August 4, 2014
Funding Circle acquires LeapPay
Funding Circle bolsters its disruptive underwriting technology through LeapPay acquisition
– Funding Circle to deliver faster and easier loan application process for small businesses –
Funding Circle, the world’s leading online marketplace for small business lending, today announced it has acquired LeapPay, an online lender that provides affordable financing to small businesses based on their accounts receivable.
As part of the acquisition – hot off the heels of Funding Circle’s $65 million capital raise last month – Funding Circle will integrate LeapPay’s real time, data capture technology into its proprietary underwriting process. The new technology is expected to shave around 30% off the time it takes to apply for a Funding Circle small business loan in the US.
By bringing together industry-leading credit models and Silicon Valley technology, Funding Circle’s online marketplace enables American small businesses to secure pre-approval for a loan in 48 hours days and access financing in less than 14 days, directly from investors.
“For small businesses, we know that time is money and that a credit score isn’t the only indicator of healthy business, which is why we take a holistic approach to underwriting,” said Sam Hodges, Funding Circle co-founder and US managing director. “LeapPay’s technology will help us efficiently capture and analyze more quality data to determine an applicant’s creditworthiness, and ultimately provide a faster and easier way for great American small businesses to access the financing they need to grow and prosper.”
LeapPay’s technology-based platform was designed to help small businesses overcome the struggle of long payment terms by offering cash against their invoices – cheaper, faster and more flexible than any bank can do.
“LeapPay was built to better aggregate and analyze small business borrower data on a real-time basis,” said LeapPay co-founder and CEO David Golden. LeapPay co-founder and president Allan Fisch said, “Integrating with Funding Circle, the world’s leading marketplace lender exclusively focused on small business, will allow us to realize our ambition on a much larger scale and to a broader audience.”
Founded in 2013 by David Golden, Allan Fisch and Alex Kress , LeapPay’s technology streamlines underwriting, integrating with small business accounting systems like Quickbooks, Freshbooks and Xero.