Phalanx Impact Partners (“Phalanx”), an innovative new investment firm dedicated to positive environmental and community change, proudly announces its investment in CollateralEdge, a revolutionary FinTech solution that enables community and regional banks to structure more competitive commercial loans for underserved communities and close more deals without compromising credit quality. This investment communicates Phalanx’s thesis that expanded access to middle market credit solutions benefits our next generation of entrepreneurs in all communities.
Founded by Joe Beard and Joe Radtke in 2020 during the COVID 19 pandemic, Dallas-based CollateralEdge focuses on addressing the unique challenges that small and middle-market businesses face in efficiently securing debt financing. CollateralEdge has forged a distinctive path. The FinTech platform instantly prices and delivers hard collateral support to help community banks overcome short-term underwriting concerns and reduce policy exceptions on commercial loans. The company is industry agnostic and can support loans as small as $250,000, which is key to partnering with community banks in rural areas and inner cities with underserved communities. The result for these banks – less time wasted and more deals closed. Helping these banks make quality loans will create thriving local business communities supported by strong job creation and expanded local economies.
Beard and Radtke bring a combined four decades of experience across investment banking, private equity and entrepreneurship to their leadership roles at CollateralEdge as well as the distinction of being both a minority and veteran-founded company.
“CollateralEdge’s vision deeply resonated with our belief that expanded access to credit can transform communities,” said John Pantalena, Partner at Phalanx Impact Partners. “In a financial landscape where middle-market capital is disproportionally allocated to private equity owned businesses in a narrow range of target industries, CollateralEdge stands out as a unique solution-driven value proposition. We believe that they will be able grow both by being a valued partner to middle-market lending institutions and by expanding the number of participants in the yield products that they are creating through their platform.”
CollateralEdge’s unique approach automates the entire process and delivers high quality collateral enhancement solutions directly to its bank customers via its proprietary Portal technology. The solution allows the bank customers to maintain complete control of the loan process and customer relationship. CollateralEdge is actively working with community banks across the country and is anticipating significant growth for 2024.
“We are not just building a company; we are constructing a bridge to financial inclusion for small businesses, especially those in underserved communities who need it the most,” said Joe Beard, Co-Founder of CollateralEdge. “Our collaboration with Phalanx Impact Partners is a testament to our shared belief in the economic backbone of the country—small businesses. Together, we empower community banks to extend competitive credit offers to small and middle market businesses which are the key drivers of economic development in this country.”
CollateralEdge’s recent acceptance as the very first FinTech partner for the IBATx accelerator program, developed by the Independent Bankers Association of Texas (IBAT), further illustrates the growing awareness and excitement in the banking community for the company’s solutions.
Financial Industry veteran James Watkins serves on the Advisory Board for CollateralEdge. Watkins has nearly four decades of domestic and international bank regulatory experience serving as a senior official in the FDIC. He currently serves as a senior managing director at Isaac Milstein, a global financial sector advisory group.
“By boosting collateral for some of the most critical businesses, CollateralEdge is providing a positive impact to the financial sector and the economy” says Watkins. “Many of the businesses that benefit from the additional collateral are the leading job creators in their local communities. Expanding middle market access to credit helps to nourish local economies, produce greater employment opportunities, and strengthen communities.”