Wednesday March 18, 2015 0 comments
DENVER - P2Binvestor (P2Bi), the leading crowdlending platform for commercial lines of credit, today announced more than $50 million in invoices funded since signing its first client in May 2014.
The company has financed the growth of companies in technology, natural foods and products, manufacturing, energy, and personnel services with average annual revenues ranging from $500,000 to $25 million, P2Bi said.
"Exceeding $50 million in purchased invoices in 10 months is a huge achievement for us," said Krista Morgan, P2Bi CEO and co-founder. "I am confident our rapid growth will continue in 2015 as we launch new products.
"I'm especially excited about the first revolving line of credit for SaaS companies, and a free-fill loan product for our natural foods customers."
P2Bi said its crowdsourced funding model reduces its effective cost of capital, creating room for more flexible rates and terms for its clients. A crowd of accredited investors (those with a net worth of at least $1 million) takes part in funding each credit line and they earn a fair return on the platform in exchange for supporting P2Bi's clients, the company said.
"The last year has been about proving we can underwrite effectively and be a good partner to the great companies we are funding," said Bruce Morgan, executive vice chairman and co-founder.
"Our innovative crowdfunding model has enabled us to achieve in a short amount of time what a traditional alternative finance company would take years to accomplish."
P2Bi said it can provide working capital financing of up to $5 million per client, which is normally secured by accounts receivable, future contractual flows or other assets.
The company said its aim is to improve access to working capital for growing businesses with a new generation of financing products.