Small business lending platform OnDeck is accelerating access to capital for its users through the launch of a same-day funding option.
In an announcement on Friday (April 5), OnDeck announced the rollout of its Same-Day ACH transfer functionality, enabling small businesses who have term loans or lines of credit with OnDeck to receive funds on the same day they draw on their lines of credit. The feature supports access of to up to $25,000 by 5:00 p.m. local time, as per National Automated Clearing House Association (NACHA) caps, as long as small businesses complete their booking or line of credit draw by 10:30 a.m. on a business day.
OnDeck said the new solution not only accelerates access to capital, but can also provide greater predictability for enhanced cash flow management.
"Today's announcement marks an important step forward in how small businesses access capital online and subsequently deploy those funds on behalf of their business," said OnDeck Vice President of Product Management Shaleen Prakash in a statement. "Same-Day ACH transfers are a game-changing option for small businesses because they provide access to needed capital by the end of the business day and offer better visibility and certainty into the timing of the transactions clearing in their bank account, which in turn leads to better cash management."
The Same-Day ACH capability adds to OnDeck's existing offerings, which can also provide a small business with real-time access to line of credit or loan funds via their business debit cards, the result of a collaboration with Ingo Money and Visa Direct.
"At OnDeck, we take pride in leveraging the best technologies that exist in the ecosystem to provide superior access to our customers," added OnDeck Chief Executive Officer Noah Breslow in another statement. "We were the first online small business lender in North America to offer instant funding via the Visa debit network. And with our Same-Day ACH service, we have demonstrated again our commitment to relentlessly innovating on behalf of small businesses to provide our customers with faster service."