Finbridge intends to provide capital to alternative lenders with receivables between $2 and $5MM, operating in merchant cash advance and other short-term micro loan environments. Finbridge Holdings‘ lending model provides ISOs with an alternative to private investment capital to obtain cash to grow their business. ISOs typically need cash to add more origination, sales agents, expand operations, buy out a partner, or invest in their IT infrastructure.
Interest income on the Loans and the associated interest expense on related Notes and Certificates will be reported on our Statement of Operations on a gross basis.
We intend to be a leader in the loans to lenders space, primarily focused on those specialization in the SMB lending channel. We will look to transform ISO’s lending by making it efficient and convenient for ISO’s to access capital at a lower rate, because we will facilitate existing lenders with lower costs of capital. In working with ISO’s/MCAs our process will touch every aspect of the loan life cycle, including oversight on customer acquisition, sales, scoring & underwriting, funding, and servicing and collections. Enabled by our proprietary technology and analytics, we will aggregate and analyze thousands of data points from dynamic, disparate data sources, and the relationships among those attributes, to assess the creditworthiness of targeted ISO’s rapidly and accurately. The data points include bank activity shown on their bank statements, government filings, tax returns. In addition, in certain instances we also analyze reputation and social data.
Our model has significantly lower operating costs than traditional bank lending and consumer finance institutions because there are no physical branches and related infrastructure, no deposit-taking activities, an automated loan underwriting and servicing process and other technology-enhanced processes. We believe that the interest rates offered to ISO’s through our platform are generally better, on average.