eCapital Corp. Announces 2020 Year-End Financial Results and Consolidated Corporate Structure

Company organizes divisions to meet rising demand for invoice financing, asset-based lending and other cash flow services  

2020 Highlights

•            Provided ~$4B in financing across 80 industries in the US and Canada

•            Gross revenue growth of ~66.5% YoY vs 2019

•            Portfolio size growth of ~56% YoY vs 2019

•            Acquired and integrated four alternative finance companies, totaling eight in four-year period

•            Consolidated its corporate structure under a single brand – eCapital 

eCapital Corp. (“eCapital” or “the Company”), a leading capital solutions provider for small and medium-sized businesses in North America and the UK, today announced it achieved substantial growth in 2020 and consolidated a total of eight acquired entities into a simplified corporate structure.    

In its 2020 growth surge eCapital provided its clientele access to over $4 billion in financing across 80 industries in the US and Canada, and also achieved an ~66.5% YoY increase in gross revenues and an ~56% YoY increase in portfolio size. 

An alternative capital solutions provider must deliver working capital based on the quality of its customer’s underlying assets, such as receivables, inventory, equipment and real estate.  eCapital differentiates itself through its ability to quickly identify and optimize its customers’ assets for the greatest value creation in every transaction.

eCapital owed its exponential operational growth in part to its continuing aggressive acquisition strategy, completing four acquisitions in 2020 after completing two in 2019. The acquired businesses significantly expanded the Company’s overall product offerings, geographic reach and client base.  

Marius Silvasan, CEO of eCapital Corp., commented on today’s news, “Today marks a milestone for our business as we announce the establishment of the newly consolidated eCapital. We achieved impressive results in 2020 despite substantial changes in the business landscape caused by the pandemic, by continuing to execute our growth strategy and placing a focus on the consolidation of our people, products and portfolios. eCapital stands today as a comprehensive capital solutions provider for small and medium-sized businesses which require rapid and reliable access to cash flow. A combination of proprietary and scalable technology, risk management expertise, and asset optimization are all at the core of our value proposition to our clients: to empower companies by accelerating their access to capital.”  

Operational Highlights

As the traditional banking sector continues to derisk operations and tighten requirements for providing capital, a gap has arisen in financing the small to medium-sized business community. After acquiring Gerber Finance Inc. and Paragon Financial Group in 2017 and 2018 respectively, the Company began to aggressively execute on its acquisition strategy to drive consolidation in what it saw as a heavily segmented marketplace. This resulted in the acquisition of six key players in the space during the past two years.

Accutrac Capital Solutions (February 2019) and eCapital LLC (June 2019) were two leaders in the Freight Factoring industry. These acquisitions added a new vertical and provided significant enhancements to both the Company’s internal and customer facing technology capabilities.   

Bibby Financial Services (February 2020), Prosperity Funding (June 2020), REV Finance Group (August 2020), and Advantedge Commercial Finance (November 2020) expanded the overall volume of the commercial finance division and bolstered its customer base. The acquisition of UK-based Advantedge marks the Company’s first foray internationally. 

Organizational Structure 

The integration of operations under a consolidated and simplified corporate structure is a key step in eCapital’s long-term initiative to aggressively expand. The acquired companies now make up three divisions within this unified corporate structure:

•            eCapital Commercial Finance: This division’s team leverages decades of underwriting expertise in over 80 industry verticals to provide working capital based on the quality of a multitude of assets within each industry. The services the Commercial Finance Division offers include receivables financing, supply chain financing and import financing, among others. 

•            eCapital Freight Factoring: This division brings decades of industry-leading experience across the entire trucking supply chain to provide its clientele – small, independent trucking companies as well as fleets – with the factoring solutions they need to conduct daily operations and drive overall growth. The division’s products include invoice factoring, factoring lines of credit and fuel cards, among others. 

•            eCapital Asset-based Lending: The asset-based lending division, Gerber Finance, specializes in delivering tailored financial solutions by leveraging accounts receivable and inventory assets for companies that generate between $2M and $100M in revenue per year. With vast experience in lending against inventory, the division provides companies with enhanced purchasing power that often leads to rapid growth and an expansion in their customer base. Products offered by the division include asset-backed lending, inventory financing and equipment financing among others.   

eCapital plans to continue driving its growth through bolt-on and portfolio acquisitions as well as organically with an eye for expansion into additional geographies. The Company will leverage its industry leading customer facing and internal technology platforms to meet the increased demand for financing, and to efficiently scale the business.

Silvasan concluded, "We have acquired multiple entities over the past four years, each with separate and distinct value propositions that complement the whole. By integrating these businesses under one corporate structure and building in a centralized leadership framework, we have created an industry-leading organization built to scale. Our products and services provide capital solutions that span multiple types of assets and over 80 vertical industries. We have put our flag in the ground to lead the industry forward in a time that is unprecedented for the small and medium-sized business community."  

About eCapital Corp. 

eCapital Corp. is committed to supporting small and middle-market companies in the United States, Canada, and the UK by accelerating their access to capital through capital solutions like invoice factoring, factoring lines of credit, and asset-based lending. Through its Commercial Finance and Freight Factoring divisions and its portfolio companies Advantedge Commercial Finance Ltd. and Gerber Finance, Inc., eCapital offers capital solutions to a broad set of industries. Based in Miami, Florida, eCapital is an innovative leader in providing flexible, customized cash flow to businesses. For more information about eCapital, visit eCapital.com.

eCapital’s Freight Factoring, Commercial Finance and Asset-Based Lending Divisions are operations of eCapital Freight Factoring, Inc., eCapital Commercial Finance Corp. and Gerber Finance Inc., respectively, with their subsidiaries.