MERCHANT CASH ADVANCE LEADER SECURES $140 MILLION IN BORROWING FACILITIES
Capital Access Network, Inc.'s Credit Facilities Backed by Leading Financial Organizations
ATLANTA - MARCH, 2008 - Capital Access Network, Inc. (CAN) today announced that it has closed new financing arrangements, supporting its ability to serve the increased demand for working capital by small to mid-size businesses. CAN secured $140 million in available borrowing capacity, plus the ability to add an additional $50 million, from several prominent sources including Brown Brothers Harriman, Wells Fargo Foothill and Fifth Third Bank.
These facilities provide approximately $100 million in additional funding capacity compared to the company’s previous facilities. This increased capacity is the result of a new asset-backed commercial paper facility in addition to a revolving line of credit supporting its Merchant Cash Advance operations through AdvanceMe, Inc. and leasing through PredictiFund, Inc., as well as anticipated product expansion.
An Industry First and Proof of Concept
These new credit facilities, believed to be the largest in the Merchant Cash Advance industry, will allow AdvanceMe to service significantly more customers over the next 24 months and beyond.
CAN’s Chief Executive Officer, Glenn Goldman stated: “The fact that we were able to close such advanced and significant financing arrangements during today’s uncertain economic environment from some of the biggest players in the marketplace underscores the value of our data our systems and our technology as well as the market’s belief in our business plan and potential”. He continued, “Today’s announcement of our new conduit is especially relevant to small businesses given today’s current credit markets and speaks volumes to our company’s potential within the financial services industry.”
AdvanceMe is currently in a period of substantial growth and today’s announcement of the increased borrowing capacity of CAN and its subsidiaries will allow them to meet the funding and leasing needs of their growing customer bases and provide for future expansion.
Credit Provided by Leading Financial Service Partners
Today’s revolving line of credit is being provided by long time financing providers Wells Fargo Foothill and Brown Brothers Harriman. Wells Fargo Foothill is a part of Wells Fargo & Company (NYSE:WFC), a diversified financial services company with $575 billion in assets and 160,000 team members worldwide. Brown Brothers Harriman is the oldest and largest partnership bank in America. Participating in the commercial paper conduit with Wells Fargo Foothill is Fifth Third Bank, CAN’s most recently added financial partner. Fifth Third Bank is a diversified financial services company with over $100 billion in assets, based in Cincinnati, OH.
About Capital Access Network Inc.
Capital Access Network, Inc. (CAN) serves the small business market through its wholly owned subsidiaries, including AdvanceMe, Inc., the leader in Merchant Cash Advances. CAN leverages leading edge data, systems and technology, married to a unique and highly effective collection methodology, to deliver innovative financial products and services geared to the small and mid-sized business markets. Founded in 1998 and headquartered in New York, CAN and its subsidiaries currently employ 300 people in four locations in New York, Georgia, Massachusetts and Costa Rica. CAN's Data Services Division was formed to provide predictive analytics, scoring and other risk management tools to help quantify, control or reduce the exposure of those providing capital or credit to small and mid-sized businesses and to improve the marketing efficiencies of those who target such businesses. CAN's Data Services Division draws upon the data gathered by CAN's subsidiaries through 11 years of collecting and analyzing the sales trends and firmographics of tens of thousands of businesses to which they have provided capital or purchased future credit card receivables. Learn more at www.CapitalAccessNetwork.com.
