PORTLAND, OR--(Marketwired - May 5, 2014) - Aequitas Capital Management, a Portland, Ore.-based alternative investment management firm, today announced that it has made an initial equity investment in QuarterSpot, a rapidly growing online lender serving small to midsize businesses.
According to commentary published in August 2013 by the Federal Reserve Bank of Cleveland, small business lending has dropped substantially since the Great Recession. While some measures of small business lending are now above their lowest levels since the economic downturn began, they remain far below their levels before it. For example, in the fourth quarter of 2012, the value of commercial and industrial loans of less than $1 million -- a common proxy for small business loans -- was 78.4 percent of its second-quarter 2007 level, when measured in inflation-adjusted terms. And despite an increase of nearly 100,000 small businesses over the period, the number of these loans dropped by 344,000 over the 2007 to 2012 period (many such loans arguably go to small businesses).
QuarterSpot launched its beta platform in June 2013 to address the persistent lending gap within this critical sector of the U.S. Economy and to drive down the cost of capital for small businesses paying exorbitant fees and interest for quick access to short-term working capital.
QuarterSpot's proprietary technology enables efficient underwriting of loans, quick decisions and rapid funding, typically within 72 hours of receiving a borrower's application. QuarterSpot helps small and midsize businesses get the working capital they need to grow and prosper with lower net borrowing costs and more attractive terms than other capital sources within the non-SBA direct business lending industry. Loans are financed with capital from accredited investors and institutions, who receive favorable returns, excellent diversification and short durations.
"QuarterSpot loans are custom designed to meet the unique needs of small business owners with same day approvals, lower borrowing costs, no prepayment penalties, and no personal guarantees," said QuarterSpot co-founder and President Lance Emanuel. "Borrowers that have been marginalized for years by traditional and even alternative lenders have responded by migrating to our platform. Aequitas Capital's investment will help us accelerate this growth and expand our position in the market by serving even more capital-starved businesses."
"As a private equity investment, QuarterSpot fits perfectly into Aequitas Capital's investment strategy," said Aequitas CEO Bob Jesenik. "Like many of our investments, QuarterSpot is deploying technology and capital in innovative ways to meet the needs of a deserving but underserved market. We are excited about the future for small to midsize businesses, QuarterSpot, and our investors."
With the investment, QuarterSpot will become another of several Aequitas private equity investments in healthcare, education and financial services.
Founded in 1993, Aequitas Capital is an alternative investment management company dedicated to innovation, discipline and excellence. With proven expertise in finance, management and technology -- Aequitas sources, structures and implements Private Credit and Private Equity solutions, benefiting the individuals and institutions that trust us as a valuable investment partner.