IOU Financial Inc. Releases Financial Results for the First Quarter Ended March 31, 2017

  • Principal balance of loan portfolio increased 72.0% compared to the same period last year to $43.8 million consistent with the Company’s strategy to retain more loans on its balance sheet.
  • Gross revenue increased 29.6% to $4.3 million for the quarter ended March 31, 2017.
  • On a sequential basis, the provision for loan losses decreased 38.3% from the quarter ended December 31, 2016 to $1.9 million.
  • Opex decreased from $3.0 million for the quarter ended September 30 th, 2016 when a cost reduction plan was initiated, to $2.4 million for the quarter ended March 31, 2017.
  • Won a Gold Stevie® Award in the 11th Annual Stevie Awards for Best Use of Technology in Customer Service.

MONTREAL, May 29, 2017 – IOU FINANCIAL INC. (“IOU” or “the Company”) (TSXV: IOU), a leading online lender to small businesses, announced today its results for the first quarter ended March 31, 2017.

“IOU continues to lead at the forefront of the fintech revolution taking hold in North America. The first quarter of 2017 saw strong loan applications, but lower loan volumes, due to a strategic emphasis on seeking higher loan quality. This emphasis is demonstrated in our financial performance with our provision for loan losses down by 38.3% on a sequential basis. In 2017, management will continue to focus on operational efficiencies, pursuing sustainable, high quality growth opportunities to achieve favourable risk adjusted returns and achieving profitability,” said Phil Marleau, CEO.

FINANCIAL HIGHLIGHTS

  • Loan originations for the first quarter period ended March 31, 2017 were US$22.1 million versus originations of US$25.4M for the same period last year. Loan originations decreased due to changes made to the Company’s lending policies in response to increased delinquency levels. We anticipate that these changes will have a positive impact on our loan portfolio over the course of 2017. On a sequential basis, loan originations increased 9.8% from the quarter ended December 31, 2016 to US$22.1 million.
  • As of March 31, 2017, IOU’s total loans under management amounted to approximately $66.8 million as compared to $79.8 million at the end of the first quarter 2016. On March 31, 2017, the principal balance of the loan portfolio amounted to $43.8 million compared to $25.5 million at the end of the first quarter of 2016. The increase is consistent with the Company’s strategy to retain more loans on its balance sheet. The principal balance of IOU’s servicing portfolio (loans being serviced on behalf of third-parties) amounted to approximately $23.0 million compared to $54.3 million in 2016.
  • IOU recorded gross revenue for the quarter ended March 31, 2017 of $4.3 million versus $3.3 million for the quarter ended March 31, 2016, representing a 30.3% increase. The increase in gross revenues was primarily driven by an increase in interest income. Interest income increased to $3.7 million for the quarter ended March 31, 2017 as compared to $2.2 million for the quarter ended March 31, 2016, representing a 69.2% increase, as a result of an increase in the size of the loan portfolio.
  • Interest expense during the three-month period ended March 31, 2017 increased by 46.8% to $0.9 million, up from $0.6 million over the previous year. The increase is attributable to an increase in borrowings under the credit facility partially offset by a reduction in the cost of funds borrowed versus the previous year.
  • Provision for loan losses (net of recoveries) increased to $1.9 million for the three-month period ended March 31, 2017, up from $0.8 million for the previous year. This increase is attributable to a significant increase in the size of the loan portfolio as well as a build in the allowance for loan losses mostly for loans originated prior to the quarter ended September 30, 2016. During the year ended December 31, 2016, IOU Financial made changes to its lending policies and deployed its next generation proprietary IOU Risk Logic Score. These changes are expected to contribute to improved credit performance in 2017. In addition, the Company has implemented certain process changes to improve its servicing and collections. On a sequential basis, the provision for loan losses decreased 38.3% from the quarter ended December 31, 2016 to $1.9 million.
  • Operating expenses decreased 16.8% to $2.4 million for the three-month period ended March 31, 2017 as compared to $2.9 million for the previous year. During the year ended December 31, 2016, the Company adopted a plan to reduce operating expenses. These cost-reduction efforts, once fully implemented are expected to lower quarterly operating expenses to $2.0 million to $2.2 million, on a normalized basis. On a sequential basis, operating expenses decreased from $3.0 million for the quarter ended September 30th, 2016 when the plan was initiated, to $2.6 million for the quarter ended December 31, 2016, to $2.4 million for the quarter ended March 31, 2017.
  • IOU closed its first quarter 2017 with a net loss of $995,085, or $0.01 per share, compared to a net loss of $1,308,229 or $0.02 per share during the same period of 2016.
  • IOU closed its first quarter 2017 with an adjusted net loss of $690,400, which excludes certain non-cash and non-recurring items, compared to an adjusted net loss of $473,480 in the first quarter of 2016. Assuming the cost reduction plan was fully implemented on January 1, 2017, IOU’s pro forma adjusted net loss for the three-month period ended March 31, 2017 would have been approximately $0.35 million.

