Announcements
Innovative Lending Platform Association and Coalition for Responsible Business Finance Join Forces
March 5, 2017NEW YORK, Early Release — The Innovative Lending Platform Association (ILPA) and the Coalition for Responsible Business Finance (CRBF) today announced they are joining forces and will now operate as the ILPA – the leading trade organization representing a diverse group of online lending and service companies serving small businesses. Joining ILPA’s existing members, OnDeck® (NYSE: ONDK), Kabbage® and CAN Capital, are CRBF member companies Breakout Capital, Enova International’s (NYSE: ENVA) The Business Backer™, PayNet and Orion First Financial. United by a shared commitment to the health and success of small businesses in America, the newly expanded ILPA is dedicated to advancing best practices and standards that support responsible innovation and access to capital for small businesses.
In addition, leading national small business organizations that formerly served as the CRBF Advisory Board will now represent small business customers as formal advisors to the ILPA. The Advisory Board includes individuals from the National Federation of Independent Business (NFIB), the National Small Business Association (NSBA), the Small Business & Entrepreneurship Council (SBE Council), the U.S. Chamber of Commerce, and new representatives from the Association for Enterprise Opportunity (AEO). These small business organizations have provided key input into the collective group’s best practices and standards initiatives over the past year, ensuring that the needs of their small business constituents are addressed.
The expanded ILPA remains committed to advancing online small business lending education, advocacy and best practices. In October, the ILPA introduced the SMART Box™ (Straightforward Metrics Around Rate and Total cost), a first-of-its-kind model pricing disclosure and comparison tool launched in partnership with the AEO. The SMART Box is focused on empowering small businesses to better assess and compare finance options and is now available for broader adoption by lending platforms. More details can be found at: http://innovativelending.org/smart-box/
As a leading voice for responsible business funding, CRBF launched in January 2016 with the mission to create a concrete code of ethics for the industry and to educate policymakers on the value of non-bank small business financing. The organization outlined responsible and transparent business practices for both providers as well as customers, and the expanded ILPA has leveraged that work to formulate an updated industry Code of Ethics that will guide the ILPA moving forward.
The expansion of the ILPA follows a period of broad stakeholder engagement and a demonstrated shared commitment to serving small businesses. With this unification, the cross-industry effort to bring innovative and responsible solutions to improve access to capital for Main Street small businesses continues to gain momentum.
“Fostering responsible innovation and empowering small businesses to better assess and compare finance options are priorities for the ILPA. We are delighted to join forces with the CRBF as we work together to advance small business online lending education, advocacy and best practices,” said Noah Breslow, Chief Executive Officer, OnDeck. “We are proud to be part of this growing cross-sector effort to help improve capital access on behalf of small businesses across the United States.”
“The combination of these leading organizations represents a landmark moment in the industry, signifying how major players in the small business lending space are increasingly aligned on values and best practices that benefit small businesses,” said Carl Fairbank, founder and chief executive officer, Breakout Capital. “Founded on the fundamental principles of responsible lending, education and transparency, Breakout Capital is thrilled to partner with other premier players in the industry who share our vision and believe that a unified industry voice can promote small business success more effectively. “As a founding member company of CRBF, The Business Backer is thrilled with the merger between the CRBF and the ILPA,” said Jim Salters, president of The Business Backer and CRBF Advisory Board member. “The move creates an even larger platform of industry leaders with a common voice to help ensure small businesses have access to honest and transparent funding sources.”
“The ILPA was launched as a self-regulatory exercise and is focused on empowering small businesses with clear and transparent ways to compare financing options,” said Rob Frohwein, co-founder and chief executive officer of Kabbage. “Kabbage and the ILPA are excited to join with the CRBF in order to advance ubiquitous industry standards. Together, we are eager to continue working with regulators and policymakers to expand small businesses’ ability to easily access technology-driven financing products.”
“Access to capital is a high priority for America’s small businesses. As our economy grows, small business owners need diverse sources of capital to hire new employees and expand their businesses. The U.S. Chamber of Commerce applauds the innovative capital providers in the ILPA for their dedication to fueling growth on Main Street,” said Tom Sullivan, vice president, small business, U.S. Chamber of Commerce.
