One in five small businesses are more likely to take out a loan if given the option of a ‘repayment holiday’ according to OnDeck research.
- OnDeck is helping brokers serve their small business customers by giving its new and renewal loan customers a 4-week repayment holiday for loans booked through September.
- Customers won’t be hit with any charges during the 4-week repayment vacation
- OnDeck says business owners can use the time to regroup, recharge or explore COVID support schemes.
- OnDeck’s Lightning Loans can deliver up to $100,000 in funding in as fast as two hours with only minimal requirements, letting brokers help their small business clients take a break sooner.
Sydney (14 September 2021): Leading online small business lender OnDeck Australia is supporting brokers’ business growth – and cashflow needs of their small business clients by offering a 4-week repayment holiday to all new and renewal loan customers during the month of September.
Small businesses who opt to take advantage of the repayment vacation won’t incur any interest or other charges for that four week period.
Mr Cameron Poolman, CEO of OnDeck Australia, said, “OnDeck research indicates how much potential this has to help brokers expand their commercial lending, by revealing that one in five small businesses are more likely to take out a loan if they have the option of a ‘repayment holiday’.
“It’s not just about business funding. The same survey found that one in two small business owners haven’t taken a break from work in the past six months. Our repayment holiday allows brokers to give small business customers a chance to take time out, regroup or recharge, or maybe have a bit more time to explore any government support payments available through COVID-19 lockdowns.
Funding in as fast as two hours
OnDeck’s innovative Lightning Loans are available for up to $100,000 and are backed by a streamlined application and approval process, which can see brokers get a decision for their clients in as fast as 30 minutes and deliver the finance their small business clients need in as fast as two hours, with only minimal requirements.
“OnDeck recognises the need for speed in small business lending, and unlike traditional lenders, we don’t base lending decisions on a rear mirror view of business performance,” said Mr Poolman.
OnDeck’s innovative risk-predicting credit model The KOALA Score™ uses a sophisticated blend of big data, predictive analytics, and statistical techniques in combination with data from multiple credit reporting agencies including illion and Equifax, to support more tailored risk assessment for small business lending.
“The KOALA Score™ is proving especially relevant during the pandemic, when past results are no guide of future business performance,” said Mr Poolman.
“We know that economic activity has bounced back quickly following the relaxing of previous lockdown restrictions. OnDeck’s month-long repayment holiday is an opportunity for brokers to demonstrate fast, efficient service, while giving their small business customers the funding they need to capitalise on pent-up demand when restrictions unwind, while providing valuable breathing space to manage cashflow in the interim,” concluded Mr Poolman.
Mr Jason Smith, Director of broking group Capital Plus Finance, said, “OnDeck’s repayment holiday is a great initiative, and one we will be supporting through promotional emails to potential clients.
“Most of my small business clients are in transport, construction and manufacturing. They will literally use OnDeck’s repayment holiday as a financial breather. I believe plenty of my clients will be thinking along the lines of ‘I’ve got this new tailgate on my truck, and I won’t need to make a payment for another four weeks’.”
Mr Smith added, “It really is a valuable break for small businesses – particularly as it won’t affect a small business’s credit score. They’ll just take the break and say, ‘Great. That’s one less worry for the next four weeks’.”
OnDeck is the proven leader in transparent online lending to small business. In 2021, OnDeck launched The KOALA Score™, a risk-prediction model that draws on big data, sophisticated credit algorithms, plus data from multiple credit reporting agencies to approve more Australian small businesses for finance.
In 2021, the dedicated small business lender also launched Lightning Loans, which is delivering turbo-charged finance of up to $100,000 to Australian small businesses in as fast as 2 hours.
Today, OnDeck offers a range of term loans developed to better suit the needs of small business owners. Since launching in 2015, OnDeck has championed the financing needs of business owners in many different industries across Australia, pioneered the SMARTBox™ to promote transparency and has a 5-star customer rating from Trust Pilot. For more information, visit www.ondeck.com.au
About the research
The independent research was conducted online in April 2020 by Honeycomb Strategy across more than 300 small business owners Australia-wide. The survey included small businesses with less than 50 employees, annual turnover of $50,000-$5 million, and in operation for at least 12 months.
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