Archive for 2019

Costs, Losses Soar At StreetShares

November 12, 2019
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military metalStreetShares increased revenue by nearly 40% year-over-year, according to the company’s latest fiscal year 2019 filing, but costs soared and increased by almost 90%.

StreetShares reported a staggering $12.3M loss on only $4.4M in revenue. That loss was much wider than the previous year’s loss of $6.5M on $3.2M in revenue.

Whereas startups may spend heavily on sales and marketing as they prioritize growth and scale, StreetShares’ primary cost, as in prior years, continues to be payroll. The company spent approximately $7 million in payroll and payroll taxes in fiscal year 2019.

The margin by which payroll exceeds revenue is increasing (157% in FY ’19 vs 144% in FY ’18). For comparison purposes, payroll expense makes up less than 25% of revenue for StreetShares rival IOU Financial.

StreetShares’ source of funds has shifted away from institutional investors and professional investors to retail investors. Retail investors only provided 43.89% of funds in FY ’18 but provided 86.72% of funds in FY ’19.

Retail investors, permissible under Regulation A, do not invest in individual loans but rather they lend money to StreetShares for which the company can use for lending or for “general corporate purposes” or “other products at the discretion of the company.” In return retail investors receive a fixed 5% annual return.

As of May 2019, the company reported that 80% of funds they lend out go to US veteran small businesses. A veteran small business is defined as “a company that is at least 25% owned by a veteran or military spouse or has a veteran or military spouse as the co-guarantor.”

Funding Circle UK Referring Some Large Loan Applicants to Competitors

November 11, 2019
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Funding Circle UK has begun to refer applicants seeking an amount above their maximum loan size limit of £500,000 to Iwoca, MarketInvoice and French bank BNP Paribas, The Sunday Times reported. Previously, Funding Circle would just turn them away.

2019 Top 25 Executive Leaders in Lending – Canadian Lenders Association – Presented By BMO

November 11, 2019
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Leading Lenders CLAThe Canadian Lenders Assocation (CLA) received 124 nominations for these awards from leaders in lending across the country. The CLA’s goal is to support access to credit in the Canadian marketplace and champion the companies and entrepreneurs who are leading innovations in this industry.

The Top 25 finalists in this report represent various innovations in the borrower’s journey from innovations in artificial intelligence powered credit modelling to breakthroughs in consumer identity management using blockchain technologies. These finalists also represent solutions for a wide spectrum of borrower maturity and needs, ranging from consumer credit rebuilding all the way to senior debt placements for global technology ventures.

See The Leading Companies Report Here

See The Leading Executives Report Here

Mark Cashin

CEO of myBrokerBee | Ontario

After a career in commercial finance and being CEO of Transpor, Mark Co-founded myBrokerBee a mortgage broker platform that provides transparency to private lenders and their clients.

Avinash Chidambaram

CEO of Ario Platform | Ontario

Through his experience as Product lead at Interac and Blackberry, Avinash has helped bring together an accomplished and talented group of experts in Data Science, Machine Learning, Security, Software Development to successfully develop this banking services software platform Ario.

Evan Chrapko

CEO of Trust Science | Alberta

Evan is the founder and CEO of Trust Science, a leader in organizing alternative credit data. As a saas founder and CEO, Evan has done over 500mm in startup exits.

Kevin Clark

President of Lendified | Ontario

Kevin is a recognized leader in the financial services industry with over 30 years of experience. Kevin has helped create the voice of Canada’s SME lending ecosystem through his leadership of Lendified and the CLA.

Jerome Dwight

VP of Cox Automotive | Ontario

Jerome established Nextgear Capital in Canada to become the largest specialty finance company in the automotive sector. Jerome is a Globe & Mail 40 under 40 winner and previously lead RBC’s international wealth management, private banking and asset servicing business.

