Home Financial Record IOU FINANCIAL SETS NEW ALL-TIME RECORD FOR LOAN ORIGINATIONS AND REAFFIRMS 2022 OBJECTIVES

IOU FINANCIAL SETS NEW ALL-TIME RECORD FOR LOAN ORIGINATIONS AND REAFFIRMS 2022 OBJECTIVES

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Company highlights success of go-to-market strategy and the post-pandemic growth plan to drive growth.

ATLANTE, October 4, 2022 /PRNewswire/ – IOU FINANCIAL INC. (“IOU” or “the Company”) (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), today announced the origination of loans in the third quarter of $74.2 million representing an absolute record in the company’s history.

Loan originations in Q3 2022 of $74.2 million represent an increase of 25.8% over the previous period (US$59.0 million) and 42.1% over the same period in 2021 ($52.2 million). Total loans since the beginning of the year $192.7 million represent an increase of 72.2% compared to the same period in 2021 ($111.9 million).

“IOU’s strong loan originations in the third quarter of 2022 and progress towards its strategic objectives make us cautiously optimistic about achieving the top of our guidance,” said Robert Gloer, Chairman and CEO. “IOU Financial continues to execute its strategy by significantly increasing lending while investing in technology and product innovation.”

The Company continues to execute its post-pandemic growth plan, first announced in May 2021based on three strategic pillars:

  • Technological innovation : The company continues to invest in the development of its proprietary IOU360 platform to better support brokers, traders, investors and internal stakeholders, all designed to support greater efficiency and the long-term scalability of the company.
  • Product extension: The Company is committed to product innovation to meet the changing needs of brokers and small business owners as well as to further differentiate itself in the marketplace. In August 2022 IOU launched its Premier PLUS Term Loan for loans up to $1.5 million with terms of 36 months, preceded by the Cash back loan from IOU Financial, 24 month term loan in 2021.
  • Distribution of products: The Company continues to expand its wholesale (IOU Financial) and retail (ZING Funding) distribution strategies to maximize its exposure to the economic recovery through both channels.

The success of IOU Financial’s post-pandemic growth plan has enabled the company to earn a Silver Stevie® at the American Business Awards® in May 2022and in june IOU has been named one of the 50 Best Workplaces in Fintech for 2022 by American Banker. Further growth in loan originations was enabled by IOU’s transition to August 2021 from a portfolio loan strategy (under which loans were funded directly from IOU’s balance sheet) to a market strategy under which loan originations are primarily sold to institutional buyers.

IOU Financial maintains its outlook for loan originations in the range of $220 million$260 million.

About IOU Financial Inc.

IOU Financial Inc. is a wholesale lender that provides quick and easy access to growth capital for small businesses through a network of preferred brokers across the United States and Canada. Leveraging its proprietary IOU360 technology platform that connects underwriters, traders and brokers in real time, IOU Financial has become a trusted alternative to banks by disbursing over $1 billion in loans to fund growth small businesses since 2009. IOU has been named one of the 50 Best Workplaces in Fintech for 2022 by American Banker and trades on the TSX Venture Exchange under the symbol IOU (TSXV: IOU) and on the US over-the-counter markets under the name IOUFF. To learn more about IOU Financial’s corporate history, financial products, or to join our network of brokers, please visit www.IOUFinancial.com.

Forward-looking statements

Certain information contained in this press release may contain forward-looking statements. Forward-looking statements are statements, other than statements of historical fact, that address or discuss activities, events or developments that IOU expects or anticipates will occur in the future. These forward-looking statements can be identified by the use of words and phrases such as “expects”, “believes”, “estimates”, “expects”, “may”, “plans”, “projects”, ” should”, “will”, “intend”, “seek”, “allow”, “create a path for”, “put in a position to” or the negative of it or other variations of it -this. These forward-looking statements are subject to and involve substantial known and unknown risks and uncertainties, some of which are beyond IOU’s control, including, but not limited to, the impact of general economic conditions, industry conditions , dependence on regulatory and shareholder approvals, uncertainty of obtaining additional financing, risks related to the Company’s inability to execute its business plan, dependence on third-party service providers, competition, reliance on key personnel, security and privacy risk, technology development risk, IT disruptions, customer relationship maintenance and litigation risk. No assurance can be given that any of the events anticipated by these statements will occur or, if they occur, what benefit IOU will derive therefrom. Readers are cautioned that the assumptions used in the preparation of this information, while believed to be reasonable at the time of preparation, may prove to be imprecise and, accordingly, undue reliance should not be placed on any forward-looking statements. IOU undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise. Additional information regarding these and other factors can be found beginning on page 20 under the heading “Risks and Uncertainties” in IOU’s MD&A dated May 18, 2022which is available under the IOU profile on SEDAR at www.sedar.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE IOU Financial Inc.