OnDeck Capital Australia (OnDeck), a subsidiary of the US-listed OnDeck Capital, has launched an equipment finance solution to fill the small business funding gap.
Mr Cameron Poolman, CEO of OnDeck Australia, said brokers often speak to OnDeck about the challenges they encounter obtaining traditional finance solutions for non-primary assets.
“These include assets such as catering equipment, gym equipment, IT, food processing and fit-outs, which mainstream financiers will not finance because of the asset type or its age, says Poolman. “Currently, to purchase these types of assets, many small business owners must resort to using their valuable working capital or turn to family and friends. Often the purchase simply doesn’t happen and that limits the development or even the ongoing operations of the business”.
Mr Poolman said that what distinguishes OnDeck funding solutions from traditional lenders is its focus on the future potential of the business.
“We want small business in Australia to succeed. To do this, we must support and invest in solutions for them. Our focus is on a small business owner’s overall financial health, and not just purely on the short-term resale value of its business assets. As such, our equipment finance solution places no maximum age restrictions against any asset class. It provides small business the finance to purchase necessary equipment, frees up cash and gives owners more opportunity to focus on what’s best for their business.”
OnDeck’s research has shown that one of the main reasons small business borrow from on-line lenders was to buy equipment.
“Our strength is our technology and the data and analytics we’ve sourced from lending more than US$10 billion to 100,000 customers globally,” says Poolman. “Through our data, we know around 32 per cent of our customers use our loans to purchase equipment. Additional feedback from our brokers and their customers indicates they want business equipment loan products with longer-term amortisation to match their financing costs to the lifespan of the equipment, which usually extends beyond 12 months,” he added.
The term loan is secured against the value of the equipment and its potential to generate ongoing revenue. The term for OnDeck’s equipment finance product ranges from 24 to 48 months for amounts from $10,000 to $100,000.
OnDeck is excited to work with CAFBA and their members to provide fast, small business funding solutions. For further information, or to become an accredited OnDeck Broker, contact your local BDM or email@example.com | 02 8310 6246.