OnDeck Capital
| File:OnDeck Capital logo.svg | |
| Company type | Subsidiary |
|---|---|
| Template:NYSE was | |
| Industry | Financial services |
| Genre | Financial Technology |
| Founded | 2006 |
| Founder | Mitch Jacobs |
| Headquarters | , |
Key people |
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| Products | Small Business Loans, including Term Loans and Lines of Credit |
| Revenue | $291.3 million (2016) |
| Parent | Enova International
www |
| Website | www |
OnDeck Capital is a U.S.-based lender specializing in small business financing, with offices located in Chicago, New York City, Denver, and South Jordan, Utah. The company operates exclusively through an online platform that employs proprietary technology to collect business data, which is then analyzed by an algorithm to assess loan qualification.
History
Founded in 2006 by Mitch Jacobs, OnDeck initially established its headquarters in New York City. Early-stage investments were secured from venture capital firms such as First Round Capital, Khosla Ventures, Contour Venture Partners, RRE Ventures, Sapphire Ventures, Google Ventures, and Tiger Global Management.
The company introduced its short-term loan offering in 2007 and issued its inaugural loan that same year. By 2010, OnDeck had facilitated over $50 million in small business loans across the United States.
Following Jacobs’ departure in 2012, Noah Breslow assumed the role of CEO. OnDeck went public in December 2014, debuting on the New York Stock Exchange under the ticker ONDK and raising $230 million through its initial public offering. In 2015, the firm expanded operations internationally by entering the Canadian and Australian markets; in Australia, it operates as OnDeck Capital Australia Pty Ltd through a strategic alliance with MYOB.
In July 2020, Enova International, a Chicago-based consumer lending company, acquired OnDeck.
Partnerships
In June 2016, OnDeck formed a partnership with JPMorgan Chase to deliver an online lending solution for small business clients. This collaboration utilized OnDeck’s loan origination and servicing technology to enable funding within the same or next day. The agreement was renewed in August 2017 but ultimately concluded in July 2019.
OnDeck has established referral relationships with companies such as Intuit QuickBooks, Angie's List, Prosper Marketplace, Credit Karma, and WEX Inc., broadening its presence in the small business lending sector.
As a founding participant of the Innovative Lending Platform Association (ILPA), OnDeck advocates for transparency standards within the industry. In 2016, ILPA collaborated with the Association for Enterprise Opportunity to launch The SMART Box, a pricing disclosure framework designed to assist small businesses in comparing financing options effectively.
Additionally, OnDeck partners with SCORE, a nonprofit organization that offers free guidance and mentorship to small business owners.
Criticisms
OnDeck Capital has been criticized for charging high interest rates on its loans; in 2015, the average annual percentage rate was reported at 51%. In 2014, Bloomberg BusinessWeek characterized OnDeck as a form of "[payday lending] for businesses," highlighting concerns regarding dependence on brokers who have been linked to questionable practices.
Awards
- Crain’s New York Business Fast 50, awarded from 2013 through 2016
- Forbes’ list of America’s Most Promising Companies, 2014 edition