SoFi CEO enters prepaid forward contract on 1.5 million shares
FORT LAUDERDALE, Fla. - iBusiness Funding, a division of Ready Capital Corporation (NYSE: RC), has introduced Lendsey AI, a pioneering agentic AI platform tailored for small and medium-sized business (SMB) lending. The company, currently valued at approximately $793 million and trading near its 52-week low according to InvestingPro data, has pledged $100 million to further develop and integrate artificial intelligence across its operations.
Lendsey AI is designed to serve both borrowers and lenders, enhancing the lending process with instant feedback and the ability to perform tasks for both parties. The platform is an extension of LenderAI, iBusiness Funding's secure Loan Origination System (LOS), which allows financial institutions to utilize AI independently within a protected environment.
iBusiness Funding processes upwards of $100 million in SBA and conventional loans monthly, distinguishing itself as the sole AI enterprise that uses its own lending data and models rather than relying on bank or client information. This approach aims to benefit both lending clients and borrowers. With a robust current ratio of 8.99 and strong liquidity position, as reported by InvestingPro, the company maintains significant operational flexibility. LenderAI's suite of built-in tools supports Lendsey's agentic capabilities, enabling it to analyze, decide, and independently act, which includes communication and execution functions.
Ready Capital's CEO, Tom Capasse, expressed support for iBusiness Funding's technological impact over the past decade. He highlighted the company's significant growth and innovation in product offerings without additional costs, and he anticipates their continued leadership in the lendtech AI sector.
The $100 million investment will be internally financed through operating revenue, reflecting the company's robust performance and its confidence in AI's role in lending. With a decade of innovation and expertise in agentic AI, iBusiness Funding is set to reshape traditional lending processes and usher in a new era of secure, intelligent, and autonomous lending. InvestingPro analysts project sales growth for Ready Capital in the current year, with revenue expected to increase by 4.46%. For deeper insights into Ready Capital's financial health and growth prospects, including 12+ additional ProTips and comprehensive valuation metrics, investors can access the full Pro Research Report on InvestingPro.
For more information on iBusiness Funding and Lendsey AI, interested parties can visit the company's website. This announcement is based on a press release statement from iBusiness Funding.
In other recent news, Ready Capital Corporation reported a significant earnings miss for the fourth quarter of 2024, with a GAAP loss of $1.90 per share and distributable earnings per share at a loss of $0.03, falling short of the forecasted $0.23. Revenue from core operations decreased by 12% to $91.6 million, reflecting challenges in the commercial real estate lending market. The company has also reduced its dividend to $0.125 per share, as it navigates through increased provisions for loan loss and valuation allowances totaling $253.8 million. In a strategic move, Ready Capital filed a new registration statement with the SEC for the continued offering of its common stock, enabling the company to sell shares up to an aggregate offering price of $150 million. Analyst firm Keefe, Bruyette & Woods recently downgraded the price target for Ready Capital to $4.00 from $6.25, while maintaining an Underperform rating, citing a smaller interest-earning portfolio and anticipated credit costs. Citizens JMP also downgraded Ready Capital's stock rating from 'Market Outperform' to 'Market Perform'. These developments come as the company prepares for a merger with UDF IV, expected to close in March, which is projected to add 17% to incremental earnings.
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