OnDeck Capital, the New York-based online small-business lender, has obtained a $200 million revolving debt facility from Credit Suisse.

Under the deal, loans will be made to a trust that is a wholly owned subsidiary of OnDeck, and the trust will purchase small-business loans from OnDeck, according to a Friday news release.

Credit Suisse will provide $125 million of committed lending capacity, and the Swiss bank has the option of providing an additional $75 million.

OnDeck plans to use a portion of the Credit Suisse funding to prepay an existing $100 million facility that is scheduled to expire in June. The transaction will also help pave the way for future loan growth, OnDeck said.

OnDeck uses a hybrid business model in which some of its small-business loans are sold to institutional investors, and others are retained.

Over the last year, buyers of loans from OnDeck and other online lenders have been demanding better prices amid concerns about deteriorating credit quality. OnDeck has responded by keeping a larger percentage of loans on its own balance sheet, a shift that has contributed to a string of four consecutive unprofitable quarters.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.