Marketplace lending platform P2Binvestor has launched a bank partnership program it believes will help growing SMEs access capital while also helping banks increase their addressable market and improve conversion rates.
Community banks can access P2Binvestor’s receivables lending platform and marketplace to provide multi-million dollar credit lines to SMEs. This will help them establish earlier relationships with companies and provide them with better interest rates than other available options.
Banks provide half the capital with a senior secured position while P2Binvestor’s private investor marketplace contributes the remainder. Borrowers will pay a blended interest rate of between eight and 12 per cent.
“Businesses want access to affordable bank financing and banks want to lend to growing businesses, but the two sides haven’t been able to connect due to regulatory and technology hurdles,” said Krista Morgan, CEO of P2Binvestor. “Until now, there hasn’t been a solution like this, which unfortunately has forced growing companies to take on expensive and time-consuming funding.
“With this partnership program, we’re changing that. We’re enabling banks to lend to businesses they otherwise wouldn’t be able to due to strict lending standards. We are excited to be powering New Resource Bank’s line of credit with both our marketplace and proprietary receivables lending platform.”
The first participating bank is New Resource Bank, a triple-bottom-line bank serving values-driven businesses and nonprofits that are building a more sustainable world. Its president and CEO said the arrangement allows them to help initial growth stage companies.
“We are pleased to be partnering with P2Bi to create this innovative product—it’s a win-win for us and businesses,” Vincent Siciliano said. “By using P2Bi’s platform, growing businesses will be able to secure capital that they typically wouldn’t be able to access through bank lending alone.
“This allows us to offer a greater suite of lending products to the community of sustainable businesses we serve.”