P2Binvestor allies with Amalgamated Bank for SME funding
New partnership. More deals. Bigger financing opportunities for small businesses.
That’s the plan for online SME lender P2Binvestor (P2Bi) and Amalgamated Bank, a socially responsible bank headquartered in New York, reports David Penn at Finovate.
By working together, P2Bi and Amalgamated Bank will be able to provide financing to early-stage SMEs.
CEO and co-founder of P2Bi Krista Morgan says: “Our technology, combined with Amalgamated’s record of success, allows us to provide affordable, scalable financing options to up and coming brands across the country. In addition, we’re proud to partner with a socially responsible company that shares similar values not only with us, but with many of our clients.”
Working with P2Bi will enable the $4+ billion bank to expand its loan portfolio and fund more emerging, socially responsible commercial and industrial businesses. P2Bi benefits from access to those businesses currently doing business with the bank.
The new relationship with Amalgamated is a function of P2Bi’s partnership programme, launched last year. The programme enables banks to finance SMEs, taking a 50%, senior secured position, with P2Bi’s investors providing the other half of the funding. Interest rates range from 8% to 12% on asset-backed lines of credit from $500,000 to $10 million.
Last month, the company raised more than $17 million in combined debt and equity funding, taking P2Bi’s combined overall funding to $33.76 million.
P2Binvestor was founded in 2012 and is headquartered in Denver, Colorado.