“CAN Capital has been a supporter of transparency throughout our 19 year history, and we are excited to see the ILPA expand as it continues to support small business owners,” said Parris Sanz, chief executive officer of CAN Capital.
“Small business lending continues to be stubbornly elusive for many small firms and what we need is not just more lending, but better lending options,” said Todd McCracken, National Small Business Association president and chief executive officer. “This merger will expand on efforts to connect small business with a variety of fair and responsible lending resources.”
“We are excited to be part of an organization whose purpose is to create a vibrant, healthy, small business lending marketplace that serves the engine of the U.S. economy – small businesses,” said David Schaefer, chief executive officer of Orion First Financial. “As a loan servicer to small business lenders, we are particularly enthusiastic that the ILPA is embracing a diverse membership and participation from small business associations through its Advisory Board.”
“SBE Council looks forward to partnering with the expanded ILPA to continue advocating for the innovative and responsible sources of funding to which entrepreneurs and small businesses need access,” said Karen Kerrigan, president and chief executive officer of the Small Business & Entrepreneurship Council.
“It is critical that these and other responsible lenders come together to advance initiatives like SMART Box,” said Connie Evans, president/chief executive officer of the Association for Enterprise Opportunity. “The time is ripe for united voices and action to give more people the opportunity and the tools to realize a brighter future for their businesses.”
Together, the members of the expanded ILPA have provided access to more than $14 billion dollars in capital to small businesses to help drive growth and hiring.
CIM Commits Additional $100M to Funding Circle to Help Fuel Small Businesses
March 1, 2017SAN FRANCISCO, March 1, 2017 /PRNewswire/ — Funding Circle, the world’s leading lending platform focused exclusively on small business, today confirmed Community Investment Management (“CIM”), an impact investment firm focused on marketplace lending, will finance an additional $100 million in loans to businesses originated through Funding Circle in the U.S.
The multi-year agreement, which extends the existing relationship between Funding Circle and CIM, will allow Funding Circle to provide a much-needed, further injection of capital into America’s small business sector.
“We are thrilled to extend our partnership with CIM, who shares our values and mission to help small businesses grow and thrive,” said Sam Hodges, co-founder and US managing director at Funding Circle. “Together, through this additional investment, we can help even more businesses access the transparent and responsible financing they need to stimulate job creation and economic growth in their local communities.”
Since launching in 2010, investors at Funding Circle – including 60,000 individuals, financial institutions, government, and the listed Funding Circle SME Income Fund – have helped more than 25,000 businesses globally access $3 billion in transparent and affordable financing. CIM was one of Funding Circle’s earliest institutional partners in the U.S.
“Funding Circle is a leader in innovative lending to small businesses who are underserved by traditional lenders,” said Jacob Haar, Managing Partner at CIM. “We are pleased to expand our relationship to further empower small businesses across the United States with responsible financing.”
About CIM
Community Investment Management (“CIM”) is an impact investment firm focused on marketplace lending. CIM provides responsible and transparent financing to small businesses in the United States in partnership with a select group of technology-driven lenders. CIM combines experience, innovation, and values to align the interests of small business borrowers and investors. More information is available at http://www.cim-llc.com.
About Funding Circle
Funding Circle (www.fundingcircle.com) is the world’s leading lending platform for business loans, matching small businesses who want to borrow with investors who want to lend in the UK, US and Europe. Since launching in 2010, investors at Funding Circle – including 60,000 individuals, financial institutions, the listed Funding Circle SME Income Fund and Government – have lent more than $3 billion to 25,000 businesses globally. Funding Circle has raised $373m in equity capital from the same investors that backed Facebook, Twitter and Airbnb.
Lendio Announces First-of-Its-Kind Marketplace Lending Franchise Program
March 1, 2017Lendio, the nation’s leading marketplace for small business loans, today announced it is expanding the reach and availability of its small business lending options with the launch of a new franchise program.
