Crossroads Systems, a holding company focused on investing in businesses that promote economic vitality and community development, will merge with Rise Line Business Credit, an asset-based lending firm that provides working capital solutions.
Through this transaction, Crossroads will be able to provide better accessibility to banking for small businesses and assist in their transition into the conventional banking system. The merger will also expand Crossroads’ impact product offering to small businesses that are in asset-heavy sectors such as manufacturing, distribution, retail and consumer products, business services, staffing and technology services.
“This merger enables us to expand our organization into an adjacent competency and diversify our product offering to small businesses across a range of industries,” Eric Donnelly, CEO of Crossroads Systems, said. “Rise Line has a scalable platform that offers customized loan structures and optimal solutions to its customers to achieve their capital goals. We are thrilled to expand our small business impact reach to more customers across the country deserving of responsible credit extension.”
Under the terms of the agreement, which was unanimously approved by the members of Crossroads’ board of directors, the purchase price to affect the transaction was approximately $10 million in cash. The capital infusion immediately expands Rise Line’s base to serve small and midsize companies that are often unable to secure appropriate financings from banks and other non-bank lending sources.
“This capital expansion will allow us to build on the strong base of relationships and partnerships we have built since our launch in 2017,” Gaurang Vyas, CEO of Rise Line Business Credit, said. “We look forward to continue to serve small businesses across the nation in partnership with Crossroads.”
