Lending technology start-up On Deck announced Wednesday that it has raised $42 million in a Series D financing round led by Institutional Venture Partners.

The New York company, which uses data aggregation and electronic payment technology to rate the creditworthiness of borrowers, said it will use the cash to continue to develop its technology and create new products, among other efforts.

The roughly six-year-old company has so far doled out $400 million to small and medium sized businesses.

"On Deck will provide more capital to small businesses in 2013 than it did during the previous five years in total. This investment provides On Deck with greater capacity and resources to bring technology-enabled finance to the mainstream of the American small business market," said On Deck's chief executive Noah Breslow in a press release.

As a part of IVP's investment, one of the venture capital firm's general partners, Sandy Miller, has been appointed to On Deck's board of directors.

On Deck recently opened regional offices in Atlanta, Sarasota, Chicago and Los Angeles. It has plans to place employees in Denver later this year, as well as expand its New York City headquarters and Arlington, Va. space.