Since 2007, OnDeck has generated estimated $11 billion in economic impact and 74,000 jobs in the US.
OnDeck, the US online lending platform for small business, has announced the results of a report that analyses the economic impact of its first $3 billion lent to small businesses in the US. The study was conducted by the economic consulting firm Analysis Group and focuses on the impact of business activity funded by OnDeck loans on U.S. economic output and employment.
The most interesting figures are represented by the $11 billion in business activity and the 74,000 jobs created nationwide. The report is an update from the previous study conducted in 2014, and this year numbers have increased dramatically. Indeed, the 2014 economic impact analysis estimated only $3.4 billion in business activity and 22,000 jobs created from $1 billion in loans. In other words, for every $1 lent by OnDeck in 2015, there was $3.62 of economic output, $0.2 more than in 2014.
Statistics aside, the research reports also that the majority of users rely on OnDeck for buying inventory, hiring employees and purchasing new equipment. However, while small businesses are less focused on traditional sources of capital since the great recession, business owners are becoming more comfortable engaging in banking activities online.
Noah Breslow, chief executive officer, OnDeck, commented:
“Our technology platform and OnDeck Score have transformed the way small businesses get financing, and it's gratifying to see the tangible impact this has on the U.S. economy and its workers. We will continue to build a sustainable, scalable and responsible credit model that serves the broadest range of small business financing needs."
While a more detailed summary of the 2015 economic impact study may be found here, it is possible to conclude that online lending lays a crucial role worldwide as a solution to small businesses that experience difficulties in accessing credit.
There are approximately 28 million small businesses in America, accounting for 54 percent of all U.S. sales and provides 55 percent of all jobs, but that have been vastly underserved by traditional lenders. Similarly, European small business owners consistently struggle to find fresh capital to keep their operations afloat, reporting a mismatch between the demand and supply of credit. Might OnDeck soon look to alleviate UK/EU business woes as well, following in the footsteps of Kabbage?