MONTREAL, March 19, 2020 /CNW Telbec/ - IOU FINANCIAL INC. ("IOU" or "the Company") (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), is providing an update to its business outlook given the COVID-19 pandemic.
The Company's principal balance of its loan and servicing portfolios is diversified both across industry type and location within North America. In the current situation, IOU has modified its underwriting standards to cease lending to industries and geographical areas which are strongly impacted by COVID-19. IOU will closely monitor the performance of its portfolios and is prepared to react quickly as the situation may require.
Most of IOU's operations are cloud-based, including its broker and merchant portals as well as its entire lending platform. Consequently, the Company has implemented a work from home program to protect its employees while ensuring the smooth continuity of its operations.
Although we have not seen a deterioration of the Company's portfolio up to March 13th, 2020 due to the pandemic and the volume of applications remains strong, the duration of the current situation with the pandemic is unknown and considering the uncertainty faced by the North American economy over the coming months, the Company is retracting its previously disclosed long-term outlook for loan origination growth of 25% to 30%. However, the Company also sees potential for a greater than expected need for small business loans as significant working capital will be required once the situation normalizes.
Furthermore, we are working closely with various government agencies to assist some of our merchants who may encounter hardships as a result of the COVID-19 pandemic.
About IOU Financial Inc.
IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. In a unique approach to lending, IOU Financial's advanced, automated application and approval system accurately assesses applicants' financial realities, with an emphasis on day-to-day cash flow trends. IOU Financial allows these businesses to apply for six, nine, twelve, fifteen and eighteen-month term loans of up to US$500,000 to qualified U.S. applicants ($150,000 in Canada) within a few business days, with affordable charges favorable to cash-flow management. Its speed and transparency make IOU Financial a trusted alternative to banks. To learn more visit: IOUFinancial.com.
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE IOU Financial Inc.
For further information: Phil Marleau, Chief Executive Officer, +1 (514) 789-0694, ext. 225; David Kennedy, Chief Financial Officer, +1 (514) 789-0694, ext. 278; Benjamin Yi, Capital Markets & Corporate Development, +1 (647) 295-0654; Jeff Walker, Vice President, The Howard Group Inc., Email: [email protected], Tel: +1 (403) 221-9015, Toll Free: 1 (888) 221-0915