on brokers who were "less-than-scrupulous."[32]

Awards

Notes and References

  1. OnDeck Capital . www.prnewswire.com . 9 November 2018 . en.
  2. Web site: The State of Small Business Lending: Credit Access during the Recovery and How Technology May Change the Game.
  3. Web site: OnDeck Capital Inc. - Filings & Reports - SEC Filings - SEC Filings Details. investors.ondeck.com. en-CA. 2017-09-16.
  4. Web site: Contour Venture Partners. www.contourventures.com. 2017-09-16.
  5. News: Small Business Algorithm Lender, OnDeck Raises $77M. Slade. Hollie. Forbes. 2017-09-16. en.
  6. News: Working Capital (Debt) Financing For Entrepreneurs: Mitch Jacobs, Founder And CEO, On Deck Capital (Part 1) Sramana Mitra. 2010-06-28. Sramana Mitra. 2017-09-16. en-US.
  7. Web site: OnDeck. RRE Ventures. en-US. 2017-09-16.
  8. News: On Deck Adds $17M From Google Ventures And Peter Thiel To Help Small Businesses Connect With Capital. Empson. Rip. TechCrunch. 2017-09-16. en.
  9. Web site: On Deck Capital Has Received Series C Funding from SAP Ventures: Signal Hill. www.signalhill.com. 2017-09-16.
  10. Web site: OnDeck Capital Raises $77M Led by Tiger Global to Expand Small Business Lending. Chapman. Lizette. 2014-03-06. WSJ. en-US. 2017-09-16.
  11. Web site: An innovative alternative to bank credit. 11 February 2013 .
  12. Web site: Form 10-K. www.sec.gov. 2017-09-16.
  13. Web site: OnDeck Australia Review. Small Business Loans Australia. 2017-12-29.
  14. News: Online loans for small business: New lenders set to transform financial services. CBC News. 2017-09-16. en.
  15. News: US online business lender OnDeck to set up in Australia. The Sydney Morning Herald.
  16. Web site: Fuscaldo . Donna . Struggling Online Lender OnDeck Sold To Enova International . 2022-07-12 . Forbes . en.
  17. News: Simon . Ruth . Rudegeair . Peter . Glazer . Emily . Inside J.P. Morgan's Deal With On Deck Capital . 2017-09-16 . WSJ . en-US.
  18. News: An In Depth Look at the OnDeck/JPMorgan Chase Deal - Lend Academy. 2015-12-04. Lend Academy. 2017-09-16. en-US.
  19. News: Why JPMorgan Chase And On Deck Capital Are Teaming Up To Offer Small Business Loans. Feldman. Amy. Forbes. 2017-09-16. en.
  20. News: JPMorgan Chase OnDeck Extend Digital Banking Lending Partnership for SMBs.
  21. News: JPMorgan Chase ends business loan partnership with OnDeck.
  22. Web site: Intuit and OnDeck to Launch $100M Small Business Lending Fund. investors.intuit.com. en-US. 2017-09-16.
  23. Web site: Angie's List Teams with OnDeck (:ANGI). investor.angieslist.com. en. 2017-09-16.
  24. Prosper Marketplace And OnDeck Announce Strategic Partnership . www.prnewswire.com . en . 2017-09-16.
  25. Web site: Small Business Loans Credit Karma. www.creditkarma.com. 2017-09-16.
  26. Web site: Small Business Loan and Line of Credit from Wave. Wave. Wave. 2017-09-16.
  27. News: WEX and OnDeck for Better Small Business Financing. 2017-01-25. Corporate Payments Insights. 2017-09-16. en-US.
  28. Web site: Innovative Lending Platform Association. ILPA. en-US. 2017-09-16.
  29. News: SMART Box - ILPA. ILPA. 2017-09-16. en-US.
  30. Web site: OnDeck Business Loans SCORE. www.score.org. en. 2017-09-16.
  31. Web site: How OnDeck Plans to Make Alternative Lending a Blue Chip Business. Inc.. Jeremy. Quittner. 13 March 2015. 16 September 2017.
  32. Web site: Is OnDeck Capital the Next Generation of Lender or Boiler Room?. Zeke. Faux. Dune. Lawrence. 13 November 2014. 16 September 2017. Bloomberg BusinessWeek.
  33. News: No. 1 Convene - 2013 Fast 50 Crain's New York Business. Crain's New York Business. 2017-09-16.
  34. News: 2014 Fast 50 Crain's New York Business. Crain's New York Business. 2017-09-16.
  35. Web site: Crain's New York Business - Fast 50. Crain's New York Business. 2017-09-16.
  36. Web site: Crain's names 50 fastest-growing companies in 2016. Crain's New York Business. 2017-09-16.
  37. News: OnDeck on the Forbes America's Most Promising Companies List. Forbes. 2017-09-16. en.

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