OUTLOOK

In 2017, IOU will continue to focus on finding operational efficiencies, the performance of its loan portfolio, and achieving profitability.

The Company will maintain its core strategy of identifying, recruiting, and partnering with business loan brokers throughout the United States while continuing to focus its efforts on building long-term partnerships with its existing broker base by investing time in offering great service through dedicated account executives.

IOU also intends to grow loan originations by forming new strategic partnerships with entities such as banks and small business suppliers and leveraging their relationships with small businesses to add new customers; expanding its product offering to allow it to serve small businesses whose needs are not met by its current products; investing in direct marketing and sales; and continuing its expansion into Canada.

IOU’s financial statements and management discussion & analysis for the quarter ended March 31, 2017 have been filed on SEDAR and are available at www.sedar.com.

About IOU Financial Inc.

IOU Financial provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and e-commerce companies. 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. It makes loans of up to $150,000 to qualified U.S. applicants ($100,000 in Canada) within a few business days, with affordable charges favourable to cash flow management. IOU Financial’s speed and transparency make it a trusted alternative to banks. To learn more visit: www.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.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For further information:

Philippe Marleau
Chief Executive Officer
(514) 789-0694 ext. 225

David Kennedy
Chief Financial Officer
(514) 789-0694 ext. 278

Benjamin Yi
Corporate Development & Investor Relations
(647) 295-0654

IOU Financial announces the completion of the brokered portion of its private placement

MONTRÉAL, May 25, 2017 – IOU Financial Inc. (“IOU Financial” or the “Company”) (TSXV: IOU) is pleased to announce that it closed on the date hereof the brokered portion of its previously announced private placement of common shares (the “Common Shares”) for total gross proceeds of approximately $1.2 million, representing 6,075,000 Common Shares. Haywood Securities Inc. (“Haywood”) acted as agent under this portion of the private placement. The Common Shares were offered to investors at a price of $0.20 per Common Share (the “Offering Price”). The total gross amount raised under the private placement by IOU Financial, including the amount raised under the brokered portion thereof, is approximately $3.5 million (the “Offering”), representing a total of 17,457,400 Common Shares.

The net proceeds of the Offering will be used primarily by IOU Financial to finance small business loans in the Company’s target markets of the United States and Canada and for general corporate purposes.

An insider of IOU Financial, Mr. Evan Price, director,  participated in the brokered portion of the private placement. Mr. Price subscribed for a total of 50,000 Common Shares for total gross proceeds of $10,000. The issuance of securities to Mr. Price may be considered a related party transaction within the meaning of Regulation 61-101 respecting protection of minority securityholders in special transactions. However, the private placement is exempt from the valuation and minority approval requirements provided under such regulation since the fair market value of the private placement to related parties is less than 25 per cent of the market capitalization of IOU Financial. The board of directors of IOU Financial has approved the private placement. Mr. Price declared his interest prior to the approval by the board of directors of IOU Financial and abstained from voting thereon.

A material change report in respect of this related party transaction could not be filed earlier than 21 days prior to the closing of the private placement due to the fact that the private placement was still subject to regulatory approval and the terms of the participation of certain of the non-related parties and the related parties in the private placement were not confirmed.

IOU Financial paid Haywood a commission of $90,575 and issued Haywood and other intermediaries a total of 452,875 compensation options, entitling Haywood and such intermediaries to purchase up to 452,875 Common Shares at the Offering Price for a 24 month period after the date hereof. Common Shares issued under the Offering are subject to a standard hold-period, which expires on September 16, 2017 for Common Shares issued in the May 15 closing, and September 26, 2017 for Common Shares issued on the date hereof.

This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any securities of IOU Financial offered in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares will be offered on a private placement basis in Canada and only to “accredited investors”, as such term is defined under applicable Canadian securities laws.

THE SECURITIES WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE “1933 ACT“) AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT.

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 Financial including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory approval, 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 Financial does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For further information:

Philippe Marleau
Chief Executive Officer
(514) 789-0694 ext. 225

David John Kennedy
Chief Financial Officer
(514) 789-0694 ext. 278

Benjamin Yi
Corporate Development & Investor Relations
(647) 295-0654

IOU FINANCIAL ANNOUNCES THE COMPLETION OF THE FIRST TRANCHE OF ITS PRIVATE PLACEMENT FOR TOTAL GROSS PROCEEDS OF $2.12 million

MONTRÉAL, May 15, 2017 – IOU Financial Inc. (“IOU Financial” or the “Company”) (TSX-V: IOU) is pleased to announce that it closed on the date hereof the non-brokered portion of its previously announced private placement of common shares (the “Common Shares”) for total gross proceeds of approximately $2.12 million. The Common Shares were offered to investors at a price of $0.20 per Common Share. Considering the upsizing in the first tranche of the private placement, the total amount expected to be issued under the private placement has been increased by IOU Financial from up to $3.5 million to up to $3.62 million.

An insider of IOU Financial, Mr. Serguei Kouzmine, director, participated in the private placement via FinTech Ventures Fund, LLLP, and subscribed for a total of 7,500,000 Common Shares for total gross proceeds of approximately $1,500,000. The issuance of securities to Mr. Kouzmine may be considered a related party transaction within the meaning of Regulation 61- 101 respecting protection of minority securityholders in special transactions. However, the private placement is exempt from the valuation and minority approval requirements provided under such regulation since the fair market value of the private placement to related parties is less than 25 per cent of the market capitalization of IOU Financial. The board of directors of IOU Financial has approved the private placement. Mr. Kouzmine declared his interest prior to the approval by the board of directors of IOU Financial an abstained from voting.

A material change report in respect of this related party transaction could not be filed earlier than 21 days prior to the closing of the private placement due to the fact that the private placement was still subject to regulatory approval and the terms of the participation of certain of the nonrelated parties and the related parties in the private placement were not confirmed.

This news release shall not constitute an offer to sell nor the solicitation of an offer to buy nor shall there be any securities of IOU Financial offered in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares will be offered on a private placement basis in Canada and only to “accredited investors”, as such term is defined under applicable Canadian securities laws.

THE SECURITIES WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE “1933 ACT”) AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT.

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 Financial including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory approval, 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 Financial does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For further information:

For more information, please contact:

Philippe Marleau
Chief Executive Officer
(514) 789-0694 ext. 225

David John Kennedy
Chief Financial Officer
(514) 789-0694 ext. 278

Benjamin Yi
Corporate Development & Investor Relations
(647) 295-0654

IOU Financial Partners with EVO Payments International – IOU & EVO to Cross-Promote Funding and Credit Card Processing

MONTREAL, May 3, 2017 /CNW/ – IOU FINANCIAL INC. (“IOU” or “the Company”; TSX-V:IOU), a leading online lender to small businesses (IOUFinancial.com), is pleased to announce its strategic partnership with EVO Payments International (EVO), a leading card payment acquirer and payment services provider operating throughout North America and Europe. Through this strategic partnership, IOU’s direct clients will be able to take advantage of EVO’s innovative merchant services solutions, save money, and allocate more capital to growth.

“EVO’s customers will also now be able to bundle their merchant services with fast and reliable non-collateral loans from IOU. These loans can fund working capital requirements or expansion programs,” said Christophe Choquart, IOU’s VP of Strategic Partnerships.

“This strategic partnership emphasizes values shared by both IOU and EVO, namely to help small business owners with best-in-class payment systems and funding tools,” added Choquart.

“Strategic partnerships are an important part of IOU’s organic growth strategy, which is to connect with like-minded service providers to offer our common merchant customers an easy-to-use, cost-efficient, one-stop-shopping experience. We will continue to connect with key ecosystem players to provide small business owners with access to fast, high-quality, and responsible funding,” said Phil Marleau, IOU’s Chief Executive Officer.

Further details about partnering with IOU can be found at www.ioufinancial.com/partner.

About IOU Financial

IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, and restaurants. In a unique approach to lending, the IOU Financial advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-today cash flow trends. It makes loans of up to US$200,000 to qualified U.S. applicants ($100,000 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.

About EVO Payments International

EVO Payments International is a leading payments service provider of merchant acquiring and processing solutions for merchants, financial institutions, Independent Software Vendors (ISVs), Independent Sales Organizations (ISOs), government organizations and multinational corporations located throughout North America and Europe. A principal member of Visa and MasterCard, EVO offers an array of innovative, reliable and secure payments solutions and merchant services, backed by an uncompromising commitment to exceed the expectations of our customers and partners. For more information, please visit www.evopayments.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.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For further information:

For more information, please contact: Philippe Marleau, Chief Executive Officer, +1 (514) 789-0694 ext. 225; Benjamin Yi, Corporate Development & Investor Relations, +1 (647) 295-0654;

For more information regarding strategic partnerships with IOU, please contact: Christophe Choquart, Vice President, Strategic Partnerships, +1 (678) 264-8584.

IOU FINANCIAL ANNOUNCES PRIVATE PLACEMENT OF UP TO $3.5 MILLION

MONTREAL, Québec, May 1, 2017 /CNW/ – IOU Financial Inc. (TSX Venture Exchange: IOU) (“IOU Financial” or, the “Company”), a leading online lender to small businesses in the United States and Canada, announced today that it intends to complete a private placement of up to 17,500,000 common shares of the Company (the “Offered Shares”) at a price of $0.20 per Offered Share for gross proceeds of up to $3.5 million (the “Offering”). Up to $1.5 million of the Offering will brokered by Haywood Securities Inc. The remaining portion of the Offering will be non-brokered.

The Company expects that Fintech Ventures Fund LLLP (“Fintech”), an entity controlled by Mr. Serguei Kouzmine, a director of the Company, will subscribe for approximately up to 7,500,000 Offered Shares for gross proceeds of approximately up to $1.5 million on a non-brokered basis (the “Insider Subscription”). Fintech currently beneficially owns or controls 6,005,757 common shares of the Company (the “Common Shares”), representing approximately 8.52% of the issued and outstanding Common Shares (7,339,087 Common Shares, representing approximately 10.23% of the issued and outstanding Common Shares, calculated on a partially diluted basis assuming the full conversion of all convertible debentures beneficially owned or controlled by Fintech). After the completion of the Offering, Fintech will beneficially own or control approximately up to 15.36% of the issued and outstanding Common Shares (up to 16.62% calculated on a partially diluted basis assuming the full conversion of all convertible debentures beneficially owned or controlled by Fintech).

The net proceeds of the Offering will be used primarily by IOU Financial to finance small business loans in the Company’s target markets of the United States and Canada and for general corporate purposes. The Offering is subject to regulatory approval, including the approval of the TSX-V.

The Offering may be considered a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. However, the Offering is exempt from the valuation and minority approval requirements provided under such regulation, since the fair market value of the Insider Subscription is less than 25% of the market capitalization of IOU Financial. The Board of Directors of IOU Financial has approved the terms of the Offering. Mr. Kouzmine declared his interest prior to the approval by the Board of Directors of IOU Financial and abstained from voting thereon.

This press release does not constitute an offer of securities for sale in the United States. The securities being offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and such securities may not be offered or sold within the United States absent U.S. registration or an applicable exemption from U.S. registration requirements.

About IOU Financial Inc.

IOU Financial provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and e-commerce companies. In a unique approach to lending, IOU Financial’s advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on dayto-day cash flow trends. It makes loans of up to US$150,000 to qualified U.S. applicants ($100,000 in Canada) within a few business days, with affordable charges favorable to cash-flow management. IOU Financial’s speed and transparency make it a trusted alternative to banks. To learn more visit: www.ioufinancial.com.

Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements. Forward-looking statements are statements, other than statements of historical fact, that address or discuss activities, events or developments that IOU Financial expects or anticipates may occur in the future. These forward looking statements can be identified by the use of words such as “anticipates”, “believes”, “estimates”, “expects”, “may”, “plans”, “projects”, “should”, “will”, or the negative thereof or other variations thereon. These forward-looking statements reflect management’s current views and are based on certain assumptions including assumptions as to future economic conditions and courses of action, as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are subject to risks and uncertainties and no assurance can be given that any of the events anticipated by such statements will occur or, if they do occur, what benefit IOU Financial will derive from them. A number of factors could cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements, including, but not limited to, risks related to the completion or not of the Offering, risks related to the Company’s incapacity to execute on its business plan, risks inherent in growing a new business, dependence on third party service providers, competition, regulatory risk, dependence on key personnel, risks related to rapid growth of IOU Financial, security and confidentiality risk, risk related to inability to attract borrowers and lenders, technological development risk, IT disruptions, maintenance of client relationships, litigation risk, volatility of stock price, and other factors that are beyond its control. Additional information concerning these and other factors can be found beginning on page 15 under the heading “Risks and Uncertainties” in IOU Financial’s management’s discussion and analysis dated April 27, 2017, which is available under IOU Financial’s profile on SEDAR at www.sedar.com.

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.

