IEG Holdings Corp. announced a new $10 million senior debt facility from current lender Boston Finance Group. This facility replaces the $3 million facility the company had in place since June 2012 and is a sign of confidence in IEGH's business model and growth strategy.
"We are very pleased to continue our relationship with Boston Finance Group. This increased $10 million facility takes IEGH to the next level and is another significant event in our development and growth plans. We expect loan volumes to accelerate rapidly over coming months due to the recent successful joint ventures with two new prominent personal loan lead providers as well as continued planned US expansion into additional US states. We are also very excited for the upcoming launch of our new www.mramazingloans.com website due to launch late November, which is expected to increase customer conversions and be an additional driver of growth," said Paul Mathieson, Chairman and CEO of IEG Holdings Corp.
IEGH reports its total cumulative loan originations as at November 13, 2013 has increased 84% to $437,000 since its June 30 2013 total of $237,000. The significant growth in loan volume is attributable to the Company launching online lending in July 2013. IEGH also recently signed up three new online lead providers on a cost per funded basis, reducing customer acquisition costs from 8-10% to as low as 1% on a $10,000 loan.
IEGH plans to apply for a fifth state license in New Jersey in late November. A New Jersey license would add 8.9 million people to the Company's potential customer base and increase total population coverage by 21%. Upon license approval, IEGH anticipate a corresponding increase in loan volumes via its existing online distribution network.
IEG Holdings Corporation provides unsecured consumer loans under the brand name "Mr. Amazing Loans" via its website www.mramazingloans.com. After lending approximately $48 million to over 11,500 borrowers in Australia, the Company Founder and CEO Paul Mathieson moved to the U.S. market in 2008 to replicate the successful business model. IEGH now operates online in the USA covering all of Nevada, Arizona, Illinois and Florida. IEGH plans to apply for a New Jersey license in November 2013 and expand to New York, Texas and California in 2014. The Company launched advertising for its online loan origination platform in mid-2013, partnering with top lead generators in the United States. The Company's loans range in value from $2,000 to $10,000 and have a term of three to five years with a 19.90% to 29.97% APR. Significant growth is expected from the online loan origination business, which has the potential to scale much more rapidly and at a higher net margin than the previous brick-and-mortar business. For more information about the Company, visit www.investmentevolution.com.
Boston Finance Group originates and funds private loans for borrowers who may not have access to traditional sources of capital due to the unique nature of their businesses or collateral.