National Funding announces that Wells Fargo will be making larger amounts of capital available to platform.
Founded in 1999, National Funding is one of the US’ largest financial service providers for small and medium-sized businesses, which has witnessed the transformation of the industry over the past 16 years, as AltFi has already reported in a recent interview with David Gilbert, National Funding’s founder and Chief Executive Officer.
Today, its long-time partner bank, Wells Fargo Capital Finance, has committed to increase its line of credit up to $75 million, which will help the platform to fund working capital and equipment leasing loans for small businesses.
The announcement follows on from the platform’s achievement of several growth milestones: over $1bn lent to small businesses nationwide, a 172% revenue increase over the past three years and the addition of 50 new employees in the first eight months of 2015.
David Gilbert commented:
“The increased funding commitment from Wells Fargo is a clear indicator of the continued confidence in our business and the surging alternative lending industry overall. The line of credit allows us to continue funding thousands of small businesses that need a loan from a trustworthy, personable expert in as little as 24 hours for critical business expenses such as renovations, repairs and working capital.”
Wells Fargo Capital Finance is willing to help National Funding with its mission, since this partnership results as a powerful channel to reach effectively national small businesses and because it represents a juicy and almost riskless revenue stream.
Andrea Petro, Executive VP at Wells Fargo, added:
“We are dedicated to working with our clients that serve the small business community and believe in National Funding’s mission to empower these businesses through access to working capital. By working together, we are all helping drive the economic growth engine of our economy.”
This news indicates not only increasing demand for SMB growth capital, but also further evidence that the trend of platforms partnering with other businesses, particularly with banks, is soaring, as Lending Club and Prosper have demonstrated.