Direct lender Credibly has secured a $70 million credit facility to meet “enormous demand” from SMEs seeking capital. SunTrust Brank led the financing committing $50 million and AloStar joining as “first participant” with an additional $20 million. According to Credibly, the terms of the agreement allow for an additional $30 million in credit if demand is sufficient thus bring the possible total to $100 million.
“Being vetted and validated by a bank partner of SunTrust’s stature is one of our greatest milestones to date, and provides us with one of the lowest costs of capital in the industry,” said Glenn Goldman, CEO of Credibly. “The continued participation from AloStar – our first credit facility lender going back to 2014 – gives us increased flexibility in our product suite, which in turn provides better terms for borrowers and helps us execute on our core philosophy that all small businesses deserve access to right-sized capital.”
Credibly explained that the new credit facility is consistent with Credibly’s three-prong financing strategy: on-balance sheet, whole loan sales, and securitization. The facility is said to more than double Credibly’s on-balance sheet funding capacity and will accelerate their ability to provide SME finance.
Atlanta-based SunTrust had approximately $187 of total assets as of September 2015. AloStar is a specialty lender providing asset-based loans to middle market companies. It had approximately $900 million in assets.
Credibly states it has provided access to capital for more than 4500 businesses and has boosted its business by 100% in the past year.