KeyBank Buys Bolstr, Augments its Mobile Lending Capability
Small businesses the world over know how vital cash flow is to their continued operation; even one missed invoice payment can cause the whole business to shut down, especially in the early days when there hasn’t been a lot of time to build a reserve. So for many businesses, loans become the way to even out cash flow. KeyBank just made it easier to offer these loans to small businesses with its purchase of the Bolstr platform.
KeyBank kept mum on the terms of the acquisition, but expects to put Bolstr into its operations fully before the end of the year, It’s also been actively working to get more small businesses turned on to Small Business Administration (SBA) loans and other, more traditional finance sources. Further, it’s a point that should step up speed in terms of lending processes, a point that small businesses will likely appreciate.
It’s not the first time that KeyBank has stepped into fintech like this; just last year, it bought an equity stake in Billtrust, which ultimately brought about KeyBank’s KeyTotal accounts receivable platform and offered new options to users.
Bolstr’s co-founder, Charlie Tribbett, noted “We are excited to work with an organization that is dedicated to helping communities and small businesses prosper. By combining our digital expertise and KeyBank’s industry knowledge, business owners will receive exceptional service and the efficient lending experience they need to be successful.”
Small businesses tend to have the least amount of option when it comes to financial products. From lending to factoring and beyond, it’s hard to find these options when your business’ total revenue is in the five figures range, or even less. A step like this could give KeyBank a real option in terms of drawing in that small business market, which as we know is a major part of the United States’ GDP.
Regardless of whether or not this was KeyBank’s plan, it’s made a great step forward in terms of embracing fintech, and in attracting small business operations. That’s great news for KeyBank, and not half bad for small businesses eager for access to services formerly available only to the biggest businesses.