Lenders, Funders Look to Expand as 2021 Heads Into Final Stretch
As the year ends, lenders and funders across the globe are looking to meet goals, help businesses, and close the books on some of the most unpredictable months the industry has ever seen. Whether it comes to improving technology, hiring more staff, or creating completely new concepts on how to do business, any company worth its salt isn’t just going to be content with just staying stagnant.
“Our main goal for this year’s end is to scale our small business loan and MCA deal flow in order to maximize our syndication opportunities, which we want to overtake commission as our primary revenue stream,” said Zack Fiddle, President of CapFront. “We’ve already built a robust CRM and marketing automation system over the past year, we have great people and a proven process and product, and we just moved to a much larger space.”
From a brand-new office in Garden City, Fiddle seems to be expanding his company on multiple fronts. “The next step for us is hiring more support staff and more account managers to handle more leads from increased media [spending] and more referrals from our various business development channels,” he said.
Other fintech brands are looking to come up with new ideas surrounding borrowing. “We are coming out with a special lawyer loan,” said Justin Leto, co-founder and CEO of Miami-based Idea Financial, whose recent announcement about LevelEsq will allow the firm to divi out loans to attorneys who wait to get paid until when —or if — their client wins. “We’ll have the only insurance product that is available on the market that will cover the downside risk that the case [the attorney] is borrowing on goes to trial and loses.”
“It’s a really exciting time here at Idea Financial because we are able to leverage a lot of our existing resources and expertise to enter an entirely new market, which is legal lending,” said Larry Bassuk, co-Founder and President of Idea Financial.
Other firms are taking the current political and social climates into consideration when it comes to their end-of-year plans. “[We’ll] be analyzing risk a little more in case there is another lockdown,” said Drew Matthew, CEO of Infusion Capital Group. The two-person firm doesn’t plan to expand their staff too much going into the new year, but Matthew did flirt with the idea of bringing on an ISO-rep as his business expands.
“I think we’re going to pick up dramatically,” said Matthew when asked about the number of his future clients. “Once there’s no more [covid restrictions], SBA money, or no more fear of another pandemic shutdown, no matter what [we charge], the small businesses in America need us.”
This risk and surrounding political climate have no influence on the location of Infusion Capital’s offices in the future. “I know everyone is going down to Florida, but not us,” said Matthew. “New York or nowhere, baby.”
As seasons change and the year ticks its final months, lenders, much like the businesses they support, are looking to find the next best way to edge out competitors while offering the best product and services for their customers.Last modified: September 15, 2021
Adam Zaki is a Reporter at deBanked. Connect with me on LinkedIn or follow me on Twitter.