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BoeFly, LLC. Launches First Online Marketplace to Completely Transform Commercial Transaction Market

Initial Focus on All Key Aspects of Small Business Loan Originations and Secondary Market Trading Facilitates the Flow of Capital to Small Businesses in America

Proprietary Scoring Technology Matches All Parties Involved in Commercial Lending and Secondary Market Transactions Based on Their Specific Criteria

NEW YORK-(BUSINESS WIRE)-BoeFly, LLC. today unveiled BoeFly.com, an innovative online marketplace that leverages technology to transform the way commercial transactions are conducted. BoeFly is the first and only online exchange that seamlessly connects all parties involved in a transaction, dramatically simplifying loan origination and secondary market loan sales. BoeFly brings new efficiency to the market, decreasing the costs of executing deals and increasing profitability for its members.


"When we sell loans on BoeFly we instantly connect with bona fide buyers and each time we achieved our goal of selecting a winner that very same day. It was an efficient, transparent marketplace and this is vital for us to rapidly deploy more capital to businesses in need." BoeFly goes live today with an initial focus on three categories that meet an urgent need in the marketplace - small business loan originations, the small business loan secondary market and the sale of problem loans and loan portfolios. The current small business lending market is disjointed, inefficient and opaque, resulting in a very high cost of loan origination while impeding the flow of capital to small businesses at a critical time in the nation’s economy. Through its subscription-based model, BoeFly has created a more cost effective way to complete commercial transactions. The web-based exchange has undergone extensive beta testing with more than $600 million in small business lending transactions successfully completed on behalf of several hundred commercial lenders, loan brokers and secondary market buyers.


BoeFly streamlines loan origination through technology, bringing together all participants in a commercial transaction - borrowers, brokers, bankers, loan sellers, loan buyers, and service providers - expanding access to sources across many geographic areas and increasing the chances of successful transactions. Through its advanced compatibility technology, each member can specify their custom criteria to quickly and seamlessly connect with those opportunities that represent a potential match. As a result, small business loan brokers connect with potential lenders interested in and able to make loans that fit their unique profile. Similarly, lenders, including community banks, see more business borrowers that fit their unique credit profile, increasing conversion rates and dramatically lowering the cost of origination.


The BoeFly platform utilizes the same model to enable lenders to efficiently sell existing loans and loan portfolios on the secondary market, freeing up much-needed liquidity and enabling them to make new loans to emerging small businesses. This solves a crucial problem for banks today that need to dispose of unwanted loans to create additional liquidity to stabilize their capital base and make additional loans. BoeFly also connects the parties to service providers, such as appraisers, environmental firms, lawyers, insurance brokers and others, so vital to a successful transaction.


CEO Bobby Tannenhauser, a 15 year veteran of the small business lending industry said, "The small business loan origination process and the secondary market for small business loans, like too many other forms of commercial transactions, still operate in the old economy. BoeFly leverages the power of the internet and advanced analytics to dramatically improve the way that lenders, borrowers and all parties to various commercial transactions identify and connect with opportunities that fit their unique and individual criteria. This is more important now than ever before in the area of small business lending where the credit crisis has constrained the flow of capital in part because compatible parties are unable to find each other through the existing system. Although the credit crisis accentuates the divide between the parties, the disconnect predates the crisis and exists in all forms of commercial transactions. BoeFly is the match-maker that connects parties, quickly and efficiently to revolutionize the way deals get done."


Key to BoeFly’s unprecedented ability to connect all parties in a commercial transaction is the site’s breakthrough compatibility scoring technology. The technology easily guides members through the completion of BoeFly’s SmartForm which collects the data most important to potential lenders. The SmartForm automatically feeds information into the BoeFly deal management system where the member can upload supporting documentation. Once complete, BoeFly uses its compatibility scoring technology to identify the deals that match a lender’s criteria. Lenders can specify a wide range of criteria, including location, loan purpose, loan size, industry and certain financial parameters. The compatibility scoring technology eliminates much of the legwork and expense associated with originating and processing loan requests, and increases the chances of a successful transaction.


"I turned to BoeFly to find prospective business owners searching for capital and immediately identified a borrower of interest," said Jack Miller, President and CEO of Public Savings Bank in Pennsylvania. "Even though the borrower, a fitness club franchisee, happened to be located within the bank’s footprint, I would never have connected with him without BoeFly. The documentation provided on the site gave my team all the information needed to determine that the application fit with our lending criteria and we were able to quickly move forward to complete the underwriting process."


In addition to facilitating business loans, BoeFly will radically simplify the process of buying and selling business loans on the secondary market. The secondary market is crucial to the health of the small business lending market, allowing lenders to increase their liquidity and fund additional lending activity.


"Selling loans to buyers on the secondary market enables my bank to make more loans by staying within regulated capital ratios," said David Bridgeman, President and CEO of Pinnacle Bank in Orange City, FL. "When we sell loans on BoeFly we instantly connect with bona fide buyers and each time we achieved our goal of selecting a winner that very same day. It was an efficient, transparent marketplace and this is vital for us to rapidly deploy more capital to businesses in need."


Currently BoeFly subscribers can complete small business loans, commercial investment real estate loans, and secondary loan sales on the site. In the coming months, BoeFly will expand the platform to encompass the full range of commercial transactions, including the sale or purchase of businesses and commercial real estate.