Yalber, a U.S.-based SMB royalty investment company, announced on Tuesday it secured a $20 million credit facility from Park Cities Asset Management. Founded in 2007, Yalber offers an alternative to the conventional funding options currently available to businesses, such as debt either through a bank loan or a secondary lender, or through equity which is given away in return for an investment or partnership.
“We offer an investment that does not require any collateral, equity or a personal guaranty. In return for our investment, we receive a royalty, or a percentage, of a business’s sales until the specified ROI is reached.”
While sharing more details about the facility, Yalber’s COO, Amotz Segal, stated:
“Our main goal was to form a strong partnership with a creative and dynamic management team. Yalber’s new credit provider, Park Cities Asset Management, will support our funding capabilities and enhance our ability to take advantage of significant market opportunities. The new facility, from a leading institutional financing partner, is a validation of the strength of our team, our track record of success and the robust platform that Yalber has built. We are excited about the future.”
Yalber also reported that since launching it has provided more than 15,000 businesses with over $300 million in working capital. Proceeds from the transaction will be used by the company to execute its strategic growth plan and accelerate its ability to provide more small businesses with access to attractive non-bank financing. Amir Landsman, Yalber’s CEO, added,
“The small business funding space has drastically changed in the past two years. We see more and more sophisticated players in the space and to me, it’s a sign that the industry is on the right track to be the major funding source of businesses in America. Being able to close two facilities within 15 months is strong evidence that Yalber has a lot to offer. As pioneers in this space, I think it’s important we stay ahead of the curve, specifically in terms of analysis of our merchant’s needs and our internal decision-making process. In that sense, Park Cities Asset Management and Yalber share the same vision.”