Medallion Financial Corp. said it will enter the asset-based lending market this month through a new subsidiary, Medallion Business Credit.
Medallion Financial, New York, has a $400 million portfolio of loans to the taxi industry. The new subsidiary will offer revolving credit based on the borrower's receivables to taxi makers, distributors, and service companies.
"This is a key opportunity for Medallion to broaden its product and rise to a new level in small-business and specialty financing," said Andrew Murstein, Medallion Financial president.
Medallion Financial named Gerald Grossman to lead the new unit. Mr. Grossman was most recently president for asset-based lending at Israel Discount Bank.