IOU Financial Inc., an online lender to small businesses, is pleased to announce that it has entered into a $50 million credit facility with MidCap Financial. The facility will have an initial commitment amount of $25 million and will be expandable to $50 million at IOU's request and the lender's acceptance.

MidCap is a middle market-focused, specialty finance firm that provides senior debt solutions to companies across all industries.

"The credit facility will not only increase the availability of capital to support our growth, but also lowers our funding cost of that capital. I am very pleased to have concluded this agreement with MidCap, achieving an important strategic objective for our management team, and further positioning the Company for continued growth," said Phil Marleau, CEO of IOU Financial.

CCFL Capital, an Exempt Market Dealer, acted as the Company's financial advisor in connection with the credit facility.

IOU Financial provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and e-commerce companies. In a unique approach to lending, IOU Financial's advanced, automated application and approval system accurately assesses applicants' financial realities, with an emphasis on day-to-day cash flow trends. It makes loans of up to $150,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Financial's speed and transparency make it a trusted alternative to banks.