Toronto-based lending technology platform Lendified Holdings Inc has agreed to receive up to $20 million in a credit facility provided by Liquid Capital Corp, a Canadian factoring and trade finance business. At the same time, the company secured $4 million in mezzanine financing via a private placement. Founded in 2015 by CEO Troy Wright and President Kevin Clark, Lendified operates an online credit marketplace that provides fixed-rate working capital loans and other financial services to small businesses. It plans to use the funds raised and partnership with Liquid Capital to support the growth of its lending activities in Canada.
Lendified Holdings Inc. and Liquid Capital Corporation Announce $20 Million Credit Facility to Support Growth of its Small Business Lending Activities in Canada
TORONTO, Aug. 16, 2016 /PRNewswire/ – Lendified Holdings Inc. (“Lendified”), a Canadian-based lending technology company offering working capital and related financial services products to the small business community, is pleased to announce that it has entered into an agreement with Liquid Capital Corporation (“Liquid Capital”), a company specializing in providing working capital, asset based lending and trade finance solutions. Liquid Capital will provide the senior debt for a new credit facility, initially in an amount of up to $20 million, for working capital loans underwritten by Lendified. At the same time, Lendified announces it has closed a further $4 million in mezzanine financing through a private placement bringing the total funding lines to $24 million. Lendified is now poised for significant growth across a number of targeted markets for its products.
Launched in early 2015, Lendified provides small businesses access to working capital from $5,000 to $150,000 for terms of up to two years. In early 2016 Lendified purchased Mentio Technologies Inc., adding additional data and analytics capabilities to its technologically-advanced credit adjudication model. Lendified today provides small businesses with advanced tools for managing their cash flow in addition to providing prospective borrowers a frictionless experience in applying for and receiving working capital. Lendified’s wholly-owned subsidiary, Lendified Technologies Inc. provides third party financial services firms including banks, credit unions and other firms dealing with small businesses with a “software-as-a-service” tool that enhances the risk review process of small businesses applying multi source data analytics with advanced algorithms which provide a best in class view of the current and future performance of small businesses.
“We are pleased to have formed a funding partnership with Lendified,” said Sol Roter, President and co-founder of Liquid Capital. “Lendified exemplifies today’s merger of lending skillsets, quality management and technology within the “Fintech” world of financial services. Lendified’s advanced methodologies around credit analysis, while leveraging technological access to information is very, very impressive. It is our plan that this partnership will bring opportunities for efficiency and referral across our respective platforms as well. This transaction represents an important addition to the Liquid Capital portfolio and provides an outstanding opportunity to showcase Liquid Capital’s increasing commitment and interest in technology-driven financial services.”
Liquid Capital entered into a joint venture with Next Edge Capital Corp. (“Next Edge”) in 2015 to co-fund investments in accounts receivable, trade finance, and asset based lending transactions sourced by and through Liquid Capital’s Principal distribution channel and financed via the Next Edge Private Debt Fund (the “Next Edge Fund”). The Next Edge Fund has now grown to approximately $50MM and will continue to grow as Liquid Capital continues to source quality transactions through its network of originators in Canada and the United States.
Co-founders of Lendified, Troy Wright and Kevin Clark are very pleased with the arrangements that have been put in place. “Lendified now has the capital it needs to grow the lending component of the company’s strategy,” says Troy Wright, CEO. “This financing marks the next step in the company’s strategy of moving the loan book to a position of strength and sustainment. The benefits of working with Liquid Capital on not only this financing but with a number of potential synergies for both parties makes this financing that much more appealing.” Kevin Clark, Lendified’s President notes the alignment with a number of companies within the financial services world under the umbrella of Next Edge makes this opportunity very strategic and presents a number of tremendous opportunities in the future for broader business development within the financial services world in Canada and beyond.
Founded in early 2015, Lendified Holdings Inc. and its subsidiaries are engaged providing in a number of financial services products and related services within the small business eco-system through www.lendified.com and for offering a Software as a Service subscription model of their credit risk adjudication platform www.lendifiedplatform.com , used by third party financial services firms in the assessment of small business risk.
For more information, visit www.lendified.com
About Liquid Capital:
Since 1999, Liquid Capital Corporation has been operating in the factoring and trade finance business. Over that period of time, the company has processed well over $2 billion in accounts receivables and trade finance transactions through both its Canadian headquarters in Toronto and US headquarters in Dallas. The company also has a master franchise relationship in Mexico. Through its 80+ franchised office network, the company locally originates, manages, and funds accounts receivables, asset based lending and trade finance transactions. Further information can be found at www.liquidcapitalcorp.com.
About Next Edge Capital:
Next Edge was formed through a management spin out of the Canadian office of Man Investments Canada Corp. in 2014.
Next Edge searches the world for investment managers and strategies that aim to deliver robust risk-adjusted performance. The yields available today from traditional fixed income investments are at all-time lows. One area where there are still opportunities for significant yield generation with security is Private Lending. Next Edge’s first two offerings in this space – the Next Edge Private Debt Fund and the VPC Specialty Lending Trust seek to capitalize on this opportunity. For more than a decade, the Next Edge management team has provided access to unique strategies before they have become widely known. Further information can be found at www.nextedgecapital.com.
Photo courtesy of Lendified Holdings Inc