Online direct lender Dealstruck and non-profit lender VEDC have partnered to offer a greater variety of flexible financing options to small businesses.
Because of their vastly different structures, each if able to offer value to the other, Dealstruck Chief Strategy Officer Candace Klein said. Dealstruck provides lines of credit and shorter-term loans that can, on rare occasions, run to four years, though most are of a much shorter duration. VEDC loans are backed by the FDIC and can stretch to ten years in length.
Ms. Klein said the agreement allows both sides to better serve a larger client group.
“We both have a mission to provide borrowers with access to capital. If someone comes to us and their needs are best suited by a longer term loan, we can refer them to VEDC. If someone comes to VEDC looking for assistance with typical short term areas like payroll and inventory, they can refer them to us for a side-by-side line of credit, for example.”
VEDC also benefits from Dealstruck’s marketing abilities, Ms. Klein explained. Because of their CDFI certification, VEDC has limits on their advertising and marketing.
“This partnership extends VEDC’s marketing and customer acquisition capabilities through Dealstruck.”
Healthy small businesses who do not have to worry about how to meet payroll and inventory challenges are better able to focus on growth and job creation, two key goals for VEDC, their President and CEO said.
“We are looking forward to a rewarding partnership with Dealstruck as we work together helping small businesses survive and grow while creating jobs,” Roberto Barragan said. “Our joint collaboration will support small businesses in their search for capital with broader lending options.”