OnDeck (NYSE: ONDK), a small business online lending platform, announced on Friday it will offer to fund and debit customer bank accounts with Same Day ACH transfers.
According to OnDeck, same Day ACH transfers will provide qualified OnDeck Term Loan and Line of Credit customers with funds up to the National Automated Clearing House Association (NACHA) cap of $25,000 by 5:00 pm local time on the same business day the customer books or makes a draw on their line of credit. The online lender noted that qualified customers are also debited via the same day ACH service, providing them additional predictability in transaction clearing times and offering better clarity around day-to-day cash flow management.
“An ACH transfer is the electronic movement of money between banks through the Automated Clearing House network, one of the largest U.S. payment systems. Up until now, delivery and posting of ACH fund transfers to customers took several business days. For small business customers facing payrolls or other financial obligations, the delay in obtaining needed funds coupled with slow posting times was often problematic from a cash management perspective.”
Speaking about the new feature, Shaleen Prakash, Vice-President of Product Management of OnDeck, stated:
“Today’s announcement marks an important step forward in how small businesses access capital online and subsequently deploy those funds on behalf of their business. Same Day ACH transfers are a game changing option for small businesses because they provide access to needed capital by the end of the business day and offer better visibility and certainty into the timing of the transactions clearing in their bank account, which in turn leads to better cash management.”
OnDeck went on to note that the implementation of the Same Day ACH Transfer service marks another step by the lender to fund approved small businesses either instantly or on the same day. OnDeck explained it already provides real-time instant funding of loan proceeds for its line of credit customers via their existing business debit cards. Instant funding of a business owner’s debit card from OnDeck is enabled through a partnership with Ingo Money and Visa Direct. Noah Breslow, CEO of OnDeck, added:
“At OnDeck we take pride in leveraging the best technologies that exist in the ecosystem to provide a superior experience to our customers. We were the first online small business lender in North America to offer instant funding using the Visa debit network. And, with our Same Day ACH service, we have demonstrated again our commitment to relentlessly innovating on behalf of small businesses to provide our customers with faster service.”