Small Business Online Lending Leader Will Offer Equipment Finance Loans in 2019
NEW YORK, Dec. 19, 2018 /PRNewswire/ -- OnDeck® (ONDK), the leader in online lending to small business, announced today that it will begin offering equipment finance loans to select U.S. small businesses next year, bringing its heralded 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. Mr. 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," said Mark Erickson, Vice President, OnDeck Equipment Finance. "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.
To learn more about OnDeck Equipment Financing solutions, please visit: www.ondeck.com/equipment
OnDeck (ONDK) is the proven leader in transparent and responsible online lending to small business. Founded in 2006, the company pioneered the use of data analytics and digital technology to make real-time lending decisions and deliver capital rapidly to small businesses online. Today, OnDeck offers a wide range of term loans and lines of credit customized for the needs of small business owners. The company also offers bank clients a comprehensive technology and services platform that facilitates online lending to small business customers through ODX, a wholly-owned subsidiary. OnDeck has provided over $10 billion in loans to customers in 700 different industries across the United States, Canada and Australia. The company has an A+ rating with the Better Business Bureau and is rated 5 stars by Trustpilot. For more information, visit www.ondeck.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other legal authority. Forward-looking statements can be identified by words such as "will," "enables," "targets," "expects," "intends," "may," "allows," "plans," "continues," "believes," "anticipates," "estimates" or similar expressions. These include statements regarding OnDeck's plans to offer equipment finance loans, its belief that its technology will revolutionize the equipment finance market and its expectation that the new offering will become a vital source of equipment financing for small businesses. They are based only on our current beliefs, expectations and assumptions regarding the future of our business, anticipated events and trends, the economy and other future conditions. As such, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and in many cases outside our control. Therefore, you should not rely on any of these forward-looking statements. Our expected results may not be achieved, and actual results may differ materially from our expectations. Important factors that could cause actual results to differ from our forward-looking statements include risks relating to: (1) our ability to launch and scale our equipment finance offering beyond our limited pilot program; (2) our ability to effectively underwrite and price equipment finance transactions, and evaluate the initial and residual value of the loan collateral; (3) developing or acquiring the technology needed to support the new offering; (4) adequately training sales and customer service personnel to handle the new offering; (5) possible delays in our ability to launch the new offering; (6) customer acceptance; (7) intense competition from other equipment finance providers, many of whom have much more experience and greater financial resources than we do, and risks of innovation by our competitors; (8) the anticipated benefits of the equipment finance offering not being realized in full or at all, or taking longer to achieve than expected; (9) actual losses exceeding expected losses for the new offering; (10) worsening economic conditions that may result in decreased demand and increase our customers' default rates; (11) the effectiveness of our risk management efforts; (12) repossessing equipment collateral and liquidating it, including possible reputational and publicity risks associated with our collection efforts; (13) disruptions in credit markets and the availability and cost of our key funding sources; (14) changes in federal or state laws or regulations, or judicial decisions, if and when issued or enacted, involving licensing or supervision of commercial lenders, interest rate limitations, the enforceability of choice of law provisions in loan agreements, the validity of bank sponsor partnerships, the use of brokers or other significant changes; and other risks, including those described in our Annual Report on Form 10-K for the year ended December 31, 2017 and in other documents that we file with the Securities and Exchange Commission from time to time which are or will be available on the Commission's website at www.sec.gov. Except as required by law, we undertake no duty to update the information in this press release.
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