Fundation Group closes debt facility with Waterfall


Fundation Group, a digitally-enabled lender and credit solutions provider, has closed a debt facility with Waterfall Asset Management.

The company, which is majority-owned by New York based private equity firm Garrison Investment Group, said the deal increases its capability to extend credit to small businesses across the United States.

Founded in 2011, Fundation partners with banks, enabling them to deliver credit online, drive cost efficiency into their lending programs and maximise customer retention. The company also partners with a variety of organisations that serve the small business market in various capacities to deliver small balance commercial credit products.

It currently has strategic partnerships with Regions Bank, Citizens Bank, the BancAlliance community, the Minority Business Development Agency and a host of other partners.
“We are excited to begin this new relationship with Fundation. Fundation has built an excellent business, with a distinct approach to providing credit to small businesses. We look forward to the possibility of continuing to grow and evolve our relationship with Fundation,” said James Hwang, Vice President of Waterfall Asset Management.

In August 2016, Fundation secured an asset backed credit facility with Goldman Sachs Bank USA and an additional asset backed facility in March 2017 from MidCap Financial.

Last year, Waterfall Asset Management made a £100m investment in Lendable, a consumer lending platform.It uses machine learning technology to automate credit underwriting and offer instant personal loans at fair rates, funding its loans through a marketplace of institutional and qualified private investors.

The global credit investor also backed online lender BorrowersFirst with a $100m debt financing. BorrowersFirst allows users to check their credit rating without impacting their score and receive loans of between $2,500 and $35,000 to pay back across 36 or 60 months.

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