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Firms that offer speedy, but pricey, loans to small companies say business is booming because bank lending to the sector remains tepid.
December 17
Borro, a company that makes short-term loans to wealthy Americans and Britons, on Thursday named Capital One Financial co-founder Nigel Morris as its chairman.
Morris co-founded Capital One (COF) in 1988 with its current chief executive, Richard Fairbank. Morris stepped aside as the McLean, Va.-based credit-card issuer's president in 2003 and is now the managing partner at QED Investors.
"Nigel Morris is a perfect choice," Paul Aitken, the CEO of borro, said in a news release. "He brings a wealth of experience from years at the helm of fast-growing online businesses in the financial services and online payments space."
Borro — which spells its name with a lower-case "b" — is at a critical stage as it accelerates its U.S. growth, Morris said in a news release. The company started in the United Kingdom five years ago and came to the United States last year.
Borro makes loans to high-net-worth individuals and small-business owners who are facing a liquidity crunch. The loans are collateralized by assets such as fine wine, art and luxury cars.
The venture capital-backed alternative lender raised $58 million in October 2012 to fund rapid growth on both sides of the Atlantic Ocean, according to the company.
