STRATEGIC FUNDING CLOSES $105 MILLION INAUGURAL SECURITIZATION; EXPANDABLE TO $500 MILLION

June 3, 2018

NEW YORK, NY – Strategic Funding, a leading provider of financing to small and medium-sized businesses, today announced that it has closed the issuance and sale of $105 million of fixed-rate, asset-backed notes in a 144a private securitization. The facility has a 3-year revolving period, a 5-year legal final, and is expandable to $500 Million. The notes were issued from a wholly-owned subsidiary of Strategic Funding, SFS Asset Securitization LLC, and consist of four classes. The senior class of notes has a rating of “A- (sf)” by Kroll Bond Rating Agency (KBRA). Guggenheim Securities served as sole structuring advisor and sole initial purchaser of the notes.

“The securitization will give us enhanced flexibility allowing us to continue our rapid growth while providing superior financing products to small businesses,” said Andrew Reiser, Chief Executive Officer at Strategic Funding. “It is a confirmation of our business model and maturity.”

The securitization represents Strategic Funding’s first asset-backed securities issuance since the company’s inception in 2006. The notes are secured by a pool of loans and revenue-based financing agreements to small- and medium-sized businesses. This new facility will enable Strategic Funding to expand its operations, while broadening its portfolio of financing products for small and medium-sized business nationwide.

“The tech-enabled small business financing space is rapidly innovating to reach a broader group of credit-worthy businesses. This securitization – and the interest we have seen from top-tier investors – demonstrates that with the processes we have established, revenue-based financing can be a reliable asset class for investors,” said Strategic Funding’s Chief Operating Officer, Benjamin Johnston.

About Strategic Funding

Founded in 2006 and headquartered in NYC, Strategic Funding has been recognized by customers and the industry as one of the most reliable and respected names in small business financing. With flexible financing options, we provide small businesses with the working capital they need to take advantage of opportunities and grow. To learn more, visit www.sfscapital.com

The notes are not registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from, or a transaction not subject to, registration requirements. The notes were offered only to qualified institutional buyers under Rule 144A and to persons outside the United States pursuant to Regulation S under the Securities Act. This press release shall not constitute an offer to sell, or the solicitation of an offer to sell the notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer or solicitation or sale is unlawful.

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