As seen on CrowdFundBeat
Dealstruck, Inc. today announced the launch of its asset-based line of credit product (ABL) to provide flexible working capital to growing small businesses. This makes Dealstruck the first crowdlending platform to offer businesses and investors the opportunity to access multiple credit products. The platform now offers both term loans and lines of credit, serving both the short- and long-term financing needs of small businesses.
The ABL product functions as a credit card, allowing businesses to draw from the line at any time and pay interest only on the amount of the line outstanding. However, unlike a credit card, the line of credit does not demand a monthly payment but rather lets businesses pay down their credit loans at any time throughout the month, as they collect payments from customers. These repayments are immediately applied against the line, resulting in increased availability.
Traditionally, bank lines of credit have been available only to ultra-prime small businesses, and asset-based lines have been reserved for larger businesses with monthly revenues of more than $500,000. This leaves a huge swath of growing small businesses unable to access working capital with the affordability and flexibility provided by a line of credit. We’ve managed to take a prime product to the broader small business market and make it available in the smaller amounts small business owners truly need at a price they can afford. At the same time, investors on the Dealstruck platform can now benefit from the short terms and higher yields typical of asset-based lending.
With the launch of its line of credit product, Dealstruck has taken a key step forward in its mission to use technology to deliver product and capital solutions that meet the true needs of small businesses across their financing lifecycle. This allows Dealstruck to meet borrowers with a credible and compelling path to better financing, culminating in a bank or credit union relationship.
“Our customers can take a long time to pay us. The gap between invoicing and payment potentially places stress on our resources as we take on additional projects and grow the business. As a small business, qualifying for a line of credit with traditional financing options was challenging and time-consuming. We looked no further after being referred to Dealstruck. Funding is fast, on time and as promised,” said Shawn Emerick, CEO of Surf-Tel Connect, Inc., a communications infrastructure contractor. “Dealstruck’s creativity and commitment to helping Surf-Tel financially move forward and grow our business has a huge impact on our ability to fund projects now and in the future.”
Winner of the Best Pitch award at San Diego Tech Coast Angel’s 2012 Quick Pitch Competition, Dealstruck launched its funding marketplace in June 2013 and has quickly expanded its team and product line to meet growing market demand. To learn more about the company and its SMB credit products, please visit www.dealstruck.com.