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Alternative Small Business Lenders Increasing Main Street Up Loan Totals

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March 29, 2013

OnDeckNoahBreslowAlternative lender On Deck Capital’s CEO Noah Breslow got a nice profile piece about him and his company in the April edition of Forbes Magazine.

Embracing all the data they can find on the Internet, such as Google, social media, Yelp, legal records the company boasts it can make a credit decision within four hours, and sometimes as quickly as ten minutes.

The company’s average small business loan is a $30,000, up to an 18 month term loan.

Daily checking account debit micro payments keep On Deck attuned to possible deteriorating financing conditions much quicker than traditional lenders.

The company claims a default rate of 5%. Interest rate range up to 36%, with a 2% origination fee.

Funded by hedge funds and venture capitalists, the company will lend $400 million this year and top $100 million in revenues. Last year’s results? A “small” loss on revenues of $37 million.

Check out the rest of the story here.

 

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