Idea Financial, a provider of small business lines of credit, closed a new $84 million warehouse facility with Synovus Bank Specialty Finance and Hudson Cove Capital Management.
The commitment from Synovus and Hudson Cove increased Idea Financial’s capacity to extend financial products to Main Street. In addition, Idea Financial will be expanding into the legal finance market by offering case expense financing solutions to plaintiff lawyers and law firms.
“We are grateful to Synovus and Hudson Cove for their partnership and for providing Idea with committed capital to continue providing Main Street America the financing needed during this post-COVID recovery,” Justin Leto, CEO and co-founder of Idea Financial, said.
“In addition to providing capital for our core small business lending operation, this new warehouse facility allows us the opportunity to extend meaningful liquidity to plaintiff lawyers and law firms that incur significant case related expenses,” Larry Bassuk, president and co-founder of Idea Financial, said.
Leto and Bassuk are both Florida licensed trial lawyers and previously developed a specialty insurance program, Level Insurance, which provides law firms with case expense recovery protection. Through this warehouse facility, they will be able to expand Idea Financial into attorney cost financing and complement this strategy by also marketing insurance coverage to law firm clients.
“We are very excited to be working with the team at Idea Financial, as the platform, personnel and approach to lending are all exceptional. In particular, we hold in high regard the company’s strategy in working with their client base during the most difficult periods of 2020,” Jayan Krishnan, managing director of Synovus Bank’s structured lending division, said.
“We are thrilled to be partnering with Idea Financial as they continue to offer innovative financial solutions for small businesses, which is of paramount importance as we enter this post-COVID recovery,” Fred Wang, a partner and portfolio manager at Hudson Cove Capital Management, said.
