OnDeck Generates Estimated $3B In Economic Impact And 22,000 Jobs Nationwide

NEW YORK, May 29, 2014 /PRNewswire/ -- OnDeck (www.ondeck.com), the technology-powered Main Street lender, released today a significant economic impact report that shows an estimated $3.4 billion in business activity and 22,000 jobs created from its small business loans to date.

The goal of the study, which was conducted by top economic consulting firm Analysis Group, was to measure the incremental impact of business activity funded by OnDeck loans on U.S. output and employment. The findings indicate that as traditional lenders continue to move away from small business lending, direct lending will play an increasingly important role in supporting the economic contributions of small businesses.

Combining OnDeck customer survey results with an established input-output model measuring the direct, indirect and induced economic effects of OnDeck's lending, the study revealed the following major findings:

• OnDeck's $1 billion deployed to Main Street has generated $3.4 billion in U.S. economic impact.
• For every $1.00 that OnDeck loans to small businesses, $3.42 are generated through industry, supply chain and job creation gains. These gains stem from the fact that OnDeck's loans are most commonly used for buying inventory, purchasing equipment, hiring and cash flow management.
• 22,000 jobs were added to the U.S. as a result of business owners having vital capital to grow their businesses.
• While 60% of OnDeck's customers considered borrowing from traditional sources, the #1 reason the majority did not apply was because they thought the process would take too long. Their experience can be seen as a response to the high search costs outlined in the New York Federal Reserve's Fall 2013 Small Business Credit Survey study indicating that small businesses spend 26 hours when searching and applying for credit.

"We have always known that when capital flows to Main Street, small businesses thrive. OnDeck has created a lending option that dramatically reduces small business search costs and therefore enables more businesses to efficiently seek financing. This has resulted in incremental applications and borrowing as well as a multiplier effect on U.S. economic activity," said Andrea Gellert, senior vice president of marketing, OnDeck. "Our vision of delivering capital to small businesses is important because traditional lenders are unable to meet this need. We are solving that problem with our OnDeck Score™ and advanced technology that makes access to capital quick and convenient for business owners."

OnDeck's use of disruptive technology has fundamentally transformed how growth capital flows to Main Street. The company's platform and proprietary business score, the OnDeck Score, enables fast application, approval and funding processes that have helped trigger strong momentum across Main Street. To date, OnDeck has financed over $1 billion in small business loans in all 50 states across approximately 700 industries.

For more information and to view a summary of the economic impact study, please visit www.OnDeck.com.

About OnDeck
Launched in 2007, OnDeck uses data aggregation and electronic payment technology to evaluate the financial health of small and medium sized 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.

OnDeck has deployed more than $1 billion in capital to tens of thousands of businesses across approximately 700 different industries. The company grew 150% in 2013, and was recently named #11 on Forbes' 100 Most Promising Companies in America list and was listed on the Inc. 500/5000 for a second year in a row. The company also has earned an A+ rating with the Better Business Bureau. OnDeck is financed by some of the nation's leading venture capital firms, including Google Ventures, SAP Ventures, RRE Ventures, Institutional Venture Partners and Tiger Global.

For more information, please visit: www.ondeck.com. Follow OnDeck on Twitter @OnDeckCapital

About Analysis Group
Analysis Group's more than 500 professionals provide economic, financial, and business strategy consulting to leading law firms, corporations, and government agencies. The firm's 11 offices are located nationally in Boston, Chicago, Dallas, Denver, Los Angeles, Menlo Park, New York, San Francisco, and Washington, D.C.; and internationally in Montreal and Beijing. For more information, visit www.analysisgroup.com.

Media Contact:
Jonathan Cutler/Melissa Barto
JCUTLER media group
[email protected]   [email protected]

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SOURCE OnDeck

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