Fundation digitizes SME loans for the bank
Alternative small business lender Foundation has entered into a new partnership with another financial institution, the company revealed on Wednesday (Jan.23).
In one Press release, Fundation said it is working with Banc of California to develop a streamlined, digital solution for small business loans and lines of credit that the bank can offer to its small business clients. SMEs can use the tool to apply for financing through an online application on the Banc of California website.
In a statement, Fundation CEO Sam Graziano said the company’s technology targets speed for small business borrowers.
“Our platform was developed to deliver credit quickly and conveniently to small businesses, without requiring them to compromise on the quality of the product and the prices they expect from their banking partner,” he said. “With this new capability, Banc of California will be able to offer its local small business clients a premier lending program.”
The company highlighted the analysis of the FDIC, whose 2018 Small Business Loan Survey found that only a few banks in the United States are able to accept a small business loan application online.
Fundation operates as a collaborator rather than a competitor, working with traditional financial institutions to digitize and improve their own SME loans operations.
In 2017, the company ad a partnership with Citizens Bank which similarly allows small business clients of Citizens to apply for financing online.
“We understand that our small business clients are busy running their businesses and serving customers, so there is little time left for long inquiries, documentation, meetings and waiting for answers,” said the president of services. Citizens Bank’s corporate banker, Jack Murphy, in a statement at the time. .
Goldman Sachs provided a $ 100 million credit facility to Fundation in 2016, another example of the interest of traditional financial institutions in collaborating with players in alternative finance.