In the past decade, growth in financial technology has spawned a new generation of online lenders. These lenders use the latest technology to underwrite and finance small business loans. Customers can apply online and receive funding in 24 hours in some cases. ABF Journal Editor Nadine Bonner speaks with executives from three fintech companies that specialize in small business loans.
OnDeck Funding, a subsidiary of OnDeck Capital, amended its existing ABL revolver to increase its lenders’ commitment from $100 million to $150 million. Ares Agent Services served as administrative agent.
Online lender OnDeck Capital increased its revolving debt facility with Pacific Western Bank from $20 million to $30 million.
Small business lender OnDeck announced a Q3/16 net loss of $16.6 million compared to net income of $3.7 million a year earlier. The company noted its provision for loan losses charge of $36.6 million was up 126% from $16.2 million a year earlier.
The Wall Street Journal provided insights into why JPMorgan will start using online lender OnDeck Capital to help make loans to some of the bank’s four million small-business customers.