Articles by deBanked Staff

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Congressman Emanuel Cleaver, II Makes Inquiry Into Merchant Cash Advances

June 26, 2017
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Congressman Emanuel Cleaver, II

A US Congressman from the fifth district of Missouri is conducting an inquiry into “Fintech Lending,” according to a statement posted online. Rep. Emanuel Cleaver, II published letters that his office sent out last week to five companies seeking information on how they avoid discriminatory lending practices in small business lending. An excerpt: I have […]

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Recent Court Decisions Impacting Merchant Cash Advances – Still Not a Loan

June 22, 2017
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Courtroom

This article is from deBanked’s May/June 2017 magazine issue. To receive copies in print, SUBSCRIBE FREE In the United States District Court, Southern District of New York, a judge expounded on his decision as to why the Purchase and Sale of Future Receivables contract between TVT Capital and Epazz, Inc. was not a loan. In […]

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Catching Up With Marketplace Lending – A Timeline

June 13, 2017
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A timeline of alternative finance

This article is from deBanked’s May/June 2017 magazine issue. To receive copies in print, SUBSCRIBE FREE 4/11 Regions Bank recruited Kabbage’s chief technology officer, Amala Duggirala, to become its chief information officer 4/12 Federal Reserve Published their 2016 Small Business Credit Survey 4/13 Marathon Partners, a minority shareholder of OnDeck, publicly called on the company […]

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Sound Bites From Underwriting – The Risk of Imperfect Merchants

June 12, 2017
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underwriting blind

When you’re funding a business, does the risk begin and end with the business? Or does the character of the owners play a role? Can you judge the business on weak financials if your product is geared towards weak financials to begin with? And can you trust unaudited internally prepared financial statements? At the Factoring […]

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Upstart’s Average Borrower

June 12, 2017
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upstart logo

Online lender Upstart considers more than 10,000 variables such as an applicant’s education, academic performance, and employment background, according to their website, a proprietary system they say is used to detect “future prime” borrowers. But according to a recent Kroll Rating Agency report, their borrower base looks prime even by traditional standards in that their […]

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Sound Bites From Underwriting – Gambling With a New Broker

June 9, 2017
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red flags

At the Factoring Conference during a portfolio warning signs panel, Emma Hart, the COO of Sallyport Commercial Finance, was asked if she recalled any red flag situations that hinted at collusion. Whether in factoring or not, you can probably relate to this situation with a new broker: We had one fairly recently that we should […]

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New York State Assembly Proposes Online Lending Task Force

June 5, 2017
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Albany, NY - Capitol Building

On June 2nd, the New York Assembly drafted its answer to the recent joint-committee hearing on online lending. It’s called Bill A8260, an ACT to establish a task force on online lending institutions. As it’s proposed now, the task force would include individuals from the online lending community, the small business community, the financial services […]

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IOU Financial Reports Q1 Results, Lost $1M

May 31, 2017
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quarterly results

IOU Financial lent (CAD) $22.1 million in the first quarter of this year, down from $25.4 million over the same period last year. This translated into a $995,085 loss on $4.3 million in revenue. Their quarterly report said that they will continue to focus on achieving profitability in 2017, much like another company in the […]

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The CFPB’s Small Business Lending RFI Has Already Received Responses

May 28, 2017
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CFPB Logo

Three responses to the CFPB’s Request For Information on small business lending have already been submitted and here’s what they say. Kent Franzen, a career banker, said that the law limiting an underwriter’s access to an applicant’s minority-owned or women-owned business status is “literally impossible.” “Considering that in every small bank I have worked in […]

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SEC Reported To Be Looking Into CAN Capital and Prosper

May 27, 2017
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SEC Building

Bloomberg reporter Matt Scully reiterated on Friday that the SEC is looking into CAN Capital “after that firm failed to report to bondholders that some customers’ loans were in default.” That was referencing a previous December inquiry reported back in February. CAN’s $200 Million securitization suffered a rapid amortization event in the second half of […]

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