December 17, 2014
By Bob Coleman
Editor, Coleman Report Afternoon Brief
This is on the heels of the eye popping $9 billion valuation of Lending Club with its IPO last week.
The disruptive effects by these two alternative lenders to brick and mortar small business lenders has definitely entered the next phase.
Launched in 2007, On Deck Capital, Inc. has lent more than $1.7 billion in capital to tens of thousands of small business. The average loan is $30,000 with a term of about nine months.
The average APR on a loan is 54% discloses the company in its SEC filings.
The company says it “uses data aggregation and electronic payment technology to evaluate the financial health of small businesses and deliver capital to a market underserved by banks.
“Through the On Deck Capital, Inc. platform, small businesses can obtain loans with less time and effort than it takes through traditional channels.
“The company’s proprietary credit models look deep into the health of businesses, focusing on overall business performance, rather than solely on the owner’s personal credit history. The On Deck Capital, Inc. system also provides a mechanism for financial institutions and other business service providers to efficiently reach the Main Street small business market.”: