What is the story about?
What's Happening?
OnDeck is providing small business loans ranging from $5,000 to $250,000, with the potential for same-day funding for amounts up to $200,000. The company offers two types of funding options: term loans and lines of credit. Businesses must have been operational for at least one year, with a minimum annual revenue of $100,000, to qualify. OnDeck's loans are designed to support various business needs, including inventory purchases, payroll, renovations, and marketing. The lender charges an origination fee between 0% and 4% for term loans and considers credit scores as low as 625.
Why It's Important?
Access to quick funding is crucial for small businesses, especially those facing cash flow challenges or looking to expand. OnDeck's offering of same-day funding provides a significant advantage for businesses needing immediate financial support. This can help stabilize operations, facilitate growth, and enable businesses to seize opportunities without delay. The availability of loans to businesses with lower credit scores also broadens access to capital, supporting a wider range of entrepreneurs and fostering economic diversity.
What's Next?
As OnDeck continues to offer competitive loan options, other lenders may follow suit, increasing the availability of fast funding solutions for small businesses. This could lead to a more dynamic lending market, with businesses benefiting from improved access to capital. Additionally, OnDeck's focus on supporting businesses with lower credit scores may encourage other lenders to adopt similar inclusive practices.
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