IOU FINANCIAL ESTABLISHES NEW ALL-TIME RECORD IN LOAN ORIGINATIONS, REAFFIRMS GUIDANCE FOR 2022

Company points to success of Marketplace Strategy and Post-Pandemic Growth Plan in driving growth.

ATLANTA, Oct. 4, 2022 /PRNewswire/ - IOU FINANCIAL INC. ("IOU" or "the Company") (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), announced today Q3 loan originations of $74.2 million representing an all-time record in the history of the company. 

Q3 2022 loan originations of US$74.2 million represent an increase of 25.8% over the previous period (US$59.0 million) and 42.1% over the same period in 2021 (US$52.2 million).  Total year to date loan originations of US$192.7 million represent a 72.2% increase over the same period in 2021 (US$111.9 million).

"IOU's strong Q3 2022 loan originations and progress towards its strategic goals makes us cautiously optimistic about delivering on the high end of our guidance," said Robert Gloer, President and CEO.  "IOU Financial continues to execute on its strategy substantially growing loan originations while investing in technology and product innovation."  

The Company continues to execute on its Post-Pandemic Growth Plan, first announced in May 2021, based on three strategic pillars:

• Technology innovation: The Company continues to invest in developing its proprietary IOU360 platform to better support Brokers, Merchants, Investors and internal stakeholders, all designed to support greater efficiencies and the long-term scalability of the business.
• Product expansion: The Company is committed to product innovation to meet the evolving needs of brokers and small business owners as well as to achieve further differentiation in the market.  In August 2022 IOU launched its Premier PLUS Term Loan for loans of up to US$1.5 million with 36-month terms, preceded by the IOU Financial Cash-Back Loan, 24-Month Term Loan in 2021.
• Product distribution: The Company continues to expand its wholesale (IOU Financial) and retail (ZING Funding) distribution strategies to maximize its exposure to the economic recovery through both channels.

The success of IOU Financial's Post-Pandemic Growth Plan helped earn the Company a Silver Stevie® at the American Business Awards® in May of 2022, and in June IOU was named one of the 50 Best Places to Work in Fintech for 2022 by American Banker.  Additional growth in loan originations has been enabled by IOU's transition in August 2021 from a loan portfolio strategy (under which loans were funded directly to IOU's balance sheet) to a marketplace strategy under which loan originations are primarily sold to institutional purchasers. 

IOU Financial maintains its outlook for loan originations in the range of US$220 million – US$260 million.

IOU Financial Inc. is a wholesale lender that provides quick and easy access to growth capital to small businesses through a network of preferred brokers across the US and Canada. Built on its proprietary IOU360 technology platform that connects underwriters, merchants and brokers in real time, IOU Financial has become a trusted alternative to banks by originating over US$1 billion in loans to fund small business growth since 2009.  IOU was named one of the 50 Best Places to Work in Fintech for 2022 by American Banker and trades on the TSX Venture Exchange under the symbol IOU (TSXV: IOU), and on the US OTC markets as IOUFF.  To learn more about IOU Financial's corporate history, financial products, or to join our broker network please visit www.IOUFinancial.com.

Certain information set forth in this news release may contain forward-looking statements.  Forward looking statements are statements, other than statements of historical fact, that address or discuss activities, events or developments that IOU expects or anticipates may occur in the future.  These forward looking statements can be identified by the use of words and phrases such as "anticipates", "believes", "estimates", "expects", "may", "plans", "projects", "should", "will", "intends", "seeks", "allows", "creates a path for", "puts in a position to" or the negative thereof or other variations thereon.  These forward-looking statements are subject to and involve substantial known and unknown risks and uncertainties, certain of which are beyond the control of IOU, including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the uncertainty of obtaining additional financing, risks related to the Company's incapacity to execute on its business plan, dependence on third-party service providers, competition, dependence on key personnel, security and confidentiality risk, technological development risk, IT disruptions, maintenance of client relationships, and litigation risk.  No assurance can be given that any of the events anticipated by such statements will occur or, if they do occur, what benefit IOU will derive from them.  Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.  IOU does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.  Additional information concerning these and other factors can be found beginning on page 20 under the heading "Risks and Uncertainties" in IOU's management's discussion and analysis dated May 18, 2022, which is available under IOU's profile on SEDAR at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE IOU Financial Inc.

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