The Lendio franchise program complements the company’s core value of helping small business owners fuel the American Dream. Through this program, franchise owners across the country can ease the financial hurdles for small businesses in their local community. Lendio franchisees get access to Lendio’s marketplace and technology, comprehensive training, branded marketing tools and national advertising, partnerships, and access to Lendio’s franchise support team to help coach small business owners through the lending process.
“We are thrilled to extend the availability of our online loan marketplace through our franchisees to an even broader group of small businesses who may not have been aware of the range of loan options available to them,” said Brock Blake, CEO and founder of Lendio. “With 80 percent of small business loan applications being rejected by traditional banks, now more than ever, small business owners need access to various sources of funding. Having a local presence will help bridge the awareness and trust gap for small business owners, helping borrowers position themselves and their companies for a great future.”
Ben Davis, Chief Franchising Officer at Lendio, will lead the franchise program. Together, Lendio and Davis will expand the company’s local presence and offer services to a new segment of small business owners through local franchisees, bringing options, speed and trust to Main Street, the backbone of America’s economy, in a way that has never been done before.
“Lendio’s investment in franchising meets the classic definition of an organization putting its money where its mouth is,” Davis said. “To Lendio’s already powerful online marketplace, Lendio franchisees bring a wealth of knowledge about local businesses and their capital requirements. They are connected to their communities and uniquely driven to build great neighborhoods and strong local economies.”
Lendio helps small business owners find working capital through its online platform. With a network of over 75 lenders offering multiple loan products, Lendio’s marketplace matches small business owners with various loan options. Today’s announcement comes on the heels of Lendio announcing an 87 percent annual increase of loans originated through its platform, which has facilitated more than $240 million in loans to date.
Lendio currently has franchisees in five territories, with significant interest in many others. Partners Kyle Bohrer and Bryan Gealy, in Erie, Pennsylvania, joined Lendio as the first franchise owners. Bohrer has been in the small/mid-sized business marketplace for over 10 years. Located in the Great Lakes region, Bohrer has been working on saving Erie small business owners money on their shipping. By becoming a Lendio franchisee, they are able to support businesses with their financing needs and help their community turn the corner economically.
“We will consult with potential customers looking to create new businesses and ones looking to expand, grow or just stay afloat,” Bohrer said. “Erie is my hometown, so becoming a Lendio franchisee allows local small business owners to work with someone in their community who knows their needs, challenges and potential opportunities.”
For more information about Lendio’s franchise program, visit: https://www.lendio.com/franchise.
About Lendio
Lendio is a free online service that helps business owners find the right small business loans within minutes. The center of small business lending, our passion is fueling the American Dream by uniting the small business loan industry and bringing all options together in one place, from short-term specialty financing to long-term low-interest traditional loans. Our technology makes small business lending simple, decreasing the amount of time and effort it takes to secure funding. More information about Lendio is available at http://www.lendio.com.
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Prosper Marketplace Closes Loan Purchase Agreement for up to $5 Billion of Loans with Consortium of Institutional Investors
February 27, 2017SAN FRANCISCO–(BUSINESS WIRE)–Prosper Marketplace, a leading online consumer lending marketplace, today announced that it has closed a deal with a consortium of institutional investors to purchase up to $5 billion worth of loans through the Prosper platform over the next 24 months. The investors in the consortium are affiliates of each of New Residential Investment Corp., Jefferies Group LLC and Third Point LLC, and an entity of which Soros Fund Management LLC serves as principal investment manager. The consortium will also earn an equity stake in the company based on the amount of loans purchased, further aligning the group with Prosper’s future growth and success. Warehouse financing of up to $1 billion will be provided by a syndicate of lenders including Credit Suisse, Deutsche Bank, Goldman Sachs and Morgan Stanley.
“We’re very pleased to be working with this consortium of investors, and believe they will be great long-term partners as we continue to build a large-scale business,” said David Kimball, CEO, Prosper Marketplace. “This deal gives us the funding stability and additional capital markets expertise we need to continue to grow our marketplace and achieve profitability in 2017.”
