As Its Peer Winds Down, Able Lending Commits $5 million to Dallas CompaniesJune 13, 2016 | By: Srividya Kalyanaraman
Small business lender Able Lending will pump in $5 million to fund companies in the Dallas-Forth Worth area in the wake of its peer running out of business.
Able calls itself “lowest cost non-bank lender” to small businesses and lends up to $1 million to businesses at any stage. Able offers better rates to entrepreneurs who raise funds from Backers – or family, friends and “fans” who fund as much as 10 percent of most Able loans. The company claims that its borrowers save $31,000 on loans between $25,000 and $1 million.
“DFW is an important market for Able. Our $5 million-dollar commitment to DFW solidifies that Able is ready to fund more deserving small businesses,” said Evan Baehr, president and cofounder of Able which began in Dallas last year to fund nearly $2 million to companies in the area.
Last week (June 5th), personal lender Vouch Financial which follows a similar family-and-friend strategy announced that it was shutting down. The three year old firm based out of San Francisco made personal loans based on what it called a ‘vouching network’ or sponsors, which secures the loan.
The Wall Street Journal reported that Vouch’s investors decided to stop backing the firm as demand for loans retreated as it struggled to compete with bigger rivals.Last modified: June 13, 2016
As editor, Srividya drives daily news coverage and editorial strategy. Previously, her work has appeared in publications like Money magazine, Advertising Age, FirstPost and The Economic Times. She has also dabbled in business intelligence solutions, and holds a Masters degree in Business and Economic Reporting from NYU. Write to her at email@example.com