OnDeck is reportedly looking for a sale following a surge in loan delinquencies - Business Insider

📆 5/18/2020 2:03 AM
📰 BusinessInsider

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ICYMI: Many SMB-based alt lenders have reported coronavirus-related setbacks akin to OnDeck, including LendingClub and Kabbage

The outbreak is putting further strain on the sustainability of the fintech's business model. OnDeck focuses on providing loans to SMBs, but many are at of permanent closure as they're forced to remain shut amid lockdown measures. As a result, many SMBs are unable to repay the loans they've taken from OnDeck, leading to its net loss in Q1 2020.

Current economic headwinds will cause many startups across the fintech space to look for M&As, but SMB lending may not be considered an attractive venture. There was a surge in fintech M&As earlier this year as incumbents looked to supplement their services with digitalization and customization features, such as Visa

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