Prosper has maintained positive momentum since the second half of 2016, with monthly loan originations growing steadily since July. In addition, the Prosper loan portfolio is delivering solid returns to its institutional and individual investors, with an estimated net return of 7.86%
Financial Technology Partners (FT Partners) served as strategic advisor to Prosper Marketplace and its Board of Directors on this transaction. DV01 will be the loan data agent to the consortium.
About Prosper Marketplace
Prosper’s mission is to advance financial well-being. The company’s online lending platform connects people who want to borrow money with individuals and institutions that want to invest in consumer credit. Borrowers get access to affordable fixed-rate, fixed-term personal loans, and investors have the opportunity to earn attractive returns via a data-driven underwriting model. To date, over $8 billion in personal loans have been originated through the Prosper platform for debt consolidation and large purchases such as home improvement projects, medical expenses and special occasions.
Prosper launched in 2006 and is headquartered in San Francisco. The lending platform is owned by Prosper Funding LLC, a subsidiary of Prosper Marketplace. Loans originated through the Prosper marketplace are made by WebBank, member FDIC. Visit www.prosper.com and follow @Prosperloans to learn more. Prosper notes offered by Prospectus.
1 Estimated return on January 2017 production is 7.86% according to the Prosper Performance Update: January 2017
Contacts
Prosper Marketplace:
Sarah Cain, 415-593-5474
scain@prosper.com
AutoFi Unveils Online Multi-Lender Sales Solution for Used Car Dealers
February 27, 2017SAN FRANCISCO, CA (February 27th, 2017) – Today AutoFi, a financial technology company that is transforming the way cars are bought and sold, announced the launch of the first fully online sales and multi-lender financing solution for used car dealers. Financing on AutoFi’s platform will be provided by its lender network of banks, speciality lenders, and credit unions. Today, the company announced that its credit union financing will be offered in partnership with iLendingDIRECT.
- “People want buying a car to be fast, straight forward and more transparent. That’s why AutoFi is working with lenders and dealerships to make the process easier through online sales and financing.” said Kevin Singerman, CEO of AutoFi. “That’s why I’m so excited about our partnership with iLendingDIRECT. Bringing iLendingDIRECT’s network of credit unions onto the AutoFi platform means consumers will have even more competitive financing options to choose from when purchasing a car online.
- “This is the perfect e-commerce solution to get customers the auto financing they need and want in a quick and efficient manner, and enhance their car-buying experience,” said Nancy Fitzgerald, President and CEO of iLendingDIRECT.
The AutoFi platform is the first online point-of-sale solution for auto finance. It allows customers to purchase and finance a car completely online, either through a dealer’s website or an in-store digital experience. The company recently announced the world’s first online car sales and financing solution for new car dealers in partnership with Ford Motor Credit. Today’s announcement further expands AutoFi’s ability to serve the multi-billion-dollar used car sales market through its partnership with iLendingDirect.
AutoFi’s platform will now allow used car buyers to research a vehicle on the dealership’s website; select “Buy Now”; receive an automated credit decision; and get loan offers from banks, specialty lenders and iLendingDIRECT’s credit union network who compete for the car buyer’s business in real time. Consumers can then customize their financing deal by selecting down payment and loan terms; choose vehicle protection products; and e-sign all financing documents online. The new platform gives used car dealers and buyers the ability to transact online with competitive financing options in a fully automated process.
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About AutoFi
AutoFi is a technology company transforming the way cars are bought and sold. The company’s platform allows auto dealers to sell cars completely online by connecting buyers with lenders in a fast, easy and transparent process. AutoFi’s team includes industry leaders from enterprise software, finance, automobile and consumer sectors who previously worked at companies including Lending Club, PayPal, and SunGard. AutoFi’s investors include Ford Motor Credit Company, Crosslink Capital, Lerer Hippeau Ventures, Laconia Capital Group, Basset Investment Group, Eniac Ventures, 500 Startups and Silicon Valley Bank. For more information visit www.autofi.com
About iLendingDIRECT
iLendingDIRECT is a national Finance and Insurance marketing firm that focuses on Auto Refinancing. We offer smart financial solutions with the customers’ well‐being in mind – committed to setting our customers up for success by saving them money and educating them about what is best for their particular financial situation. For more information on iLendingDIRECT services, visit www.ilendingdirect.com.
