Marlin Business Services in Mount Laurel, N.J., has agreed to originate and sell $300 million in loans to an alternate asset management firm.
The parent of the $1 billion-asset Marlin Business Bank said in a press release Monday that it will sell equipment loans and leases to Varadero Capital in New York. Marlin did not disclose financial terms.
Marlin, which had about 91,000 equipment finance leases and loans in its portfolio at Dec. 31, said the arrangement will allow it to provide more equipment financing to a range of small businesses.
The partnership "diversifies our funding sources and provides us with substantial new lending capacity,” Jeffrey Hilzinger, Marlin's president and CEO, said in the release. “And most importantly, it strengthens our competitive position in the small business financing market by expanding our credit capacity. In Varadero, we have found a partner with significant experience in small business credit, data analytics and structuring.”
The companies have developed a program that provides credit extension into an underserved sector, Hilzinger said. Marlin works with about 10,000 equipment dealers, manufacturers and resellers. It also provides working capital loans to small businesses.
Marlin want to become a single source of equipment financing for its partners, Mark Scardigli, the company’s chief sales officer, said in the release.
BRG Capital Advisors and Dechert advised Marlin. Wilson Sonsini Goodrich & Rosati advised Varadero.