Idea Financial Completes $100 Million Asset-Backed Securitization
Idea Financial, a Miami-based lender specializing in small business lines of credit, has completed its first asset-backed securitization (ABS) for $100 million. The transaction is backed by a pool of the company's high-quality collateral consisting of 892 lines of credit to established businesses with an average age of 15 years and annual revenue of $2.5 million. The notes were issued in three classes, rated by Kroll Bond Rating Agency (KBRA), including A+ (sf) for the senior Class A notes. The securitization includes a 36-month revolving period that allows collections to be reinvested into new credit lines, providing Idea Financial with long-term funding to support its growth. This milestone marks nine years since co-founders Justin Leto and Larry Bassuk launched the company from their law firm's conference room. The financing will enable continued lending for small businesses across 47 states by leveraging artificial intelligence and in-house underwriting processes.
Topics: ABS market debut securitization small business lending