ACH Advances

On Deck Capital IPO, An Insider’s Perspective

August 16, 2014
Article by:

8622626_S

It was August 23, 2011, the day the Virginia Earthquake could be felt all the way up in New York City. The four of us were enjoying outdoor seating at a restaurant on the Upper East Side. The ground shook, my drink spilled and Ace looked at each one of us and said, “Okay so […]

View Post

Industry Survey Results

July 6, 2014
Article by:

surveythumb

Curious what the general consensus is on a variety of issues? DailyFunder┬« polled business lending industry insiders and analyzed the results. Click below to expand the graph, check out the image, or scan the text beneath it: Text version #1 What’s a Merchant Cash Advance? 61% consider it to be strictly a purchase of future […]

View Post

Access to Capital – A Dose of Reality

June 15, 2014
Article by:

newjersey

So much for a lack of transparency… While sitting directly next to Maria Contreras-Sweet, the head of the Small Business Administration, OnDeck Capital’s CEO corrected U.S. Senator Cory Booker’s comments about the APR of their loans. High teens? Not so, said Noah Breslow who explained their average 6 month loan has an APR of 60% […]

View Post

Do Opportunities Abound?

June 8, 2014
Article by:

Are there opportunities left?

Just recently I found myself in an office surrounded by some folks who had each worked in the merchant cash advance business for more than 10 years. The first generation of MCA pioneers are still out there of course but it’s rare to be in the presence of so many at one time. It was […]

View Post

Throw Out the 5 Cs?

May 19, 2014
Article by:

the credit struggle

The 5 C’s of lending? “Throw that book out” says Darrell Esch, VP of SMB Lending for Paypal. At the Federal Reserve Bank’s New York Small Business Summit last week, critics hammered away at the high rates being charged by some alternative business lenders. In the first video below, PayPal’s small business loan program (which […]

View Post

A Look at Data Security

May 17, 2014
Article by:

Data Privacy

In the latest issue of DailyFunder, Cheryl Conner explored data security in the alternative business lending industry. Its basis was rooted in the ETA’s 2008 Merchant Cash Advance White Paper that stated Merchant Cash Advance companies must be PCI compliant. That white paper was drafted in a different era, particularly when 99% of all transactions […]

View Post

Would an APR Help?

May 14, 2014
Article by:

merchant cash advance APR

Merchant cash advance industry hater Ami Kassar added to his collection of rants today in the Wall Street Journal by writing about the True Costs of Cash-Advance Loans. Bloomberg BusinessWeek writer Pat Clark, knowing full well that Kassar and I have sparred online, tweeted: curious what @financeguy74 thinks RT @akassar: The true cost of cash […]

View Post

Alternative Lending: Big Government and Big Data

May 7, 2014
Article by:

big data

“Who wants to fill out financial paperwork? We’d rather go pick out a pair of sunglasses” – Professor Michael Barr at LendIt 2014 One of the clear themes of the LendIt 2014 conference was that borrowers are willing to pay extra for speed and convenience. Regulators have taken note of this trend but they’re still […]

View Post

LendIt Conference: The State of Alternative Business Lending

May 6, 2014
Article by:

LendIt Panel

Have you heard? Banks aren’t lending. Nobody at LendIt seems to mind though. Ron Suber, the President of Prosper Marketplace, said earlier today that banks are not the competition. That’s an interesting theory to digest when contemplating the future of alternative lending. If banks are not the competition, then who is everyone at LendIt competing […]

View Post

CAN Capital Still King – $4 Billion Funded

April 29, 2014
Article by:

12586605_s

While college kids across the country are creating alternative lending platforms in their dorm rooms, industry king CAN Capital announced today that they have provided small businesses with more than $4 billion. That puts them on pace to be funding approximately $1 billion a year. ($3 billion milestone back in March 2013). Word apparently leaked […]

View Post