Orchard Platform has launched offerings, operated by Orchard Platform Markets, LLC, a wholly owned subsidiary, SEC registered securities broker and member of FINRA and SIPC. Deals is a global marketplace where loan originators can discover low cost financing and institutional investors can connect, assess and move forward with multiple deals. Orchard says this is the next step in the evolution of their business as they continue to provide critical services to the global online lending industry.
Orchard explains that with Deals, qualified investors have access to a wide range of new investment opportunities, including seasoned loan pools, forward flow agreements and credit facilities, as well as all transaction data. underlying and a wide range of credit analysis solutions to assess each proposed transaction. Originators with ready-to-sell pools can list transactions and share data seamlessly within this global network, while working with investors who express interest in a transaction to perform due diligence and analysis, and finalize the structure and terms of the transaction.
Bill Ullman, Chief Commercial Officer of Orchard, will also be CEO of Orchard Platform Markets, LLC. Ullman said;
“Whether a transaction involves the sale of a pool of loans, the negotiation of a credit facility, or the organization and management of forward flow agreements, our platform reduces costs and operational friction for our clients. . In short, Orchard enables both sides of the private credit market to find and assess opportunities faster and at lower cost, and to move transactions forward in what has always been a fragmented, inefficient and illiquid market.
Orchard quoted Victor J. Pacheco, co-founder and chief product officer of LendingPoint, who said that finding and securing the cheapest sources of finance for loans is an ongoing process and essential for growth;
“Orchard Platform combines a network of qualified investors with an enterprise suite of credit analysis and data and reporting services, helping us connect with more investors while making it easier to support the relationship each time. stage of a transaction, ”added Pacheco.
Parris Sanz, CEO of CAN Capital, said the new service will help fulfill his company’s mission of providing efficient access to capital for small businesses.
“Orchard has helped us find the right institutional partner to fund our future as we move forward into the next phase of our business growth and re-engage small businesses across America,” said Sanz.
Crowdfund Insider spoke to Matt Burton, CEO and co-founder of Orchard. He explained that the feedback from the market was that they really wanted a better process for connecting with potential capital providers. Orchard will now be able to support these types of transactions, creating a powerful tool to fund the entire loan originator ecosystem. Burton described the service as “eliminating the friction” in connecting originators and investors.
At the launch of the platform, Deals will welcome 55 institutional investors with approximately $ 1.5 trillion in investable assets. At some point last year Orchard was scheduled to launch a secondary loan exchange, but Burton said what they realized was that the market really wanted Orchard to “focus on the front-end.” .
“Aftermarket opportunities are one of them. We support multiple types of transaction types, ”Burton said.
To date, 10 initiators are using research bids of $ 500 million. Orchard expects that number to increase dramatically in the coming months.
Burton believes Deals is a vital variable in the evolution of the online lending industry.
“Having access to diversified, low-cost capital is important to the growth of this industry. We can help deduce that. We can provide access to a larger group of investors. We also have a suite of data products that will help manage all of this. Today, it’s common for a lender to work with only a handful of capital providers, ”Burton said.
Asked how things are progressing at Orchard, Burton said the past twelve months have been interesting;
“We have seen a thinning on the loan side. While it’s not good news to see some of these lenders going out of business, I see that the remaining lenders in the market are growing faster with better models. We are seeing general growth in small business, real estate and consumer lending. “
A list of new features for the Orchard platform has been provided below.
- Transactions: Global network where loan originators and pre-qualified investors can browse a large list of investment opportunities and corresponding data, and use Orchard’s enterprise technology to seamlessly exchange information, assess potential transactions and take the next steps more efficiently.
- Capital Management: Allocation Optimization, Facility Monitoring, and Automated Borrowing Base Reporting Offerings to Help Originators Better Monitor the Use of Multiple Sources of Capital and Manage Them with More Accuracy and Insight
- News & Insights: The latest industry news, economic data, and Orchard’s research and commentary to keep initiators and investors up to date with the latest industry trends and insights. While transaction information is only available to pre-qualified institutional investors, Orchard also offers free access to anonymized and aggregated industry data for parties seeking to learn more about the industry, including journalists, researchers. and investors.
- Advanced analytics: Originators can compare original and performance data against an aggregated, anonymized peer group, and quickly analyze any data set under multiple scenarios, to gain deeper insight into their loan portfolios and channels. funding. Investors can also take advantage of scenario testing, data visualization, and benchmarking tools to gain actionable portfolio and market insights.
- High Quality Data Services: Data integrations with Orchard help creators improve the quality of their data and streamline the customer reporting process.