On Deck Launches New Loan Payment Method For Small Businesses
On Deck announced at the Electronic Transactions Association Annual Meeting and Expo the launch of Split Funding, a new payment method that allows merchants to obtain a true business loan with a variable payment option.
On Deck pioneered the first fixed daily micro payment system for small business loans, and now clients seeking business funding can choose between the daily micro payments drawn from their operating business account or Split Funding, which allows merchants to pay back the loan using a variable percentage of their daily credit card sales, the company said. The Split Funding option keeps the benefits of a true business loan, while offering the flexibility of aligning loan payback with seasonal or varying sales.
“Split Funding offers yet another flexible option for our growing Main Street business customers,” said Brad Kime, president, On Deck. “In the past, people who wanted variable payments were forced to go with a more expensive cash advance product that was not a true loan and lacked the benefits of credit reporting. As On Deck continues to evolve and best meet the specific needs of our customers, we now offer Split Funding as an option for small businesses that prefer their loan payments deducted from credit card sales.”
On Deck has partnered with merchant processor Integrity Payment Systems to facilitate the launch of this program. Mike Ponder, CEO of Integrity said, “On Deck is a leader in small business financing, and web re excited to be servicing them as On Deck offers business owners another way to access the capital they need to grow.”
To date, On Deck has delivered over $200 million to Main Street businesses nationwide. The On Deck platform is helping to solve financing issues on Main Street by using data aggregation and electronic payment technology to efficiently and accurately analyze the financial health of a business and provide them access to capital, the company said.