Capital Access Network launched CapTap in January, using data collected during the past 14 years.
The scoring models were built using data from more than 120,000 small business transactions across the 650 Standard Industrial Classification (SIC) codes. The data on business performance is predictive of a company's ability to pay a loan.
CAN has experienced significant growth and provided access to more than $550 million in capital to small businesses in the past year, a record for the company, and has facilitated 100,000 transactions since it was founded 15 years ago. Wells Fargo, Goldman Sachs, Brown Brothers Harriman, Key Equipment Bank and Fifth Third Bancorp have provided CAN with a secured line of credit.
"Capital Access Network is revolutionizing the way small businesses access capital," said CAN CEO Glenn Goldman. "While the SBA reports that loans have decreased over 20 percent in the last five years, our team has doubled the amount of working capital we provided small businesses access to since 2009."
CAN's success is predicated on its technology platform and proprietary algorithms that predict small-business risk and performance.
CapTap evaluates more than 100 variables after a business applies for a loan. Examples of these variables include daily sales receipts, the business owner's experience, seasonality, and whether the business rents or owns its property.
"We are able to do this as a result of the way we evaluate small business, which is drastically different from the way other financial institutions operate," Goldman said. "Instead of focusing solely on credit scores or collateral, we consider more than 100 variables, ranging from daily cash income and credit receipts to economic conditions."
Companies across all industries are receiving loans from CapTap, Goldman said, but the bulk of the loans are going to restaurants and retail businesses. They are among the leaders in providing loans to Hispanic-owned businesses
CAN's outreach includes advertisement on the Internet, in industry magazines and through various brokers and third-party vendors.
"We have a diverse workforce and our U.S. and Costa Rican call center have broad language capability," Goldman said.
CapTap has a simple application process. Entrepreneurs fill out the application, and provide three months of bank and/or credit card processing statements.
CAN has found that entrepreneurs mainly use the capital for business working capital, remodeling and upgrades to their business, equipment purchases, business tax payments and inventory.
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