Last week the marketplace lending rumor mill was active with “news” that small business lending platform, Able Lending, was going out of business. Here at Lend Academy we don’t share these rumors until we can verify their accuracy.
Yesterday, the CEO of Able Lending, Will Davis, reached out to me to clear the air. Here is his unedited statement:
We believe this story originated by the fact that we’ve been in active discussions with a number of originators to acquire Able, and there’s a non-zero chance this story was placed in order to throw an interested party off the trail.
This anonymous source doesn’t seem to be anyone close to Able, because Able does not own a portfolio of loans (it originates and distributes loans to direct lenders, who then hold those loans on their balance sheet) and therefore has no portfolio to sell. In any event, we have no plans to go out of business and no plans to declare bankruptcy.
When I read the news that Able Lending was “selling their portfolio of loans” I thought it was a little strange. Knowing that Able Lending is a marketplace lender that holds no loans on their balance sheet I knew this would not be literally the case. It sounds like they are in discussions to be acquired and maybe someone thought it would be a good idea to spread a rumor. It is yet another reminder that you shouldn’t believe everything you read online.
I have said before that I like the Able Lending model (I interviewed Will on the Lend Academy Podcast Episode 82). I am hopeful that they can continue operating or find a company that is interested in acquiring their platform.
So Able for sold for parts to Fundation? Blumberg Cap gave them $4 mil less than 12 months ago.