Intuit and OnDeck to Launch $100M Small Business Lending Fund
September 17 2015 - 8:30AM
Business Wire
QuickBooks Data Fuels Small Business Success
with One-Click Financing Powered by OnDeck
Intuit Inc. (NASDAQ:INTU) is partnering with OnDeck ® (NYSE:
ONDK), a leading platform for small business loans, to launch the
new QuickBooks Financing Line of Credit to provide faster access to
lower-rate small business loans. This first-of-its-kind financing
solution enables small businesses to use their QuickBooks Online
data to apply for loan offers with the click of a button. Intuit
and OnDeck will launch a new $100 million small business lending
fund to back the new product.
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The new QuickBooks Financing Line of Credit product will be
powered by Intuit’s customer data and leverage OnDeck’s industry
leading technology. It is designed to offer a better financing
experience for established small businesses with strong credit.
Product highlights include:
- Lower Rates – Annual interest
rates will range from 8.9% to 19.9%.
- Faster Funding – Loans will be
funded as fast as one business day, dramatically shortening a
process that traditionally takes weeks with a bank.
- Painless Application – Small
business owners can complete the loan application with a few clicks
thanks to the seamless integration between QuickBooks and
OnDeck.
- Flexible Structure – The Line of
Credit product will help small businesses manage their working
capital needs and provide peace of mind that they have dedicated
financing in place.
This new and enhanced offering builds on an already successful
partnership between Intuit and OnDeck. Since 2013, OnDeck has been
the top financing provider on the QuickBooks Financing
platform.
Quotes
“This new product is all about empowering small businesses to
leverage the power of their own data so that they can take
advantage of better financing options,” said Dan Wernikoff,
executive vice president and general manager of Intuit’s Small
Business Group. “Small businesses rely on financing to power their
growth, to invest in new employees, new equipment, and new
opportunities. We’re excited to continue working with OnDeck to
fuel more small business success.”
"Small business owners are strapped for time and dislike the
lengthy process and uncertainty around applying for a loan at a
bank. Our expanded partnership, which leverages OnDeck’s end-to-end
online small business lending platform, and Intuit’s market-leading
accounting software, solves both problems by creating an entirely
new approach to financing,” said Noah Breslow, chief executive
officer, OnDeck. “QuickBooks Financing Line of Credit powered by
OnDeck uses real-time business performance information and a
frictionless ‘one-click’ process to provide small businesses the
capital they need, simply and quickly.”
The Rise of Online Lending
Small businesses are turning to online lenders in record numbers
because of challenges in the traditional small business financing
system. For example:
- Since the financial crises of 2008,
small business loans on the balance sheets of banks are down about
20 percent (source: Harvard Business School).
- Only a third (34%) of small businesses
indicate that they were able to get all of the funding they needed
the last time they went to a financial institution (source:
National Federation of Independent Businesses).
- Small businesses spend an average of 33
hours on paperwork for bank loans and approach multiple banks
during the application process (source: Federal Reserve Bank of New
York).
The QuickBooks Financing Platform
QuickBooks Financing is a marketplace of small business finance
products covering the full spectrum of credit offerings including,
short and long term loans, lines of credit, invoice financing and
Small Business Administration loans. All lenders and products are
fully vetted by Intuit.
Intuit data shows that 60 percent of QuickBooks customers have
been denied loans for reasons such as low FICO credit scores. By
contrast, targeted campaigns on the QuickBooks Financing platform
have seen a 70 percent acceptance rate. To date, small businesses
have secured more than $200 million in credit through QuickBooks
Financing.
Available in the coming months, the new fund will expand the
offering of products, further enabling small businesses to utilize
their QuickBooks Online data to effortlessly access loan offers. To
learn more, visit www.quickbooksfinancing.com.
About Intuit Inc.
Intuit Inc. creates business and financial management
solutions that simplify the business of life for small businesses,
consumers and accounting professionals.
Its flagship products and services
include QuickBooks®, Quicken® and TurboTax®, which
make it easier to manage small businesses and payroll
processing, personal finance, and tax preparation and
filing. Mint.com provides a fresh, easy and intelligent way
for people to manage their money, while Demandforce® offers
marketing and communication tools for small businesses. ProSeries®
and Lacerte® are Intuit's leading tax preparation offerings
for professional accountants.
Founded in 1983, Intuit had revenue of $4.5 billion in its
fiscal year 2014. The company has approximately 8,000 employees
with major offices in the United States, Canada,
the United Kingdom, India and other locations. More
information can be found at www.intuit.com.
About OnDeck
OnDeck (NYSE: ONDK), a leading platform for small business
loans, is committed to increasing Main Street’s access to capital.
OnDeck uses advanced lending technology and analytics to assess
creditworthiness based on actual operating performance and not
solely on personal credit. The OnDeck Score®, the company’s
proprietary small business credit scoring system, evaluates
thousands of data points to deliver a credit decision rapidly and
accurately. Small businesses can apply for a line of credit or term
loan online in minutes, get a decision immediately and receive
funds in as fast as the same day. OnDeck also partners with small
business service providers, enabling them to connect their
customers to OnDeck financing. OnDeck's diversified loan funding
strategy enables the company to fund small business loans from
various credit facilities, securitization and the OnDeck
Marketplace®, a platform that enables institutional investors to
purchase small business loans originated by OnDeck.
Since 2007, OnDeck has deployed more than $3 billion to more
than 700 different industries in all 50 U.S. states, and also makes
small business loans in Canada. The company has an A+ rating with
the Better Business Bureau and operates the website
BusinessLoans.com which provides credit education and information
about small business financing. On December 17, 2014, OnDeck
started trading on the New York Stock Exchange under the ticker
ONDK.
For more information, please visit www.ondeck.com and follow
OnDeck on Twitter @OnDeckCapital.
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version on businesswire.com: http://www.businesswire.com/news/home/20150917005411/en/
Intuit Contacts:Intuit Inc.Steve Sharpe,
650-224-2362stephen_sharpe@intuit.comorAccess CommunicationsJen
Garcia, 415-844-6244jgarcia@accesspr.comorOnDeck
Contacts:FleishmanHillardSophie Fischman,
212-453-2137sophie.fischman@fleishman.comorOnDeck Investor
RelationsKathryn Miller, 646-558-7860kmiller@ondeck.com
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