Orchard platform has announced a partnership with Mainspring Funding, a leading provider of aggregation and sales of small business loans.
Rob Snow, Chief Credit Officer and Co-Founder of Mainspring Funding, commented:
"Our objective is to make the origination and purchase of small business loans more efficient. The marketplace model is advantageous to us from a scale, diversification and speed perspective and Orchard helps us bridge the technology gap. Mainspring Funding currently has millions in loans that Orchard can instantly expose to investors, which used to take days."
The aim for this partnership is to allow institutional investors using Orchard to have access to loan portfolios and single loans originated by Mainspring.
Matt Burton, CEO and Co-Founder of Orchard, added:
"We're really excited about partnering with Mainspring Funding and bringing them onto Orchard's platform. This is a great example of how the next generation of credit is spinning up around the world as more traditional businesses are able to leverage technology and tap into new funding sources, and institutional investors find a new asset class."
David Snitkof, Chief Product Officer and Co-Founder of Orchard, also weighed in:
"We believe Orchard's partnership with Mainspring Funding is a milestone for marketplace lending. The technology that powers Orchard's marketplace is expected to allow Mainspring Funding to distribute its loans to a large and diverse group of institutional investors in a scalable and data-driven way."
"Marketplace lending continues to grow and Orchard is at the center of the movement. The marriage of data and technology, and its impact on the allocation of credit has made a positive impression on small businesses and individuals on a global scale. Orchard is helping provide reach for investors and expand product offerings for originators, and we believe there will only be more upside as the industry moves ahead."
This partnership and others like it illustrate the continued growth and development of the marketplace lending space, a market that Orchard estimates will grow to more than $1 trillion over the next decade. Orchard’s partnership comes shortly after Lending Club's recent string of strategic partnerships and it is clear that this is the strategy of choice for platforms striving to increase origination volumes.
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