Saul Fine

CEO of Innovative Assessmer | Israel

Saul is a licensed organizational psychologist and psychometrician, and a former lecturer in psychology at the University of Haifa. Saul is a global leader in the use of psychometric data for credit scoring and financial inclusion.

David Gens

CEO of Merchant Growth | BC

David is the Founder and CEO of Merchant Growth, which grew from its humble beginnings in his apartment to offices in both Toronto and Vancouver. David now leads one of Canada’s largest online small business finance companies.

Bryan Jaskolka

COO of CMI | Ontario

Nominated for the 2018 Mortgage Broker of the Year, Bryan Jaskolka is an expert in Canadian mortgage financing with a particular focus on the alternative lending space and mortgage investing.

Peter Kalen

CEO of Flexiti | Ontario

Peter is a leader in Canada’s retail financing market. Before founding Flexiti, Peter was in senior leadership positions at Citi, PC Financial, and Sears Canada. Flexiti was recently named #7 on the Deloitte Fast50.

Yves-Gabriel Leboeuf

CEO of Flinks | Quebec

Yves-Gabriel Leboeuf is the co-founder and CEO of Flinks. Under his leadership, Flinks has become a Canadian leader in banking data enablement.

Derek Manuge

CEO of Corl | Ontario

Derek, also known as the “the quant from Canada” is the founder of the data-driven venture firm, Corl. Corl is one of Canada’s leaders in the use revenue-share financing models.

Keren Moynihan

CEO of Boss Insights | Ontario

Keren Moynihan is co-founder and CEO of Boss Insights, a company that uses big data and AI to accelerate lending from months to minutes. With a Joint JD/MBA, Keren has a diverse background as a commercial banker, wealth manager and former founder of an impact startup.

Jason Mullins

CEO of Goeasy | Ontario

Jason is President and CEO of goeasy, a publicly listed consumer lender. Jason has lead the company to become one of the largest and most innovative lenders in the country.

Paul Pitcher

CEO of SharpShooter Funding | Ontario

After founding First Down Funding, an alternative lending firm for SMEs in Baltimore, Paul expanded his business to Canada through the subsidiary Sharpshooter Funding.

Brendan Playford & Cate Rung

Co-Founders of Pngme | USA

Cate, ex-Uber and Brendan, a blockchain and agro-finance entrepreneur are the co-founders of Pngme, an alternative lending platform for financial institutions in emerging markets who serve Micro, Small, and Medium-sized Enterprises.

Wayne Pommen

CEO of Paybright | Ontario

Wayne is the President and CEO of PayBright. Wayne is also a director of IOU Financial Inc and of HBC. Previously, Wayne was a Principal at TorQuest Partners, one of Canada’s leading private equity firms, and a management consultant with Bain & Company in the UK, the US, and Canada.

Adam Reeds

CEO of Ledn | Ontario

Adam is a pioneer and thought leader in the digital asset backed lending space. Ledn is focused on building innovative financial products in the emerging digital asset space, with a focused mission to help people save more in bitcoin.

Adam Rice

CEO of LoanConnect | Ontario

Adam has played a pivotal role in building one of the largest online markets in Canada for unsecured loans.

Mark Ruddock

CEO of BFS Capital | Ontario

Mark is an experienced international CEO with two successful exits and over 20 years of experience at the helm of VC backed technology and fintech startups. In 2019 Mark announced BFS Capital’s expansion to Canada with a new 50 engineer data science hub in the heart of Toronto.

Vlad Sherbatov

President of Smarter Loans | Ontario

Vlad Co-founded Smarter Loans in 2016 with the goal of helping Canadians make smarter financial decisions. Since then, Vlad has grown the platform into one of the go-to resources for Canadian borrowers.

Steven Uster

CEO of FundThrough | Ontario

Steven is the Co-Founder & CEO of FundThrough, an invoice funding service that helps business owners eliminate “the wait” associated with payment terms by giving them the power and flexibility to get their invoices paid when they want, with one click, and in as little as 24 hours.

Dmitry Voronenko

CEO of Turnkey Lender| Singapore

Dmitry, CEO and Co-founder of TurnKey Lender, holds a PhD in Artificial Intelligence. Dmitry was recently named SFA’s Fintech Leader of the year.

Neil Wechsler

CEO of Ondeck Canada | Quebec

Neil briefly practiced law before becoming President and CEO of Optimal Group Inc. where he grew the company from a start-up to a leading NASDAQ-listed self-checkout and payments company. Neil later co-founded Evolocity, which in 2019 became OnDeck Canada.

Michael Wendland

CEO of Refresh | BC

Michael has led Refresh Financial’s rapid growth since its founding in 2013, including a recent ranking of number 40 on Deloitte’s Fast 500.

Canadian Lender’s Association Awards Leading Executives and Companies

November 11, 2019
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cla leadersToday the CLA announced the winners for its 2019 Leaders in Lending Awards. Highlighting the efforts of exceptional players within the fintech and alternative finance fields, the awards seek to “celebrate the industry and celebrate all the cool fintech things happening in Canada,” according to the CLA’s Strategic Partnerships Director Tal Schwartz.

Now in its second year, the Leaders in Lending Awards are split into two categories, with one focusing on the efforts of companies in the industry and the other on individual executives. 2019 will be the first year that the latter of these categories is incorporated. The awards will be imparted to their new owners at the Canadian Lenders Summit later this month, where a special prize will also be given to one winner from each category.

Among the winners in the first category are Borrowell, IOU Financial, and Michele Romanow’s Clearbanc. While making an appearance in the second category are David Gens of Merchant Growth, Paul Pitcher from SharpShooter Funding, Smarter Loans’ Vlad Sherbatov, and Kevin Clark from Lendified.

The criteria for the awards were based upon three tenets, these being a commitment to the “use of advanced fintech solutions” to solve challenges in the lending process, the “implementation of new or innovating lending strategies or business models,” and evidence of successful outcomes following the implementation of new fintech or a new business model.

When asked about possible expansions to the awards in the future, Schwartz was receptive to the idea of covering more ground with the prizes, saying “I definitely think we’ll expand the categories.” Mentioning that there’s a host of niches that are worth highlighting, such as blockchain, psychographic credit scoring, and credit rebuilding, which deserve their day in the sun.

“We have a mandate as a trade group to celebrate the industry,” emphasized Schwartz. And that celebration will be taking place on November 20th at the Canadian Lenders Summit in Toronto.

See The Leading Companies Report Here

See The Leading Executives Report Here

2019 Top 25 Company Leaders in Lending – Canadian Lenders Association – Presented By BMO

November 11, 2019
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Canadian Lenders Assocation CoverThe Canadian Lenders Assocation (CLA) received 124 nominations for these awards from leaders in lending across the country. The CLA’s goal is to support access to credit in the Canadian marketplace and champion the companies and entrepreneurs who are leading innovations in this industry.

The Top 25 finalists in this report represent various innovations in the borrower’s journey from innovations in artificial intelligence powered credit modelling to breakthroughs in consumer identity management using blockchain technologies. These finalists also represent solutions for a wide spectrum of borrower maturity and needs, ranging from consumer credit rebuilding all the way to senior debt placements for global technology ventures.

See The Leading Companies Report Here

See The Leading Executives Report Here


The 75 year old firm is the only Canadian bank devoted exclusively to supporting entrepreneurs.


Borrowell helps Canadians make great decisions about credit. They were the first company in Canada to offer credit scores for free, without applying for credit, and currently has over 800,000 users. Eva Wong and Andrew Graham were the joint recipients our the CLA’s awards in 2018.


Clearbanc offers a new approach to capital access for entrepreneurs that uses AI to determine funding terms with a focus on unit economics and repayment through revenue share as a way to get founders access to the capital they need to fuel their growth.


CreditSnap is a best in class pre-qualification and cross selling engine to deliver highly relevant pre-qualified loan offers to CreditSnap banks and CUs.

Dealnet Capital

Dealnet Capital services the home and retail sectors providing end-to-end financing plus innovative technology and communication solutions.

Espresso Capital

Since 2009, Espresso Capital has provided over 230 early and growth stage technology companies with founder friendly capital. Espresso offers lines of credit and term loans to enable entrepreneurs to grow their businesses without dilution, board seats, or personal guarantees.


Financeit is a market leading point-of-sale consumer financing provider, servicing the home improvement, vehicle and retail industries.

First West Capital

First West Capital is a leader in Canadian mid-market business funding. First West Capital helps ventures acquire and transition through innovative junior capital financing.

Home Trust

Home Trust Company is one of Canada’s leading trust companies. Home Trust offers Canadians a wide range of financial product and service alternatives, including mortgages, Visa cards, deposits and retail credit services.


Inverite is the first Canadian designed, developed and focused real-time bank verification service. With coverage for over 240 Canadian FIs.

IOU Financial

Based in Montreal, IOU Financial provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly.

Lending Loop

Lending Loop is Canada’s first and only regulated peer-to-peer lending marketplace focused on small business.

Magical Credit

Magical Credit has been helping Canadians consumers get approved for quick and simple short term personal loans since 2014. They offer personal loans up to $10,000 regardless of the borrowers past financial issues or credit.


Manzil is the market leader in the manufacturing and distribution of Islamic Financial products for Canadians who wish to balance material pursuits with their spiritual obligations.

Marble Financial

Marble Financial uses smart technology and socially responsible lending practices to help Canadians rebuild credit once their past debt has been settled by a consumer proposal.

Owl is a customer insight engine that helps financial institutions make better decisions. By connecting to tens of thousands of trusted data sources, Owl is able to instantly aggregate and synthesize millions of data points to learn more about customers and entities.


Paays is a Canadian eCommerce financing solution for a new generation of digital consumers seeking “point of inspiration” financing.

PayPal Canada

PayPal Canada recently announced a new SMB loan offering in Canada – a quick application process that can approve an applicant in minutes and transfer funds in one to two business days.


Named by CB Insights to the 2018 Fintech 250, a list of the world’s top fintech startups, Progressa is Canada’s fastest growing financial technology lender focused on changing the way pay cheque to pay cheque Canadians access and build credit.

Shopify Capital

In its effort to become a one-stop e-commerce shop, Shopify Capital allows Shopify business owners to secure funding through revenue sharing on daily sales.

Silicon Valley Bank

For more than 35 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides a full range of financial services and expertise to companies of all sizes in innovation centers around the world.

Spring Financial

Spring Financial is a subsidiary of Canada Drives, one of the leading brands for auto financing in Canada. Spring provides accessible solutions for Canadians to establish a positive payment history.

Thinking Capital

Thinking Capital is a leader in the Canadian Online Lending space, leveraging technology to be at the forefront of the FinTech industry. Since 2006, they have helped more than 14,000 small-to-medium sized Canadian businesses reach their full potential


Uplift’s mission is to make travel more accessible, affordable and rewarding by enabling travel providers such as JetBlue, American Airlines, and United to offer flexible payments to their customers.


Venbridge is a leading Canadian venture debt firm. Venbridge provides SR&ED, grant and digital media financing and consulting.

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Factoring for Freelancers

November 8, 2019
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FreelancersThe number of freelancers in America is quickly growing year on year, with a recent study indicating the percentage of full-time freelancers has increased from 17% of the workforce in 2014 to 28% in 2019. Representing a host of fields, from writing and photography to marketing and programming, the incomes and needs of such workers vary as much as their roles do, however a commonality between them is their difficulties with financing.

