On Deck Capital Crosses $50 Million Lending Mark Giving Much Needed Relief to Main Street Small Businesses

NEW YORK, March 24 /PRNewswire/ -- On Deck Capital (www.ondeckcapital.com), announced today that over $50 million of loans have now been made to more than 2,000 Main Street small business using its proprietary performance lending system which evaluates businesses based on electronic performance data rather than relying solely on the business owner's personal credit score. Further validating its business performance data review technology as a key solution to America's small business lending challenges, the company also announced that its lending system now has over $100M, of capacity including the recent addition of $35M into the system from a large New York-based investment group with over $30B in assets under management.

To date, On Deck has helped thousands of small businesses, typically with annual revenue from $300,000 to $2,000,000 from a variety of key industry sectors, including: retail, light manufacturing, salons and spas, doctors' offices, auto and restaurants – all underserved by banks.  Capital infusion into the On Deck system has come from a variety of sources, from small family-run investment practices to major Wall Street capital groups.

"Reaching this milestone in both loans made and in capital available, is a clear indication of support and confidence in our innovative technology platform," said Mitch Jacobs, founder and chief executive officer, On Deck Capital. "Our system is fundamentally changing how small businesses are evaluated and how financial institutions that have historically been fearful of lending to this segment can be connected to this critical sector of our economy even in the downtimes."

The On Deck Capital system has emerged as a proven platform to evaluate businesses based on electronically aggregated banking, accounting and customer data taking small business lending beyond the era of solely evaluating small businesses based on the business owner's personal credit score.  The On Deck system also leverages the proliferation of various electronic payment networks to offer the first-of-its-kind daily direct debit automated servicing platform to make loan repayment easier for businesses and more reliable for lenders.

"In the fall of 2008 we needed capital.  With a loan from On Deck we became profitable and are seeing continued, consistent revenue and profit growth. We could not have achieved this without the help of On Deck Capital," said Jean Finney, owner, Doguroo, a dog care facility in Atlanta, GA.  

"It has been two months since we received our working capital loan and business is booming.  We were able to buy inventory to keep on hand so that we can respond to and complete service calls faster," said Herman D. McCargo of Computer Troubleshooters of Franklinville, NJ.  "Now that we are busier, we also needed another work vehicle which we were able to get with no problem.  The last and best part of getting the loan is that we were able to create two new jobs."

The $100M capacity of its lending system furthers the company's commitment to aiding the recovery of Main Street and will fund additional loans to cash strapped businesses.

About On Deck

Launched in 2006, the On Deck Capital system uses data aggregation and electronic payment technology to offer fair and fast financing to small businesses underserved by traditional bank loans.  Through the On Deck Capital platform, millions of small businesses can obtain affordable loans to meet their daily operating and long term goals.  The company's proprietary platform looks deeper into the health of small businesses, focusing on the overall business performance, rather than the owner's personal credit history.  The On Deck Capital system also provides a critically needed efficient mechanism for institutional funds to directly reach historically fragmented and difficult to serve Main Street small businesses.  

On Deck Capital is financed by some of the nation's leading venture capital firms, including Contour Venture Partners, First Round Capital, Khosla Ventures, RRE Ventures and Village Ventures. For more information, please visit: www.ondeckcapital.com.

SOURCE On Deck Capital