An anonymous source notified Lending-Times that “Able lending is going bankrupt and are selling their portfolio, which is owned by Community Investment Management (CIM).”
Able Lending was founded in 2014 by two Harvard graduates, Will Davis and Evan Baehr. The company was founded on the principle that businesses can receive more capital at lower rates by raising funds from family, friends, and other fans. Investopedia calls it a “hybrid peer-to-business model” and describes it this way:
Able makes loans of between $25,000 and $250,000 to small businesses for one- to three-year terms, at rates ranging from 8% to 16%. They charge a 3% origination fee, but no penalty for paying the loan back early. Repayments come in monthly installments. The borrower must have been in operation for at least six months before applying and take in at least $50,000 in revenue.
CIM calls itself “the first impact investment firm focused on marketplace lending.” The company was founded in 2012 by managing partners Jacob Haar and Michael Hokenson.
Is Able Lending Really Going Out of Business?
Able Lending received $100 million in debt financing from CIM in September 2016. Backed by PayPal founder Peter Thiel of Founders Fund and Chris Gottschalk of Blumberg Capital, the company claims on its Contact page that inquirers will receive a call back within one hour. After placing a call to the company’s 866 number, listed on the Contact page, and hearing a message that the voice mail box was full and not taking new messages, I requested a call back by clicking the blue button and filling out the web form at 10:42 a.m. today. As of this writing, no company representative had yet called.
The company’s last blog entry was posted July 7, 2017. As late as July 28, 2017, the company was still receiving press attention as Nerdwallet published a review of Able Lending.
In February 2017, the company raised $4 million in a Series B funding round led by RPM Ventures. Crunchbase reports the company has raised $16.5 million in total equity funding in four rounds from 23 investors.
Baehr left the company in October 2016. He made his announcement on Medium that month citing his reason for leaving the company was because he realized he was not the right person to lead Able Lending and noted that his relationships with Davis and Able Lending remain positive.
Lend Academy interviewed Davis for its podcast in December 2016.
A call to CIM has also not been returned. The question remains, is Able Lending in trouble, or is this a vicious rumor?