While uncertainty for major online lenders has hit the industry, Austin-based Able secured $100 million debt financing from Community Investment Management today to pump into small businesses across the country.
Able CEO and co-founder Will Davis credited the industry win to the company’s one-to-many model of borrowers to lenders that has led to zero defaults since inception. Instead of a one-lender to one-borrower setup, loan applicants secure a handful of backers from their own personal network then collaborate with Able, resulting in more capital at lower rates for the business owners.
“This gives our platform certainty,” said Davis. “The only limitation now is finding really great borrowers. This is what we live for: looking for small businesses through the country and giving them growth capital.”
The company launched locally two years ago, focusing only on Austin-specific businesses during a year-long beta pilot with $3 million. Within the last year, they expanded into 44 states while growing a network of over 700 people.
“It takes time to build a really great platform,” said Davis. “I think what’s great about Austin is we have the space to build here, incubate here, and be patient with our growth in ways that maybe you don’t have in other cities or ecosystems like the Valley.”
Much of the $100 million will be filtered locally, Davis said, adding that Austin has the greatest network of borrowers through its community and support. They've previously helped companies like Kammock, Hops and Grain and Chi’lantro.
“People are starting companies left and right here,” said Davis. “It’s part of our DNA here to start something cool.”
Today’s announcement follows an equity financing round for $6 million last July to build out the platform and operations. Able will continue to expand nationally and support up to 500 small businesses.
Image provided by Able.
