The investment by IVP is an encouraging sign. Small businesses looking for financing have not had an easy time of it. And while the credit markets seem to be easing, industry players say that's only for the most lendable companies.
Numerous so-called alternative lenders like On Deck Capital have seized upon an opportunity to provide financing -- through a more streamlined, tech-savvy process -- to Main Street businesses that might not be approved by more traditional institutions.
On Deck Capital has deployed $400 million directly to thousands of small- and medium-sized businesses in the U.S., the six-year-old company says.
There's no doubt that businesses are cautious, Breslow says. "At the same time where they have opportunity to invest in their business and get a return, they're taking advantage of it," he says.Banks are still very conservative when it comes to small-business lending, approving loans to only the top 5% to 10% of businesses. "Clearly, there's a lot more fundable small businesses out there besides that," Breslow says. The latest funding round follows a busy year of record performance for On Deck Capital. In 2012, the lender doubled its business, raised nearly $100 million in credit facility commitments jointly led by Goldman Sachs (GS - Get Report) and Fortress Investment Group (FIG - Get Report), tripled the number of distribution partners to 1,500 nationwide, expanded its bank partnerships and increased its industry coverage to over 700 vertical markets, serving essentially all types of Main Street businesses, it noted. On Deck also recently opened regional offices in Atlanta, Sarasota, Chicago and Los Angeles. This year it will open an office in Denver, and move into larger office spaces for its New York City headquarters and office in Arlington, Va. -- Written by Laurie Kulikowski in New York. Follow @LKulikowski To contact Laurie Kulikowski, send an email to: Laurie.Kulikowski@thestreet.com. >To submit a news tip, email: email@example.com.
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