Bond Street Announces Renewal of Loan Purchase Agreement with Jefferies
February 15, 2017NEW YORK (February 15, 2017) — Bond Street, a leading online small business lender, announced the closing of a loan-purchase agreement with Jefferies that renews Jefferies’ prior loan-purchase agreement and expands the size of its loan purchases up to as much as $300 million. This agreement will facilitate Bond Street’s growth and help thousands of small businesses across the country access fair and affordable financing.
“Jefferies has been an outstanding partner and shares our vision for reinventing financial services through technology, data and design,” said David Haber, CEO & Co-Founder of Bond Street. “Jefferies’ continued loan purchases will expand our ability to support entrepreneurs at every stage of their growth cycle.”
Bond Street’s technology and extensive expertise in credit and risk management has enabled the platform to scale, while delivering both a superior customer experience to entrepreneurs and market-leading returns to investors. As a result of this exceptional track record, Bond Street has broadened its term product to include loans ranging from $10,000 to $1 million—a significant expansion from its original $50,000 to $500,000. Bond Street now offers the widest term loan range in the alternative lending industry.
“Supporting entrepreneurs beyond the transaction is the cornerstone upon which we build our technology,” said Peyton Sherwood, CTO & Co-Founder of Bond Street. “We aspire not only to provide seamless access to capital, but also to serve as a proactive financial partner to our customers. Through deep integrations into financial software platforms, we automate financial analysis during underwriting, and programmatically monitor the health of our portfolio over time – surfacing key insights and risks to help our customers succeed.”
Bond Street has raised over $400 million in lending capital since its founding. They are backed by leading investors such as Spark Capital and Homebrew, as well as individual investors including Nathan Blecharczyk (Co-Founder and CTO of Airbnb) and David Chang (Chef/Owner of momofuku).
About Bond Street
Bond Street is revolutionizing small business lending through technology, data, and design. Bond Street provides entrepreneurs access to simple and fair financing to sustain their long-term business growth. Bond Street offers one to three year term loans ranging from $10,000 to $1,000,000 with interest rates starting at 6%. Headquartered in New York, Bond Street was founded, in 2013, by David Haber and Peyton Sherwood. For more information, please visit www.bondstreet.com.
About Jefferies
Jefferies, the world’s only independent full-service global investment banking firm focused on serving clients for over 50 years, is a leader in providing insight, expertise and execution to investors, companies and governments. Our firm provides a full range of investment banking, sales, trading, research and strategy across the spectrum of equities, fixed income and foreign exchange, as well as wealth management, in the Americas, Europe and Asia. Jefferies Group LLC is a wholly-owned subsidiary of Leucadia National Corporation (NYSE: LUK), a diversified holding company.
Lendio Announces Record Fourth Quarter and Fiscal Year in 2016, Executive Promotions
February 8, 2017Lendio, the nation’s leading marketplace for small business loans, today announced that it helped facilitate more than $70 million in financing through its marketplace of more than 75 small business lenders during Q4 2016. The figure represents a 68 percent increase in loans originated through the Lendio platform over Q4 2015. In the last fiscal year, Lendio facilitated more than $240 million in funding, a 87 percent increase over 2015.
The company also announced the promotions of Jim Granat to president and chief revenue officer and Trent Miskin to chief growth officer. Granat formerly served as chief operating officer and Miskin as chief technology officer.
