ProfitStars® today announced a strategic partnership with OnDeck, a technology-powered small business lender, to enable fast financing for businesses through the ProfitStars LendingNetwork® solution.
ProfitStars' LendingNetwork, part of the Independent Community Bankers of America (ICBA) Preferred Service Provider program, offers alternative financing from a group of more than 30 of the most dedicated, responsive commercial lenders in the industry. Through this program, banks and credit unions can retain a customer's deposit relationship, compete for future business from companies that do not currently meet credit requirements, remove problem lines of credit from the balance sheet, and receive referral fee revenue.
The OnDeck platform expands funding options for LendingNetwork customers, allowing small businesses to obtain affordable loans with a fraction of the time and effort required through traditional channels.
Bill Freeman, vice president of commercial lending for Memphis, Tenn.-based Paragon National Bank, said, "We recently had a business come to us looking for financing. Unfortunately, after reviewing the financials, there was not a bank product available to assist our client. We didn't want to lose the relationship, so we referred the business to the ProfitStars LendingNetwork for assistance. The results were tremendous. ProfitStars matched our client with OnDeck, which provided funding in less than 48 hours. It was one phone call, a seamless transition, and a happy client."
OnDeck uses data aggregation and electronic payment technology to evaluate the financial health of small businesses and efficiently deliver capital to a market underserved by traditional financial institutions. The combination of OnDeck's capabilities with the LendingNetwork enables financial institutions to reach more businesses by looking deeper into the health of businesses, focusing on overall business performance, rather than the owner's personal credit history.
According to David Foss, president of ProfitStars, "Partnering with OnDeck enables our LendingNetwork to go beyond the commercial accounts-receivable market to many small businesses that come to a financial institution asking for a loan but lack the collateral for traditional financing. The bank or credit union can now keep the deposit relationship while the business gets the funding they need. We are pleased to expand our network of lenders to help financial institutions meet these growth opportunities in their communities."
"At OnDeck, we are 100 percent focused on small business. Teaming up with ProfitStars and Jack Henry & Associates will help us expand our reach and provide the kind of short-term, working-capital financing Main Street needs to grow," commented Jerome Hershey, vice president of business development, OnDeck. "We're looking forward to delivering instant decisions and fast funding, as well as our hallmark customer experience, to the small businesses within ProfitStars' LendingNetwork."