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The online SME lender has announced it has expanded its financing capacity, funded by an alternative asset manager.
Online small-business lender Capify has secured a $194 million credit facility from Pollen Street Capital (Pollen Street), an asset manager investing within financial and business services.
According to Capify, the credit facility will go towards meeting increasing customer demand and growing the lender’s small- to medium-sized enterprise (SME) lending business.
Capify was launched in Australia and the UK in 2008 by David Goldin against the backdrop of the GFC, a time when SMEs were struggling to access crucial funding from lenders.
Reportedly, Capify was one of the first online alternative financing companies for SMEs when it was initially founded in the US in 2002.
Established in 2013, Pollen Street currently manages over £4.2 billion in assets under management (AUM) across private equity and credit strategies on behalf of investors.
Goldin commented on the lender securing the credit facility: “We are extremely excited about our future relationship with Pollen Street, a capital provider with a proven track record of partnering with impactful and innovative businesses.
“This deal represents another significant milestone for Capify and underlines the strength of our business model in providing fast, flexible, and responsible support to SMEs.”
Managing director at Capify, John de Bree, said the credit facility will enable the company to continue its growth trajectory while “offering even more attractive and innovative solutions to the growing number of small businesses in need of funding”.
“We are passionate about the vital role SMEs play in the success of the Australian economy. This new multi-year credit facility allows us to provide much-needed access to capital for SMEs to help them manage and prosper, while also enabling us to deliver on our own growth plans,” de Bree added.
De Bree added that with the release of Capify’s next version of its technology platform, the lender will be able to “streamline [its] processes and provide even fast decisions to brokers and SMEs”.
“This enhancement emphasises our commitment to leveraging technology to meet the fast-evolving needs of small businesses, ensuring they have quick access to capital and can seize growth opportunities more effectively,” he said.
Investment director at Pollen Street, Ethan Saggu, said the asset manager was “impressed by Capify’s seasoned management team and their enduring presence in the market”.
“Capify successfully addresses the needs of the underserved market segment, resulting from a chronic undersupply of bank financing, and promotes both financial inclusion as well as regional economic growth, aligning closely to Pollen Street Capital’s ESG framework. We are delighted to partner with Capify and support their ongoing growth,” Saggu said.
[RELATED: SMEs expect decrease in turnover: Prospa]
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