A US-based online business lender has announced its entrance in the Australian financial scene, its first market outside North America.
OnDeck is set to penetrate the industry with “the soon-to-list accounting software vendor MYOB as a distribution channel to challenge the banks and a host of other new cash flow lenders”, the Financial Review
OnDeck Australia will offer short-term loans to small businesses by the second semester of this year, which will be similar to PayPal, local version Moula and private equity-backed Prospa.
Global chief Noah Breslow said that Australia is similar the US, as there "a huge gap between small business financing needs and the availability of capital from traditional sources". The Australian office will be headed by new chief executive Cameron Poolman.
"We're not going to be anywhere near the size of a big bank, but as a rule of thumb when I look at the US and Australia I think of about a 12th of that size and we have got to get quickly to that level of maturity," Poolman said.
"I am fortunate that I don't need to raise capital – the challenge for me personally will be executing it correctly, getting the right staff and replicating what's a proven model in the US."
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