- IOU Financial originated USD$45.0 Million in new loans in 3Q2015
- Retail and wholesale channels continue to demonstrate strong growth
MONTRÉAL, Oct. 8, 2015 /CNW/ - IOU Financial Inc., (TSX Venture Exchange: IOU) ("IOU Financial" or the "Company") a leading online small business lender in the United States, announced today it originated USD$45.0 Million in new loans in the third quarter of 2015, representing a year over year increase of 108%. For the nine month period ending September 30, 2015 loan originations totaled USD$110.1 Million, representing a year over year increase of 66%.
Growth in loan origination was driven by both the Company's retail distribution channel and wholesale distribution channel. For the nine month period ending September 30, 2015 loans originated through the retail channel, where borrowers are sourced through direct marketing campaigns, increased 271%, year over year, to USD$6.3 Million. For all of 2014, loans originated through this channel totaled USD$3.1 Million. Loans originated through our wholesale channel, where borrowers are sourced via relationships with third-party business loan brokers, increased 61% year over year to USD$103.7 Million.
"We are extremely pleased with the growth acceleration in loan origination we have seen this quarter. Businesses are responding to our online proprietary platform, which allows them to quickly access the necessary working capital to grow their small business," said Phil Marleau, Chief Executive Officer of IOU Financial. "IOU Financial continues to transform small business lending in North America and is well positioned to deliver sustainable long term shareholder value," 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.