IOU Financial Inc.
IOU Financial Inc.
Sector: Financial
Description
IOU Financial Inc. is a financial service firm that provides credit services to businesses. The firm was incorporated in January 1977 pursuant to the laws of Quebec. IOU Financial Inc. is a public-listed company on the Toronto Venture Stock Exchange, where its common shares are traded under the stock quote IOU.
The Montreal-based company is primarily engaged in offering online commercial lending services to small businesses to capitalize on growth opportunities. The company, through its proprietary platform, links chunks of data sources, integrates and automates the process of data points on a business quickly.
The internet-based progressive lender’s innovation has minimized the lending process that small firms need to go through, i.e., from weeks and months to a fast process that takes a few hours to complete the online transaction and funding.
IOU Financial operates its commercial lending business through its 100 per cent owned subsidiaries:
• IOU Financial Canada Inc. in Quebec
• IOU Central Inc. in Georgia, US
Zing Funding
The company implements a unique approach to provide credit solutions, where the automated application and approval system precisely assesses and evaluates the applicant’s financial realities, including daily cash flows. The IOU360 technology enables preferred underwriters, merchants, and brokers across the United States and Canada to connect in real-time.
The loans are serviced on a non-recourse basis to third-party purchasers at a service charge. Usually, IOU Financial could loan up to US$500,000 to any eligible and qualified applicant within a time length of 24 hours.
Since 2009, the company has been delivering loans services to small businesses and has reportedly funded more than US$ 932 million in loans. Today, its credit services have become a trusted alternative to banks.
The company manages its Canada operations from its headquarters in Montreal, and its North American business is managed from an office in Atlanta, Georgia. Its customers typically are grocery and retail stores, e-commerce businesses, restaurants and hotels franchises, and medical and dental practices.
In August 2021, the company launched a term loan product named the IOU Cash Back Loan. This new credit product provides a cash reward of three per cent of the original loan amount to encourage perfect payment histories.
Peers
FFH
Fairfax Financial Holdings Ltd
EQB
Equitable Group Inc
ELXR
Elixxer Ltd.
MIT
The Mint Corporation.
LIF
Labrador Iron Ore Royalty Corporation
WTE
Westshore Terminals Investment Corp
DELX
Delphx Capital Markets Inc
CFP
Canfor Corp
NA
National Bank of Canada
URC
Uranium Royalty Corp.
HCG
Home Capital Group Inc
MPT
Midpoint Holdings Ltd.