(New York, NY) June 16, 2011 – On Deck (www.ondeck.com), the technology platform that connects Main Street directly to capital, announced today a significant expansion in the term and size of loans available to Main Street businesses through the On Deck platform. The maximum loan size has now increased from $100,000 to $150,000, with the maximum term increasing from 12 months to 18 months. These changes follow 4 years of continuous testing and development of the On Deck technology platform, and come at a critical time as Washington searches for solutions to create jobs on Main Street.
Today’s news represents a tremendous opportunity for the millions of local restaurants, retailers and service businesses who are typically searching for up to $150,000 in capital. This segment is critical to the health of the U.S. economy, and is historically underserved by the U.S. banking system due to the prohibitive cost of underwriting and processing these small loans.
The needs of small businesses are rapidly changing and the On Deck platform is continuously evolving to best meet the needs of a larger number of businesses. The increase in On Deck’s maximum loan size to $150,000 will allow businesses to implement larger projects, purchase more inventory, and further grow their operations. Extending the term to 18 months allows for increased flexibility for the business owner who can now extend the payment of their projects.
“Our goal has always been to offer a wide range of loan sizes and terms to business owners based on both their business necessities and their cash flow strength,” said Mitch Jacobs, Founder and Chief Executive Officer, On Deck. “Increasing both the maximum loan amounts and loan terms by 50% is a testament to both the advancements in the On Deck technology platform and the proven creditworthiness of the millions of Main Street businesses nationwide.”
Since connecting its first business to capital in 2007, over $130 million has been delivered to thousands of Main Street businesses through the On Deck platform.
The increase in loan sizes and terms available to these businesses is a direct result of the continuous improvements to the proprietary On Deck technology platform, which has proven highly accurate at identifying creditworthy Main Street businesses. On Deck creates an electronic profile of businesses, evaluating their financial health using data such as online banking, accounting and merchant processing information. Leveraging this data allows On Deck to focus on the true health of the business, rather than the personal credit score of the business owner – opening credit to millions of additional businesses nationwide.
For more information about On Deck, and to establish an On Deck profile allowing access to free business financing tools, please visit http://www.ondeck.com.
The loan increase and extended terms may not currently be available in all states.
About On Deck
Launched in 2007, On Deck Capital uses data aggregation and electronic payment technology to evaluate the financial health of small businesses and to efficiently deliver capital to a market underserved by traditional bank loans. Through the On Deck Capital platform, millions of small businesses can obtain affordable loans to meet their daily operating and long term goals. The company’s proprietary platform looks deeper into the health of small businesses, focusing on the overall business performance, rather than the owner’s personal credit history. The On Deck system also provides a critically needed mechanism for commercial institutions to efficiently reach and serve the historically underserved Main Street small businesses market.
On Deck Capital is financed by some of the nation’s leading venture capital firms, including SAP Ventures, Contour Venture Partners, First Round Capital, Khosla Ventures, RRE Ventures and Village Ventures.
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