Online Lenders

OnDeck expands into equipment financing

  • Equipment financing is heating up.
  • Small business lender OnDeck wants a piece of the action.
close

Email a Friend

OnDeck expands into equipment financing

In the wake of record originations in the third quarter of the year, the online small business lender OnDeck is expanding its services to financing equipment purchases. The company had already been referring customers seeking equipment financing to third-parties, and instead, will now originate and service such loans themselves.

What’s happeningIn a press release, the company gave some details about the proposed expansion: 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.

Why get into equipment financingOnDeck is working its way into an already competitive industry. According to a report from the Equipment Leasing & Finance Foundation, there is increasing competition from lenders in the equipment leasing space across the board.

Tearsheet Take: With an already solid base of small business customers, OnDeck should be able to make this transition rather seamlessly. Additionally, 67percent of the $1 trillion equipment leasing industry finances their purchases via loans or leases, so it’s a huge market for disruption.

Some small business lenders, like Kabbage, offer equipment financing, and peer to peer lenders like Funding Circle offer alternative lending methods in the space. However, for the most part, traditional business lenders such as CIT and lending arms of commercial banks like Bank of America and Wells Fargo already control the vast majority of this market. This may be why OnDeck will originate loans less than $100,000 each, focusing more on smaller equipment purchases than their larger competitors.

0 comments on “OnDeck expands into equipment financing”

Online Lenders

‘PPP may end up being the straw that breaks the camel’s back’: Small businesses increasingly turn to smaller banks and fintechs during the pandemic

  • SMBs are finding larger banks busy servicing larger clients rather than their applications for government aid.
  • Smaller banks and fintechs are attracting new customers with technology and a stronger orientation toward service.
Sara Toth Stub | June 05, 2020
Online Lenders

Goldman Sachs gets into point of sale financing with MarcusPay

  • Marcus by Goldman is continuing its foray into consumer finance with a new installment loan product.
  • Launched with Jet Blue, the bank is betting MarcusPay resonates with consumers.
Zoe Murphy | April 13, 2020
New banks, Online Lenders

Customers Bank turns to OakNorth to help monitor its loans for COVID-19 crisis

  • Customers Bank, with $11 billion in assets, is using OakNorth's loan platform.
  • The two companies are looking for customer insights and actionability during the pandemic.
Zoe Murphy | April 10, 2020
Online Lenders

CIT revamps B2B point-of-sale lending platform

  • CIT upgrades its point of sale system to accelerate purchase finance.
  • The company rolls out APIs to ease integration.
Michael Deleon | February 17, 2020
Online Lenders

4 charts that show just how big a deal student debt is

  • Student debt hit historical highs in 2019 with $1.5 trillion in outstanding loans.
  • A new survey by Pillar asked people just how far they'd go to get rid of their loans.
Zoe Murphy | January 22, 2020
More Articles