On Deck Capital Inc., a New York-based provider of financing for small businesses that wouldn’t normally qualify for bank loans, has secured a $100 million debt facility from Silar Advisors. On Deck had previously raised VC funding from RRE Ventures, Village Ventures, First Round Capital, Khosla Ventures and Contour Venture Partners.
On Deck Capital (http://www.ondeckcapital.com), the first-of-its kind financing solution for small businesses, announced today that it is has forged a partnership with Silar Advisors to secure a $100 million debt facility. Through this agreement, On Deck is connecting Wall Street to Main Street — delivering much needed capital to millions of America’s small businesses that are unable to access traditional bank loans. Both parties announced that they anticipate increasing this debt facility as demand arises.
On Deck and Silar have created an innovative transparent lending arrangement designed to address many of the challenges that drove the current credit crisis. Through On Deck’s proprietary technology, they gain unprecedented visibility into the day-to-day operations of a business and are able to consistently monitor their portfolio in a way that minimizes the lending risk and creates a new market opportunity for major financial institutions.
“Our partnership with Silar opens significant capital resources that have historically been unavailable to more than 5 million businesses declined for bank loans each year,” said Mitch Jacobs, founder and chief executive officer, On Deck Capital.
Since its official launch earlier this year, On Deck has emerged as the small business ally, filling the void between bank loans and alternative business financing products such as merchant cash advances which, similar to payday loans, charge excessive percentage rates for short term capital. On Deck offers loans based on the performance of a business, rather than the personal credit history of the business owner, to extend affordable, risk-adjusted loans to businesses who just miss the cut for traditional bank loans.
Silar’s due diligence and credit analysis identified On Deck as the right small business loan origination and servicing partner. “On Deck has created an ideal vehicle to pursue opportunities in this sector of the marketplace, one which allows us to maintain a constant update on our investments,” said Robert L. Leeds, chief executive officer, Silar Advisors. “We are thrilled to be working with them.”
On Deck Capital has been developing its products and systems for two years and recently closed $10 million in Series B Financing. The round was led by RRE Ventures and included participation from Series A investors Contour Ventures, First Round Capital, Khosla Ventures and Village Ventures. On Deck’s board of directors includes experienced investors and financial services executives, including James D. Robinson III, the former chairman and CEO of American Express Company and currently a general partner at RRE Ventures.
About On Deck
On Deck Capital offers fair and fast financing to small businesses that just miss the cut for traditional bank loans. Through the company’s network, millions of small businesses can obtain affordable loans to meet their daily operating and long term goals. The company’s proprietary underwriting and loan processing platform looks deeper into the health of small businesses, focusing on the overall business performance, rather than the owner’s personal credit history. On Deck Capital is making financial history by enabling institutional funds to directly reach Main Street for the first time.
On Deck Capital is financed by some of the nation’s leading venture capital firms, including Contour Venture Partners, First Round Capital, Khosla Ventures, RRE Ventures and Village Ventures. For more information, please visit: http://www.ondeckcapital.com.
Silar Advisors, LP is active in the origination and acquisition of assets and asset-based loans. Silar believes that its analytical capabilities, relationships, structuring capabilities, speed of execution and market experience will enable it to capitalize upon investment opportunities available in the market today.