OnDeck® (NYSE:ONDK), the leader in online lending for small business, announced today the closing of a CAD50 million asset-backed revolving credit facility with Crédit Agricole to finance OnDeck Canada’s loan originations.
The new facility is the first for OnDeck Canada and provides the business with access to CAD25 million of committed capacity and an additional CAD25 million of capacity available at the discretion of the lenders.
Since entering the Canadian online small business lending market in 2014, OnDeck has provided more than CAD180 million in financing to small businesses in Canada.
“OnDeck has a global mission focused on scaling our international operations towards market leadership while responsibly serving small business owners with efficient, online access to financing,” said Rob Young, Senior Vice President, OnDeck International. “Today’s announcement marks another milestone in our ability to deliver on that mission across Canada.”
Under the asset-backed facility, loans will be made to a wholly-owned subsidiary of OnDeck Canada, which will purchase small business loans from OnDeck Canada. This revolving pool of small business loans will serve as collateral under the facility. OnDeck Canada will act as the servicer for these loans.
“Securing a dedicated facility that provides committed funding to support OnDeck Canada’s loan growth marks another milestone for OnDeck.” said Ron Elimelekh, Head of Capital Markets, OnDeck. “Today’s transaction commits even more funds to support Canadian businesses and help them achieve their goals. We are pleased to have Crédit Agricole, a leading global financial institution, support OnDeck Canada in our mission.”
Small businesses are crucial to the Canadian economy. As of December 2015, there were over 1.16 million small and medium sized businesses in Canada, accounting for 99.7 percent of Canadian employer businesses. (1) Small businesses contribute on average 30 percent to the GDP of Canada.(1) OnDeck financing solutions in Canada leverage advanced technology and analytics to enable OnDeck to make real-time lending decisions and deliver financing to small businesses in as little as 24 hours.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other legal authority. Forward-looking statements can be identified by words such as “proposed,” “will,” “enables,” “expects,” “allows,” “continues,” “believes,” “anticipates,” “estimates” or similar expressions. These include statements regarding possible future loan growth as a result of entering into the new facilities or otherwise. Forward-looking statements are neither historical facts nor assurances of future performance. They are based only on our current beliefs, expectations and assumptions regarding the future of our business, anticipated events and trends, the economy and other future conditions. As such, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and in many cases outside our control. Therefore, you should not rely on any of these forward-looking statements. Our expected results may not be achieved, and actual results may differ materially from our expectations. Factors that could cause or contribute to actual results differing from our forward-looking statements include risks relating to: our ability to meet borrowing conditions and remain in compliance with all the provisions of the new facilities; changes in the financial markets, including changes in credit markets and interest rates; adverse developments regarding OnDeck, its business or the online or broader marketplace lending industry generally; and other risks, including those described in our Annual Report on Form 10-K for the year ended December 31, 2017 and in other documents that we file with the Securities and Exchange Commission from time to time which are or will be available on the Commission’s website at www.sec.gov. Except as required by law, we undertake no duty to update the information in this press release.