Archive for 2018

The Funder: From Office of One to Eighteen in Under a Year

December 13, 2018
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Not even a full year in business, Velocity Capital Group announced that it has secured $15 million in financing; $5 million in a series A, plus a $10 million line of credit. The entire investment comes from a family hedge fund in California, according to Jay Avigdor, Velocity’s President and CEO. Twenty-six year old Avigdor […]

Defunct MCA Company Tried to Escape Signed Confession of Judgment

December 13, 2018
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When a Florida-based merchant cash advance company, World Global Financing (WGF), declared bankruptcy this past May, it entered into a binding settlement agreement with its largest creditor, a hedge fund known as Eaglewood. There was a caveat. Eaglewood required that WGF sign a Confession of Judgment (COJ) as part of the agreement that would afford […]

Subprime Lending to Increase in 2019

December 12, 2018
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Subprime loans are expected to increase in 2019, according to data from TransUnion. The data from a November 2018 report shows that Outstanding Unsecured US Personal Loan Balances have been increasing since 2013, and the increase was most dramatic from 2017 to 2018, jumping 18% from Q3 2017 to $132.4 billion in Q3 2018. The […]

Velocity Capital Group (VCG) Secures $15 Million Series A Financing

December 11, 2018
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Businesses Flourish with Adequate Funding at their Fingertips CEDARHURST, NEW YORK—DECEMBER 10,2018​–​V​elocity Capital Group recently secured another $15 million in financing. This will strengthen their ability to provide assistance to more small businesses and organizations. While the name might be new to some, Velocity Capital Group is no stranger to the business world. Servicing small […]

Cross River Bank Raises $100 Million

December 11, 2018
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Cross River Bank

Cross River Bank, which provides banking services to fintech companies, announced last week the completion of a funding round of roughly $100 million. This was comprised of a $75 million equity investment from KKR, along with capital from Andreessen Horowitz, Battery Ventures, Rabbit Capital, and funding from new investors CredEase and Lion Tree. This adds […]

MCA Participations and Securities Law: Recognizing and Managing a Looming Threat

December 11, 2018
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contract

Reprinted with permission from: Pepper Hamilton LLPAuthors: Gregory J. Nowak and Mark T. Dabertin Due to the high volume of relevant judicial decisions issued by New York courts over the past two years, the risk that enforceability of a merchant cash advance (MCA) contract1 might be successfully challenged as a disguised usurious loan has received […]

Commercial Finance Coalition to Host Open House in NYC

December 11, 2018
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CFC Open House

The Commercial Finance Coalition, an industry trade group, is hosting an open house for current and prospective members on December 18 in New York City. It’s at the Park Avenue Tavern from 6pm to 8pm. If you are interested in attending, please contact Mary Donohue at mdonohue@polariswdc.com.

Finitive Appoints Neil Wolfson to Board

December 10, 2018
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Neil Wolfson

Finitive announced today that it has appointed Neil Wolfson to its Board of Directors. Wolfson also serves on the Board of Directors at OnDeck. “Finitive has established an innovative platform to provide institutional investors with direct access to alternative lending investments,” said Wolfson. “Finitive’s platform brings further transparency to this asset class.” According to an […]

Trump Administration Criticizes Postal Banking Concept

December 9, 2018
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Post Office

Earlier this week, a Trump administration report diminished the idea of having the United States Postal Service take on the role of a bank. “Given the USPS’s narrow expertise and capital limitations, expanding into sectors where the USPS does not have a comparative advantage or where balance sheet risk might arise, such as postal banking, […]

Small Business Optimism Is Up for 2019

December 7, 2018
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Main Street Small Businesses

American small businesses plan to finish 2018 with a bang, according to the fall 2018 Bank of America Business Advantage Small Business Owner Report. And they’re optimistic about the year ahead. In the report, based on a semiannual survey of 1,000 small business owners across the country, 80% of entrepreneurs say they are confident that […]

