OnDeck Capital Inc., which arranges high-cost loans to small businesses over the Internet, surged after selling a record amount of debt in the second quarter.
The shares rose 8.5 percent to $14.21 at 10:58 a.m. in New York. The company said Wednesday that it had lined up $143 million of loans through its platform in the second quarter, a 55 percent increase from the first three months of the year. The growth was helped by selling a portfolio of debt to an investment firm.
“The company is successfully executing on its strategy of diversifying its funding sources,” Mark Palmer, an analyst with BTIG, said in a research note Thursday.
OnDeck is one of many new companies that seek to use technology to extend credit more efficiently. It went public in December at an initial price of $20 a share. It has come under pressure this year as more companies compete for borrowers.