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The non-bank lender has increased its maximum loan limit for its Lightning Loan product from $175,000 to $200,000, which can be approved in minutes, provided the business has at least six months of bank statements and credit checks.
OnDeck’s Lightning Loan Plus product currently has a limit of $250,000, approved in hours with six months of bank statements, credit checks, plus either Australian Tax Office information or accountant-prepared financials for the previous 12 months.
The update is aimed to provide brokers with greater flexibility in supporting business owners who need fast capital and is in response to a growing demand for small and medium-sized enterprise (SME) finance.
OnDeck Australia CEO Cameron Poolman said the increase in the limit for the Lightning Loan reflects continued improvements in OnDeck’s technology and credit decisioning capability.
“The expansion to $200,000 is really a product of our credit models becoming more sophisticated,” he said.
“We’re now able to assess risk more effectively, which allows us to sharpen our proposition for brokers and customers and meet that growing demand.”
“Brokers can now access unsecured business loans up to $200,000 with less paperwork and a decision in minutes, which makes a difference when a client needs to move quickly.”
Shift to expansion
In the December quarter, OnDeck reported a 42 per cent increase in loan applications.
Poolman said the increase in demand reflects a combination of factors.
“Many small businesses don’t meet the lending criteria of more traditional lenders. A common roadblock is the requirement for property as security, which not every business owner can, or is willing to, provide,” he said.
“Small businesses also operate in real time, whether that’s securing stock or purchasing equipment, and often don’t have the luxury of waiting weeks for a credit decision.”
“Non-bank lenders have stepped in to serve this segment of the market, and the category has matured significantly. There are now a number of credible players offering highly competitive products and a better experience.”
“As awareness and trust in non-bank lenders grows, we’re seeing more brokers and small business owners actively consider non-bank options alongside, or instead of, the banks. That shift is naturally driving increased demand.”
The lender also recorded a shift in borrowing intent, with business expansion emerging as the leading loan purpose, overtaking new equipment purchases and inventory/stock funding.
Analysing OnDeck’s own applications, 34 per cent were from businesses seeking funding to support expansion, rather than to manage immediate cash flow pressures.
OnDeck said this indicates a rise in confidence among small-business owners, with more businesses seeking capital to fund growth rather than manage short-term cash flow pressures.
“We’re seeing a transition from defensive borrowing toward investment-driven demand, which signals a meaningful improvement in sentiment after an extended period of caution,” Poolman said.
All states recorded growth in expansion-related loan applications in the December quarter, with the strongest increase in Western Australia, where applications doubled compared with the same period last year.
Although some SMEs may be looking to expand, cash flow constraints remain. According to a recent survey by non-bank lender Lumi, SMEs are kicking off 2026 with strong financial performance and an appetite to grow, albeit with thin cash buffers and rising compliance pressures.
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