The online direct lender Dealstruck passes a milestone.
Dealstruck has announced today the passing of the $100 million mark in lending since inception, with over 750 credit solutions extended, including 521 term loans and 270 lines of credit.
The platform sold the 750th credit option to a company called Offbeat Ventures - a record of the month club, based in Chicago, but with a worldwide presence. Dealstruck will provide the music company with a $100,000 line of credit in order to allow the business to buy new inventory and to free up new operating capital. According to the Offbeat Ventures, dealing with Dealstruck was a productive experience, since the platform appeared to be genuinely interested in its success.
Matt Fiedler, CEO of Offbeat Ventures, commented:
"Dealstruck has been a pleasure to have as a lending partner. I can tell they care about me and my company and they genuinely want to see us succeed - something you're not likely to get with any major bank or lender. In just a short time, they've helped us grow our business tremendously and we're excited about a long-term partnership."
Dealstruck warmly welcomed the deal, identifying in Offbeat Ventures the traditional small business with high growth potential and a loyal customer base, but without much opportunity to access funding through traditional channels.
Founded in 2013, Dealstruck aims to provide small businesses with flexible and affordable financing options. Only last April, the firm announced the completion of $50 million in cumulative loans. After just seven months, it has doubled that figure, demonstrating its high growth potential. The platform has been also forging strategic partnerships with major players, such as non-profit lender VEDC, last September. DealStruck considers such partnerships an important factor in fulfilling its stated mission: to accompany its borrowers on the path to bankability.
Ethan Senturia, co-founder and CEO of Dealstruck, added:
"Our breadth of flexible financing options have helped support our rapid growth, and we look forward to continuing our efforts to match small businesses with the growth capital they need for success. Above all, we're most proud of our commitment to maintaining a thorough underwriting and risk management process even as we expand the volume of our loans."
To accompany the $100m milestone, Dealstruck has announced the launch of a new product at Money2020, the largest global event focused on payments and financial services innovation, which was held in Las Vegas this week. It is a new portal that allows small businesses to have a better control and transparent access to their account information, to seamlessly manage their revolving line of credit, to increase availability by matching invoices, and to drawn down funds, with just a few clicks.
Dealstruck’s decision to enhance its product suite seems to be in line with the strategies a number of online platforms in the marketplace lending space at present. Only last week, OnDeck announced its latest product expansion –enhanced term loan and line of credit ranges, offering lower costs of borrowing. Similarly, Lending Club introduced a new multi-draw line of credit product, ranging from $5,000 to $300,000, with no fees or hidden costs, apart from a 1-2% fee when a line is first drawn.
In an already crowded market, innovation in product is clearly an important means of keeping up with competition. Having now hit a significant lending milestone, Dealstruck appears determined not to be left behind.