Headquartered in Tampa, Florida, LM Funding America, Inc. (NASDAQ: LMFA) is a leading specialty finance company that provides financial solutions to community associations. It has a primary focus on serving community-based homeowners associations and commercial condominiums associations in Florida, Colorado, and Illinois, offering specific packages of financial services personalized to meet the unique needs most boards face today.
LM Funding America was established in 2008, originally focusing its operations on the Florida market. Since then, the company has managed to carve a unique niche not only within Florida but also across the United States. They have developed various business models structured to provide financial assistance to these community associations who face budget shortfalls and other financial constraints.
LMFA's main service involves purchasing the associations' rights under delinquent accounts that are selected by the associations arising from unpaid association assessments. It offers funding against these delinquent accounts, which bears similarity to factoring in the business-to-business industry. These delinquency recoveries, which include accrued interest, collection costs, late fees, and fines are obtained from the delinquent homeowners, not from the association itself. Apart from this, LMFA provides other financial services like underwriting of special insurance lines and direct loans to associations.
Recognizing the growing need for financial services in homeowners and commercial associations, LM Funding America expanded its operations by launching New Source Funding in 2012. This service was aimed at helping associations maneuver through the complexities often associated with large loss insurance claims.
What sets LM Funding America apart is its dedication to delivering quick and tailored financial solutions to meet the specific needs of associations. It employs an experienced team of individuals with a deep understanding of the association industry and the legalities around it.
The company’s relatively risk-averse business model has supported its growth in the market. By purchasing the right to collect on delinquently owed balances, they do not take on the risk of a loan or credit line default, hence allowing them to offer financial aid to community associations in a plethora of financial situations.
As the community association industry continues to grow and evolve, LM Funding America remains committed to providing reliable funding solutions that equip such associations with the monetary tools they need to operate successfully and efficiently.