Banks will provide 50% of the capital with a senior secured position and P2Bi’s marketplace of private investors will provide the rest of the capital

Banks will provide 50% of the capital with a senior secured position and P2Bi’s marketplace of private investors will provide the rest of the capital

Colorado-based P2Binvestor (P2Bi), a marketplace lending platform, has unveiled its bank partnership programme to let organisations access capital.

Krista Morgan, CEO of P2Binvestor, says it’s “enabling banks to lend to businesses they otherwise wouldn’t be able to due to strict lending standards”.

P2Bi’s strategy is to “build a lending relationship with banks at an earlier stage in their lifecycle and provide them access to a much lower interest rate than they would with a traditional alternative lender”.

Banks will provide 50% of the capital with a senior secured position and P2Bi’s marketplace of private investors will provide the rest of the capital, resulting in a blended interest rate of 8 to 12% and “all the capital they need”.

To kick off its bank-fintech partnership, P2Bi has teamed up with New Resource Bank in California.

P2Bi was founded in 2012 and is headquartered in Denver.

Ten out of ten

In a recent interview with Inc, Morgan discussed how she had to give up on venture capital and raise $10 million by herself.

Morgan spent the entire 2015 year getting meetings with some of the industry’s biggest names. But the meetings always ended the same. No funding deal.

“I remember thinking that I was a failure,” Morgan admits. “I was so confident we could raise a venture Series A – my team was confident, my board full of investors was confident. Truly, I never thought we wouldn’t be able to do it.

“Finally our board agreed we weren’t getting any traction in fundraising and so we opened up a Series A round and I went to work travelling the country pitching angel groups.”

In the end, Morgan came away with $10 million to save her start-up.

@banking
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