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Liquid Capital Provides $20MM Credit Facility to Canadian Fintech Lendfield Holdings

August 17, 2016, 07:43 AM
Filed Under: Lender Finance

Lendified Holdings Inc., a Canadian-based lending technology company offering working capital and related financial services products to the small business community, announced that it has entered into an agreement with Liquid Capital Corporation , a company specializing in providing working capital, asset-based lending and trade finance solutions. Liquid Capital will provide the senior debt for a new credit facility, initially in an amount of up to $20 million, for working capital loans underwritten by Lendified.  At the same time, Lendified announces it has closed a further $4 million in mezzanine financing through a private placement bringing the total funding lines to $24 million. Lendified is now poised for significant growth across a number of targeted markets for its products.

Launched in early 2015, Lendified provides small businesses access to working capital from $5,000 to $150,000 for terms of up to two years. In early 2016 Lendified purchased Mentio Technologies Inc., adding additional data and analytics capabilities to its technologically-advanced credit adjudication model. Lendified today provides small businesses with advanced tools for managing their cash flow in addition to providing prospective borrowers a frictionless experience in applying for and receiving working capital. Lendified's wholly-owned subsidiary, Lendified Technologies Inc. provides third party financial services firms including banks, credit unions and other firms dealing with small businesses with a "software-as-a-service" tool that enhances the risk review process of small businesses applying multi source data analytics with advanced algorithms which provide a best in class view of the current and future performance of small businesses.

"We are pleased to have formed a funding partnership with Lendified," said Sol Roter, President and co-founder of Liquid Capital. "Lendified exemplifies today's merger of lending skillsets, quality management and technology within the "Fintech" world of financial services. Lendified's advanced methodologies around credit analysis, while leveraging technological access to information is very, very impressive. It is our plan that this partnership will bring opportunities for efficiency and referral across our respective platforms as well. This transaction represents an important addition to the Liquid Capital portfolio and provides an outstanding opportunity to showcase Liquid Capital's increasing commitment and interest in technology-driven financial services."

Liquid Capital entered into a joint venture with Next Edge Capital Corp. ("Next Edge") in 2015 to co-fund investments in accounts receivable, trade finance, and asset based lending transactions sourced by and through Liquid Capital's Principal distribution channel and financed via the Next Edge Private Debt Fund (the "Next Edge Fund").  The Next Edge Fund has now grown to approximately $50MM and will continue to grow as Liquid Capital continues to source quality transactions through its network of originators in Canada and the United States.

Co-founders of Lendified, Troy Wright and Kevin Clark are very pleased with the arrangements that have been put in place. "Lendified now has the capital it needs to grow the lending component of the company's strategy," says Troy Wright, CEO. "This financing marks the next step in the company's strategy of moving the loan book to a position of strength and sustainment. The benefits of working with Liquid Capital on not only this financing but with a number of potential synergies for both parties makes this financing that much more appealing." Kevin Clark, Lendified's President notes the alignment with a number of companies within the financial services world under the umbrella of Next Edge makes this opportunity very strategic and presents a number of tremendous opportunities in the future for broader business development within the financial services world in Canada and beyond.

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