SunTrust Banks in Atlanta has committed $50 million to a credit facility for the online small-business lender Credibly.
Credibly, based in New York, announced a total of $70 million in debt financing Tuesday, with the remaining $20 million coming from AloStar Bank of Commerce, a $919 million-asset specialty lender in Birmingham, Ala.
Under the terms of the deal, the credit facility may be increased to $100 million, according to a press release. Credibly said that the funding will accelerate its ability to provide affordable capital to more small businesses.
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Credibly was founded in 2010 as RetailCapital. The company later hired Glenn Goldman, a former chief executive officer at the merchant cash advance firm CAN Capital, as its new CEO, and rebranded itself as Credibly.
Credibly offers both small-business loans and merchant cash advances, ranging from $5,000 to $250,000, according to its website. A merchant cash advance is a form of financing, often quite expensive, in which the small-business receives a lump-sum payment up front in exchange for a percentage of its future daily sales.
For SunTrust, the financing of Credibly represents the latest of several forays into the thriving online lending sphere.
SunTrust operates an
