OnDeck to prove a game changer for Australian small business
Disruptive US lender OnDeck has revealed that its online SME loans platform will be up and running in Australia before the end of the year.
OnDeck aims to answer a key challenge facing Australia’s 2 million small businesses- the ability to access working capital quickly and easily, so business owners can spend their time growing their business instead of trying to find financing.
OnDeck’s streamlined online application process has been tried and tested in North America over the last 8 years and has originated more than $2 billion (USD) in loans to small businesses in more than 700 industries across the US and Canada.
An important point of difference to traditional credit providers is that OnDeck does not rely solely on the small business owner’s personal credit history, but looks at the overall health of a business. Its advanced analytics evaluate over 2,000 data points – from cash flow to public records to social data to its own extensive internal historical performance data – to more accurately assess business viability. This allows OnDeck to evaluate, approve and fund small business loans within days, providing all important cash flow.
Having closely followed OnDeck’s success in the US, MYOB is supporting the launch of OnDeck Australia as a strategic investor and distribution partner in the local market. As just one OnDeck’s distribution channels, it will work with MYOB to deliver online financing solutions to its approximately one million business users across Australia.
OnDeck’s impact on the small business financing landscape in North America has been transformational and it promises to be similar in the Australian market.