For Further Information:

Philippe Marleau
President and Chief Executive Officer
(514) 789-0694 ext. 225

Benjamin Yi
Corporate Development & Investor Relations
(647) 295-0654

How to Improve Business Culture: The Top 5 Practices Small Businesses Can Start Doing to Develop Their Company’s Unique Culture

The concept of Business Culture for many companies tends to draw up more questions than solutions. What is our culture? How do we set our business culture?

In any business, the style or model of business operations in a company is determined to be that company’s “culture.” It’s this culture that is vital to a company’s identity and philosophy of how to run itself each day. How staff communicate with each other, how communications work between staff and customers, and how businesses handle every day issues and transactions all tie into a business culture. So how do you improve your business culture? Companies big and small can shift and mold their business culture and set the tone for their company the way they want by implementing the following five practices. Lets review and get started! 

  1. Encourage open communication

For many companies the idea of staff and employee open communication is frightening. What if staff say something we don’t like? What if staff say they are unhappy? What if a customer doesn’t like our product? Well what if through open communication your company fosters honesty, identifies areas to improve, and delivers an even more customer-focused product? By developing an open communication system, companies can develop a trusting environment for all parties to thrive. Culture starts with knowing the truth about a company.

 

  1. Value contributions

One way to find out what kind of “culture” your company has is to embrace and value employee contributions. What does each person bring to the table? What are ways in which employees feel appreciated? If a company can identify ways to value contributions from its employees, it can create an environment that draws out more contributions from the employees as well as give employers a good sense of who they have on the team and if that team fits into the culture the company is wanting to develop.

 

  1. Develop employee engagement activities

Every company faces similar challenges with staff retention. Many companies lose good staff because they do not engage the employees that work hard for the company each day. Create activities that engage employees. This doesn’t have to be a huge event or costly outing. These activities can simply be round table “get to know you” discussions, after work gatherings, and small communications such as group emails or messages. By engaging employees, employers begin to look at drawing out the similarities and differences that will shape the culture as the team gets to know each other more.

  1. Deliver the culture

Deliver the culture? Sounds funky, but hear us out. Companies big and small can be the spearheads of the culture they want the company to adopt. If the owner enjoys humor, companies can embrace professional light-hearted banter. If a company wants people to value work life balance, they can set a tone that everyone clocks out at the same time to be with their families. Whatever the owner or company wants the culture to be, start implementing that into the daily practice and the rest will follow.

 

  1. Promote the team

Small businesses know the value of the team. To shape and develop a culture the company wants to take on, employers should look at encouraging the team to be leaders in developing such culture. If employees feel empowered, they take ownership of the company’s mission, values, and culture. By promoting the team, small businesses will see the values of the company through its employees.

Setting a business culture may not happen overnight. By implementing the concepts and ideas mentioned above, small businesses can begin to shift and mold their company’s culture and set the stage for fostering a strong business philosophy. No business culture is alike, but for many businesses starting with a plan and engaging ways to develop culture can happen sooner than one would thi

IOU Financial Inc. Releases Financial Results for the Year Ended December 31, 2016

IOU Financial Inc. Releases Financial Results for the Year Ended December 31, 2016

  • Closed $50 million credit facility lowering funding costs and enhancing competitive position.
  • Principal balance of loan portfolio increased 53.2% to $42.1 million consistent with the Company’s strategy to retain more loans on its balance sheet.
  • Gross revenue increased 45.4% to $17.4 million for the year ended December 31, 2016.
  • Deployed next generation proprietary IOU Risk Logic Score as part of continued investment in innovation and technology.
  • Initiated significant cost reduction plan. Assuming the plan was fully implemented at the beginning of 2016, the Company would have been break even based on adjusted earnings.

MONTREAL, April 28, 2017 – IOU FINANCIAL INC. (“IOU” or “the Company”); (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), announced today its results for the year ended December 31, 2016.

“2016 was an active and transformative year for IOU. We are very pleased at the progress we have made in advancing our competitive position in the United States and the announcement of our entrance in Canada. We have now originated over US$415 million of loans to small businesses in the US since our inception. In 2017, management will continue to focus on finding operational efficiencies, the performance of its loan portfolio, and achieving profitability. ” said Phil Marleau, Chief Executive Officer.

FINANCIAL HIGHLIGHTS

Loan originations for the year ended December 31, 2016 were US$107.6 million versus originations of US$146.4 million for year ended December 31, 2015. Loan originations decreased due to changes made to the Company’s lending policies in response to increased delinquency levels. We anticipate that these changes will have a positive impact on our loan portfolio over the course of 2017.

