Archive for 2017
The State of The Industry (In Memes)
September 2, 2017The state of things in MCA, online lending, and fintech through the disloyal boyfriend meme:
SEE MANY MORE DEBANKED MEMES
The History of Alternative Finance (As Told Through Memes)
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10 Clues You’re Hardcore About Merchant Cash Advance
Yellowstone Capital Has Record Month
September 1, 2017Yellowstone Capital had a “record smashing August,” according to a post on Instagram. They originated 1729 deals for a total of $55.5 million. The top rep recorded 161 deals for $4.62 million. Juan Monegro, who was previously interviewed by deBanked, originated 202 deals for $3.7 million.
Marketplace Lending Investors Ponder Loan Defaults, Issues in Harvey’s Path
September 1, 2017On the LendAcademy Forum, a Lending Club investor posted that he had been selling notes belonging to Houston borrowers in anticipation of payment issues stemming from Hurricane Harvey. Other users chimed in with assessments of their own personal exposure, including one who noticed that affected zip codes made up a little under 4% of his outstanding principal. By now, secondary note buyers probably have their radar up to heed caution with these.
Elsewhere in the industry, MCA firm Strategic Funding and lender Breakout Capital both announced that they were suspending debits to businesses they’ve funded in the Hurricane’s path.
A message for our customers located in flood-affected areas of Texas pic.twitter.com/4nc8bjWzg5
— Strategic Funding (@SFSCapital) August 28, 2017
The OCC is also advocating that banks suspend payments in those areas from ATM fees to loans. They should consider “restructuring borrowers’ debt obligations, when appropriate, by altering or adjusting payment terms. Payment extensions should reflect individual borrower situations and generally should not exceed 90 days,” according to a statement.
The Alternative Finance Bar Association Announces September 13th Event
August 31, 2017An announcement from the AFBA:
Download Save The Date PDF
SAVE THE DATE
Location: NYC Bar Association Offices
42 West 44th Street
New York, NY 10336
When: September 13th
Date: September 13, 2017
LOCATION: NYC BAR ASSOCIATION OFFICES
Clark Hill’s Consumer Financial Services Regulatory & Compliance Practice Group is a national leader in the field of consumer financial services law, providing strategic legal counsel to clients in all areas of consumer and small business finance. We provide advice, consultation and litigation services to a wide variety of financial institutions throughout the country. Our exceptional team of lawyers as well as government and regulatory advisors has extensive experience in – and an in-depth understanding of – the laws and regulations governing consumer financial products and services including engagement with the Consumer Financial Protection Bureau and prudential regulators.
Credibly Selected to Service Bizfi’s $250M Portfolio
August 30, 2017
Credibly also announced that it has crossed the $500 million milestone in capital deployed to tens of thousands of SMBs across the U.S. This is separate from the $250M portfolio the company is now servicing from BizFi.
“Acquiring the servicing rights of BizFi’s portfolio is a testament to our data-driven approach and laser focus on the working capital needs of small businesses,” said Ryan Rosett, Credibly’s Founder and Co-Chief Executive Officer. “We welcome our new customers and are committed to ensuring that their growth capital needs are met.”
In addition to servicing the BizFi portfolio, Credibly is working with both sales partners and merchants to provide additional working capital to the businesses in BizFi’s portfolio. Credibly’s data science team has the ability to analyze BizFi’s twelve years of data and remittance history, which will allow Credibly to better service both the BizFi and Credibly portfolios. Further, BizFi’s data enhances Credibly’s risk management, scoring models, and portfolio management tools.
The Small Business Association (SBA) estimates that traditional banks still reject approximately 90 percent of SMB loan applications. Since 2010, Credibly has emerged as a proven platform that leverages data science and analytics to provide SMBs with a simple and intuitive way to access critical working capital. The company addresses the fundamental capital needs of SMB owners across a broad credit spectrum and through every stage of a business’s life cycle.
