Small business lender OnDeck records 43% uptick in loan originations in the first six months following its management buyout.
- OnDeck was the subject of a management buyout (MBO) in late 2022, which put the small business lender in Australians hands
- Loan originations have soared 43% since the MBO, partly reflecting a $50,000 uptick in the lending limit of its Lightning Loans from $100,000 to $150,000.
- The increased demand for finance reflects small business confidence, with increased demand for funding recorded across a wide range of industries and sectors.
Sydney: Leading online small business lender OnDeck Australia has recorded 43% growth in loan originations in the first six months following the company’s management buyout by an Australian team in late 2021.
A key driver for this growth was the increase in OnDeck’s Lightning Loan capability, allowing small businesses to access unsecured funding up to $150,000 within two hours with just six months of bank statements, up from $100,000 pre-MBO.
Lightning Loans are driven by OnDeck’s inhouse-designed assessment software – the KOALA Score (Key Online Australian Lending Algorithm), which analyses a small business’s bank statements and uses risk management technology to accelerate lending decisions, often without the need to involve an underwriter.
Mr Cameron Poolman, CEO of OnDeck Australia, said, “OnDeck’s decision to lift the funding limit on Lightning Loans from $100,000 to $150,000 reflects one of the many benefits of the MBO as OnDeck is now better able to tailor lending products to the needs of Australia’s small business community.”
OnDeck’s growth in loan originations reflects significant demand for rapid funding across the broader small business sector.
Mr Poolman said, “We are seeing applications for small business finance across every industry though retail, construction and hospitality are particularly well-represented in funding applications.
“The common thread is the need for fast lending decisions and accelerated delivery of funds. Lightning Loans offers this, allowing small businesses to take advantage of time-specific opportunities such as discounts on trading stock, refurbishment of premises and engaging new staff in a tight labour market.”
OnDeck uses a technology-based approach to loan applications, which require just six months of bank statements to be uploaded to OnDeck. The technology behind the KOALA Score credit assessment allows Lightning Loan applications to be assessed in as fast as one hour, with funds delivered to approved applicants in as little as two hours.
“The bottom line is that OnDeck is giving more small businesses and our broker partners a streamlined application process and rapid delivery of funds, which can provide a critical competitive market in today’s market. We anticipate this will continue to drive further growth in OnDeck’s loan originations,” concluded Mr Poolman.
Mr Nick Allen Commercial Finance Specialist, Matias Group, says “My small business clients are seeking finance for a variety of purposes including growth opportunities, the purchase of new equipment that you can’t buy with equipment finance such as skip bins, trading stock or just to take the day-to-day pressure off managing cashflow.
“OnDeck is always very quick to respond to loan applications, their team is fantastic to deal with and Lightning Loans are proving very popular among the small businesses I work with for the ease of application and rapid access to funding. It lets business owners get on with managing growth sooner.”
OnDeck is the proven leader in transparent and responsible online lending to small business. Since launching in Australia in 2015, OnDeck’s focus has always been on supporting small businesses with access to fast, efficient unsecured finance.
Today, OnDeck offers a wide range of term loans and lines of credit customised for small business owners’ needs. OnDeck has provided over $US13billion in loans to over 110,000 customers in many different industries, and it has a 5-star rating from Trust Pilot
In 2021, OnDeck launched The KOALA Score risk-prediction model that draws on big data, predictive analytics, plus data from multiple credit reporting agencies to enable more Australian small businesses to be approved for a commercial loan.
In 2021, OnDeck also launched Lightning Loans, which enables the decisioning of loans up to $150,000 in as fast as 30 minutes, and funding in as fast as two hours. For more information, visit www.ondeck.com.au
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