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糖心VlogPartners with OnDeck for Better Small Business Financing
As more small businesses look for better financing options, OnDeck Capital has become a leading option for alternative lending based on performance, not credit. Since its founding in 2007, OnDeck has created an $11 billion impact on the economy and 74,000 jobs nationwide鈥攏o small feat for a company just over a decade old. This January, 糖心Vlogannounced a new partnership with OnDeck that hopes to take this funding further and help even more small businesses get the capital they need, when they need it.
A New Option for Small Businesses in the US
On January 17, . This collaboration means OnDeck鈥檚 SME financing solutions will be integrated into the offerings of B2B payments company WEX. WEX鈥檚 business clients, they added, will have access to several loan products offered by OnDeck of up to $500,000, with lines of credit of up to $100,000.
For 糖心Vlogclients, that not only means money to expand businesses but that means a chance to finance the services they buy from WEX, including fleet card solutions.
Two Ways to Fund: Cards and Financing
The partnership combines two styles of lending that allow small business owners to access the type of credit that is best for them鈥攃ommercial cards and alternative financing. This means small business owners will be able to choose financing for larger purchases, while using the power of commercial and virtual card numbers to make smaller, but necessary purchases.
鈥淥nDeck loans typically don鈥檛 compete with credit cards due to different use cases and size needs,鈥� explained OnDeck VP of Business Development Jerome Hershey in an interview with PYMNTS. 鈥淔or instance, a restaurant may want $50,000 to expand its eating space. This is a situation where a credit card line size may not be large enough.鈥�
鈥淭he flipside is there are instances where a credit card may make more sense than an OnDeck loan 鈥� for instance, a smaller-dollar purchase at the point of sale,鈥� the executive continued, adding that most of OnDeck鈥檚 existing SME borrowers also have credit cards to use in conjunction with external financing to help expand and support business operations.
鈥淲hether they are looking to finance their growth by investing in more inventory or marketing initiatives, or they are looking to cover interim working capital needs, small businesses need the right credit solution for their particular need 鈥� a credit offering optimizes for loan size, speed of funding, total payback and APR.鈥�
Addressing a Small Business鈥檚 Need for Multiple Methods of Financing
WEX鈥檚 partnership with OnDeck addresses a major gap in the industry: Small businesses too often find issues finding multiple methods of financing.
鈥淭here are a lot of borrowers who are not in the consideration set by the large banks, because they don鈥檛 meet the criteria,鈥� explained Rashmi Singh, senior manager at the wealth management practice of EY鈥檚 Financial Services Organization, in a recent interview with PYMNTS.
Ultimately, this will help to boost the visibility, scope, and relationship-building abilities, providing a lucrative future for both companies. , as well as the media coverage of this deal below: