ColternateEdge, a Dallas-based fintech company that enables regional and regional banks to structure more competitive commercial loans for underserved communities, is based in New York. Strategic investment from Phalanx Impact Partners.
Phalanx said the investment conveys its assertion that “expanding access to middle-market credit solutions benefits the next generation of entrepreneurs in every community.”
The investment amount was not disclosed.
Dallas Innovates launched a partnership with CollateEdge and its co-founders, CEO Joe Beard and president and COO, when the startup emerged from stealth in 2021 with $3.5 million and an impressive group of investors. Introducing Joe Radtke's profile. The fintech was one of the first three winners of the Startup of the Startup award. Annual Awards at the 2023 Venture Dallas Conference. Co-founder and CEO Joe Beard was named to Dallas Innovates' 2023 Future 50 list.
Instantly price your loan with “hard collateral support”
By providing instant pricing and hard collateral support, the Collateral Edge platform will help community banks overcome short-term underwriting concerns and reduce policy exceptions for commercial loans, Phalanx said. This industry-agnostic solution supports loans of at least $250,000. This is “key to partnering with community banks in underserved areas and inner cities.”
Supporting these banks in providing high-quality loans will “create a thriving local business community supported by strong job creation and regional economic expansion,” Phalanx added.
John Pantarena, Partner at Phalanx Impact Partners. He said Collateral Edge's vision “deeply resonated with our belief that expanding access to credit can transform communities.”
“In a financial environment where middle market capital is disproportionately allocated to private equity-owned businesses in a narrow range of targeted industries, CollateEdge stands out as a unique solution-driven value proposition,” Pantarena said in a statement. I am doing it,” he added. “We believe they can grow both by becoming a valuable partner for middle-market financial institutions and by expanding the number of participants in the yield products they are creating through their platform.”
“A Bridge to Financial Inclusion for Small and Medium Enterprises”
News of the Phalanx investment follows CollateEdge's recent approval as the “very” first fintech partner in the IBATx accelerator program developed by the Texas Independent Bankers Association.
Dallas fintech companies are actively working with community banks across the country and “are expected to see significant growth in 2024,” Phalanx said.
“We’re not just building companies. We’re building bridges to financial inclusion for small businesses, especially those in underserved communities that need it most.” Joe Beard, CEO of ColternateEdge, said in a statement. “Working with Phalanx Impact Partners is a testament to our shared belief in small businesses, which are the backbone of this nation's economy. We will help provide competitive financing to the small and medium-sized businesses that are the driving force.”
The Collateral Edge platform automates the entire process and provides “high-quality collateral enhancement solutions” directly to bank customers through its proprietary portal technology, allowing bank customers to “maintain full control of the lending process and customer relationship.” said Phalanx.
Financial industry veteran James Watkins is a former senior official at the FDIC, currently a managing director at Isaac Milstein, and serves on the CollateEdge Advisory Board.
“By strengthening collateral for some of our most important businesses, CollateEdge is having a positive impact on the financial sector and economy,” Watkins said. “Many of the businesses that would benefit from additional collateral are major job creators in their local communities. Expanding access to middle market credit will boost local economies, create greater employment opportunities and support communities. It helps strengthen the.”