SunTrust Bank and AloStar Bank of Commerce have agreed to provide Credibly with $70m in funding.
The emerging US fintech platform Credibly have announced the closure of a $70 million credit facility from financial services firms SunTrust Bank and AloStar Bank of Commerce (a specialty provider of asset-based loans).
SunTrust served as structuring and administrative agent, committing $50 million, while Alostar came in as the first participant with a $20 million commitment. The deal has been said to be flexible, meaning that the committed amount could be increased by another $30 million, bringing the total facility potential to $100 million.
Founded in 2010, by the name of RetailCapital, and rebranded as Credibly last June, the platform targets the entire SMB credit spectrum, offering businesses a wide range of tailored capital solutions. Since inception, the platform has funded more than 4,500 businesses in over 300 industries, providing them with more than $200 million to date.
“Being vetted and validated by a bank partner of SunTrust’s stature is one of our greatest milestones to date, and provides us with one of the lowest costs of capital in the industry. The continued participation from AloStar – our first credit facility lender going back to 2014 – gives us increased flexibility in our product suite, which in turn provides better terms for borrowers and helps us execute on our core philosophy that all small businesses deserve access to right-sized capital.”
Headquartered in Atlanta, SunTrust Banks, Inc. is one of the US' largest financial services organisations, dedicated to serving a broad range of consumer, commercial, corporate and institutional clients. As of September 30th 2015, SunTrust counted total assets of $187 billion and total deposits of $146 billion.
Tarun Mehta, Group Head, Financial Institutions Investment Banking at SunTrust Robinson Humphrey, also weighed in:
“SunTrust is pleased to work with Credibly to assist them in achieving their mission to fuel American entrepreneurship through access to capital."
The announcement follows on from a recent partnership between Credibly and the Small Business Association of Michigan (SBAM), a Michigan-based association that focuses on serving the needs of Michigan’s small business community.
Last June, AltFi interviewed Glenn about the company rebrand and about his view on the alternative finance industry. On that occasion, Glenn voiced his concern about the lack of platforms with a product set sufficient to cater to both the super prime and sub prime ends of the credit spectrum, and everything in between. He stated that Credibly’s mission was to target the widest range of businesses possible, with a suite of 5 or 6 products, asserting that “every business has a right to capital”.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.