LiftForward has received $250 million in credit facilities from entities managed by Varadero Capital and GLI Finance. LiftForward is a marketplace lending platform that provides asset backed and working capital loans. According to company information, Varadero also received rights to acquire equity in LiftForward as part of the agreement. LiftForward uses a proprietary model to score each business applying for a loan. Investors are manly hedge funds and other asset managers.
LiftForward states it has “seen a surge in loan requests” over the past months. This is in part due to banks fleeing from loans of less than one million USD. LiftForward CEO Jeffrey Rogers explained;
“Banks continue to abandon the under $1,000,000 loan product. When you combine this supply cutoff with the expanding demand for capital from small businesses, there is significant need for our product. This transaction allows us to further meet the demand we are receiving and welcome an award-winning hedge fund manager, Varadero, to our syndicate.”
Geoff Miller, CEO of GLI said he looked forward to expanding his company’s “exposure” in the US. “Since we invested in LiftForward, its business proposition has become ever more relevant as US banks continue to withdraw from SME lending,” said Miller.