OnDeck Capital is an online small business lending company in the United States. It has offices in

Chicago, IL (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = List of sovereign states, Count ...

;

New York, NY New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...

;

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, and South Jordan, UT.

History

Entrepreneur Mitch Jacobs founded OnDeck in 2006 and headquartered the company in New York City. Jacobs sought funding from VCs companies, with early investors including

First Round Capital First Round is a venture capital firm that specializes in providing seed-stage funding to technology companies. Founded by Josh Kopelman Joshua Kopelman is an American entrepreneur, venture capitalist, and philanthropist. Kopelman is best ...

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, Village Ventures, Contour Venture Partners,

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(now Sapphire Ventures),

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and

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. OnDeck uses proprietary software to aggregate data about a business’ operations, which is processed by an algorithm that determines loan eligibility. In 2007, the company introduced its short-term loan product and made its first loan, and by early 2010, the company had made over $50M in loans to small businesses in the U.S. Jacobs left OnDeck in 2012, and Noah Breslow became the CEO. OnDeck completed its

IPO An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investment ...

in December 2014 and became listed on the New York Stock Exchange under the symbol ONDK, raising $230 million in the offering. In 2015, the company expanded its operations into Canada and Australia, the latter operating as OnDeck Capital Australia Pty Ltd in partnership with MYOB. In July 2020, OnDeck was acquired by Chicago consumer lender Enova International.

Partnerships

In June 2016,

JPMorgan Chase JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City and incorporated in Delaware. As of 2022, JPMorgan Chase is the largest bank in the United States, the ...

made a deal with OnDeck to offer an online lending process to its small business customers. The bank uses OnDeck’s origination and loan servicing technology to supply small businesses with same or next-day funding. JPMorgan Chase and OnDeck announced an extension of their collaboration in August 2017. The JPMorgan Chase partnership ended in July 2019. OnDeck’s referral partners include Intuit QuickBooks,

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Prosper Marketplace Prosper Marketplace, Inc. is a San Francisco, California-based company in the peer-to-peer lending industry. Prosper Funding LLC, one of its subsidiaries, operates Prosper.com, a website where individuals can either invest in personal loans or r ...

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, Wave Accounting, and

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. OnDeck is a founding member of the Innovative Lending Platform Association (ILPA), a trade organization representing online lending and service companies that serve small businesses. In 2016, the ILPA, in partnership with the Association for Enterprise Opportunity, launched The SMART Box, a “model small business pricing disclosure...focused on empowering small businesses to better assess and compare finance options.” OnDeck also partners with SCORE, an American non-profit that provides small businesses with free advice and mentors.

Criticisms

OnDeck Capital has been criticised for its high interest rates. In 2015, its average loan had an annual 51% interest rate. In 2014,

Bloomberg BusinessWeek ''Bloomberg Businessweek'', previously known as ''BusinessWeek'', is an American weekly business magazine published fifty times a year. Since 2009, the magazine is owned by New York City-based Bloomberg L.P. The magazine debuted in New York City ...

called OnDeck "

payday lending A payday loan (also called a payday advance, salary loan, payroll loan, small dollar loan, short term, or cash advance loan) is a short-term unsecured loan, often characterized by high interest rates. The term "payday" in payday loan refers to ...

for businesses", relying on brokers who were "less-than-scrupulous."

Awards

* Crain’s New York Business Fast 50, 2013, 2014, 2015, 2016 * Forbes’ America’s Most Promising Companies, 2014

References

{{Authority control Financial services companies established in 2006 Technology companies of the United States Companies based in New York City 2014 initial public offerings Companies formerly listed on the New York Stock Exchange 2020 mergers and acquisitions