LAS VEGAS, NV--(Marketwired - November 13, 2013) - IEG Holdings Corp. (IEGH) today announced a new $10m senior debt facility from current lender Boston Finance Group. This $10m facility replaces the $3m facility the Company had in place since June 2012 and is a sign of confidence in IEGH's business model and growth strategy.
"We are very pleased to continue our relationship with Boston Finance Group. This increased $10 million facility takes IEGH to the next level and is another significant event in our development and growth plans. We expect loan volumes to accelerate rapidly over coming months due to the recent successful joint ventures with two new prominent personal loan lead providers as well as continued planned US expansion into additional US states. We are also very excited for the upcoming launch of our new www.mramazingloans.com website due to launch late November, which is expected to increase customer conversions and be an additional driver of growth," said Paul Mathieson, Chairman and CEO of IEG Holdings Corp.
IEGH reports its total cumulative loan originations as at November 13, 2013 has increased 84% to $437,000 since its June 30 2013 total of $237,000. The significant growth in loan volume is attributable to the Company launching online lending in July 2013. IEGH also recently signed up three new online lead providers on a cost per funded basis, reducing customer acquisition costs from 8-10% to as low as 1% on a $10,000 loan.
IEGH plans to apply for a fifth state license in New Jersey in late November. A New Jersey license would add 8.9 million people to the Company's potential customer base and increase total population coverage by 21%. Upon license approval, IEGH anticipate a corresponding increase in loan volumes via its existing online distribution network.
About IEG Holdings Corporation
IEG Holdings Corporation (IEGH) provides unsecured consumer loans under the brand name "Mr. Amazing Loans" via its website www.mramazingloans.com. After lending approximately $48 million to over 11,500 borrowers in Australia, the Company Founder and CEO Paul Mathieson moved to the U.S. market in 2008 to replicate the successful business model. IEGH now operates online in the USA covering all of Nevada, Arizona, Illinois and Florida. IEGH plans to apply for a New Jersey license in November 2013 and expand to New York, Texas and California in 2014. The Company launched advertising for its online loan origination platform in mid-2013, partnering with top lead generators in the United States. The Company's loans range in value from $2,000 to $10,000 and have a term of three to five years with a 19.90% to 29.97% APR. Significant growth is expected from the online loan origination business, which has the potential to scale much more rapidly and at a higher net margin than the previous brick-and-mortar business. For more information about the Company, visit www.investmentevolution.com.
About Boston Finance Group, LLC
Boston Finance Group, LLC originates and funds private loans for borrowers who may not have access to traditional sources of capital due to the unique nature of their businesses or collateral. Specific examples of areas in which Boston Finance Group can provide capital include Asset-Based Lending, Law Firm and Plaintiff Funding, Specialty Finance Originators, Commercial Lending and Acquisition Finance. Boston Finance Group, LLC is uniquely positioned to originate and underwrite loans in the above areas and can respond much more quickly to borrowing requests than traditional lenders.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.