The company is increasingly looking to partner with financial institutions to open the market for small-business loans.
On Deck says it's in discussions with many of the top U.S. 25 banks to use the technology platform.
"The banks are recognizing now that we have a proven model [to work with] a segment they are missing," Breslow says. "We have a credit model that is very squarely focused on the health of these micro businesses and not on the personal credit of the business owner. [We're] able to open up credit access to a whole new spectrum of businesses [that] have been screened on personal credit." (The company wouldn't release the specific names of banks with which it is in discussions.)
"Lending to a business with 300 employees is very different than an upstart with 25 employees and $25 million in revenue [or] even a home-based self-employed individual that brings in $30,000 in annual revenue," he adds.When the company originally launched, it expected certain industries to be more prevalent than others at receiving funding through the platform, like restaurants, auto body shops, retail stores and others that commercial bankers typically stay away from due to high failure rates, Breslow says. Instead, what they're seeing is "bankable" self-employed people like doctors and dentists finding relief through On Deck's system. "Time is valuable. They can't step away [from their businesses] and then wait a month to get approved," he says. "What we've learned is that convenience and speed and this idea of business owners being in control of the process" is appealing to applicants. The other trend the company is seeing involves the types of projects for which business owners are using the funds, indicative of the economy. "Business owners are taking on new projects and making investments, but they're smaller and shorter term than these long five-to-seven year investments," Breslow says. "Instead of someone saying 'I want to open a new location,' they might be using [the money] to hire workers at current locations."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV