OnDeck, the leader in online lending to small business, announced today that it will begin offering equipment finance loans to select U.S. small businesses next year, bringing its heralded technology and digital lending expertise to what has traditionally been a slow-moving, opaque, and complicated process.
Approximately $35 billion of new small ticket (under $250,000) equipment loan and lease financing was originated in the United States in 2017, according to the Equipment Leasing & Finance Association in its 2018 Survey of Equipment Finance Activity.
The new equipment finance loans will expand on an ongoing pilot referral program from OnDeck that began in the summer of 2018. Under the pilot program, OnDeck has referred small businesses seeking equipment financing to a third party that originates and services the loans. In 2019, OnDeck will begin making its own equipment finance loans, ranging from $5,000 up to $100,000, with terms ranging from 24 to 60 months, secured by new and used equipment. OnDeck plans to offer only equipment finance loans, rather than leases.