ANAHEIM, Calif., May 21, 2014 /PRNewswire/ -- American Finance Solutions (AFS), one of the fastest growing merchant cash advance companies for small and mid-sized businesses, announced today a major private equity sponsor investment from CapFin Partners (CFP), a private equity investment company focused on middle market private equity. CFP also is a significant investor in Continental Business Credit (CBC), a traditional asset-based lender with over 25 years of experience with major manufacturing clients. The investment and close relationship with CBC will provide operational expertise, a diversified client base and a larger pool of capital for funding customers.
The transaction enables AFS to deploy $200 million in loans to small business over the next 18 months and allow AFS and CBC to service a wider range of clients from early stage small businesses to lower middle market companies with revenues up to $100 million. The union of these two financial lending companies will widen the portfolio of services offered, which now include merchant cash advances, factoring and asset based loans. The relationship between CBC and AFS will grow the company through an expansion of staff, increase the amount of capital available to customers and reach a broader base of businesses.
"We are thrilled to have an established industry player by our side with several financial veterans on its executive team," said Scott Griest, chief executive officer, AFS. "This is an important milestone for AFS; we can now access a greater pool of capital more easily and at a lower cost, which ultimately gets passed down to our customers through lower rates."
The move is also beneficial for CBC. The company now can better diversify its client base, which currently consists of manufacturers, distributors and service companies with loans ranging from $50,000 to $2 million.
"AFS has proven to be one of the fastest-growing lenders in its space and we see even greater growth potential," said Daniel Kim, chairman, CBC. "As a client of ours, we watched AFS grow from a regional merchant cash advance company to a nationwide industry leader with three-year sales growth of 184 percent and over $100M in capital deployed. Our goal with this investment is to more effectively provide capital to businesses that 'graduate' to higher levels of funding over time."
For more information, please visit www.americanfinancesolutions.com.
About American Finance Solutions
American Finance Solutions (AFS) in Anaheim, CA is a top provider of merchant cash advances to small- and mid-sized businesses. Since 2006, AFS has provided thousands of business owners in all 50 states with working capital. Business owners in the restaurant, retail and other service-based industries use AFS capital to renovate, purchase new equipment and supplies, fund marketing campaigns, and manage unexpected or seasonal expenses. For more information about American Finance Solution's innovative working capital solution, call toll-free 1-800-760-5516 or visit www.americanfinancesolutions.com.
About Continental Business Credit
Established in 1989 and for the past 25 years, Continental Business Credit, a commercial finance company, has been focused on providing working capital solutions to small and medium sized business. The company's services include full service non-recourse factoring, accounts receivable management services, asset-based lending, inventory and equipment finance. Continental originates transactions directly through an experienced sales force and management team and is headquartered in Woodland Hills, CA.
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SOURCE American Finance Solutions