On Deck launches new loan re-payment method for merchants

Split Funding

On Deck, a technology platform that provides high street merchants with access to business loans, is launching a new re-payment method called Split Funding (view press release). Split Funding allows merchants to repay loans using a variable percentage of their daily credit card sales, aligning loan payback with varying sales. The system uses data aggregation and electronic payment technology to analyse the financial health of a business and provide them access to capital. On Deck is offering the solution alongside its established fixed daily micro payment system for small business loans which draws daily micropayments from the businesses operating business account. The company is launching Split Funding in partnership with merchant processor Integrity Payment Systems.

In the past, people who wanted variable payments were forced to go with a more expensive cash advance product that was not a true loan and lacked the benefits of credit reporting,” said On Deck president Brad Kime. “… we now offer Split Funding as an option for small businesses that prefer their loan payments deducted from credit card sales.”

The company claims to have loaned more than USD200 million to high street businesses in the US to date. 

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