Luminar Capital Secures $5 Million Credit Facility With Capacity to Grow to $15 Million

Miami-based business finance company Luminar Capital has secured a $5 million senior secured credit facility that could eventually expand to $15 million, giving the company additional capital to increase originations and grow its financing platform.

An unnamed U.S.-based institutional credit manager provided the facility, which will primarily be used to fund new originations, according to an August 18 announcement from Luminar.

For Luminar, the $5 million starting point may only be part of the story. The additional capital will also support Luminar's expanding lineup of financing products, which currently includes revenue-based financing, term loans in select states and Luminar Line, a multi-draw financing product designed to give small businesses repeat access to capital.

More Capital for Luminar's ISO Channel

The deal should also be notable to brokers and ISOs.

Luminar said part of the increased funding capacity will be used to support its growing network of independent sales organizations and referral partners across the country. The company works with ISOs nationwide in addition to originating financing directly to small and mid-sized businesses.

Founder and CEO Misha Mikhaylov said securing the facility followed an institutional diligence process that examined Luminar's portfolio performance, reporting infrastructure and servicing operations.

That part of the announcement may be just as significant as the dollar amount. For a growing non-bank finance company, securing institutional credit requires more than simply producing originations. Institutional capital providers typically want visibility into portfolio performance, servicing and the infrastructure behind the funding operation.

Building Beyond Revenue-Based Financing

Luminar has also been broadening its product mix.

Revenue-based financing remains one of its core offerings, but the company now promotes term loans alongside Luminar Line, which allows businesses to draw capital multiple times rather than taking the entire financing amount upfront.

With the new credit facility in place, Luminar says it intends to increase funding volume, continue expanding its products and invest further in the technology supporting its underwriting and servicing operation.

The company is headquartered in Miami and provides financing to small and mid-sized businesses throughout the United States.