As of December 31, 2016, IOU’s total loans under management decreased to $70.3 million as compared to $92.7 million at the end of year 2015. On December 31, 2016, the principal balance of the loan portfolio grew to $42.1 million compared to $27.5 million at the end of year 2015 consistent with the Company’s strategy to retain more loans on its balance sheet. The principal balance of IOU’s servicing portfolio (loans being serviced on behalf of thirdparties) was $28.2 million at the end of December 31, 2016 compared to $65.2 million in 2015.

Gross revenue for the year ended December 31, 2016 was $17.4 million versus $12.0 million for the year ended December 31, 2015, representing a 45.4% increase. The increase in gross revenues was primarily driven by an increase in interest income. Interest income increased to $13.3 million for the year ended December 31, 2016 as compared to $6.8 million for the year 2015, representing an increase of 97.0% over the previous year, as a result of an increase in the size of the loan portfolio as well as an increase in pricing.

Interest expense during the year ended December 31, 2016 increased to $3.2 million, up from $2.5 million over the previous year. The increase is attributable to an increase in borrowings under the credit facility partially offset by a reduction in the cost of funds borrowed versus the previous year.

Provision for loan losses (net of recoveries) increased to $7.3 million, up from $2.5 million, for the year ended December 31, 2015. This increase is attributable to a significant increase in the size of the loan portfolio as well as a build in the allowance for loan losses mostly for loans originated prior to the quarter ended September 30, 2016. During the year ended December 31, 2016, IOU Financial made changes to its lending policies and deployed its next generation proprietary IOU Risk Logic Score. These changes are expected to contribute to improved credit performance in 2017. In addition, the Company has implemented certain process changes to improve its servicing and collections.

Operating expenses were $11.6 million during the year ended December 31, 2016 versus $11.6 million for the year ended December 31, 2015. During the quarter ended September 30th, 2016 the Company adopted a plan to reduce operating expenses. These cost-reduction efforts, once fully implemented are expected to lower quarterly operating expenses from $3.0 million for the quarter ended September 30th, 2016 to $2.0 million to $2.2 million, on a normalized basis. For the quarter ending December 31, 2016, operating expenses were $2.5 million, representing a $0.5 million reduction from the quarter ended September 30th, 2016 when the plan was initiated.

IOU closed on the year ended December 31, 2016 with a net loss of $4.8 million, or $0.08 per common share, compared to a net loss of $3.7 million or $0.06 per common share for the year ended December 31, 2015. IOU closed the year ended 2016 with an adjusted net loss of $3.2 million, which excludes certain non-cash and non-recurring items, compared to an adjusted net loss of $1.7 million for the year ended December 31, 2015.

Assuming the cost reduction plan was fully implemented on January 1, 2016, IOU’s pro forma adjusted earnings for the year ended December 31, 2016 would have been break even.

OUTLOOK

In 2017, IOU will continue to focus on finding operational efficiencies, the performance of its loan portfolio, and achieving profitability.

The Company will maintain its core strategy of identifying, recruiting, and partnering with business loan brokers throughout the United States while continuing to focus its efforts on building long-term partnerships with its existing broker base by investing time in offering great service through dedicated account executives.

IOU also intends to grow loan originations by forming new strategic partnerships with entities such as banks and small business suppliers and leveraging their relationships with small businesses to add new customers; expanding its product offering to allow it to serve small businesses whose needs are not met by its current products; investing in direct marketing and sales; and continuing its expansion into Canada.

IOU’s financial statements and management discussion & analysis for the year ended December 31, 2016 have been filed on SEDAR and are available at www.sedar.com.

About IOU Financial

IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, and restaurants. In a unique approach to lending, the IOU Financial advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-today cash flow trends. It makes loans of up to US$150,000 to qualified U.S. applicants ($100,000 in Canada) within a few business days, with affordable charges favorable to cash-flow management. It’s 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 newinformation, future events, or otherwise.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For further information: Philippe Marleau, Chief Executive Officer, (514) 789-0694 ext. 225; David Kennedy, Chief Financial Officer, (514) 789-0694 ext. 278, Benjamin Yi, Corporate Development & Investor Relations, (647) 295-0654

IOU Financial Wins Gold Stevie® Award in 11th Annual Stevie Awards for Best Use of Technology in Customer Service

IOU Financial Wins Gold Stevie® Award in 11th Annual Stevie Awards for Best Use of Technology in Customer Service MONTREAL, March 27, 2017 /CNW/ – IOU FINANCIAL INC. (“IOU” or “the Company”; TSX-V:IOU), a leading online lender to small businesses (IOUFinancial.com) has won a Gold Stevie® Award in the Best Use of Technology in Customer Service in the 11th annual Stevie Awards for Sales & Customer Service.

