Small and medium-sized business (SMB) lending company Breakout Capital is expanding its product line, according to company reports on Friday (Jan. 26).
The firm is rolling out FactorAdvantage, a factoring and invoice finance solution designed for third-party lenders to extend their reach to small business customers while preventing predatory and disruptive practices like loan stacking. Breakout Capital explained that the tool allows factoring firms to use its platform to reach borrowers.
“Our factoring partners have experienced substantial customer growth by offering our mutually beneficial product,” said Carl Fairbank, founder and CEO of Breakout Capital. “They recognize how valuable FactorAdvantage can be to grow their portfolios and mitigate their risk.”
“This product builds on our technology investments, with multiple patents pending, that allow us to augment our talented team with truly cutting-edge machine learning innovation,” added the firm’s chief technology officer, Firoze Lafeer, in another statement.
Breakout Capital also announced that it expanded its available term loan size to $500,000 with terms of up to 24 months.
“We remain committed to continually innovating to stay ahead of our peers and to optimizing financing options that responsibly address the needs of our small business customers,” Fairbank said. “We view factoring and invoice financing as grossly underutilized but incredibly powerful cash management solutions for small businesses, especially when coupled with our patent-pending FactorAdvantage solution.”
Another factoring company, Paragon Financial Group, announced earlier this month that it would be acquired by Trade Finance Solutions (TFS).
“We decided to partner with TFS as we believe their focus on specialty finance complements the foundation our company was built on: factoring,” said Jon Anselma, Paragon managing partner, in a statement. “This acquisition will ensure our continued growth at Paragon and, in turn, we will be able to bring our expertise and know-how to the TFS offering. Paragon’s strong presence in the U.S. marketplace will only grow with this transaction.”