We've partnered up with The Credit Junction to give our readers an interview exclusive, allowing each of us to dive deeper and explore each others' industries and the impact it's creating.
The financing that The Credit Junction provides not only helps small businesses grow, but also bolsters job creation and community development in towns and cities across the country.
The Credit Junction is a data-driven lending platform that helps owners of small and midsized businesses grow their companies by providing fast, flexible and efficient access to as much as $5M in capital. The Credit Junction combines technology and data intelligence with traditional asset-based metrics, which allows them to better assess the health of small businesses, thereby giving business owners a more transparent and user-friendly experience.
"We believe in educating and providing resources for small business owners...we spend time in cities across the country visiting state and local small business events and forums where we talk to business owners one-on-one."
Patch of Land (POL): What is the story behind the origin of The Credit Junction?
The Credit Junction (TCJ): The inspiration behind The Credit Junction began in 2008, when traditional financial institutions, for various reasons, were forced to re-evaluate what products they wanted to offer. To a large extent, this resulted in these institutions shifting away from the smaller side of the product scale, towards larger deal sizes. This created an opening in the market. We are part of a new wave of companies that try to fill this need through a combination of traditional lending metrics and data and technology. Access to credit is the lifeblood of any business, but especially a small business, and we wanted to make sure that getting a small business loan was still possible.
POL: What is your core focus and mission?
TCJ: We're a data-driven lending platform that helps owners of small and midsized businesses grow their companies by providing fast, flexible and efficient access to as much as $5M in capital. We combine technology and data intelligence with traditional asset-based metrics, which allows us to better assess the health of small businesses, thereby giving business owners across the country a more transparent and user-friendly experience.
Small business owners work incredibly hard to grow their businesses, yet may need a bit of help bringing it to the next level. Unlike other lending institutions, we are focused on building a lasting relationship with our borrowers. Like them, we are passionate about what we do and we want to share that passion to help businesses grow.
POL: What is your thesis on access to credit for Small and Medium Enterprises (SMEs)?
TCJ: Working capital is the fuel that allows SMEs to increase inventory and purchase new equipment. Our thesis is the financing that The Credit Junction provides not only helps small businesses grow, but also bolsters job creation and community development in America’s towns and cities.
POL: How do you plan on being involved in Community Development? What role does alternative lending and financing play?
TCJ: We believe in educating and providing resources for small business owners so that they can make the best choice on financing their business. As part of this effort, we spend time in cities across the country visiting state and local small business events and forums where we talk to business owners one-on-one. With industry and regional expertise our team understands the needs of businesses are unique and no two businesses are identical. The belief in taking the time to listen to business owners and their stories is one of the many ways The Credit Junction distinguishes itself in the online ecosystem of lenders.
Alternative and online lending platforms play a vital role in partnering with traditional financial institutions to support them in being a resource for small businesses. As more partnerships develop between online lending platforms and banks, the awareness of these new resources will become more apparent to business owners.
POL: What specific SMEs do you work with? Can you tell us a story about one?
TCJ: Our focus isn’t to help with specific companies or industries. In fact, at The Credit Junction, we service a number of businesses across industries, including manufacturing, aerospace and defense, construction, e-commerce, transportation and consumer products. Many of these businesses are suppliers, distributors and manufacturers with good collateral.
We recently were highlighted in the March edition of Inc. magazine where it detailed how we helped a terrific New York based woman-owned business, Walsh Electrical Contracting. Unfortunately for Walsh Electrical, the company secured a high-interest line of credit with a factoring company to meet its growth. We were able to speak to Walsh Electrical and better understand their needs and provide a $5 million line of credit.
POL: What are the future plans for the company?
TCJ: We are still in the early days of online and data-driven platforms that have emerged in the last few years to help SMEs with access to credit. It is an exciting time for small business owners as there are more resources available to them to secure working capital. Our goal is to be thoughtful in the way approach businesses and understand what capital structures are best for them to take their business to the next level. In the near term, we hope to be a resource for small business owners and strategic partners who promote their growth.