Bizfi Plays Nice With Traditional Banks

Alternative lending is no longer strictly anti-traditional bank. Financial institutions are eyeing alternative finance providers as potential partners, and often, marketplace lenders source their funding through the banks.

Small business financing and FinTech player Bizfi is one of these disruptors that is working with more traditional players in the industry — not against.

The company revealed on Wednesday (March 17) that it will be collaborating with Western Independent Bankers (WIB), a trade association of hundreds of regional banks, to link small business clients to financing options through Bizfi.

According to the firms, the agreement will apply to SMEs across more than a dozen states in the western U.S.

Bizfi sources its loans through an array of partners, including Funding Circle, OnDeck, Kabbage and more.

“WIB member banks are the leading funders of America’s small businesses. With Bizfi, as a WIB premier solutions provider, we are able to offer their expertise in alternative financing and superior technology to our member banks and deliver a complete solution for small business funding,” stated WIB Service Corporation and WIB President and Chief Executive Officer Michael Delucchi in a statement.

Separately, Bizfi Founder Stephen Sheinbaum pointed to the array of financing types that businesses need in today’s market and the role of technology in providing more personalized financing solutions for SMEs.

“Small businesses have many different funding needs, from lines of credit and equipment finance to long-term loans,” Sheinbaum said. “As a premier solution provider, Bizfi’s unique multi-partner platform can help WIB members meet those needs faster and more efficiently than ever before, while maintaining relationship continuity with its current small business clients.”

Late last year, Bizfi announced a $65 million financing round led by Metropolitan Equity Partners.