IOU Provides 2018 Financial Outlook

MONTREAL, Jan. 24, 2018 /CNW/ - IOU FINANCIAL INC. ("IOU" or "the Company"; TSXV: IOU), a leading online lender to small businesses (, today announced its outlook for fiscal 2018.  All dollar amounts are in Canadian dollars unless specifically referred to otherwise.

Outlook for fiscal 2018

IOU remains well placed at the forefront of the fintech revolution that is democratizing access to capital for small businesses. IOU reached break-even in the course of Q4 2017 based on adjusted earnings and expects to grow adjusted earnings throughout 2018.

The Company will continue to enhance its proprietary, next-generation technology and algorithms that evaluate and price credit risk. IOU will also continue to closely monitor the performance of its loan portfolio and capture operational efficiencies. The Company anticipates average quarterly operating expenses of approximately $1.6 million on a normalized basis in 2018.

The Company intends to grow loan originations by:

  • Continuing to identify, recruit and partner with business loan brokers;
  • Forming new strategic partnerships with entities such as banks and small business suppliers and leveraging their relationships with small businesses to add new customers;
  • Expanding its product offering to allow it to serve small businesses whose needs are not met by its current products;
  • Investing in direct marketing and sales; and
  • Continuing its expansion into Canada.

"In 2017, our efforts to right-size the Company, increase pricing and manage defaults has set the table to deliver profitable growth for the future," said Phil Marleau, CEO.

Highlights from fiscal 2017:

  • US$91.3 million of small business loans were originated by IOU in 2017.
  • IOU surpassed a significant milestone, announcing in December 2017 that it had facilitated more than US$500 million in financing to thousands of merchants and small businesses across the United States and Canada.
  • By the third quarter of 2017, IOU successfully executed on its plan to reduce operating expenses to $2.0 million to $2.2 million per quarter, excluding non-recurring costs.

About IOU Financial

IOU Financial Inc. 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, salons, gas stations, auto repair shops, and restaurants.  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$300,000 to qualified U.S. applicants ($100,000 in Canada) within a few business days, with affordable charges favorable to cash-flow management.  Its speed and transparency make IOU Financial a trusted alternative to banks.  To learn more visit:

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.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.


SOURCE IOU Financial Inc.

For further information: For more information regarding this press release or IOU Financial, please contact: Philippe Marleau, Chief Executive Officer, +1 (514) 789-0694, ext. 225; David Kennedy, Chief Financial Officer, +1 (514) 789-0694, ext. 278; Benjamin Yi, Corporate Development & Capital Markets, +1 (647) 295-0654
Mailing Address

IOU Financial Inc.
600 TownPark Lane
Suite 100
Kennesaw, GA 30144

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