Fundation, the small business lender which works alongside the banks, has secured a $100m asset-backed credit facility from Goldman Sachs.
The money will be used to ramp up the growth of Fundation’s lending activities, expanding its capacity to extend credit to small businesses in the US. Fundation operates first and foremost as a balance sheet lender, but also allows banks and other financial institutions to plug into the platform as a means of offering online lending services to small business customers. The platform’s existing partners include Regions Bank, Alliance Partners and the Minority Business Development Agency – a division of the US department of commerce which boasts a national network of 38 business centres.
Fundation CEO Sam Graziano says that the Goldman facility will strengthen the company’s balance sheet and shore up its “unique position in the small business lending market”. Fundation, which is majority owned by Garrison Investment Group, expects that the $100m facility and “other similar arrangements” will fund the bulk of its loan originations going forward.
Beyond extending facilities to existing outfits, Goldman itself has taken a rather more active interest in the online lending space. The preeminent investment bank has been working on an online lending operation of its own for over a year. On Monday we learnt that this new outfit will be named Marcus – after Marcus Goldman, who founded the bank in 1869. A somewhat droll christening for a new entrant into the brave new world of FinTech. Marcus is set to go live in October of this year.
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.