Personal Network Lender Able Lending Raises $100 Million As Debt
Austin, Texas-based small business online lender Able Lending has secured $100 million in debt financing from San Francisco-based investment firm, Community Investment Management (CIM).
Able prefers lending to entrepreneurs who raise part of the funds from their personal network of family and friends that Able calls ‘Backers.’ These ‘backers’ typically fund as much as 10 percent of most Able loans whose term loans go up to $1 million with rates starting at 8 percent for companies with revenues over $100,000.
In June this year, the startup committed to deploy $5 million to fund companies in the Dallas-Forth Worth area right about the time when its rival San Francisco-based Vouch Financial closed shop. Vouch made personal loans based on a ‘vouching network’ of sponsors.
“During a time when investors’ confidence in alternative lending has plunged, this investment is a vote of confidence in our loan model and our team,” said Able Lending CEO Wills Davis in a statement. The company estimates that it will fund approximately 500 small businesses from the CIM deal.
Last modified: September 28, 2016