Company points to success of Marketplace
Strategy and Post-Pandemic Growth Plan in driving
growth.
ATLANTA, Oct. 4, 2022
/CNW/ - IOU FINANCIAL INC. ("IOU" or "the Company") (TSXV:
IOU), a leading online lender to small businesses
(IOUFinancial.com), announced today Q3 loan originations of
$74.2 million representing an
all-time record in the history of the company.
Q3 2022 loan originations of US$74.2
million represent an increase of 25.8% over the previous
period (US$59.0 million) and 42.1%
over the same period in 2021 (US$52.2
million). Total year to date loan originations of
US$192.7 million represent a 72.2%
increase over the same period in 2021 (US$111.9 million).
"IOU's strong Q3 2022 loan originations and progress towards its
strategic goals makes us cautiously optimistic about delivering on
the high end of our guidance," said Robert
Gloer, President and CEO. "IOU Financial continues to
execute on its strategy substantially growing loan originations
while investing in technology and product innovation."
The Company continues to execute on its Post-Pandemic Growth
Plan, first announced in May 2021,
based on three strategic pillars:
- Technology innovation: The Company continues to invest
in developing its proprietary IOU360 platform to better support
Brokers, Merchants, Investors and internal stakeholders, all
designed to support greater efficiencies and the long-term
scalability of the business.
- Product expansion: The Company is committed to
product innovation to meet the evolving needs of brokers and small
business owners as well as to achieve further differentiation in
the market. In August 2022 IOU
launched its Premier PLUS Term Loan for loans of up to US$1.5 million with 36-month terms, preceded by
the IOU Financial Cash-Back Loan, 24-Month Term Loan in 2021.
- Product distribution: The Company continues to
expand its wholesale (IOU Financial) and retail (ZING Funding)
distribution strategies to maximize its exposure to the economic
recovery through both channels.
The success of IOU Financial's Post-Pandemic Growth Plan helped
earn the Company a Silver Stevie® at the American Business Awards®
in May of 2022, and in June IOU was named one of the 50 Best Places
to Work in Fintech for 2022 by American Banker. Additional
growth in loan originations has been enabled by IOU's transition in
August 2021 from a loan portfolio
strategy (under which loans were funded directly to IOU's balance
sheet) to a marketplace strategy under which loan originations are
primarily sold to institutional purchasers.
IOU Financial maintains its outlook for loan originations in the
range of US$220 million –
US$260 million.
About IOU Financial Inc.
IOU Financial Inc. is a wholesale lender that provides quick and
easy access to growth capital to small businesses through a network
of preferred brokers across the US and Canada. Built on its proprietary IOU360
technology platform that connects underwriters, merchants and
brokers in real time, IOU Financial has become a trusted
alternative to banks by originating over US$1 billion in
loans to fund small business growth since 2009. IOU was
named one of the 50 Best Places to Work in Fintech for 2022 by
American Banker and trades on the TSX Venture Exchange under the
symbol IOU (TSXV: IOU), and on the US OTC markets as IOUFF.
To learn more about IOU Financial's corporate history, financial
products, or to join our broker network please visit
www.IOUFinancial.com.
Forward Looking
Statements
Certain information set forth in this news release may contain
forward-looking statements. Forward looking statements are
statements, other than statements of historical fact, that address
or discuss activities, events or developments that IOU expects or
anticipates may occur in the future. These forward looking
statements can be identified by the use of words and phrases such
as "anticipates", "believes", "estimates", "expects", "may",
"plans", "projects", "should", "will", "intends", "seeks",
"allows", "creates a path for", "puts in a position to" or the
negative thereof or other variations thereon. These
forward-looking statements are subject to and involve substantial
known and unknown risks and uncertainties, certain of which are
beyond the control of IOU, including, but not limited to, the
impact of general economic conditions, industry conditions,
dependence upon regulatory and shareholder approvals, the
uncertainty of obtaining additional financing, risks related to the
Company's incapacity to execute on its business plan, dependence on
third-party service providers, competition, dependence on key
personnel, security and confidentiality risk, technological
development risk, IT disruptions, maintenance of client
relationships, and litigation risk. No assurance can be given
that any of the events anticipated by such statements will occur
or, if they do occur, what benefit IOU will derive from them.
Readers are cautioned that the assumptions used in the preparation
of such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. IOU does
not assume any obligation to update or revise its forward-looking
statements, whether as a result of new information, future events,
or otherwise. Additional information concerning these and
other factors can be found beginning on page 20 under the heading
"Risks and Uncertainties" in IOU's management's discussion and
analysis dated May 18, 2022, which is
available under IOU's profile on SEDAR at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
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SOURCE IOU Financial Inc.