Sales rep A is commiserating with sales rep B over the decline of a large file due to the fact that the merchant was behind on the rent for 3 months. At the same time the Ondeck Capital local area rep is walking around my office and over hears this conversation going on. He walks over to sales rep A and says "send the file to Ondeck, we do not check landlords so the file will fly through underwriting. Sure enough sales rep A does that and 24 hours later the file funds for $90,000. No big surprise, 2 weeks later the merchant gets locked out of his store by the landlord and defaults on Ondeck.

Everyone out there is trying to figure out why Ondeck is suddenly cancelling iso agreements on some of their larger isos, cutting commissions etc.

The answer is real simple. Their portfolio is a giant train wreck with a 20% plus default rate and climbing

They don't check landlords, financials, pretty much anything. For them its all about funding more deals and grabbing market share.

Good luck with that IPO