Marketplace lending platform P2Binvestor has bagged $17m in its latest round which was comprised of both equity and debt.
This new batch of capital is P2Bs fourth investment round since 2013 and brings total raised to over $13m. The round was primarily led by unnamed angel investors.
The main aim for this round of funding is to support P2B with its bank partnership program. Capital will be used to fuel the expansion by offering SMBs with wider access to capital and let community banks lend to growing businesses that cannot access traditional finance lines.
Denver-based P2B is a crowd lending platform for small businesses that are too big for small business loans but cannot access traditional bank lines of credit. Loans on the platform are predominantly funded by banks, and private and individual institutional investors; however P2B also supports loans and this debt facility will help its efforts in this.
P2B launched its bank partnership initiative in October 2017 in participation with New Resource Bank, a part of Amalgamated Bank. The scheme aims to help SMBs get quick access to capital, while offering banks a way to increase its addressable market and improve conversion rates.
Since the launch of the partnership with New Resource, the bank has issued seven loans worth a combined $16m.
P2Binvestor CEO and co-founder Krista Morgan said, “Over the course of the past few months, P2Bi has focused on building a new partnership model with community banks that is proving to be very successful.
“Growing businesses love the idea that we can graduate them to cheaper financing without the hassle of switching, and banks love that they can be the first lender to a growing business building a valuable, long-term relationship. This raise enables us to onboard new banks into the program.”
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