BRICK, N.J., Dec. 16, 2014 /PRNewswire/ -- CardCash.com, the Web's leading secondary gift card marketplace, announced today that it has secured $6 million in debt financing from Sterling National Bank, based in Montebello, NY. The funding will be used to finance CardCash.com's inventory of gift cards, currently the largest in the growing secondary market.
"This is an exciting day for our company, and a testament to our growth and stability," says CardCash.com CEO and co-founder, Elliot Bohm. "Leveraging the commercial lending expertise of Sterling National Bank will be a big benefit to our business moving forward." CardCash.com has been profitable since its founding in 2008.
Annual gift card sales in the United States currently comprise a $125 billion annual market. According to a recent study by the CEB Tower Group, that number is expected to reach $140 billion by 2016.
27% of consumers still own gift cards they received last year as gifts, with 51% of these consumers owning two or more. Close to $1 billion worth of these cards will be lost or expire. To help access that locked-up capital, CardCash provides a simple and secure online exchange that allows consumers to convert these unused and unwanted gift cards into cash.
"The economy has taken a turn for the better, yet America's working class hasn't seen a salary increase as a result of this uptick," says COO and co-founder Marc Ackerman. "This leaves your everyday consumer still struggling to make ends meet."
"Our service offers a win-win situation for gift card buyers and sellers. Consumers can sell their gift cards on our exchange and get cash to pay their rent or mortgage, or to buy basic necessities. Buyers, meanwhile, can save on average 10-15% at their favorite merchants by purchasing our gift cards at a discount."
The current round of funding comes on the heels of equity financing secured by CardCash during the past year. The company partnered with Guggenheim Partners, a global financial services firm, and InComm, a leading provider of connectivity and integrated point-of-sale technology solutions to retailers. Combined with the most recent funding from Sterling National Bank, CardCash has secured close to $15 million in financing over the last year.
In May, CardCash acquired its largest competitor Plastic Jungle. It has since entered into strategic partnerships with CVS Pharmacy, and United Airlines.
Based in New Jersey, CardCash.com offers the web's largest and most secure selection of discounted gift cards online. The company was ranked #14 out of 100 on Forbes' list of America's Most Promising Companies for 2014. For three years running, Inc. magazine has included the company on its prestigious Inc. 500 list of the fastest growing private companies in America.
About Sterling Bancorp
Sterling Bancorp, of which the principal subsidiary is Sterling National Bank, specializes in the delivery of service and solutions to business owners, their families, and consumers within the communities that we serve through teams of dedicated and experienced relationship managers. Sterling National Bank offers a complete line of commercial, business, and consumer banking products and services. Additional information is available at: www.sterlingbancorp.com.