|04/10/2020||IOU Financial applies for PPP lender status|
|03/06/2019||IOU Financial signs $50M facility|
|10/11/2018||IOU Financial surpasses $600M in loans|
|08/23/2018||IOU Financial Profitable, Again|
|07/08/2018||IOU Financial grants options to Ben Yi|
Potential Match Found in deBanked UCC Filer list
|Company Name||Phone number||UCC Alias 1||Alias 2||Alias 3||Alias 4||Alias 5|
|IOU Financial||866-217-8564||IOU Central Inc.|
IOU Financial originated $34.4M worth of small business loans in Q2, the company reported, a 272% increase over the same quarter last year. July was IOU’s best month ever, coming in at $18.5M in originations.
“We are delivering on our Post-Pandemic Growth Plan and these growth figures are the result,” said Robert Gloer, President and CEO, in the quarterly earnings announcement. “We are committed to continue delivering on our plans and maximizing the growth potential of the marketplace strategy.”
The company hopes to originate between $165M to $200M of business loans for the year, which would be their best year ever, according to the deBanked Small Business Funder Rankings.
Small business lender IOU Financial is undergoing one of the largest management shakeups of 2021. The company announced a slew of new hires and new roles for existing team members early this morning.
Joining the company are:
- Carl Brabander, EVP of Strategy
- Jason Stevens, VP of Loss Mitigation
- Sam Abolgar, VP of Finance (US)
New roles are as follows:
- Madeline Wade, EVP Operations
- Stewart Yeung, EVP of Finance
- Jeff Turner, EVP of Risk Mitigation
- Richard Zapata, VP of Engineering
- Lori Haygood, VP of Compliance
IOU founder Phil Marleau also recently completed his planned transition from CEO to an advisory role. President and COO Robert Gloer has taken over as CEO as previously announced.
The burst of change at IOU is perhaps unsurprising given that Neuberger Berman, an investment manger with $374B under management, acquired a 15% stake in the company last year.
“IOU’s new management structure lays the groundwork for growth and innovation,” Gloer said in a public statement. “With this team in place IOU Financial has never been in a better position to achieve rapid growth through innovation in the areas of technology, products and distribution.”
IOU Financial filed their full-year 2020 financial results, boasting a total of $84.9 million in originations. Though at a $3.2 million net loss and decrease of 45% in originations from 2019, IOU representatives attest the firm weathered the worst of the pandemic and has left the other side prepared to take part in fueling “the recovery ahead.”
Shares of IOU are trading at about 8 cents, creating a market cap of just under $10 million. In 2020, Neuberger Berman acquired a significant stake in the company and agreed to purchase up to $150M in loans a year over two years. Founder and CEO Phil Marleau will transition into an advisory role on June 10th, replaced by Robert Gloer, COO.
“Robert and I have worked side-by-side since the Company was founded,” said Marleau. “Together, we underwrote our first small business loan in December 2009 and have since originated nearly US$1 billion in loans. IOU’s resilience and success are a direct result of the team’s considerable efforts over the past decade – a team that Robert and I have built and led. I look forward to continuing our partnership in an advisory capacity and as Director.”
IOU Financial originated $12.1M in funding to small businesses last month, the company revealed. It was IOU’s biggest loan volume month since the beginning of the pandemic.
The figure was included in an announcement regarding the company’s intention to repurchase up to $2M of Convertible Debentures.
“The move to repurchase corporate debt comes after a year of strategic initiatives as part of IOU’s Pandemic Resilience Plan that focused on reducing corporate expenses while reaffirming commitments from its diverse portfolio of funding sources and capitalizing on new opportunities to continue to support small businesses in 2020,” IOU said.
“IOU’s response to the COVID-19 pandemic in 2020 (‘Pandemic Resilience Plan’) put the Company in a position of strength to consolidate its stake in developing the opportunities ahead,” said Phil Marleau, CEO. “We are proud to be able to stand with our network of brokers and small business owners as we prepare for the economic recovery with great optimism.”
Before the pandemic, IOU originated $154M in funding for all of 2019.
Neuberger Berman, an investment manager with $374B under management, is acquiring a 15% stake in IOU Financial, a small business lender. As part of the deal, one of the firm’s funds has agreed to purchase up to $150M a year of IOU’s loans over the next two years.
“This investment by a Neuberger Berman managed fund represents a strong vote of confidence in the fundamental, long-term value of our business, and is a testament to IOU’s loan origination and servicing capabilities in addition to its capital markets capabilities” said Phil Marleau, CEO of IOU, in a public statement.
Additionally, Neil Wolfson, a former board member to rival OnDeck, is joining IOU’s board of directors.
IOU Financial approved the re-appointment of all of its current directors and auditors yesterday. The company, however, is currently experiencing challenges similar to other online lenders.
In late May, the company filed its Q1 financials and revealed that the COVID-19 pandemic had put them in an “over-advance position with its financing credit facilities.” At the time, the issue remained “uncured” and “the company received default notices subsequent to quarter end.”
“The Company and the financing credit facilities are working together to remedy the situation,” IOU reported. “Nevertheless, there is no assurance that these initiatives will be successful.”
IOU had furloughed 40% of its full-time employees and implemented a temporary 20% reduction in salary for all remaining employees commencing on April 1, 2020.
The company’s market cap has plummeted to CAD$7 million, down from $18 million in February. The company had previously been on a fairly positive trajectory until Q1 when they cranked up their provision for loan losses in anticipation of the fallout caused by the pandemic.
IOU Financial applied to become a PPP lender on Thursday, according to a note posted to social media by President and COO Robert Gloer.
“We are all hoping the SBA will be able to quickly get FinTech lenders up and running. We have helped thousands of Small Businesses Nationwide since 2009. We are built to deploy capital efficiently and expeditiously,” he added.
IOU Financial originated $41.4M in business loans in Q3, according to the company’s latest published financial statements. The figure is a modest increase over Q2’s $38.5M. IOU also kept up its trend of profitability with net income $1M.
Shares of IOU, which trade on the Toronto Stock Exchange, are valued at around (CAD) 14 cents and equate to a market cap of approximately (CAD) $14M.
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