CommunityLend has raised $3 million through a non-brokered private placement from a single investor. The investor is an existing strategic partner to the company, an experienced private company investor and an operator in other lending companies in Canada.
The net proceeds of the financing will be used towards advancing the company’s rapid market expansion in the Canadian sales finance industry, restructuring of some of the company’s existing debentures and for working capital.
Originally launched as a P2P lending platform in 2008, CommunityLend has evloved and is now Canada’s fastest growing sales finance company, operating a market-leading point of sale finance platform called Financeit on behalf of institutional capital partners. Financeit provides merchants in the home improvement, vehicle, retail and healthcare verticals with a tool to increase sales through a fast, flexible, and consumer friendly sales financing solution.
Last month CommunityLend reported that Financeit had processed over $70 million in loan applications and that based on current double digit monthly growth rate they would hit $100 million by mid-August.
CommunityLend is one of 19 Canadian startups that have been invited to participate in the C100’s upcoming 48 Hours in the Valley event from June 25-27 in Silicon Valley.