OnDeck announced it will begin offering equipment finance loans to select U.S. small businesses next year, bringing its technology and digital lending expertise to what has traditionally been a slow-moving, opaque and complicated process.
"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," said Noah Breslow, Chairman and CEO, OnDeck. "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 also today announced the appointment of Mark Erickson as Vice President of Equipment Finance. Erickson is a veteran of the equipment finance market, previously serving in executive roles in sales, operations, syndications and risk at Key Equipment Finance, Inc., a unit of Key Corp. He was also the Managing Director of the firm's Australia and New Zealand subsidiary from 2000 to 2004.
"I look forward to working with the team to leverage OnDeck's online originations and underwriting technology to deliver speed and convenience for small business owners seeking equipment finance loans," Erickson said. "With speed, service and transparency, we are poised to transform this market to the benefit of small businesses."
Approximately $35 billion of new small ticket (under $250,000) equipment loan and lease financing was originated in the United States in 2017, according to the Equipment Leasing & Finance Association in its 2018 Survey of Equipment Finance Activity.
The new equipment finance loans will expand on an ongoing pilot referral program from OnDeck that began in the summer of 2018. 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.