DENVER, Oct. 20, 2015 /PRNewswire/ -- P2Binvestor (P2Bi.com), a leading marketplace lender for working capital, today announced the launch of Ex-Factor, an asset-based line of credit, to better serve small and medium-sized businesses (SMBs). In addition to the working capital product, P2Bi introduces a proprietary borrower platform, called "Lending Hub," that enables a faster and more efficient lending process and eliminates the pain of invoice-level borrowing and accounting. The new borrower platform integrates with the company's investment platform launched last year.
"In the beginning, we really just set out to disrupt factoring with technology and a crowd model because no one was doing it yet," said Krista Morgan, CEO and cofounder of P2Bi. "What we learned after servicing nearly 50 clients in the last year is that almost everything about factoring is stuck in the past—we needed to innovate, simplify and altogether change the cumbersome factoring experience; that's why we created Ex-Factor," Morgan explained.
P2Bi's Ex-Factor is a revolving line of credit collateralized by accounts receivable, monthly recurring revenue (designed for the company's Software-as-a-Service customers) or inventory. P2Bi identified a number of onerous aspects of receivables-secured financing, also known as factoring, over the last year as it considered how to innovate its core product to better serve borrowers. In creating Ex-Factor, P2Bi eliminated the practice of submitting invoices, streamlined inefficient funding request protocols and built in functionality to resolve bookkeeping and reporting issues as it developed the new borrower platform.
In an industry known for hidden fees and terms that make it difficult for borrowers to calculate actual cost of funds, P2Bi also changed its pricing to reflect a simple non-compounding daily rate on the borrower's outstanding balance and eliminated all but an origination fee.
"We are a heavily regulated 29-year-old company, but when we pivoted and rebranded in 2013, we became like a startup again," said Brenda Cagney, general counsel and co-owner of Cagney Global Logistics, a client of P2Bi. "Rapid growth really changed our financing needs, and we quickly realized traditional bank financing wouldn't be a fit for us, so we went with a "factoring-light" arrangement with a bank. What followed was a nightmarish situation in terms of accounting, service, endless ulterior fees and compliance issues for us. P2Bi has been a breath of fresh air; they get all of the important things right, are transparent and make everything so easy for us without sacrificing service. The fact that I can log in at any time and quickly understand the state of our account is a first for us," Cagney continued.
P2Bi's crowdsourced funding model and borrower and investment platforms allow the company to be nimble in responding to evolving customer needs and demand for products. A crowd of accredited and institutional investors participates in funding each Ex-Factor line of credit.
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P2Binvestor (P2Bi) is the first marketplace lender to supply multi-million dollar working capital lines of credit to growing businesses in the U.S. Lines of credit are secured by receivables, inventory or monthly recurring revenue. P2Bi's clients sell products and services to brands like Amazon.com, Whole Foods, Costco, REI and other major retailers as well as universities, corporations and organizations across the United States. Participation in P2Bi's investor crowd is limited to accredited investors who have a relationship with the company. Connect with P2Bi at P2Bi.com or on Twitter @P2Binvestor.