Micro Lender OnDeck Snags $100M Credit Facility

August 23, 2012

Big news happened today when On Deck Capital announced their new $100 million credit facility with Goldman Sachs. On Deck utilizes a technology platform to offer small, short-term loans on a microfinancing level, often with a one or two day turnaround. In anticipation of their big announcement, the Coleman Report interviewed On Deck's CEO Noah Breslow to ask what this means for On Deck and why it is important to bankers.

"The new $100 million credit facility is more than double our last facility," Breslow said, "Every dollar turns about three times a year, so in the next 12 months we anticipate doing around $300 million in original loan origination, serving 10,000 small businesses." On Deck is an expert at microlending, their average loan size is around $35,000, which is a very difficult bucket. With the backing of Goldman, they now have a validation of their credit model and platform. "With this announcement, we anticipate more banks will participate," Breslow said, "Fifteen of the top twenty-five banks in the country are already in talks with On Deck."

We all know that getting capital to Main Street small businesses is good for the economy, and Breslow said the average revenue increase for small business owners after taking an On Deck loan is 24 percent, often within 90 days. It is this kind of success that landed On Deck at number 302 on this year's Inc. 500 list. Check out On Deck today and see if they can help you fill your microlending bucket.