Princeton Alternative Funding recently launched the Princeton Alternative Income Fund in order to provide lines of credit to finance companies that offer short term loans in the non-prime and alternative market.
Princeton Alternative Funding (PAF) aims to serve the non-prime and alternative markets with the recent launch of the Princeton Alternative Income Fund, which will supply finance companies with new lines of credit. PAF is in a key position to become a financial resource due to its ability to monitor both traditional and non-traditional data within the credit market.
"The Princeton Alternative Income Fund will be supplanted by vast amounts of information and analysis so best-in-class finance companies can situate themselves in the best position possible to offer short term loans to the alternative market." "From inception, we can monitor the borrowing consumer, the business that made the loan, the vertical it resides in and a host of other metrics."
This fund was created to financially help businesses making consumer loans. It is an open-ended business resource and PAF is slated with reporting monthly net asset values. First, potential borrowers are screened and applicant historical lending performance is analyzed, resulting in predictive returns. From there, a credit committee looks extensively into background data and PAF's portfolio is updated so individuals can be monitored. Interest is then distributed on a monthly basis or is reinvested, depending on investors' discretion.
The launch of the PAF's fund comes at a very important time. There is a real need for targeted, actionable data, as investors are increasingly interested in sub-prime loan origination and performance. Since the Great Recession and the subsequent financial tumult, banks have been removing themselves from the sub-prime lending market, thus shrinking the consumers' loan options. This situation has presented a beneficial opportunity for alternative lenders willing to put forth capital to fill the void.
The sub-prime market is currently comprised of over 110 million under or unbanked Americans, so the potential for the new fund's success and growth is unparalleled.
About Princeton Alternative Funding, LLC
Princeton Alternative Funding was created to offer accredited and institutional investors the opportunity to achieve substantial returns in the growing non-prime, small business lending space. Finance companies, issuing consumer oriented loans offer benefits to borrowers, lenders and investors alike, are served. A broad consumer loan base spread nationwide through geographical and industry verticals allows for diversification and low risk correlation.