“At IOU Financial, we strive to leverage technology to provide a faster, more efficient process for our customers,” said David Kennedy, IOU’s Chief Financial Officer. “Our innovative technology has reduced the small business lending process from weeks or months to one that is not only easily completed online, but is funded within hours.”

“Because of our paperless, online application, our merchants can receive funding in as little as 24 hours. This is crucial to small businesses ready to seize growth opportunities quickly,” said Robert Gloer, IOU’s President and Chief Operations Officer. “Time and time again, our customer feedback includes the appreciation of our speed and accessibility our online platform offers.”

The Stevie Awards for Sales & Customer Service are the world’s top honors for customer service, contact center, business development and sales professionals. The Stevie Awards organizes several of the world’s leading business awards programs including the prestigious American Business Awards and International Business Awards.

The awards were presented during a gala banquet on Friday, February 24 at Caesars Palace in Las Vegas, Nevada. More than 650 executives from around the world attended.

More than 2,300 nominations from organizations of all sizes and in virtually every industry were evaluated in this year’s competition, an increase of 10% over 2016. Finalists were determined by the average scores of 77 professionals worldwide, acting as preliminary judges. Entries were considered in 61 categories for customer service and contact center achievements, including Contact Center of the Year, Award for Innovation in Customer Service, and Consulting Practice of the Year; more than 53 categories for sales and business development achievements, ranging from Senior Sales Executive of the Year to Business Development Achievement of the Year; and categories to recognize new products and services and solution providers.

More than 75 members of several specialized judging committees determined the Gold, Silver and Bronze Stevie Award placements from among the Finalists during final judging earlier this month. Finalists were determined by another 77 judges.

“The Stevie Awards for Sales & Customer Service continues to be among the most competitive and fastest-growing of our awards programs,” said Michael Gallagher, founder and president of the Stevie Awards. “The growth of the program illustrates the importance of the functions highlighted – sales, business development and customer service – to successful enterprises of all types, and how integral recognition in these domains are to building and maintaining corporate reputations.”

Details about the Stevie Awards for Sales & Customer Service and the list of Stevie winners in all categories are available at www.StevieAwards.com/sales.

About IOU Financial

IOU Financial provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and e-commerce companies. In a unique approach to lending, the IOU Financial advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-today cash flow trends. It makes loans of up to US$150,000 to qualified U.S. applicants ($100,000 in Canada) within a few business days, with affordable charges favorable to cash-flow management. It’s speed and transparency make IOU Financial a trusted alternative to banks. To learn more visit: www.ioufinancial.com

About The Stevie Awards

Stevie Awards are conferred in seven programs: the Asia-Pacific Stevie Awards, the German Stevie Awards, The American Business Awards, The International Business Awards, the Stevie Awards for Great Employers, the Stevie Awards for Women in Business and the Stevie Awards for Sales & Customer Service. Stevie Awards competitions receive more than 10,000 entries each year from organizations in more than 60 nations. Honoring organizations of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about the Stevie Awards at www.StevieAwards.com.

Sponsors and supporters of the 11th annual Stevie Awards for Sales & Customer Service include Sales Partnerships, Inc. and ValueSelling Associates, Inc.

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 newinformation, future events, or otherwise. The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE IOU Financial Inc.

 

IOU Financial Wins Bronze Stevie® Award for Sales & Customer Service at the 11th Annual Stevie Awards

MONTREAL, March 23, 2017 /CNW/ – IOU Financial Inc. (“IOU” or the “Company”) (TSX-V:IOU), a leading online lender to small businesses, has won a Bronze Stevie Award for Back-Office Customer Service Team of the Year in the Customer Service & Contact Centre Category at the 11 th annual Stevie Awards® hosted this past February 24 th, 2017.

The Stevie Awards® for Sales & Customer Service are the world’s top honors for customer service, contact center, business development and sales professionals. The awards recognize the achievements and positive contributions of organizations and working professionals worldwide.

“This award honors our Client Services Department for their outstanding achievement and tireless efforts in providing world class customer care and support. It is because of their hard work and dedication that we are able to provide the level of customer service our clients are used to,” said Madeline Wade, Vice President of Operations at IOU Financial Inc.

“As an online lender, serving small businesses throughout North America, we know that providing excellent customer service is what builds the long-standing, trusting relationships that put our merchants at ease when closing a loan with IOU. I want to thank the judges for their recognition in this important category,” said Phil Marleau, CEO of IOU Financial Inc.

