OnDeck to Boost Business Loans

By Georgina McCreadie on Thursday 5 February 2015

Alternative Lending

OnDeck has announced its Small Business Credit Education Initiative, which aims to help educate and engage business owners on their financing options.

The company is initiating this plan through two commitments. The first is BusinessLoans.com, a resource that is solely dedicated to explaining business financing. The second, is a national partnership with SCORE, a non-profit organization comprised of 11,000+ volunteer mentors who provide free and confidential small business mentoring and advice. 

OnDeck stated that the initiatives were launched in response to the platform’s latest Main Street Pulse Report, a quarterly study of small business trends, which found that business owners lack a comprehensive resource to learn about their financing options.

Key findings included:

-80% of business owners don’t think banks do a good job of explaining how to qualify for different business financing products

-87% of business owners have not found an online resource to answer their business financing questions

-75% of business owners have not found an online resource to explain their business financing options

-66% of business owners don’t have a strong understanding of how business credit is calculated or how it is used by lenders

Noah Breslow, CEO of OnDeck, commented:

"OnDeck has worked with tens of thousands of business owners and we repeatedly hear that small businesses need a go-to resource for general financing education. Our company is 100% focused on small businesses and their success, so we see BusinessLoans.com and our SCORE partnership as extensions of our commitment to ensuring all small business owners get the critical tools they need to grow."

David R. Bobbitt, president of the SCORE Foundation, added:

"Small business owners face a vast and frequently changing landscape for financing, and both OnDeck and SCORE are committed to providing small business owners with the information they need to make informed decisions. Through this partnership with OnDeck, SCORE will enhance our offerings to small business owners, allowing them to better understand available financing options and ultimately achieve success."

Interestingly, Lending Club has been very active this year in seeking partnerships for its platform. All of its partnerships are aimed at driving more business loans to the platform. Most recently it partnered with one China’s biggest Internet companies, Alibaba. But at the beginning of January the platform also partnered with SCORE – which appears to be positioning itself as the alternative business funders go-to partner of choice.      

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