Wednesday, June 29, 2011 by On Deck
President Clinton speaking at the Clinton Global Initiative 5 minutes ago:
“For at least 40 years its been hard for small businesses to get a loan from a bank. To be fair to the banks it’s because the transaction costs of small loans don’t create much return.”
Since On Deck launched in 2006, we have been saying that the difficulties in delivering capital to small businesses are not issues of credit and capital – they are issues of time and cost. It is simply too time consuming and costly for a bank to spend 40 hours underwriting a $20,000 loan to a Main Street florist. As a result, they are forced to rely largely on the personal credit score of the business owner- a highly inaccurate reflection of the health of the business.
The On Deck technology platform solves these problems by aggregating electronic data including online banking and merchant processing information to create a detailed and highly accurate financial profile of the business. Using this data, the On Deck technology can efficiently and effectively deliver capital to Main Street businesses.
You can see President Clinton’s opening remarks from this morning here.