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NepFin Launches to Become a Force in Middle Market Business Lending

The new lender, run by former Funding Circle execs, will offer loans between $5 million and $60 million

February 13, 2018 By Peter Renton Leave a Comment

Views: 404

It was back in 2013 when I first met Albert Periu. He was a partner at a startup small business lender called Endurance Lending (we wrote about them here). That company was bought by Funding Circle later that year and became Funding Circle USA with Albert running capital markets. I have gotten to know him quite well over his years at Funding Circle and I was very curious when I heard at the end of 2016 that he had moved on from Funding Circle to start his own venture.

I reached out to him at the time and he was somewhat coy about his intentions. It was not until last month when I visited his office in San Francisco that I finally found out the full extent of what he was doing with his new venture called Neptune Financial or NepFin.

The Middle Market Needs Disrupting

Whereas Funding Circle focuses on small businesses needing loans of up to $500,000, NepFin will be covering a completely different segment of the business lending market, what is called the lower middle-market. Specifically those companies with revenue of $10 million to $100 million looking to borrow between $5 million and $60 million. I was surprised to learn that this was a somewhat underserved market.

I would have thought companies of such size would have plenty of options to borrow money. But because of Basil III (increased capital requirements), Dodd-Frank (additional compliance costs) and bank lending rules these medium-size companies are underserved. I thought banks would have provided a lot of the funding for these companies and that is true to some extent. But often they will not lend the full amount these businesses require.

Enter NepFin. They don’t have the same capital requirements as banks and they have a little more flexibility on their loan terms. And Albert can apply all the learnings from Funding Circle to this different but related market segment.

[Read more…]

Filed Under: Peer to Peer Lending Tagged With: business lending, data analytics, fintech, middle market, NepFin

Views: 404

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ABOUT LENDIT FINTECH NEWS

LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

We are a team of fintech enthusiasts who have been covering the industry for many years. With a deep knowledge of online lending, digital banking, blockchain, artificial intelligence and more our team covers the daily news and writes in-depth editorials.

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