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OnDeck has announced surpassing $10 billion in small business loans after 11 years in operation.
The lender — which operates in the US, Canada and Australia — claimed to have topped $10 billion in total loans provided to small businesses since its founding in 2007.
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However, the company said that the majority of its lending occurred in the last few years as it scaled, originating $2.1 billion in loans in 2017.
OnDeck believes this is reflective of small businesses increasingly turning to online lenders for access to finance.
“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,” Noah Breslow, chairman and CEO of OnDeck, said.
“We created OnDeck because we believed the internet could revolutionise and speed up the way underserved small businesses access capital.”
The SME lender in recent months announced closing a $75 million asset-backed revolving credit facility from Credit Suisse, and a further CA$50 million (AU$51.2 million) from Crédit Agricole, in a move to refinance its loan book and support future originations in Australia and Canada.
The Australian subsidiary of the SME lender became one of the first signatories of a new Code of Lending Practice — along with Capify, GetCapital, Moula, Prospa and Spotcap — that aims to standardise transparency and disclosure around their online, unsecured business loans and the use of finance brokers.
The code, modelled on best practice examples from more mature fintech markets in the US and UK, 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.
[Related: European fintech comes to Australia to target SME market]
