Windset Capital Winding DownSeptember 18, 2016 | By: deBanked Staff
An email sent out on Friday by Paul Phillips, announced that Riverton, UT-based Windset Capital will be winding down their funding operations this week. Phillips is the company’s business development manager.
“Windset will no longer accept new loan applications effective Monday, September 26, 2016. Windset will complete and fund all open and valid approvals and will continue to service all of the loans in its portfolio, for the entire duration of their terms.”
Phillips’ email explains a hard truth. “In our opinion the working capital loan market has become unhealthy, reflecting current and trending competitive patterns that we believe no longer maintains an acceptable balance between risk and pricing,” he says. “In addition, as an organization, we have multiple growth opportunities in our equipment finance businesses that are more compelling.”
Windset launched in in 2013 with the idea that they could provide businesses with at least two years in business with working capital loans up to $250,000.
“After three years of serving the short-term working capital market and dedicating 100% of Windset’s resources to the broker/ISO community, we have made the strategic decision to exit the working capital loan market and focus solely on our growing equipment finance businesses.” said Barry Shafran, Chesswood’s President and CEO.
Winset is owned by Chesswood Group Limited, whose portfolio of companies includes the notable Pawnee Leasing.
“While we have continued to manage Windset profitably, our longer term outlook on the changing fundamentals of the working capital loan market have made us uncomfortable with the risk-return profile. We appreciate the many relationships we have made since 2013 and we will continue to fund all of our partners’ approved applications,” said Windset and Pawnee Leasing President Gary Souverein.September 19, 2016