OnDeck, a provider of online lending for small business, announced that it had extended its current asset-backed revolving credit facility with SunTrust Bank.

As a result of the transaction, OnDeck extended the maturity date of its $100 million credit facility with SunTrust Bank to November 2018 and decreased funding cost by 50 basis points. 

"This transaction exemplifies our commitment to our relationship with OnDeck," said Tarun Mehta, Group Head for Financial Institutions Investment Banking, SunTrust Robinson Humphrey. "OnDeck is a leading provider of innovative financing solutions to the small business community enabling small businesses to grow, and we are pleased to support the OnDeck team in this important endeavor."

Loans will continue to be made to Receivable Assets of OnDeck, LLC, or RAOD, a wholly-owned subsidiary of OnDeck, to finance RAOD's purchase of small business loans from OnDeck. The revolving pool of small business loans purchased by RAOD serves as collateral under the SunTrust facility.  OnDeck is acting as the servicer for those small business loans.

"In the first months of 2017, OnDeck has demonstrated its ability to execute on its financing strategy by extending debt maturities and creating additional funding capacity to pave the way for future loan growth and this transaction is yet another example," said Howard Katzenberg, Chief Financial Officer, OnDeck. "SunTrust, a leading national financial intuition, has been, and will now continue to be, our valued partner in support of our mission to empower small businesses to grow into thriving enterprises through OnDeck's lending technology and innovation."

Katzenberg further noted "We believe that this transaction, along with the recent closing of a Aus$22.5M credit facility to finance small business loans originated by our Australian subsidiary, further exemplifies the strength of OnDeck's capital position and liquidity outlook."