- 40% year over year increase in loan originations
- Retail and wholesale channels demonstrate strong growth
MONTRÉAL, July 20, 2015 /CNW/ - IOU Financial Inc. (TSX Venture Exchange: IOU) ("IOU Financial" or the "Company") a leading online lender to small businesses, announced today it originated US$33.8 Million in new loans in the second quarter of 2015, representing a year over year increase of 40%.
The growth in loan origination was driven by both the Company's retail distribution channel and wholesale distribution channel. Specifically, loans originated through the retail channel (where borrowers are sourced through direct marketing campaigns) increased 144%, year over year, while loans originated through our wholesale channel (where borrowers are sourced via relationships with third-party business loan brokers) increased 37%, year over year.
"The tremendous growth we have seen in the level of loan originations speaks to the success of IOU Financial as a preferred alternative lender and our ability to leverage our proprietary platform to execute quickly on new lending opportunities," said IOU Financial CEO Phil Marleau. "Our mission is to fuel the growth of small business. We continue to succeed at that mission as more and more merchants are turning to IOU Financial for their working capital needs," continued Mr. Marleau.
About IOU Financial
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. To learn more visit: www.ioufinancial.com.
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE IOU Financial Inc.