Q4 Highlights:
- Lendio raised $20 million in funding led by Comcast Ventures and Stereo Capital
- More than 3,300 small businesses funded in Q4, including in all 50 states
- Record number of repeat customers – 111 percent year-over-year deal growth from Q4 2015
- Added six new lenders to its marketplace, including: FundingCircle, Able Lending, and Internex
“We are extremely pleased to report a strong year-end performance and look forward to continued success in the months and years to come,” said Brock Blake, founder and CEO of Lendio. “These robust numbers put us in an even better position to help small business owners acquire funding. Looking ahead, we will continue to focus on investing in a superior customer experience, loan application automation, efficient processes and talented personnel that will help simplify small business lending.”
Lendio’s financial performance is the result of helping small business owners across the U.S. gain access to capital. Becca Grider and Lindie Royall of Little Poppy Co., a bow subscription for little girls, needed funding to manage the rapid growth of their company (20 percent month over month). “We started looking online at different options for funding and quickly realized that Lendio was our best choice,” Royall said. “We submitted our information online, they contacted us and showed us our different loan options. We got $75,000 through alternative lending, and because we now have the money on hand, it will help us keep our growth going.”
About Lendio
Lendio is a free online service that helps business owners find the right small business loans within minutes. The center of small business lending, our passion is fueling the American Dream by uniting the small business loan industry and bringing all options together in one place, from short-term specialty financing to long-term low-interest traditional loans. Our technology makes small business lending simple, decreasing the amount of time and effort it takes to secure funding. More information about Lendio is available at http://www.lendio.com.
Prosper Marketplace Appoints Usama Ashraf Chief Financial Officer
February 1, 2017
SAN FRANCISCO–(BUSINESS WIRE)–Prosper Marketplace announced today it has appointed Usama Ashraf as Chief Financial Officer. As CFO, Ashraf will oversee the company’s capital markets function, as well as all of the company’s finance activities. As head of the Capital Markets team, he will be responsible for expanding the company’s funding sources by bringing new investors onto the Prosper lending platform.
Ashraf brings more than 18 years of experience spanning corporate finance and global capital markets, including funding, securitization, financial reporting, planning, investor relations, balance sheet management, strategy, and mergers and acquisitions. He has held senior leadership positions at prominent financial services companies, most recently as Deputy Chief Financial Officer and Treasurer at Annaly Capital Management and Corporate Treasurer at USAA. Ashraf will start his new position at Prosper Marketplace on February 27.
“We’re thrilled to have someone with Usama’s experience and track record in finance and global capital markets join our team,” said David Kimball, CEO, Prosper Marketplace. “Usama will be instrumental in bringing new institutional investors onto the Prosper platform, including banks, as we continue to grow the platform in 2017.”
“I’ve watched the online lending industry with keen interest over the past year, and I have been impressed with Prosper’s resiliency and commitment to innovation,” said Ashraf. “I am a strong believer in Prosper’s mission to advance financial well-being, and I look forward to working closely with David and the Prosper team to take the business to the next level.”
Prior to joining USAA, Ashraf spent 13 years in the Treasury and Corporate M&A departments of CIT Group, most recently serving as Deputy Treasurer with responsibility for the firm’s Treasury activities in the U.S. Previously, he worked in the Investment Banking Division of Salomon Smith Barney/Citigroup focused on M&A. Ashraf received a BS in Economics with concentrations in Finance and Accounting from The Wharton School of the University of Pennsylvania.
About Prosper
Prosper’s mission is to advance financial well-being. The company’s online lending platform connects people who want to borrow money with individuals and institutions that want to invest in consumer credit. Borrowers get access to affordable fixed-rate, fixed-term personal loans, and investors have the opportunity to earn attractive returns via the platform’s data-driven underwriting model. To date, Prosper has originated over $8 billion in personal loans for debt consolidation and large purchases such as home improvement projects, medical expenses and special occasions. The award-winning Prosper Daily app offers essential tools to help people manage their financial wellness every day.
Prosper launched in 2006 and is headquartered in San Francisco. The lending platform is owned by Prosper Funding LLC, and Prosper Daily is owned by BillGuard Inc., both subsidiaries of Prosper Marketplace. Visit www.prosper.com and follow @Prosperloans on Twitter to learn more.
Contacts
Prosper Marketplace
Sarah Cain, 415-593-5474
scain@prosper.com
