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OnDeck has closed a $75 million asset-backed revolving credit facility from Credit Suisse in a move to refinance its loan book and support future originations.
In a release, the SME lender said that the facility provided by Credit Suisse will be used to refinance OnDeck’s current loan book in Australia as well as fund future originations.
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OnDeck also closed a CA$50 million (AU$51.2 million) revolving credit facility from Crédit Agricole, which is the first it has obtained in Canada, for its Canadian business.
The creditor has agreed to provide OnDeck with additional access to CA$25 million at the discretion of the lenders.
OnDeck Australia and OnDeck Canada will act as the loan servicers in their respective regions.
OnDeck’s head of capital markets, Ron Elimelekh, said that the company is “pleased” to expand its existing relationship with Credit Suisse and welcomes its new partnership with Crédit Agricole.
OnDeck CFO Ken Brause added: “Securing cost-effective facilities that provide committed funding to support the loan growth of our international businesses reflects another step forward in the execution of our financing strategy.
“These two transactions provide additional capacity to support small businesses in Australia and Canada and help them to achieve their goals.”
The Australian subsidiary of the SME lender recently became one of the first signatories of a new Code of Lending Practice that aims to standardise transparency and disclosure around their online, unsecured business loans and the use of finance brokers.
Developed with support from the Australian Finance Industry Association, the Australian Small Business and Family Enterprise Ombudsman, thebankdoctor.org and FinTech Australia, the code pulls together the obligations of online small business lenders to promote high industry standards of service, provide a benchmark with respect to the disclosure of comparable financial information to borrowers and support compliance with legal and industry obligations.
Modelled on best practice examples and feedback from the more mature fintech markets in the US and UK, the code has therefore been brought forward as part of a “proactive move to pull the obligations of online small business lenders together into one document” and make it easier for both participants and borrowers to understand their obligations.
Other signatories to the code include Capify, GetCapital, Moula, Prospa and Spotcap.
[Related: OnDeck joins Connective panel]
