CreditMax, a leading electronic exchange for the sale and purchase of distressed consumer debt, today announced it has received a new credit facility from a consortium of investors which includes a New York City based credit fund as well as existing investor, Metropolitan Equity Partners.
The facility is designed to expand the Company’s lending capabilities up to $150 million of aggregate loans over the next eighteen months. Concurrent with the credit facility, the Company secured additional growth equity investment from its investors. The investments are designed to enable the rapid expansion of CreditMax’s debt lending program for qualified and prospective debt buyers on the NDSE Trading Platform.
The CreditMax NDSE exchange enables sellers to list debt for sale on a national, regional, state, local, or even account-specific basis. It counts over 4500 registered users today who trade a range of distressed consumer debt products.
“We recognize that efficient access to lending capital is of critical importance to our clients,” said Chief Lending Officer, Michael Bernstein, “We have partnered with knowledgeable and scalable financial partners that enable us to fund the active traders on the NDSE.”
The new credit facility follows a successful pilot program started last August by the Company. Bernstein further commented “We are now positioned to offer financial leverage to a range of debt buyers, from smaller buyers seeking $50,000 for spot trades to larger buyers seeking multi-million dollar flow agreements.”
The platform is recognized as a one-stop marketplace for debt buyers to identify and analyze portfolios efficiently, negotiate and acquire targeted assets and receive financing on terms commercially unavailable elsewhere to portfolio buyers.
“CreditMax has established itself as a central clearinghouse for small and medium-sized buyers and sellers” said Paul Lisiak, Managing Partner of Metropolitan Equity Partners. “There is a clear unmet financing need within this segment of the debt buyer market. Creditmax has demonstrated its ability to identify and select quality clients which deserve better access to working capital.”
Paul Lisiak has joined the company board that includes Advisory Members Les Biller, former Vice Chairman of Wells Fargo, Herb Lurie, former Chairman of Merger & Acquisitions Financial Services Banking, Merrill Lynch, and Michael Hayward, former Vice Chairman of Fleet First Boston.
CreditMax is a leading financial services exchange specializing in the purchase and sale of charged-off credit card and consumer receivables. Working with leading issuers and debt sellers, CreditMax’s NDSE Exchange offers purchase and sale options custom-tailored to meet the needs of today’s debt buyers and debt sellers.