- 1Idea Financial has funded more than $1B since inception, versus $50M when first interviewed in 2019.
- 2Term loans and lines of credit fall outside Texas's sales-based financing law, so funding there continues.
- 3Brokers and referral partners drive much of the growth.
Idea Financial, a nationwide small business lender, has surpassed $1 billion in funding since inception, and says the milestone will not change its footprint in Texas.
Milestone
"This is a historic milestone," said Larry Bassuk, president and co-founder. He recalled that only a few years ago the company was "just a concept with potential," and credited the team, past and present. CEO Justin Leto said the company identified a problem with small business funding at the outset and is proud of the role it has played in addressing it.
Both founders began their careers as attorneys before moving into small business lending. In a 2019 interview, they said they were not from the finance or alternative lending space and approached the market from a different angle. At that point Idea had funded $50 million since inception.
Brokers drive growth
Much of the growth since then comes from the company's broker business, which it says it is still expanding. Idea said it treats brokers and referral partners as clients alongside its borrowers, and has made building close, mutually beneficial relationships with them a focus.
This is a historic milestone.
Texas
Idea offers term loans and lines of credit, so it is not affected by the recently passed sales-based financing legislation in Texas. The company will continue funding in the state as usual.
Source reporting: deBanked.
