FINOVA CHOOSES CYBERLOAN
FINOVA Realty Capital now accepts on-line commercial real estate loan applications through the CyberLoan system
found at FinancingSources.Com
Press Release: FinancingSources.Com
August 6, 1999
DENVER, CO -- FinancingSources.Com (formerly DataMerge, Inc.), a Denver-based developer of on-line loan submission
systems for the commercial real estate industry, yesterday announced that Phoenix-based FINOVA Realty Capital,
a division of The FINOVA Group, Inc. (NYSE:FNV), is now participating in its on-line commercial real estate loan
submission network, CyberLoan(TM).
The CyberLoan system is often described as the commercial counterpart to E-Loan, Inc. (NASDAQ:EELN - news). In
other words, FinancingSources.Com/CyberLoan is to commercial mortgages what E-Loan is to residential mortgages.
Like E-Loan, CyberLoan matches incoming loan applications with the underwriting criteria of multiple lenders, then
transmits the application to those lenders most likely to finance the property. CyberLoan, however, differs from
E-Loan in several respects:
o CyberLoan specializes in processing commercial real estate loans. E-Loan processes residential loans.
o CyberLoan is larger than E-Loan in terms of loan application volume and the number of participating lenders.
Over 500 lenders receive loan applications through CyberLoan, compared to 70 or 80 for E-Loan. CyberLoan loan application
volume averages $300 million per month, and is growing monthly by 25 percent. E-Loan volume is significantly lower.
o FinancingSources.Com is a neutral third-party within the system, not funding loans itself as E-Loan does, but
referring them directly to the participating lending institutions.
Recent events, such as the stellar performance of E-Loan stock following its initial public offering, the announcement
by Comps.Com (NASDAQ:CDOT - news) that it will enter this market by year end, and announcements by FinancingSources.Com
that major lending institutions now use CyberLoan, have focused national attention and investor interest in the
company.
``Response by the investment community has been tremendous,'' said Spencer Kluesner, chief executive officer at
FinancingSources.Com. ``We are currently entertaining two offers to acquire us at very tempting multiples, in addition
to offers to provide private equity in the $20 million range, to be followed by an initial public offering. We
anticipate a decision within the next 30 days.''
The CyberLoan system went live February 1 and currently processes over $300 million in commercial real estate loan
applications each month. CyberLoan is used by more than 500 lending institutions, including GE Capital Real Estate
(NYSE:GE - news), Bank of America (NYSE:BAC - news), Heller Financial, Inc. (NYSE:HF - news), Bank One Corp. (NYSE:ONE
- news), Lehman Brothers Holdings, Inc (NYSE:LEH - news), Merrill Lynch Capital Markets (NYSE:MER - news), and
Transamerica Corp. (NYSE:TA - news).
Formed in 1989, privately held FinancingSources.Com is led by Spencer Kluesner, a former securities and mergers
& acquisitions advisor who today serves as chief executive officer of the 26-person company. The company's
products and services are used by customers in North America, Western Europe and Asia. FinancingSources.Com is
currently in negotiations for a second round of private equity and an initial public offering. For additional information,
visit the company's website at www.financingsources.com or call (800) 580-1188.
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Contact:
Masi PR
Peter Masi
303/399-6031
masipr@earthlink.net