Former Loanio Execs Return to Peer Lending, With Institutional Investor Focus

Former Loanio Execs Return to Peer Lending, With Institutional Investor Focus

Former Loanio.com executives Michael Solomon and Todd Walters have partnered
with a group of loan marketing experts to form CircleBackLending.com, an
Internet-based platform connecting accredited investors to prime borrowers.
CircleBack is preparing to launch in the 3rd quarter of 2013, and aims to join
peer-to-peer (P2P) lenders Prosper and Lending Club in the rapidly growing
online consumer credit market.

BOCA RATON, Fla., Feb. 4, 2013 (GLOBE NEWSWIRE) -- via PRWEB - "I am excited
to re-enter what has become a high-growth industry that is still in its early
stages," said CircleBack Co-Founder Michael Solomon. CircleBack Lending was
formed in early 2012 with seed funding from its founding partners. Over the
past year, the company has been building a technology platform, setting up
necessary legal structures, and forging key vendor relationships with credit
agencies, banking partners, and others.

Solomon's prior P2P lending venture, Loanio.com, launched in 2008, but soon
suspended operations due to the economic downturn and unexpected Securities
and Exchange Commission (SEC) regulations that scared away investors. "We
think the environment is much more favorable now for launching this type of
business," he says. "Our prior experience putting together the complex
components of a peer lending platform gives us a huge advantage this time
around," adds Walters, who was the first management team hire at Loanio and is
a Co-Founder of CircleBack.

Over the past few years, the peer-to-peer lending industry has been on a
high-growth trajectory, with market leader Lending Club recently surpassing $1
billion in total loan originations and adding several prominent board members,
including former U.S. Treasury Secretary Lawrence Summers and former Morgan
Stanley CEO John Mack. Prosper Marketplace, the other major peer lending
website, doubled its loan volume in 2012 and just announced a new $20 million
equity financing led by famed Silicon Valley venture firm, Sequoia Capital.

According to Solomon, "This space is red-hot and we see a huge opportunity to
complement what the other two players are doing." He is quick to point out, as
other observers have, that there is plenty of room for new online lending
platforms in the over $2 trillion U.S. consumer credit market.

But unlike Lending Club and Prosper, CircleBack will focus exclusively on
partnering with institutional investors and high-net-worth individuals to fund
its loans. "This focus should help lower marketing costs, reduce regulatory
burdens, and enable us to meet the unique needs of our loan investors," says
Walters. "This would not have been possible in 2008 when the business model
was unproven and viewed as highly risky, but with over 5 years of strong
industry performance, there is rising interest from hedge funds, family
offices, and personal wealth managers that will help accelerate our growth."

CircleBack's efforts to attract loan investors to its platform will be
bolstered when the SEC issues its final regulations on the Jumpstart Our
Business Startups (JOBS) Act later this year. While the JOBS Act has garnered
media attention primarily for its rules permitting equity "crowdfunding" over
the Internet, it also relaxes restrictions on advertising private securities
offerings to accredited investors, who are CircleBack's target audience.

On the borrower side, the company's founding team has over 50 years of
collective experience in online lead generation and high-volume Internet
operations in the financial services marketing space. Solomon believes this
will provide a competitive advantage in acquiring a strong customer base of
high-quality borrowers. "Traditional bank lending remains tight while investor
appetite for consumer credit assets is growing exponentially," he says. "It is
a very exciting time for Internet finance and we look forward to making a
positive contribution to the industry."

About CircleBack Lending, LLC (http://www.circlebacklending.com)

CircleBack Lending is an Internet-based credit platform launching in the 3rd
quarter of 2013. Its mission is to provide a secure, transparent, and
efficient marketplace for accredited institutional and individual investors to
purchase fixed income assets backed by consumer credit products.

This article was originally distributed on PRWeb. For the original version
including any supplementary images or video, visit
http://www.prweb.com/releases/2013/2/prweb10386046.htm

CONTACT: Circleback Lending, LLC
         John Roberts
         jroberts@circlebacklending.com
         212-302-2097
 
Press spacebar to pause and continue. Press esc to stop.