As an alternative lender, OnDeck's small business solutions target the cash flow needs of companies. But the firm's newest service focuses on financial management for SMEs in another way.
Reports Thursday (June 23) said OnDeck has launched its Accountant Advisor Program, a service that helps professionals accountants arrange financing for their SME clients. While the tool initially launched in March, reports said OnDeck expanded this aspect of its operations this month across Kentucky, Florida and Alabama.
"We've put this program together realizing that the accountant community is the most trusted advisor to small business," said OnDeck's Accountant Advisor Program director Frank Orofino in an interview with Accounting Today. "Our hopes are to educate and be a resource and trusted partner to them, and help their clients find financing options for them when financing is something they need."
OnDeck facilitates access to working capital of up to $500,000 for accountants' SMEs with the program. According to reports, annual interest rates can be as low as 5.99 percent, and small businesses can access the funds in as short as one business day. Banks, brokers and merchants provide the financing for the loans.
For small business accountants, they can receive a 5 percent revenue share of the total loan volume for referring their small businesses to OnDeck's program, or they can provide small businesses with a 2 percent discount on the loan.
Accountants, CPAs and bookkeepers are all qualified to take part in the program; so far, more than 100 accountants have signed up for the tool, according to reports.
"Our loans are commonly used for investment opportunities like inventory purchases, maybe a marketing campaign that they know is going to have a return on investment," Orofino explained to the publication.