IOU Financial Enters Into $3 Million Facility With Accord Financial
IOU Financial Inc., an online lender to small businesses, announced that it has entered into a credit facility with Accord Financial Inc. The facility consists of a one-year, secured credit facility for up to $3 million.
The initial drawdown on the credit facility is subject to the execution of certain closing documents required by the lender. The proceeds drawn on the credit facility will be used to support the growth of IOU’s loan portfolio.
With this financing in place and access to the additional funds, IOU will be able to respond to the strong flow of loan applications it has been experiencing. Specifically, IOU processed US$0.6 million in loan applications during Q1/11, US$1.1 million in Q2/11, US$5.4 million in Q3/11 and US$10.1 million in Q4/11, for a total of US$17.2 million in 2011, versus US$3.5 million in 2010.
IOU’s lending platform is rapidly emerging as a viable solution to the challenges that small businesses face when trying to obtain financing. The credit facility will help IOU offer loans to a rapidly growing number of qualified applicants across the U.S.
Accord Financial Corp. is a provider of factoring, asset-based lending, credit guarantees and receivables management services to businesses throughout North America.