Main Street SMBs across a wide variety of industries that include restaurants, retail stores, salons, spas, dry cleaners, auto body shops, and doctors’ offices, all rely on Credibly to secure the necessary capital they need to grow.
Credibly has achieved widespread industry recognition for its risk management, data technology, and data driven approach. For more information on Credibly, please visit www.credibly.com.
About Credibly
Founded in 2010 and with offices in Michigan, Arizona, Massachusetts, and New York, Credibly is a best-in-class Fintech platform that leverages data science and analytics to improve the speed, cost, and choice of capital available to small businesses in the United States. Credibly is dedicated to creating a superior customer experience that meets the needs of all small businesses, regardless of product need or credit profile.
Learn more at www.credibly.com. Follow Credibly @credibly360.
Media Contact:
Tracy Rubin / Olivia Levis
JCUTLER media group
323-969-9904
tracy@jcmg.com / olivia@jcmg.com
IOU Financial Posts $2.1 Million Loss in Q2
August 30, 2017IOU Financial’s Q2 loss was double that of Q1, according to their recently filed financial statements. The company lost $2.08 million (CAD) on $4.36 million in revenue. IOU had lost only $1 million in Q1 on nearly the same revenue. $393,814 of Q2’s expenses was a one-time cost related to contract cancellations, however.
The company lent $26.2 million (US) in Q2, down from $31.8 million for the same period last year.
Notably, the company said they are focusing on an aggressive litigation strategy against businesses who intentionally default on their loan obligations. “Provision for loan losses (net of recoveries) increased to $2.4 million for the three-month period ended June 30, 2017, up from $1.2 million for the previous year,” they stated. “The increase is primarily attributable to an increase in defaults by borrowers and partially due to an increase in the size of the loan portfolio.”
As Summer Winds Down, Square, Bitcoin, Yirendai Big Winners of the Year So Far
August 30, 2017Yirendai, an online lender in China listed on the NYSE, is up 92% this year, according to the deBanked Tracker. China is reported to be the largest marketplace lending market in the world. Yirendai went public in December 2015 at the peak of the online lending bubble and the stock price has tripled since then.
Square, a payment processor and tech-based small business lender is up 90% year-to-date. The company lent $317 million in Q2, or about 30% less than what OnDeck lent over the same time period. Unlike OnDeck whose stock is down 76% from the IPO price, Square is up 186% since inception. While Square is lending less, the company has virtually no borrower acquisition costs and is a payments company first.
While the value of a Bitcoin fluctuates all the time, it was up 78% for the year as of Wednesday afternoon. One Bitcoin was equal to $4,554.07. Yesterday, Bitcoin reached a record high of $4,703 after North Korea fired rockets over Japan. While the increase in value can be partially attributed to speculators, there is a growing chorus of Bitcoin owners who are using it as a hedge against governmental currency manipulation or collapse.
Letter From The Editor – July/August 2017
August 30, 2017Happy end-of-summer. It’s been a remarkable year so far.
In this issue, we talked to small business owners about what works and what doesn’t. Several of them advocated for more personal attention and to shift away from old fashioned marketing tactics like cold calling. If you’re a salesperson, you’ll want to read what your clients told us.
On the bank side, the companies disrupting banking are… other banks, ones that have embraced digital technology and partnerships with online lenders. They’re tech companies with bank charters, or at least that’s how they appear. And it’s working for them quite well. To become a better bank, these banks are taking an entirely different approach than their predecessors.
We’ve got a lot more of course and I want to thank everyone that has supported deBanked all these years, whether as a paying advertiser or as a regular reader. One of the most rewarding things for myself personally has been to see copies of this magazine appear in the lobbies of funding companies all over the country as reading material for visitors. That has given us incredible reach, but I think we can reach even farther. Stay tuned for plans we have in 2018. As the industry turns a page, I hope that you’ll continue turning ours.
–Sean Murray
