Industry News

Dubious Story On Strategic Funding Unfounded

June 22, 2017
Article by:

Strategic Funding Source office

A questionable story published by Allen Taylor of Lending Times pushed the boundaries of journalism earlier this week. Citing a single anonymous source, Taylor wrote that an alleged breakdown in negotiations between Strategic Funding Source (SFS) and CAN Capital (CAN) had compounded into more problems for SFS when a burst water main drenched their main […]

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Goldman, Cohen Bet on Nav

May 19, 2017
Article by:

Levi King, Nav

CEO Levi King, Nav Goldman Sachs. Steve Cohen. These are a couple of the high-profile investors that small business credit and finance startup Nav has attracted to line its coffers. Nav recently lifted the size of a Series B round by $13 million for lead investor Goldman Sachs Principal Strategic Investments as well as Cohen’s […]

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Prosper Loaned $585M in Q1, Losses Continued

May 16, 2017
Article by:

Prosper Marketplace

Prosper had a net loss of $23.9 million in Q1 on only $30.8 million in revenue, according to the 10-Q they filed Monday. They originated $585.6 million in loans, 90% of which were funded through their Whole Loan Channel, the segment made up of accredited and institutional investors who buy entire loans. Prosper had 371 […]

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Federal Court Agrees, Merchant Cash Advances Not Loans or Usurious

May 13, 2017
Article by:

federal court ruling

By now, numerous judges in the New York Supreme Court have concurred that purchases of future receivables are not loans nor usurious, yet challenges to these contracts continue. In the latest landmark ruling, defendants/counterclaim plaintiffs Epazz, Inc., Cynergy Corporation, and Shaun Passley a/k/a Shaun A. Passley, moved to have the original action involving their merchant […]

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Are You a Loan Broker? You Need to Be Licensed in Vermont

May 12, 2017
Article by:

Welcome to Vermont

Loan broker licensing may have gotten stalled in New York, but in Vermont, it’s the law. Governor Phil Scott made H. 182 official on May 4th, regulating everyone engaged in loan solicitation with prospective Vermont borrowers. Specifically this applies to anyone that: offers, solicits, brokers, directly or indirectly arranges, places, or finds a loan for […]

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Exercise of Ordinary Intelligence Would’ve Revealed Merchant Cash Advance Contract Was Not a Loan, Court Says

May 9, 2017
Article by:

Signing a contract

In the New York Supreme Court, the Honorable Linda S. Jamieson was tasked with ruling on twelve causes of action in a merchant cash advance contract case. While the 18-page decision covers a lot of ground, one notable section was the plaintiffs’ request for rescission based on “misrepresentations or unilateral mistake” and “damages for fraudulent […]

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OnDeck On the Path to Profitability?

May 8, 2017
Article by:

OnDeck NYSE

In their earnings announcement this morning, OnDeck predicted that GAAP profitability would be achieved in the second half of 2017. For now, the GAAP net loss in Q1 was only $11.1 million, down from $36.5 million in Q4. The company originated $573 million worth of loans for the quarter. OnDeck has been under pressure from […]

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MCA Company Wins Case After Judge Actually Reads the Contract

May 5, 2017
Article by:

Courtroom

An explosive New York Supreme Court decision in December against a merchant cash advance company just lost some of its bite, thanks to a decision handed down by the Honorable Catherine M. Bartlett in Orange County. By all accounts, plaintiff Merchant Funding Services, LLC (“MFS”) had reason to be worried when Long Island attorney Amos […]

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System Error: Prosper Showed Incorrect Returns to Investors

May 3, 2017
Article by:

Prosper Marketplace

Investor returns weren’t what they claimed for at least seven quarters, according to a notice Prosper issued on Wednesday. It recently came to our attention that the annualized net return numbers displayed on your account overview page were inaccurate due to a system error. This error affected the Annualized Net Return and Seasoned Net Annualized […]

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Fintech Sandbox? States, OCC Mull Regulatory Options

May 2, 2017
Article by:

Regulatory Sandbox

It’s called the “New England Regulatory FinTech Sandbox.” Cynthia Stuart – Deputy Commissioner of Banking, Vermont State banking regulators across the six New England states are exploring the creation of a regional compact that would allow financial technology companies to experiment with new and expanded products in “a safe, collaborative environment,” says Cynthia Stuart, deputy […]

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