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The lender has reported a 43 per cent origination increase since its management buyout, with raised funding limits said to be partly responsible.
In early February, OnDeck Australia’s (OnDeck) executives and investors collectively purchased 80 per cent of the lender from its US-based owner, Enova International.
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According to the SME lender’s internal figures, in the six months since this deal with the financial technology provider completed, OnDeck has seen a 43 per cent lift in its loan originations.
This momentum was said to be partly driven by an increase in its Lightning Loan, a business product launched in 2021 that allows unsecured funding within two hours.
Prior to the management buyout (MBO), the Lightning Loan had a cap of $100,000. However, this has since been lifted to $150,000.
Cameron Poolman, the chief executive of OnDeck, commented that the lender’s decision to lift this funding limit “reflects one of the many benefits of the MBO as OnDeck is now better able to tailor lending products to the needs of Australia’s small business community”.
OnDeck has also said this rise in originations also “reflects significant demand for rapid funding across the broader small business sector”.
“We are seeing applications for small business finance across every industry though retail, construction and hospitality are particularly well-represented in funding applications,” Mr Poolman said.
“The common thread is the need for fast lending decisions and accelerated delivery of funds. Lightning Loans offers this, allowing small businesses to take advantage of time-specific opportunities such as discounts on trading stock, refurbishment of premises and engaging new staff in a tight labour market.”
Mr Poolman concluded that the bottom line of these new figures suggest that OnDeck is “giving more small businesses and our broker partners a streamlined application process and rapid delivery of funds”.
Mr Poolman said this can provide a “critical competitive market in today’s market”.
“We anticipate this will continue to drive further growth in OnDeck’s loan originations,” Mr Poolman said.
Separate findings have suggested that the bulk of SMEs across the country are struggling to secure capital.
One report released by Banjo Loans in May concluded that roughly 62 per cent of SMEs were then facing challenges in securing funding.
The same report also suggested that 40 per cent of SMEs were relying on bank loans as funding sources, while 19 per cent were using family or friends as a means for funding.
Separate data released by FICO concluded that more than one-third of Australian SMEs were considering non-bank alternatives for funding, with speed of access tipped as a key motivating factor.
[Related: Almost two-thirds of SMEs struggling to secure funding: Banjo]
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