Idea Financial's $50M facility secured

Idea Financial, a leading provider of small business lines of credit, has successfully closed a new $50 million warehouse facility led by Performance Trust Capital Partners.

This strategic move boosts Idea Financial's lending capacity, raising its maximum loan limit from $250,000 to $350,000 for established small businesses. Enabled by Performance Trust's community bank connections, it strengthens Idea Financial's competitive and flexible offerings to Main Street businesses nationwide.

Performance Trust Capital Partners, a full-service investment bank focused on community depository institutions, facilitated this deal by leveraging its relationships with community banks and aggregating the capital necessary to provide this substantial warehouse facility.

Partnering with community banks through Performance Trust has opened a new market for Idea Financial, allowing access to smaller financial institutions and new customer segments. This strategy offers an alternative to traditional warehouse financing, which typically involves large banks, potentially providing more flexibility and favorable terms.

Ten Reasons Why Idea Financial Thrives as a Small Business Lender

1. Founded 2017: Idea Financial was established in 2017 by co-founders Justin Leto and Larry Bassuk, who are both trial lawyers by background.

2. Origins in InsurTech: The founders initially created Level Insurance to insure contingency lawyers against losses from unsuccessful cases. This experience in InsurTech led them to explore opportunities in FinTech.

3. Focus on Small Business Lending: Idea Financial was launched to provide fast and flexible financing solutions for small and medium-sized businesses, particularly focusing on lines of credit.

4. Tech-Enabled Approach: The company developed a tech-enabled platform to offer efficient and quick funding to businesses that may be bankable but prefer the speed of fintech lenders.

5. Competitive Offerings: Idea Financial offers lines of credit up to $250,000 (now increased to $350,000) with competitive daily interest rates.

6. Fast Funding: They are known for their ability to process applications and disburse funds within one business day after approval.

7. Personalized Support: Every client is assigned a dedicated business advisor, providing personalized guidance and support1.

8. Strong Reputation: Idea Financial has an A+ rating with the Better Business Bureau and a 4.7 out of 5-star rating on Trustpilot.

9. Strategic Partnerships: The company has secured significant funding partnerships, including a recent $50 million warehouse facility with Performance Trust Capital Partners, allowing them to expand their lending capacity.

10. Unique Market Position: Idea Financial positions itself as an alternative lender for "otherwise bankable merchants," aiming to help businesses grow without burdening them with unsustainable debt.

These factors collectively contribute to Idea Financial's position as a leading provider of small business lines of credit, particularly in the alternative lending space where they combine the efficiency of fintech with more competitive rates and personalized service.

Our Opinion

This partnership demonstrates an innovative approach to small business lending, where Performance Trust acts as an intermediary, connecting alternative lenders like Idea Financial with community banks. This model allows each party to leverage their strengths - Idea Financial's lending expertise, Performance Trust's structuring capabilities, and community banks' capital - creating a synergistic relationship that benefits all involved while supporting small business growth across the United States.

1-Minute Video: Automating High-volume Loan Applications with Secretary of State API

 Joe Salvatore of Idea Financial comments on Cobalt Intelligence's API:

We process between the five and 10, 000 applications each month. And this was an area of the business that was completely manual. This was an area that was sort of the Achilles heel where no, we didn't think that we'd be able to automate this side of it, but yeah, your product has proven to be a great solution to that… the format and protocol is up to date and simple relative to, let's say some of the more traditional bureaus that we've done integrations with, you know, in terms of like from an adoption standpoint, it's been amazing!

Watch full video here.

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