MONTRÉAL, Sept. 22, 2016 /CNW/ - IOU Financial Inc. (TSX Venture Exchange: IOU) ("IOU Financial" or the "Company"), a leading online lender to small businesses, announced today a restructuring plan that will begin in September 2016 and reflect the Company's long-term outlook for loan origination growth of 25% to 30% annually.
The plan includes a reduction in the Company's operating expenses as well as a workforce restructuring. Moreover, going forward the Company plans to focus more of its efforts on forming strategic partnerships with entities such as financial institutions, payment processors, and small business service providers. In connection with the plan, IOU has eliminated its Chief Technology Officer position. The Company's technology team will report to the Chief Financial Officer and will continue to work closely with the finance, analytics, sales and operations teams. The cost reduction actions once fully implemented are expected to lower operating costs by approximately 15% to 20% to $2.0 to $2.2million for Q4 2016 on a normalized basis.
"IOU is committed to achieving profitable growth by continuing to emphasize credit quality over volume, and by continuously improving operational efficiencies," said Phil Marleau, CEO of IOU Financial. "IOU believes that these efforts are imperative to realizing its long term objective of loan origination growth of 25% to 30% annually."
About IOU Financial
IOU Financial provides small businesses throughout the U.S. and Canada 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 US$150,000 to qualified U.S. applicants ($100,000 in Canada) 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.
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SOURCE IOU FINANCIAL INC.