Fifth Third Bank and ApplePie Capital revealed new details about their strategic partnership. The agreement between the two companies enables Fifth Third to purchase loans originated through ApplePie Capital’s franchise loan marketplace, which provides franchise brands and their franchisees with financing options to grow their respective businesses. Fifth Third also joined ApplePie Capital’s SBA lender network and will receive referrals to SBA loan opportunities.
“We are thrilled to take our relationship with ApplePie Capital to a new level and allow more franchise owners to quickly access the capital they need to grow their business,” said Tim Spence, chief strategy officer of Fifth Third Bank. “Partnering with fintech firms like ApplePie Capital is a central and vital element of Fifth Third’s NorthStar strategy, as illustrated by this agreement.”
This follows the announcement of Fifth Third’s equity investment in ApplePie Capital in October 2016.
“We understand that access to funds is critical to starting or growing a business,” said Kala Gibson, head of business banking for Fifth Third. “Because of our partnership with ApplePie Capital, we can extend our reach and deliver the right type of funding – whether a conventional or SBA loan – to help new and established franchise owners realize their dreams in a best-in-class, digital manner.”
ApplePie Capital offers loans across all 50 states for new franchise locations, acquisitions, remodels, equipment or to refinance or recapitalize existing locations. Since it started operating in January 2015, ApplePie Capital has formed partnerships with more than 60 franchise brands and facilitated financing of more than $100 million to franchise entrepreneurs.
“This agreement with Fifth Third represents a significant milestone for ApplePie Capital,” said Denise Thomas, ApplePie Capital CEO and co-founder. “We have always felt that the franchise lending asset class is a perfect fit for banks, and this direct purchase agreement validates our thesis as well as endorses our proprietary credit model and our ability to efficiently source high-quality loans for bank partners.”