Broker-generated loan volumes jump 246% year-on-year in November
Small business lender OnDeck Australia has reported a significant rise in broker-generated loan originations, pointing to renewed confidence among Australian small businesses.
The lender revealed a 246% year-on-year increase in broker-originated loans funded in November 2024 compared to the same month in 2023. Loan volumes also rose by 24% between October and November 2024.
“The run-up to the festive season is always a busy time for small businesses across Australia,” said Cameron Poolman (pictured above), chief executive at OnDeck Australia. “The growth in our loan volumes indicates a small business community that is well-supported by brokers, and optimistic for the year ahead as evidenced by their eagerness to invest for the future.”
Lending activity was broad-based, with sectors such as manufacturing, health services, transport, and trade showing strong demand.
The rise in loan originations comes as OnDeck continues to improve its approval times. According to the lender, its average approval time for Lightning Loans applications — up to $175,000 — submitted via brokers in the second half of 2024 was 63.6 minutes. This represents a 64-minute improvement compared to the previous year, effectively halving the approval time.
“We know that in business, every dollar, every minute counts,” Poolman said. “Reflecting this, we’ve streamlined our systems to give our broker partners and their small business customers the advantage of exceptional speed.
“OnDeck’s 246% YoY growth in broker-supported lending highlights that small businesses are navigating these challenges well, coming out stronger and with a mindset of investing for future growth.”
Looking ahead, Poolman believes that easing inflation and lower interest rates expected in 2025 will present brokers with expanded opportunities in small business lending.
“We believe that as inflation cools and interest rates begin to head south in 2025, small businesses that invest in their productivity today will have a competitive advantage in the New Year. This will likely give brokers a wealth of opportunities to expand their small business lending or diversify into this lending segment for the first time,” he said.
OnDeck’s Lightning Loans provide between $10,000 and $175,000 with a streamlined application requiring six months of business bank statements. For larger funding needs, Lightning Loans Plus offers amounts up to $250,000.
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