March 29, 2013
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.