New York-headquartered Yalber has received a $20m credit facility to help increase its funding capabilities.
The provider of the capital has not been disclosed; however, it is a ‘leading institutional financial partner’.
Yalber provides small businesses with royalty investments without he need of collateral or personal guarantee. Unlike other royalty investments, Yalber only holds the assets for a fixed period and once it has returned its agreed amount, it returns the royalties back to the business.
Companies can complete the application online and receive funds within the hour; loans can be taken out for $5,000 or more.Founded in 2007, the company has provided over 5,000 businesses with over $300m in working capital loans.
Proceeds from the financing will go towards its strategic growth plans, as well as supporting more small businesses with loans.
Yalber CEO Amir Landsman said, “Small businesses are thriving; representing 99 percent of all U.S businesses, 60 percent of total net job creation and 46 percent of private nonfarm GDP. Yet, bank credit to this important sector of the economy has contracted sharply.
It is estimated that the amount of small business loan originations plummeted by more than half during the financial crisis and has seen only a very limited recovery post-crisis, leaving small business loan originations down 40 percent.”
Earlier in the month, Behalf, which provides SMBs with online loans, closed a $150m debt financing round from Soros Fund Management and Viola Credit. The company raised teh facility to support its platform development and help improve its SMB financing capabilities.
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