Orchard Launches Platform Connecting Lenders and Investors

Called Deals, the platform aims to make finding investors and underwriters around the globe more efficient, and provide due diligence, says Orchard chief executive officer and co-founder Matt Burton.

“The financial world is changing and it’s more important now to connect lenders who originate loans digitally with investors,” Burton says. “Before this we saw a lot of innovation on the borrowers’ side, to make their experience better. Our platform is more of a marketplace, so we’re further down the value chain, but it makes the process of getting investments easier.”

Burton notes lenders often had to zip around the globe to reach out to potential investors. This constant traveling means data officials bring with them can be stale, in that it doesn’t reflect real-time numbers, particularly around how many clients have already paid back loans, which can attract hedge funds or other investors. Lenders also had a limited set of companies they can talk to, so investors often are not aware of any opportunities out there. The platform allows investment opportunities to interested parties including pools of seasoned loans, forward-flow agreements, and credit facilities.

Deals is a global platform with a presence in the United States, Asia, Europe and Israel. It also offers capital management capabilities including allocation optimization and facility monitoring, news and insights, advanced analytics, and data reporting. Orchard is a registered broker-dealer with the Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Corporation.

The platform mainly connects online lenders who need access to investors as underwriters to fund customers. It pulls historical data on loans and payments and allows lenders to put out a call for investments.

CAN Capital chief executive Parris Sanz, one of the lenders registered on the Deals platform, said it has helped the company find important investors as it grows.

“Orchard’s network of institutional investors and powerful data and analytics platform have helped us advance our mission of providing efficient to working capital for small businesses,” Sanz said in a statement. “Orchard helped us find the right institutional partner to fund our future as we move forward with the next phase of our company’s growth and re-engage with small businesses across America.”

Burton says around ten lenders and 60 institutional investors have been on-boarded since the platform went live on September 12.