OnDeck reports over 30% increase in loan approvals

OnDeck confirmed that lending growth was primarily driven by the manufacturing, health services, transport, and trade sectors.

According to the lender, the rise in its lending volumes, along with an increase in confidence among small-business clients, has highlighted ongoing opportunities for brokers across the commercial lending space.

Indeed, OnDeck’s lift in approvals has coincided with the findings of its survey of 500 small businesses, which revealed that 75 per cent of small businesses are “confident about their health and stability”.

The survey found that over a third (34 per cent) of small businesses rated the health of their business as “excellent” or “very good”, while 24 per cent of respondents believed the overall health and stability of their businesses was “below average”.

Furthermore, 80 per cent of small businesses indicated confidence in their ability to meet their financial obligations throughout 2024.

Commenting on these results, OnDeck Australia chief executive Cameron Poolman said it’s “incredibly heartening to see such overwhelmingly positive views and confidence among Australia’s small-business community”.

“After several years of pandemic lockdowns followed by an unrelenting string of official rate hikes by the Reserve Bank of Australia, it is fair to say that the small-business sector has had to deal with unprecedented challenges.

“However, OnDeck’s 32 per cent month-on-month growth in loan approvals is supported by our survey findings that highlight how small businesses have come through a tough time, stronger and better placed to manage future financial obligations.

“An impressive 70 per cent of approved loans were sourced from our broker partners, demonstrating the breadth of opportunities for brokers to engage in commercial lending and diversify their business,” Poolman said.

This comes as OnDeck previously flagged how brokers can play a pivotal role in helping Australia’s small businesses diversify their enterprises through access to fast and efficient funding.

“Brokers may find that not all small-business owners want to scale their enterprise. However, by growing a customer base, a business can significantly reduce the risk of instability that tends to go hand in hand with a restricted customer base,” Poolman said at the time.

[RELATED: Brokers can help SMEs expand customer base: OnDeck]