JPMorgan Chase And OnDeck Shake Hands On Another 4 Years

Small business owners shouldn’t have to waste their time chasing loans. They have enough to think about without spending hours applying for credit, let alone waiting for funds to come through. That’s why JPMorgan Chase and OnDeck are extending their contract to continue collaborating on Chase Business Quick Capital, their digital banking small business lending product, for another four years, according to news from Finextra.

Through Chase Business Quick Capital, small businesses can access up to $200,000 in loans with terms up to 24 months. The online lending product is Chase’s, powered and enabled by OnDeck technology, and slashes the application process to minutes, reaches a decision in just seconds and delivers funds as early as the following day.

“We set out to simplify the conventional originations processes, which can take weeks to months — time that many small businesses don’t have,” said Julie Kimmerling, senior manager and head of the Chase Business Quick Capital product at Chase Business Banking.

Chase Business checking customers got to test drive the lending product starting in early 2016. Over the next year, JPMorgan Chase and OnDeck will continue to refine the product by expanding access and enhancing digital banking features, among other improvements.

“We want to be the easiest bank for small businesses to work with, and part of that is simplifying delivery of our products so they have more time to run their businesses,” said Andrew Kresse, CEO of Chase Business Banking.

In the expanded agreement, OnDeck will operate as the technology platform for the product and servicer of lending. JPMorgan Chase will furnish the working capital. 

OnDeck suffered a net loss of $2.6 million in the second quarter, and shares were down 8.9 percent year to date, but they leapt 21 percent on Monday afternoon following the news announcement. The Motley Fool projected that deals like this could help OnDeck grow its fee-based business lines and generate fees by underwriting and servicing loans that are funded by bank partners, rather than using its own working capital to make loans.