OnDeck sticks to lend-and-hold strategy despite losses

loan
By Sasha Padbidri
11 Aug 2016

Online small business lender OnDeck announced in its second quarter earnings call this week that the platform would continue to hold onto a large percentage of loans in originates, even as the strategy resulted in a hefty quarterly loss.

OnDeck reported net revenue of $28.9m in the second quarter, a 33% drop year over year. CFO Howard Katzenberg attributed the loss to the platform’s decision to hold their loans, rather then sell them to whole loan investors or package them into ABS.    

“The decline primarily reflected ...

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