What IOU Financial Revealed in its Earnings Statement

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2016 was a weird year for online lenders and IOU Financial, who lends to small businesses, fared no differently. Loan origination volume for the year was $107.5 million, down 26.5% from 2015. Revenues were up due to the company retaining more of their loans on balance sheet but losses were up as well.

Here are the most interesting statistics we found:

  • 93% of their loan volume came from brokers
  • 15% of merchants in their portfolio were classified as specialty trade contractors and home building renovation
  • 14% of merchants in their portfolio are based in Florida (more than New York and New Jersey combined)
  • Their borrowers have been in business for an average of 11.4 years
  • Their average loan size is $69,695
  • Their average loan term is 12 months
  • They sold $60.8 million of loan receivables in 2016, down from $137.3 million in 2015
  • The company has loaned $415 million to small businesses since inception
  • The company had 53 full-time employees at year-end

IOU Financial is the only lender that deBanked is tracking whose stock is down year-to-date. At close on Friday, company shares were down more than 28% for the year.

You can downloaded their full 2016 report here.

Last modified: April 29, 2017

Category: Business Lending

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