ProfitStars Partners with OnDeck to Strengthen Small Business Financing Options - Program offers instant decisions and fast funding, expanding reach beyond traditional channels -
MONETT, Mo., Feb. 27, 2014 /PRNewswire/ -- Jack Henry & Associates, Inc. (NASDAQ: JKHY) is a leading provider of technology solutions and payment processing services primarily for the financial services industry. Its ProfitStars® division today announced a strategic partnership with OnDeck, a technology-powered small business lender, to enable fast financing for businesses through the ProfitStars LendingNetwork® solution.
ProfitStars' LendingNetwork, part of the Independent Community Bankers of America (ICBA) Preferred Service Provider program, offers alternative financing from a group of more than 30 of the most dedicated, responsive commercial lenders in the industry. Through this program, banks and credit unions can retain a customer's deposit relationship, compete for future business from companies that do not currently meet credit requirements, remove problem lines of credit from the balance sheet, and receive referral fee revenue.
The OnDeck platform expands funding options for LendingNetwork customers, allowing small businesses to obtain affordable loans with a fraction of the time and effort required through traditional channels.
Bill Freeman, vice president of commercial lending for Memphis, Tenn.-based Paragon National Bank, said, "We recently had a business come to us looking for financing. Unfortunately, after reviewing the financials, there was not a bank product available to assist our client. We didn't want to lose the relationship, so we referred the business to the ProfitStars LendingNetwork for assistance. The results were tremendous. ProfitStars matched our client with OnDeck, which provided funding in less than 48 hours. It was one phone call, a seamless transition, and a happy client."
OnDeck uses data aggregation and electronic payment technology to evaluate the financial health of small businesses and efficiently deliver capital to a market underserved by traditional financial institutions. The combination of OnDeck's capabilities with the LendingNetwork enables financial institutions to reach more businesses by looking deeper into the health of businesses, focusing on overall business performance, rather than the owner's personal credit history.
According to David Foss, president of ProfitStars, "Partnering with OnDeck enables our LendingNetwork to go beyond the commercial accounts-receivable market to many small businesses that come to a financial institution asking for a loan but lack the collateral for traditional financing. The bank or credit union can now keep the deposit relationship while the business gets the funding they need. We are pleased to expand our network of lenders to help financial institutions meet these growth opportunities in their communities."
"At OnDeck, we are 100 percent focused on small business. Teaming up with ProfitStars and Jack Henry & Associates will help us expand our reach and provide the kind of short-term, working-capital financing Main Street needs to grow," commented Jerome Hershey, vice president of business development, OnDeck. "We're looking forward to delivering instant decisions and fast funding, as well as our hallmark customer experience, to the small businesses within ProfitStars' LendingNetwork."
Launched in 2007, OnDeck has deployed more than $900 million in capital to tens of thousands of businesses across 725 different industries. OnDeck uses data aggregation and electronic payment technology to evaluate the financial health of small businesses and efficiently deliver capital to a market underserved by banks. Through the OnDeck platform, millions of small businesses can obtain affordable loans with a fraction of the time and effort that it takes through traditional channels. The company's proprietary credit models look deeper into the health of businesses, focusing on overall business performance, rather than the owner's personal credit history. The OnDeck system also provides a critically needed mechanism for financial institutions and other business service providers to efficiently reach the Main Street small business market.
As a diverse, global division of Jack Henry & Associates, ProfitStars combines JHA's solid technology background with the latest breakthroughs in five performance-boosting solution groups – financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile. Explore the power of ProfitStars-enhanced performance at www.profitstars.com.
About Jack Henry & Associates, Inc.
Jack Henry & Associates, Inc.® (NASDAQ: JKHY) is a leading provider of computer systems and electronic payment solutions primarily for financial services organizations. Its technology solutions serve more than 11,300 customers nationwide, and are marketed and supported through three primary brands. Jack Henry Banking® supports banks ranging from community to mid-tier institutions with information processing solutions. Symitar® is the leading provider of information processing solutions for credit unions of all sizes. ProfitStars® provides best-of-breed solutions that enhance the performance of domestic and international financial institutions of all asset sizes and charters using any core processing system, as well as diverse corporate entities. Additional information is available at www.jackhenry.com.
Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Additional information on these and other factors, which could affect the Company's financial results, are included in its Securities and Exchange Commission (SEC) filings on Form 10-K, and potential investors should review these statements. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information.
SOURCE Jack Henry & Associates, Inc.