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OnDeck, a New York-based online lender that makes small-business loans, announced Monday that it has raised $130 million in new debt funding.
September 16
The online business lender OnDeck has partnered with ProfitStars to help provide credit to small businesses that may not qualify for loans from banks or credit unions.
ProfitStars, a division of the payment processing technology provider Jack Henry & Associates, brings to the partnership access to the LendingNetwork, which is part of the Independent Community Bankers of America (ICBA) preferred service provider program.
The software enables banks and credit unions to retain a customer's deposit relationship, compete for future business from companies that do not currently meet credit requirements, remove problem lines of credit from the balance sheet, and receive referral fee revenue, according to OnDeck.
OnDeck is now added to a list of more than 30 commercial lenders that offer financing to LendingNetwork users.
The online lender will help expand LendingNetwork services "beyond the commercial accounts-receivable market to small businesses that come to a financial institution asking for a loan but lack the collateral for traditional financing," said David Foss, president of ProfitStars, in a press release.
A bank or credit union can "keep the deposit relationship" with a small business and ensure these businesses get the alternative funding they need from OnDeck even if they do not qualify for the bank loans, he said.
Since 2007 OnDeck has deployed more than $900 million in capital to tens of thousands of businesses across 725 different industries.
