Milestone after milestone

September 18, 2023

Another week, another milestone achievement. On Friday afternoon, we officially closed our credit facility with [ ], something that's been months in the making. We're taking a three-pronged approach to hitting our AUM target and there's nothing like a nice $[ ]M boost to help us get there faster. While it won't be immediate and there's a few rules we have to follow, the groundwork is there to start deploying their capital as early as next month. 

As part of our agreement with them, they are solely targeting US borrowers with asset-based products focused specifically on small business lenders. They're going to want borrowers with history though so we do need to continue to keep up the pace of deal flow in order to make them eligible for the facility. Still, our existing borrower base that meets the criteria is sizable and now that we know their criteria, we're hitting the pavement hard with a call to action for any borrowers who are interested.

To top it all off, this credit facility lays the foundation for us to prove out a track record that we can use to secure another credit facility that doesn't compete with them for borrowers. Our next course of action will be to start assessing whether we can secure another facility for consumer credit or international borrowers. In the constant tug of war between supply of assets and demand from investors, securing the latter, whether it's through investors or a credit facility, all but ensures that there will be a massive influx of interest from the supply to tap into the outsized demand.

$[ ]M, here we come.