Has PayPal Eclipsed OnDeck in Small Business Loans?

| By:
 FEATURE STORY 


Will Fintech Dethrone Banking?
It’s been said that Kabbage is on pace to surpass OnDeck in small business loan originations, but PayPal has already done it.

When PayPal announced a working capital program in the Fall of 2013, few were predicting that the initiative would propel them to the top of the small business lending charts. Just two years later, however, the payment processing giant had already loaned more than $1 billion to small businesses.

Today, that number is over $10 billion, according to a comment made by PayPal CEO Dan Schulman on the company’s Q1 earnings call.

That figure would suggest that they had loaned approximately $9 billion from Fall 2015 to the end of Q1 2019. OnDeck, by comparison, loaned $7.5 billion since Fall 2015 through Q4 2018. Several other data sources, including previous statements from PayPal that they had surpassed more than a billion dollars in quarterly small business funding in 2018 (already more than OnDeck), indicate that PayPal has become #1 on the deBanked small business funding leaderboard.

PayPal’s growth was helped in part by its acquisition of Swift Capital in 2017.

Two of the top four are payment processors:

Company Name 2018 Originations 2017 2016 2015 2014
PayPal $4,000,000,000* $750,000,000*
OnDeck $2,484,000,000 $2,114,663,000 $2,400,000,000 $1,900,000,000 $1,200,000,000
Kabbage $2,000,000,000 $1,500,000,000 $1,220,000,000 $900,000,000 $350,000,000
Square Capital $1,600,000,000 $1,177,000,000 $798,000,000 $400,000,000 $100,000,000
Funding Circle (USA only) $500,000,000
BlueVine $500,000,000* $200,000,000*
National Funding $427,000,000 $350,000,000 $293,000,000
Kapitus $393,000,000 $375,000,000 $375,000,000 $280,000,000
BFS Capital $300,000,000 $300,000,000
RapidFinance $260,000,000 $280,000,000 $195,000,000
Credibly $180,000,000 $150,000,000 $95,000,000 $55,000,000
Shopify $277,100,000 $140,000,000
Forward Financing $125,000,000
IOU Financial $91,300,000

$107,600,000 $146,400,000 $100,000,000
Yalber $65,000,000


*Asterisks signify that the figure is the editor’s estimate

Last modified: April 28, 2019
Related:

Category: Business Lending, merchant cash advance


Home Business Lending, merchant cash advance › Has PayPal Eclipsed OnDeck in Small Business Loans?