Canadian small-business lender Lendified has secured senior debt for a new credit facility of up to $20m to underwrite loans. The credit facility comes from Liquid Capital, a firm specialising in providing working capital, asset-based lending and trade finance solutions.
Lendified is also announcing $4m in mezzanine financing through a private placement that takes its total funding lines to $24m.
The Toronto-based company provides small businesses with working capital of between $5,000 and $150,000 for terms of up to two years.
Unlike traditional banks that can use customer deposits to finance loans, online lenders instead reach agreements to sell the loans to investment firms.
“Lendified now has the capital it needs to grow the lending component of the company’s strategy,” says Troy Wright, Lendified CEO.
“This financing marks the next step in the company’s strategy of moving the loan book to a position of strength and sustainment. The benefits of working with Liquid Capital on not only this financing but with a number of potential synergies for both parties makes this financing that much more appealing.”
Earlier in the year Lendified acquired Vancouver-based Mentio Technologies, a startup focused on automated cash flow forecasting.
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