Wellspring Financial

Wellspring Financial

March 09, 2015 13:19 ET

Wellspring Financial Announces $250 Million Facility to Support Growth of Consumer Finance Business in Canada

TORONTO, ONTARIO--(Marketwired - March 9, 2015) - Wellspring Financial, a Canadian point-of-sale technology and consumer finance company, is pleased to announce that it is extending its relationship with KGS Holdings, L.P. ("KGS"), a financial services holding company, in which KGS will finance a facility of up to $250 million of consumer receivables generated by Wellspring.

Having completed equity financing of more than $4 million in 2014, Wellspring will initiate a second equity raise to support its growing consumer finance business. This equity raise, along with the financing facility, will position Wellspring to fund its business growth across all market segments.

"This is a significant milestone for our business, which will allow us to accelerate our growth and make big-ticket purchases affordable for more Canadians," said Peter Kalen, founder and CEO of Wellspring Financial. "Our 100% paperless and instant credit card solution is resonating with our partners and their customers. Having launched one of the first virtual credit cards on the market, we have leveraged technology to dramatically improve the customer experience, better allowing our partners to use financing to grow their sales and make large purchases more affordable for their customers. Our hundreds of merchant partners and growing merchant base prove that the product offering and technology meet our customer needs."

"We are very pleased to have formed a strategic partnership with Wellspring Financial," said Levent Kahraman, CEO and co-founder of KGS. "We have confidence in the management team and believe that by providing Wellspring with lending capital, the company can focus on growing its business."

"Access to lending capital can be a significant hurdle for early-stage consumer finance companies," said Dan Goldman, President and co-founder of KGS. "This is no longer an issue for Wellspring."

Wellspring Financial is currently available in British Columbia, Alberta and Ontario, Canada, and will expand to Saskatchewan, Manitoba, and the Atlantic provinces soon. If you are interested in offering Wellspring financing to your customers, please contact us at sales@wellspringfinancial.com or contact us 1-855-559-0909.

About Wellspring Financial

Wellspring Financial, a division of Wellspring Acceptance Corporation, is a Canadian technology and consumer finance company, led by an experienced team of executives with extensive knowledge of the retail credit space in Canada, that leverages mobile technology to deliver the fastest application process available on the market. Our vision is to help our partners in the retail, health and home improvement sectors offer flexible sales financing solutions that enable them to sell more, develop and grow, while helping consumers enjoy the things they need and want sooner.

For more information, visit wellspringfinancial.com.

About KGS Holdings L.P.

KGS is the holding company of a group of New York-based integrated financial services firms focused on offering premier fixed income, residential and commercial real estate, and investment banking services to institutional clients. In investment banking, KGS develops and structures financing solutions for middle-market private companies, both in capital raises and asset-backed products. Since its founding in 2010, KGS has been committed to developing long-term relationships and delivering value-driven services. KGS has a stable capital base, with no legacy liabilities or exposures, in order to serve its institutional customers.

Contact Information