P2Binvestor helps bank the Unbankable Small Middle Market companies David Gustin - October 6, 2015 5:51 AM | Categories: Alternative Finance, Receivables Finance | Tags: P2Binvestor Let’s face it, if you are a small Mom & Pop business and you need a new pizza oven or a new washing machine for your business, where can you find $20K quickly? There are now many sources for small business lending – OnDeck, LendingClub, Prosper, Funding Circle and many online merchant cash advance platforms as well. But what if you are $10M company and you require a $500K or $1M revolving line to help finance new orders or inventory? Most marketplace small business lenders cap out at around 100K on their loans. And invoice auction sites generally are not equipped to provide lines of credit. So what is a company to do? This is the sweet spot for P2Binvestor, and they have grown exponentially since inception. They have financed close to $100M to date and underwrite deals pretty much in the same way other finance companies do. But they do things in certain sectors that other factors would not lend against, and they have a different model that eliminates hidden fees. They set up a ledger line of credit based on receivables, inventory, or monthly recurring revenue and provide a set APR. There is no bidding for rates by investors. So if there is a $500K facility, you may find investors doing fractional buys at a rate set by P2Binvestor based on the risk. P2Binvestor doesn’t get paid until investor gets paid. They have skin in the game. They have some neat webinars on their site on digital advertising, others on fundraising, perfecting the five-minute pitch, office productivity software, etc. This is an example of some of the companies we will cover more deeply as part of our Alternative Business Finance Index. P.S. If you would like to receive TFM’s weekly digest, sign up here. Related Articles Inventory Finance – Not for the Faint of Heart Will Alternative Finance Options Erode Middle Market Credit Facilities? Post… Will Alternative Finance Options Erode Middle Market Credit Facilities? Post… Will Alternative Finance Options Erode Middle Market Credit Facilities? Discuss this: Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of new posts by email.