OnDeck (NYSE: ONDK), a small business online lending platform, announced on Wednesday it is set to offer equipment finance loans to select U.S. small businesses next year, bringing its technology and digital lending expertise to what it believes has traditionally been a slow-moving, opaque, and complicated process. While sharing more details about the loans, Noah Breslow, Chairman and CEO, OnDeck, stated:
“With more than a decade of success and over $10 billion funded to small businesses online, we believe OnDeck’s technology is primed to revolutionize how small businesses finance their equipment needs. We expect OnDeck equipment finance loans to quickly become a vital source of online financing for small business owners seeking simple, transparent equipment financing they can understand and utilize.”
OnDeck reported that the new equipment finance loans will expand on an ongoing pilot referral program from OnDeck that began in the summer of 2018. The lender added:
“Under the pilot program, OnDeck has referred small businesses seeking equipment financing to a third party that originates and services the loans. In 2019, OnDeck will begin making its own equipment finance loans, ranging from $5,000 up to $100,000, with terms ranging from 24 to 60 months, secured by new and used equipment. OnDeck plans to offer only equipment finance loans, rather than leases.”