- 1Enova's small business loan originations grew 29% year over year to $1.6 billion in Q2.
- 2CEO Steve Cunningham called the SMB side remarkably stable.
- 3Net charge-offs have stayed within a 4%-5% range.
Enova's small business loan originations rose 29% year over year to $1.6 billion in the second quarter. Enova owns OnDeck and Headway Capital, which together make up its small business lending operations.
Credit quality holds
On the company's quarterly earnings call, an analyst asked CEO Steve Cunningham how the small business loan portfolio was performing. Cunningham described the SMB side as "remarkably stable."
He acknowledged that growth can vary from one quarter to the next but characterized the overall trend as healthy. On credit, he said the net charge-off ratio has stayed within a range of 4% to 5%, which is what the company expects every quarter, and has done so for quite some time.
Context
The 29% growth rate and the steady charge-off range are the two data points from the call that bear on small business credit. The comments were made in response to a question rather than in prepared remarks, and the discussion did not break out originations between OnDeck and Headway Capital.
Source reporting: deBanked.
