A new equipment finance loan has officially been introduced to the market by an international online lender.
OnDeck attributed the origin of its newest offering to the realisation that nearly a third of its customers were using the lender’s core unsecured term loan to finance equipment.
Cameron Poolman, CEO of OnDeck Australia, explained the decision to launch a “proper product” now means customers can borrow and secure against the asset and repay over a longer period of time, matching the cashflow of their business.
There is no requirement for property ownership, and no age restriction on secondhand assets.
“We are neutral to age, make or model. We finance secondhand equipment that the banks won’t touch,” Noah Breslow, CEO of OnDeck Global told attendees at the lender's launch events in Sydney and Melbourne.
“OnDeck specialises in taking the risks that banks don’t know how to take in an intelligent way. We want to do it responsibly, of course, but we see a real opportunity in equipment finance,” he added.
Funding can be secured in as little as three business days.
According to Poolman, the prompt turnaround stems from the largescale operations and systems in place in the US that the Australian business is also able to utilise.
David Gill, CEO of the Commercial and Asset Finance Brokers Association of Australia (CAFBA), was in attendance and said that the new product looks “very good”. He expects it to “be welcomed” and quickly taken up by brokers.
OnDeck’s equipment financing product was soft-launched exclusively through the broker network in late 2018.
“We are very proud of this product and we want to engage, learn and understand more from the brokers who use it,” Poolman concluded.