P2Binvestor Inc. (P2Bi), the first crowdfunding platform to provide receivables-based working capital loans to small and medium businesses, announces the signing of a $1 million revolving credit facility with New College Capital Ltd of London, England. The UK-based fund was drawn to P2Bi's robust underwriting standards and contemporary crowdfunding model.
"Crowdfunding has proven its efficacy in consumer debt finance, equity, and funding for innovative products and ideas on sites like Kickstarter," said Bruce Morgan, CEO of P2Binvestor. "P2Bi is the first crowdfunding platform to fund businesses that cannot access working capital from the banking system. This new facility from our partners at New College Capital will enable P2Bi to serve our clients with even greater flexibility."
P2Bi underwrites commercial loans for growing, innovative companies seeking cost-efficient working capital. The company offers three different funding products to meet the needs of businesses and prides itself on taking a holistic look at each client business in order to offer the best possible terms. Once approved, P2Bi signs a loan agreement with each client before offering its crowd of over 350 accredited investors the opportunity to participate in funding the loan if it meets their investment criteria.
"We have found success in offering our fund investors a mechanism for investing in receivables-backed business loans around the world," said New College Capital Ltd. Director Robert Reoch, "These loans provide fair yields to investors while offering limited exposure to interest-rate changes and low correlation to other market risks. We are pleased to support P2Binvestor with this revolving credit facility as we are impressed with their underwriting standards and commitment to fund worthy clients while protecting the interests of their investor crowd."
P2Bi funds clients throughout the United States with commercial loans of up to $5 million. Loans are typically secured by its clients' accounts receivable or by assignment of contractual revenue flows and are funded by a crowd of accredited investors. P2Bi's clients also build important relationships with its investor crowd, which may lead to sales, customer referrals, and even potential equity investments.
Currently, P2Bi concentrates on technology, natural foods, personnel services, manufacturing, and SaaS companies, and believes its modern and innovative approach is particularly attractive to companies ineligible for bank financing or uninterested in the stringent standards and inflexibility associated with it. Companies that apply for funding can expect funding decisions within three business days from the time they submit an application to P2Bi.