Since launching in 2007, OnDeck has provided over $7 billion in capital to more than 70,000 customers in 700 different industries across the United States, Canada and Australia; creating a new type of commercial loan product for small businesses has been the company's focus since the beginning; its loans support small business activity in the regions it lends and its partnership with JPMorgan is an industry leading example of collaboration between fintechs and banks. Source
OnDeck has obtained a $200 million revolving credit facility from Credit Suisse; $125 million of the funding will be available while the remaining $75 million will be provided at the lender's discretion; loans will be made to Prime OnDeck Receivable Trust II, LLC (Port II), financing Port II's purchase of OnDeck loans for collateral; firm says it will use a portion of the funds to prepay its $100 million Prime OnDeck Receivable Trust, LLC facility. Source
OnDeck Capital's chief operating officer, James Hobson will be leaving OnDeck; according to Reuters, Hobson will be taking a new role as chief executive at online insurance company Attune; Hobson will remain in the role until March 15. Source
OnDeck has partnered with institutional data consultant, Orchard, to provide data reporting for institutional investors on its platform; OnDeck is a small business lender with significant investment from institutional investors; through the partnership Orchard will manage the loan reporting for OnDeck's institutional investors and provide investors with access to investor dashboards, portfolio benchmarking, automated daily holdings reports and a variety of customized reporting options held within the Orchard for Originators data system. Source
The marketplace lender has extended the maturity of its credit facility with Deutsche Bank to March 2019; the revised terms also add an additional $52 million to the credit facility; in comments regarding the revised terms, Howard Katzenberg, chief financial officer of OnDeck said, "The closing of this transaction reflects a continued ability to execute our financing strategy for 2017, which includes extending debt maturities and creating additional funding capacity for future loan growth." Source
OnDeck released its fourth quarter and full year earnings before the market's open on Thursday; the firm reported a net loss of $67.0 million for 2016 compared to a net profit of $10.3 million in 2015; originations were $2.4 billion in 2016 compared to $1.9 billion in 2015; revenue for the year increased to $264.8 million from $195.1 million; loan loss provisions were a factor contributing to the net loss with provisions increasing to $149.96 million in 2016 from $74.86 million in 2015. Sources
OnDeck Capital beat earnings estimates and missed revenue estimates for the second quarter; revenue was $86.85 million, increasing 25% from the comparable quarter; earnings per share were $0.02, increasing from -$0.20 in the second quarter of 2016; loan originations decreased from $589.7 million in the second quarter of 2016 to $464.4 million in the second quarter of 2017; company reported success in acceleration to profitability; expanded online lending partnership with JPMorgan for up to four years; deBanked provides their perspective on the earnings release. Source
Zhengyuan Lu, OnDeck's Senior Vice President of Capital Markets, will soon move to investment firm, Victory Park Capital; his last day is Tuesday; Victory Park invests in and provides credit facilities to online lenders, including Avant Inc. and Square Inc.; the last year has been a challenge for OnDeck as investors have not been buying loans at the same pace and this has forced the lender to hold more loans on its balance sheet. Source
OnDeck has announced a new partnership with Wex that will provide credit financing options for Wex's customers; Wex currently provides payment solutions and credit services for corporations and small businesses; the partnership will offer OnDeck's loans of up to $500,000 and credit lines of up to $100,000 for Wex's customers. Source
OnDeck has announced that it will be presenting at the J.P. Morgan 2016 Fintech & Specialty Finance Forum on November 30 in New York City; Noah Breslow, chief executive officer, and Howard Katzenberg, chief financial officer, will be the featured speakers; the event provides an opportunity for fintech and specialty finance companies to present on the competitive advantages of their firm for a range of corporate leaders, financial sponsors and institutional investors. Source