Fundation Digitizes SMB Loans For Banc Of California

Alternative small business lender Fundation has struck a new partnership with another financial institution, the company revealed Wednesday (Jan. 23).

In a press release, Fundation said it is collaborating with Banc of California to develop a streamlined, digital small business lending and line of credit solution that the bank can offer to its small business clients. SMBs can use the tool to apply for financing through an online application on the Banc of California website.

In a statement, Fundation CEO Sam Graziano said the company’s technology targets speed for small business borrowers.

“Our platform was developed to deliver credit with speed and convenience to small businesses, without asking them to compromise the quality of product and pricing they expect from their banking partner,” he said. “Aided with this new capability, Banc of California will be able to offer their local small business customers a market-leading lending program.”

The company pointed to analysis from the FDIC, whose 2018 Small Business Lending Survey found that only a few banks in the U.S. are able to accept a small business loan application online.

Fundation operates as a collaborator rather than a competitor, working with traditional financial institutions to digitize and enhance their own SMB lending operations.

In 2017, the company announced a partnership with Citizens Bank that similarly enables Citizens’ small business clients to apply for funding online.

“We understand that our small business customers are busy running their businesses and serving customers, so there’s little time left for lengthy applications, documentation, meetings and waiting for answers,” said Citizens Bank’s President of Business Banking Jack Murphy in a statement at the time.

Goldman Sachs provided a $100 million credit facility to Fundation in 2016, another example of traditional financial institutions’ interest in collaborating with alternative finance players.