This week marks a huge milestone for Able Lending as it officially launched with a series of events in conjunction with The Dallas Entrepreneur Center. The announcement of the launch is highlighted by the $5 million to fund Dallas/Fort Worth area startups and small businesses. Already there has been the allocation of almost $2 million by Able Lending for DFW-area startups prior to their official DFW debut, and last night’s events at the DEC in partnership with Tech Wildcatters, is the next step in offering funding to the local business community.
“The participation in our launch event at The DEC this evening solidifies that Dallas-area entrepreneurs seek a new way to fund their businesses.” Evan Baeher said. “Able provides non-dilutive financing for pre- and post-revenue companies who are looking to grow with our low-cost of capital. We look forward to working with businesses at all stages, and supporting the strong startup community of partners like Tech Wildcatters, The DEC, and Common Desk,” Evan Baehr, co-founder and president of Able Lending said, after the launch events.
Able sees small businesses as the most vital sector of the national economy but one that is also under-served. Small businesses struggle gaining access to capital at rates that are fair which Able believes should be a fundamental right. The leaders of Able have set out to offer low-cost online lending to small businesses, and startups with a loan that allows the borrowers to have a more favorable rate while getting more capital. When borrowers recruit support from friends, family, and fans, up to 25% of the loan amount, they are able to save, on average, $31,000 on loans from $25,000 to $1 million.
Along with being a loan company, Able connects entrepreneurs with additional capital, community resources, and when it is time for them to grow, the expert advice most small businesses and startups do not have access to.
Forbes writer Laura Shin reported earlier this year about Able, which create small business products in response to the fact that people were signing for loans that had an actual APR of more than 4,000%. Buzzfeed author Matthew Zeitlin, highlights just how drastic the difference in average annual rates is. For borrowers through Able, they range from 8% to 12%, typically loans have percentage rates in the low 20’s, while the annual rates on OnDeck loans can average around 50%.