Enova Originated $400M in Small Business Loans in Q2

Enova, the international lending firm that owns the OnDeck brand, reported Q2 small business loan originations of $400M. That brings the year-to-date figure to $722M, approximately half of the volume OnDeck was producing prior to Covid. (OnDeck’s 2019 originations were $2.475B)

“OnDeck’s performance continues to exceed our expectations,” said Enova CEO David Fisher during the quarterly earnings call, “and we will easily exceed our forecast of $50 million of annual cost synergies, primarily from eliminated duplicative resources, as well as $15 million in run rate net revenue synergies.”

Cash has also come pouring in.

“…While we originally thought that OnDeck’s legacy portfolio would have very little value, we now expect to receive over $220 million of total cash from the acquired portfolio, net of securitization repayments,” Fisher said. “In fact, we’ve already realized over $100 million from the legacy portfolio.”

Although ISOs (aka brokers) will remain an important part of driving OnDeck’s growth, Enova is happy that OnDeck brings more to the table.

“The good news about OnDeck, is at least they had a direct channel and a pretty good direct channel because of their terrific brand on the small business side, where our small business products had no direct channel,” Fisher said. “It was all through ISOs. So, we gain that capability through OnDeck.”

Enova reported $80M in net income for the quarter on $265M in revenue.