Business loan

Enova doubles number of small business loans year over year

Enova’s small business lending arm, powered primarily by OnDeck, generated $659 million in the first quarter of 2022. This was more than double the volume from the same period in 2021 and a 14% sequential increase from compared to the fourth quarter of 2021. Overall, Enova reported first-quarter net income of $52 million.

“The first quarter net write-off ratio for small business receivables was 1.9%, up from 80 basis points last quarter but lower than the prior year ratio of 2.6% and lower than pre-pandemic times as we continue to see strong payment performance across all of our small business products,” Enova Chief Financial Officer Steven Cunningham said on the quarterly earnings call.

Company CEO David Fisher said Enova feels really good about its position in the small business loan market and sees itself as the biggest player in the unprivileged sector of it as a whole. “We don’t feel APR pressure in our small business products,” Fisher said when asked if competitive forces could drive down the company’s loan prices. He attributed the rapid growth of the company’s set-ups to both an increase in marketing spending and an increase in customer awareness that they can access capital quickly online.

“…small businesses have a pretty strong appetite for growth, but also for the more traditional types of non-bank small business lenders,” Fisher said. “I think some kind of online approach with some kind of speed and ease and transparency is really appealing to businesses.”

Last modification : May 4, 2022

Category: Business loans