Buying stock or equipment is the number one thing small business owners would do with a $50,000 cash injection, new research from MYOB and OnDeck has revealed.
OnDeck, small-business lender, has partnered with accounting-software provider MYOB to shake up the business lending market. We’re already generating strong interest from owners who may not tick all the boxes for a conventional bank loan.
Many owners don’t believe they would qualify for a business loan, especially if they don’t own a house to put up as collateral. But at OnDeck, we actually want to lend to small business, so we came up with a different way to decide if a business can repay their loan.
OnDeck offers term loans of up to $150,000 over six to 24 months, in as little as one day. We use cutting-edge technology to assess creditworthiness, based on actual operating performance of the business and not solely on the owner’s personal credit.
OnDeck is evolving the business lending market, because the way we assess a business for credit is quite different to the traditional bank model. We can say yes more often when it comes to lending to small business.
The MYOB SME Snapshot polled 530 Aussie SME owners and asked what they would do if given $50,000 to invest in their business. 34% said they would purchase inventory or equipment, 30% would invest in marketing, advertising or PR, and 25% would hire more staff, as illustrated in the graphic below.
The MYOB SME Snapshot shows a hunger among small businesses to boost the Aussie economy and employ more people, and we are keen to help them do that through fast, accessible business loans.
It’s interesting to see that the top areas small business wants to invest in are economic multipliers, meaning that the loans we provide have a flow-on effect to sales and jobs in the broader market.
OnDeck has already lent more than US$4 billion to small-business owners in the United States, with independent analysis showing the first $3 billion of loans created $11 billion in economic value. The local version of the service has been tailored for Australian business conditions.
We know that small businesses are looking for quick and convenient ways to access capital for their short term needs. They value the availability, convenience and total cost of the loans that OnDeck can provide, and we are already seeing a strong response from customers.
Cameron Poolman, Chief Executive Officer, OnDeck Australia