i2B Capital, a provider of senior secured loans to niche-market financial entrepreneurs, announced the increase of an original $4 million asset-based revolving line of credit with CFG Merchant Solutions (CFGMS) to $ 8 million on their one year anniversary. CFGMS is a privately owned and operated specialty finance company focused on providing working capital to small and mid-sized businesses (Merchants) in the U.S. that are historically underserved by traditional financial institutions.
Said Larry L. Curran II, CEO of i2B Capital, “CFGMS gave us the perfect opportunity to show our investors how i2B can grow emerging market borrowers into much larger opportunities applying asset-based lending principals to non-traditional receivable assets in an early stage specialty finance company. We funded approximately $1.3 million at closing in September of 2016. Last month, CFGMS had their best month funding over $4 million in new advances. Furthermore, CFGMS solid financial performance and accelerated growth earned them the opportunity to increase both their advance rate and their total credit facility to $8 million. That’s exactly why Barbara and I formed i2B Capital, to invest in these emerging credits and grow them into the traditional finance channels. The CFGMS management team is seasoned, backed by private equity, and enabled with technology—exactly what we look for in our target customer. Additionally, they have grown their financed receivables more than 500% since beginning the process.”
Barbara Anderson, Chief Operating Officer at i2B Capital commented, “Our goal over the initial 18-month funding commitment is to prepare CFGMS for more traditional institutional financing in the future. Along with the increased availability, i2B Capital also extended CFGMS’s draw period for another 12 months. While providing growth capital to our borrowers, we also provide decades of commercial lending expertise to help them prepare for the disciplined reporting requirements and credit processes they will encounter at the next level of financing. We expect CFGMS will be requesting another increase sometime in early 2018.”
William Gallagher, President of CFGMS said, “Since closing our senior line of credit with i2B, we have steadily grown our monthly and quarterly funding volumes at CFGMS. i2B continues to be a valuable funding partner to CFGMS in our mission to deliver working capital to small and medium-sized businesses nationwide. We just completed our largest funding and collection month to date. The upsize to our current credit facility will provide us with certainty of funding, and the confidence to continue to grow our expanding platform at CFG Merchant Solutions.”
CFGMS is a subsidiary of CapFlow Funding Group, a commercial finance company that offers an array of products such as factoring, purchase order finance, and asset-based oans. Both companies are headquartered in Rutherford, New Jersey. CFGMS with additional offices in New York City is a direct funder providing working capital to small businesses.