Strategic Funding Secures $12 Million Equity Round and $15 Million Senior Credit FacilityJune 27, 2012 | By: Sean Murray
For Release on MPR / New York (June 26, 2012) – New York City based Strategic Funding (www.sfscapital.com) has announced it has completed a $12 million equity round with an investor group led by Three Layer Capital of Los Angeles, California and simultaneously closed on a new $15 million revolving Senior Credit Facility with Capital One Bank. The new equity and credit facility will be used for ongoing capital needs and to fund the future growth of company.
Strategic Funding is recognized as one of the most innovative companies in the alternative finance industry, providing unique working capital solutions such as merchant cash advance, revenue based factoring (ACH programs) and commercial loans for small businesses. The company’s business model combines sophisticated underwriting incorporating qualitative and quantitative risk analysis with the most advanced enterprise technology available.
“Strategic Funding finances the small to mid-sized businesses of Main Street America” said Andrew Reiser, Chairman and CEO of Strategic Funding. “Since 2006, we have provided thousands of small businesses with the working capital they need to grow and sustain themselves through challenging times. Today’s entrepreneurs have very limited access to bank financing, a void filled by our company and the alternative finance industry – so one might say that we are stimulating the economy, one small business at a time.”
In seeking high yield investment opportunities, Thomas Scoville, a partner at Three Layer Capital stated that, “We were looking for best-of-breed players in the alternative finance space. A lot of companies are currently operating in this arena but few have the disciplines and technology of Strategic. A number of these companies are also beginning to venture into big-data risk analytics, but Strategic has been quietly doing this for years – they’ve got a big head start.” Dan Scholefield, partner in Three Layer Capital added, “Their business model demonstrates remarkably high yields and low default rates while providing financing to traditionally under-banked entrepreneurs. Strategic is very responsive to the needs of the market and economic conditions and provided an outstanding investment opportunity.”
Reiser continued, “We pride ourselves on integrity and responsiveness to the ever changing market and are pleased to welcome our new investors at Three Layer Capital and the team at Capital One Bank.
The Capital One Bank Senior Credit facility replaces the facility provided by Paul Frontier Holdings, which has been a shareholder in Strategic since 2007. Rahul Vaid a managing director of Frontier Capital Advisors, which manages the Paul Frontier Holdings portfolio. He will remain a member of the Board of Directors and his firm will continue their support as a major shareholder of Strategic.
About Strategic Funding
Strategic Funding ( www.sfscapital.com ) is a leading provider of specialty financing to small businesses throughout the United States. Strategic is recognized as the technology leader in servicing the factoring and loan transactions of thousands of merchant accounts for themselves and over one hundred funding partners. The Strategic enterprise technology is at the backbone of the “Strategic Partner” program which promotes syndication among numerous cash advance companies and private investors. Established in 2006, Strategic has its headquarters in New York City and maintains regional offices in Williamsburg, Virginia; Chicago, Illinois and Seattle, Washington, serving thousands of active small business clients in all 50 states.
About Capital One
Capital One Financial Corporation ( www.capitalone.com ) is a financial holding company whose subsidiaries, which include Capital One, N.A., Capital One Bank (USA), N. A., and ING Bank, fsb, had $216.5 billion in deposits and $294.5 billion in total assets outstanding as of March 31, 2012. Headquartered in McLean, Virginia, Capital One and ING Direct offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has approximately 1,000 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.
About Three Layer Capital
Three Layer Capital ( www.threelayercapital.com ) is a privately held multidisciplinary fund with focused interests in biotechnology, energy and alternative finance, located in Los Angeles, California.
David C. Sederholt, Chief Operating Officer
Sean Murray is the founder of deBanked, an 11-year veteran of the merchant cash advance industry, a casual Lending Club and Prosper note investor, the co-founder of Daily Funder, an alternative lending speaker, consultant, writer, and enthusiast. Connect with me on LinkedIn or follow me on twitter.