- FAVO Capital has filed to uplist to Nasdaq, aiming to scale its private credit model
- U.S. small business lending is drawing renewed policy attention amid fintech innovation
- FAVO strengthening strategic partnership with Stewards Investment Capital Limited through Series A equity Investment
- Recently announced the voluntary conversion of all outstanding Super Voting Series C Preferred Shares into common stock
As traditional banks retreat from Main Street, alternative lenders are stepping up to fill the gap, reshaping the $1.7 trillion small business lending market in the process. With policymakers calling for renewed focus on small business financing and digital platforms redefining borrower access, private credit firms like FAVO Capital (OTC: FAVO) are emerging as essential players in the financial ecosystem. Backed by scalable technology, a seasoned leadership team, and a growing syndication network, FAVO is positioning itself for outsized growth at the intersection of policy tailwinds, market demand, and digital transformation.
Strategic Uplisting to Accelerate Growth
FAVO, a private credit firm focused on small and medium-sized businesses (“SMBs”), is laying the groundwork for its next growth phase. In February, the company filed a Form S-1 with the U.S. Securities and Exchange Commission, a move that signals its intent to uplist to the Nasdaq Capital Market.
The planned uplisting is more than a capital markets milestone, it’s a reflection of FAVO’s commitment to long-term growth, financial transparency, and operational scale. According to the company, the proceeds from its initial public offering will be used to reduce high-cost debt, invest in strategic initiatives, and expand technology-driven infrastructure. This financial optimization could position FAVO to enhance profitability while accelerating national expansion.
Recently, FAVO announced on May 13, 2025, the voluntary conversion of all outstanding Super Voting Series C Preferred Shares into common stock. This strategic move simplifies the company’s capital structure and aligns voting rights with public market expectations, reflecting FAVO Capital’s commitment to transparency and governance best practices. The conversion is a proactive step as the company continues preparations for its planned uplisting to Nasdaq.
“Converting our Series C Super Voting Shares demonstrates our commitment to transparency, governance and best practices as well as long-term value creation,” stated Vincent Napolitano, CEO of FAVO Capital. “It’s another important step forward as we align our structure with shareholder and institutional investor expectations.”
In addition to FAVO’s advancement towards Nasdaq, the company recently secured an $8 million Series A Preferred equity investment from strategic partner Stewards Investment Capital. This funding aims to accelerate direct SMB funding, restructure debt notes, and expand embedded lending partnerships, reinforcing FAVO to expand its operations. Stewards Investment Capital, already a significant shareholder following a $37 million acquisition deal in 2023, continues to support FAVO’s growth trajectory in the U.S. private credit market.
Filling a Growing Void in the Lending Ecosystem
FAVO’s timing may prove fortuitous. A renewed push from policymakers, potentially including President Trump, suggests the commercial banking industry could face pressure to return to its lending roots. Amid calls for banks to step up small business lending, non-bank lenders like FAVO are already playing an outsized role in meeting underserved financing demand.
Traditional banks have deprioritized small business loans in favor of global markets, trading operations, and wealth management services. As a result, a lending gap has formed in the U.S. market, where small businesses – those with fewer than 500 employees – make up nearly half of all economic activity. FAVO Capital is part of a new wave of alternative lenders stepping in to bridge this divide.
With more than $140 million funded to over 10,000 businesses since inception, FAVO brings real scale and momentum to this market. If regulatory or political changes make traditional lenders even slower to respond, private credit firms with flexible underwriting and tech-enabled operations could see demand surge.
Tech-Driven Efficiency Meets Real-World Impact
At the heart of FAVO’s competitive advantage is its technology-focused lending model. The company continues to build and refine its proprietary CRM platform, which enables efficient underwriting, customer service, and deal syndication. In a digital-first lending landscape, that infrastructure is essential, not just for cost efficiency, but for maintaining relationships with borrowers in real time.
According to industry insights, digital lending platforms have become central to the evolution of the private credit market. Their ability to process data, personalize loan structures, and streamline approvals gives them a clear edge over legacy systems. FAVO is investing in these capabilities while maintaining its human-centric service approach, combining fintech innovation with the high-touch needs of SMB borrowers.
This hybrid model, combined with the firm’s existing footprint and syndication track record, puts it in a strong position to scale as economic conditions stabilize and capital becomes more accessible.
A Compelling Play on Lending Resurgence
FAVO’s leadership team sees the uplisting as a key inflection point. By enhancing liquidity, improving investor access, and optimizing its cost of capital, the company is positioning itself for long-term relevance in an evolving private credit environment.
As big banks face political pressure to revisit their role in small business lending—and as digital lenders continue to grow in popularity—FAVO’s model stands at the crossroads of policy, technology, and capital market readiness. Investors looking for exposure to the future of private credit may find FAVO to be an early-stage player with meaningful traction and significant upside.
For more information, visit the company’s website at FavoCapital.com.
NOTE TO INVESTORS: The latest news and updates relating to FAVO are available in the company’s newsroom at https://ibn.fm/FAVO
About QualityStocks
QualityStocks (“QS”) is a specialized communications platform with a focus on private and public companies and the investment community. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, QS is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, QS brings its clients unparalleled recognition and brand awareness. QS is where breaking news, insightful content and actionable information converge.
For more information, please visit https://www.QualityStocks.com
Please see full terms of use and disclaimers on the QualityStocks website applicable to all content provided by QS, wherever published or re-published: https://www.QualityStocks.com/Disclaimer
QualityStocks
Scottsdale, AZ
www.QualityStocks.com
480.374.1336 Office
Editor@QualityStocks.com
QualityStocks is powered by IBN
