Fishers-based First Internet Bank says it will expand its presence in health care lending by forming a “national strategic partnership” with San Francisco-based Lendeavor Inc.
Lendeavor, founded in 2014, allows health care practitioners to obtain online loans of up to $5 million for things like starting a medical practice, buying equipment or refinancing debt. The company says one of its main competitive advantages is that borrowers can get lending decisions in about 10 days—much quicker than with traditional banks.
The partnership, which is pending regulatory approval, will have multiple components, First Internet Bank said Thursday. It includes a loan-purchase agreement over five years in which First Internet will agree to annually fund up to $120 million worth of Lendeavor’s prime-quality loans to health care practices, allowing Lendeavor to make more loans to meet market demand.
Another component of the deal: First Internet Bank’s Chairman, President and CEO David Becker will join Lendeavor’s board of directors.
First Internet Bank is also making an equity investment in Lendeavor, but both parties declined to disclose to IBJ the amount of that investment.
“Health care finance is a rapidly growing industry, and this particular segment is one where we have a good history from a credit perspective,” Becker said in a prepared statement. “We chose to partner with Lendeavor because they share our commitment to solving banking and financing challenges through extraordinary customer experience and innovative technology.”
First Internet Bank opened in 1999. As of June 30, the bank had assets of $2.4 billion. It's the 10th largest bank in the Indianapolis-area, based on its 192 full-time local employees, according to IBJ research.