Fintech business lender OnDeck achieved a milestone in the industry, becoming the first non-bank online lender to surpass $10 billion in total loans originated to small businesses.
OnDeck, with operations in the U.S., Canada and Australia, is the world’s largest non-bank online lender to small business by total loan volume.
The achievement by OnDeck is the latest indication that small businesses increasingly prefer to seek financing online. According to the Small Business Credit Survey from the Federal Reserve, small business owners are turning to online lenders in record numbers. In 2017, 24% of small businesses seeking credit applied online, up from 21% the previous year.
Not only did the total number of loan applications to online lenders increase in 2017, but satisfaction rates of small businesses soared almost 50% year-over-year.
OnDeck provided its first small business loan online in 2007, taking just 11 years to pass $10 billion in total loan volume in a digital lending market it helped create.
“If reaching $10 billion in total loan volume online tells us anything, it’s that the days of old-fashioned lending to small businesses are numbered,” said Noah Breslow, chairman and CEO of OnDeck. “We created OnDeck because we believed the internet could revolutionize and speed up the way underserved small businesses access capital. Today, we are helping to fill a credit gap across hundreds of industries by providing fast, secure and transparent loans that enable small businesses to grow, generate economic activity and create jobs.”
