Brendan Ross, president of Direct Lending Investments, and an expert in alternative assets, commented:
“Teaming with Biz2Credit underscores our commitment to helping entrepreneurs succeed by giving them fast access to the funds they need to start, grow, and manage their businesses. The Biz2Credit platform is a market leader in terms of underwriting speed and risk mitigation and has proven to be a successful platform for our investors.”
Ross, who has directed the purchase of more P2P-originated U.S. small business loans than any other institutional investor, added:
“Over the last 15 years, banks have all but abandoned the small and midsize companies across the country in need of financing. Even when these loans are made by banks, it can take months for the funding to come through, but business owners often need more immediate solutions. We are excited to partner with the small business lending experts at Biz2Credit, a company that has made it easier for entrepreneurs to quickly and efficiently secure the funding they need to launch and grow their businesses."
The investment will be used to underwrite financial products and loans of various durations on the platform.
Ramit Arora, president of Biz2Credit, explained:
"Direct Lending has already invested millions of dollars on our platform. Our two companies have great synergy, and I am excited to expand our partnership. Many times, small business owners cannot afford to wait for an infusion of capital. Our credit marketplace provides a faster options than traditional bank loans for entrepreneurs who need money quickly to close a deal. It’s a win-win situation for borrowers and lenders.”
Biz2Credit is expanding fast and is taking up slack in an area of the market where banks are becoming less interested in lending- loans between $25,000 and $500,000. There are also whispers that the platform will look to IPO by 2016. This investment is another indication of the growing strength of the alternative finance industry and sets the scene for strong growth in 2015.