Able Lending

Able Lending was an Austin-based financial technology company established in 2014 by co-founders Will Davis and Evan Baehr. The duo, both graduates of Harvard Business School, pivoted to create Able Lending after their previous venture, Outbox, faced insurmountable challenges. This prior experience informed their approach to building a resilient enterprise. Baehr had a diverse background including work at Facebook, for Peter Thiel, and on Capitol Hill, while Davis served as the CEO, noted for his ability to master complex financial processes like credit decisioning and structured finance.

The company operated as an online lending platform targeting small businesses across the United States, a segment often referred to as the "Fortune 5 Million." Able Lending distinguished itself with a collaborative or "social lending" model. It provided term loans, ranging from $25,000 to $1 million, by requiring borrowers to secure a portion of the loan—typically 25%—from their own network of friends, family, and supporters, known as "backers." Able would then fund the remaining amount. This structure was designed to de-risk the loan for the primary lender, foster a supportive community around the borrower, and ultimately provide capital at lower interest rates than many competitors, with average APRs around 16%. The model proved effective, with the company reporting zero defaults in its early years.

Able Lending provided several products tailored to a business's stage, including 'Able Start' for companies younger than six months, 'Able Growth' for established businesses, and 'Able Refi' for those looking to refinance higher-interest debt. The firm generated revenue through origination fees and the interest on its portion of the loans. Over its lifespan, Able Lending secured significant funding, including a $6 million Series A round in 2015 and a substantial $100 million in debt financing from Community Investment Management in 2016 to expand its lending capacity. In September 2017, after rumors of its closure, CEO Will Davis clarified that the company was in acquisition discussions. Ultimately, Able Lending was acquired by Fundation Group.

Keywords: Able Lending, Will Davis, Evan Baehr, small business loans, online lending, collaborative lending, social lending, peer-to-peer lending, term loans, debt financing, Fundation Group, fintech, Austin startup, business financing, collaborative credit, backer model, small and medium businesses