On Wednesday, ApplePie Capital and Fifth Third Bank revealed new details about their strategic partnership. The companies shared that this agreement enables Fifth Third to purchase loans that are originated through ApplePie’s franchise loan marketplace and will also join ApplePie’s SBA lender network, along with receive referrals to SBA loan opportunities.
Speaking about the collaboration, Tim Spence, chief strategy officer of Fifth Third Bank, stated:
“We are thrilled to take our relationship with ApplePie Capital to a new level and allow more franchise owners to quickly access the capital they need to grow their business. Partnering with fintech firms like ApplePie Capital is a central and vital element of Fifth Third’s NorthStar strategy, as illustrated by this agreement.”
Kala Gibson, head of Business Banking for Fifth Third, also commented:
“We understand that access to funds is critical to starting or growing a business. Because of our partnership with ApplePie Capital, we can extend our reach and deliver the right type of funding – whether a conventional or SBA loan – to help new and established franchise owners realize their dreams in a best-in-class, digital manner.”
ApplePie currently offers loans to all 50 states for new franchise locations, acquisitions, remodels, equipment, or to refinance or recapitalize existing locations to allow owners to open more stores. Since January 2015, the company has formed partnerships with over 60 franchise brands and facilitated financing of more than $ 100 million to franchise entrepreneurs. Denise Thomas, ApplePie Capital CEO and co-founder, added:
“This agreement with Fifth Third represents a significant milestone for ApplePie Capital. We have always felt that the franchise lending asset class is a perfect fit for banks, and this direct purchase agreement validates our thesis as well as endorses our proprietary credit model and our ability to efficiently source high-quality loans for bank partners.”