TBF Financial entered into a forward-flow relationship with a leading online small business lender, TBF will purchase an estimated $100 million annually of charged-off loans from the financial technology client.
“Small business fintechs are in an aggressive market, an annual 175% growth industry. Banks are entering this market too as they begin to offer fintech platforms,” said TBF Princinpal Brett Boehm, who did not disclose the name of the fintech but described it as one of the top established small business online lenders in the U.S.”
Boehm also said TBF is in talks with other fintechs to provide similar services for their businesses.
“These fintechs make money by making loans and those loans performing – not by chasing down bad debt. That is a waste of their time and resources because of the pain and anguish involved,” Boehm said. “We pay cash for their charge-offs at closing so they can reapply the money to their front end and book more loans.”
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