“The Stevie Awards for Sales & Customer Service continues to be among the most competitive and fastest-growing of our awards programs,” said Michael Gallagher, founder and president of the Stevie Awards. “The growth of the program illustrates the importance of the functions highlighted – sales, business development and customer service – to successful enterprises of all types, and how integral recognition in these domains are to building and maintaining corporate reputations,” continued Mr. Gallagher.

Over 2,000 nominations from organizations of all sizes and in virtually every industry were evaluated in this year’s competition. Finalists were determined by the average scores of professionals worldwide, acting as preliminary judges. Entries were considered in 61 categories for customer service and contact center achievements, including Contact Center of the Year, Award for Innovation in Customer Service, and Consulting Practice of the Year; more than 53 categories for sales and business development achievements, ranging from Senior Sales Executive of the Year to Business Development Achievement of the Year; and categories to recognize new products and services and solution providers.

More than 75 members of several specialized judging committees determined the Gold, Silver and Bronze Stevie Award® placements from among the finalists during final judging earlier this month. The awards, hosted at Caesars Palace in Las Vegas, Nevada, was attended by more than 650 executives from around the world.

Details about The Stevie Awards® for Sales & Customer Service and the list of Stevie winners in all categories are available at stevieawards.com.

About IOU Financial

IOU Financial provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and e-commerce companies. In a unique approach to lending, the IOU Financial advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-today cash flow trends. It makes loans of up to US$150,000 to qualified U.S. applicants ($100,000 in Canada) within a few business days, with affordable charges favorable to cash-flow management. It’s speed and transparency make IOU Financial a trusted alternative to banks. To learn more visit: www.ioufinancial.com

About The Stevie Awards Stevie Awards are conferred in seven programs: the Asia-Pacific Stevie Awards, the German Stevie Awards, The American Business Awards, The International Business Awards, the Stevie Awards for Great Employers, the Stevie Awards for Women in Business and the Stevie Awards for Sales & Customer Service. Stevie Awards competitions receive more than 10,000 entries each year from organizations in more than 60 nations. Honoring organizations of all types and sizes and the people behind them, the Stevies recognize outstanding performances in the workplace worldwide. Learn more about the Stevie Awards at www.StevieAwards.com.

Sponsors and supporters of the 11th annual Stevie Awards for Sales & Customer Service include Sales Partnerships, Inc. and ValueSelling Associates, Inc.

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 newinformation, future events, or otherwise.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE: IOU Financial Inc.

To view the original version on PR Newswire, visit: http://www.newswire.ca/en/releases/archive/March2017/23/c5759.html

%SEDAR: 00005872E

For further information: Philippe Marleau, Chief Executive Officer, +1 (514) 789-0694 ext. 225; Benjamin Yi, Corporate Development & Investor Relations, +1 (647) 295-0654

IOU Financial CEO Philippe Marleau Joins Innovation in Business – Small Business Panel at LendIt USA2017

MONTREAL, March 2, 2017 /CNW/ – IOU FINANCIAL INC. (“IOU” or “the Company”; TSX-V:IOU), a leading online lender to small businesses, is pleased to announce its CEO, Philippe Marleau, will serve as a panelist at the flagship LendIt USA 2017 conference at the Jacob Javits Center in New York City, March 6-7, 2017. In its fifth year, LendIt is the largest conference series dedicated to connecting the global lending and fintech community.

“I look forward to contributing to, and learning from other industry leaders and in particular, sharing some of IOU’s insights with LendIt USA participants,” said Marleau.

LendIt hosts three conferences annually – with LendIt USA in New York City, LendIt Europe in London, and LendIt China in Shanghai. With 5,000 attendees, LendIt USA 2017 is projected to be the largest annual gathering of the lending and fintech industry and NYC’s largest fintech conference. Its community is comprised of thousands of lending and fintech companies, investors, banks, services providers, educators, government officials, and journalists from around the world.

For more information on the LendIt USA Conference, visit http://www.lendit.com/usa/2017.

For more information on IOU Financial, visit www.ioufinancial.com.

About IOU Financial

IOU Financial provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and e-commerce companies. In a unique approach to lending, the IOU Financial advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-today cash flow trends. It makes loans of up to US$150,000 to qualified U.S. applicants ($100,000 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 newinformation, future events, or otherwise.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE IOU Financial Inc. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/March2017/02/c8559.html

%SEDAR: 00005872E

For further information: Philippe Marleau, Chief Executive Officer, +1 (514) 789-0694 ext. 225; Benjamin Yi, Corporate Development & Investor Relations, +1 (647) 295-0654