SBFA Announces Support for The Small Business Fairness Act

December 7, 2018
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SBFA

The bill would provide greater protection for small businesses The Small Business Finance Association (SBFA) today announced support for S.3717, The Small Business Fairness Act introduced by Senator Sherrod Brown (D-OH) and Senator Marco Rubio (R-FL). The bill would provide the Federal Trade Commission more clarity to protect small business owners from being forced to […]

Factoring Still Slow to Modernize, Say Industry Leaders

December 6, 2018
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Robots

“There were no factoring companies online when we started [in 2013],” said Eyal Lifshitz, CEO of BlueVine. That may be true. Lifshitz has become a thought leader in the factoring world, known for creating a company, BlueVine, that introduced an online-only factoring product. When deBanked asked Lifshitz yesterday if he saw other factoring companies embracing […]

Senate Bill Introduced to Ban Confession of Judgments Nationwide

December 6, 2018
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Senator Marco Rubio

Senators Sherrod Brown and Marco Rubio have called for a nationwide ban on Confessions of Judgment in response to the Bloomberg Businessweek series published last month. The bill, which would amend the Truth in Lending Act, may be named the Small Business Lending Fairness Act. You can download the bill here Though Businessweek has been […]

OnDeck Expands Canadian Business with Merger

December 5, 2018
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Welcome to Canada

OnDeck announced today that it has entered into an agreement to merge its Toronto-based Canadian business with Evolocity Financial Group (Evolocity), an online small business funder headquartered in Montreal. OnDeck will have majority ownership of Evolocity and the combined entity will be rebranded as OnDeck Canada. “The combination of OnDeck’s Canadian operations with Evolocity will […]

Signature Bank Partners with trueDigital

December 4, 2018
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Blockchain

Today, Signature Bank unveiled a proprietary digital payments platform for its commercial clients, according to a statement released by the bank. The platform, called Signet, is designed to allow Signature Bank’s commercial clients to make real-time payments in U.S. dollars, every hour of the year. “The ability to transmit funds between approved, fully vetted commercial […]

SoFi CEO Reiterates Company’s Low Appetite for Risk

December 3, 2018
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SoFi sign

In an interview late last week on Jim Cramer’s “Mad Money” TV show, SoFi CEO Anthony Noto said that when he took over as CEO in March, his number one priority was focusing on “quality of loans over quantity.” “We have really strong risk controls,” Noto told Cramer. “Knowing that the [changed] interest rate was […]

Popular Business-Lending Marketplace Dealstruck Restructures

December 3, 2018
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dealstruck logo

CEO Addresses Rumors that Dealstruck Shut Down VALLEY STREAM, N.Y., Dec. 3, 2018 — Innovative online business-lending marketplace Dealstruck.com (which has been featured in CNBC, The New York Times, Forbes and many other publications) has reorganized. A private investment group of fintech experts acquired the company. “This acquisition represents a significant strategic opportunity for our […]

Small Business Forums

November 30, 2018
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Main Street Small Businesses

If you’re a business owner with small business questions, we recommend the following helpful sources: A SCORE Workshop Small Business Forum This online community is geared towards storefront businesses, is free to join, and is not filled with ads. Business Advice Forum This online community is geared towards online businesses, is free to join, and […]

Numerated to Improve Online Lending for Regional Banks

November 30, 2018
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becoming a bank

On Wednesday, Numerated announced that it had closed $8 million in financing, bringing its total to $17 million. Numerated is a platform that helps banks make automated credit and lending decisions. “We’ve seen a tipping point in the market, with banks across the U.S. focused on digitally serving their business segments and out-competing national and […]

What We Learned About Credibly From Credibly’s Securitization

November 29, 2018
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mca vs loans credibly

Today, Credibly CEO Ryan Rosett told deBanked that the company’s October securitization will be used, in part, to roll out its new Market Expansion Product (MXP), which will allow Credibly to service merchants with FICO scores as low as 500 and those that have been in business for less time. “We believe the MXP will […]