Being infamous for the difficulties involved in getting paid, freelancers have historically had trouble with the timings of payments. With 59% of freelancers reporting that they live pay check to pay check, missing a payment or waiting until an untimely employer responds to an invoice may not be possible for many; and beyond payments, banks have yet to catch up with the needs of freelancers.


“There’s this great big area in between consumer banking and business banking that freelancers fall into and the big banks aren’t dealing with that,” George Kurtyka of Joust explained. “They have strategies but it’s not really something they know how to do.”

Kurtyka, after a period of jumping between phone services, payments, and the fintech end of banking, is now COO and Co-founder of Joust, a financial services company occupied with providing for those freelancers ill-suited to traditional banking, which has been operating since 2017.

How are they going about it? Following a conversation Kurtyka had with a friend who told him over half of freelancers don’t separate their business and personal finances, he figured the best place to start was with bank accounts, which became the first product available from Joust. Next was the issue of non-payment, a problem his team thought was suited to underwriting. Offering guaranteed payment within 30 days for 1% of the invoice or instant payment for 6%, factoring, via its PayArmour product has become a large part of Joust’s business model.

“It feels almost like an insurance product,” Kurtyka observed. “When you send an invoice, we’re doing risk assessment on you, we’ve onboarded you and given you a bank account so we know about you.”

And so, after an early partnership with the Freelancers Union, Joust has been offering its cocktail of banking, invoicing, and alternative financing services to freelancers and self-owned businesspeople across America, with eyes on expanding its products further down the line.

“As you can imagine, we can start with just invoice factoring, but we can move into working capital and lines of credit … We’ve heard stories of freelancers losing houses and apartments because they were paid late. The next step is income smoothing. If you can predict how much you’re going to earn, we can smooth your income and then work with one of our bank partners to prequalify you for a loan. We’re obviously not a chartered institution but we work with a host of chartered banks and payments companies and we sit on top of them and the great news is we work with a lot of partners who want access to this burgeoning market of freelancers who may not qualify for a FICO score because their income is like this … Down the line we’d love to offer loans and mortgages. We think the underwriting models we’re building could be like the next FICOs for freelancers.”

Selecting a Third-Party Commercial Collection Agency

November 8, 2019
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Third Party CollectionsIt’s said that anyone can lend money out but the hard part is getting paid back. The latter part is full of nuance, a 32-page white paper authored by Minnesota-based Dedicated Commercial Recovery (Dedicated) reveals.

“Choosing a third-party commercial collection agency is a matter of comparing potential returns and risks in order to achieve an optimal balance of both,” the report opines. “The purpose of this paper is to present one possible outline for making such a balanced choice.”

While it may be views that Dedicated espouses, the report stops short of self-promotion while raising valuable questions that anybody contracting with a commercial collection agency would benefit from considering. After all, even if third-party collections inherently suggests that relations between the original parties have broken down, the collections experience can set the final tone on how a customer feels about your brand.

That’s just the tip of the iceberg, according to the report. The collections process can have legal implications, present operational challenges, and ultimately impact the efficient orderly flow of business.


COJ Enforcer Gets COJ’d By City of New York And Is Forced to Resign NYC Marshal Position

November 7, 2019
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cojsA New York City marshal at the center of a controversial Bloomberg News story series last year about “predatory lending,” has resigned after a city probe, the City of New York announced.

Marshal Vadim Barbarovich was allegedly a prolific enforcer of New York judgments obtained by confession. After irregularities were discovered by the Department of Investigation with how he served levies, the City of New York formally levied penalties of their own against him that include a return of fees and poundage earned from 92 improperly served levies, his resignation, and a $300,000 fine.

The City agreed to suspend the full amount of the monetary fine provided he complies with an orderly wind-down of his business by March 20th. Barbarovich, in a twisted circumstance of irony, had to guarantee full immediate payment in the instance he did not comply…by signing a Confession of Judgment.

NYC Marshal Vadim Barbarovich Confession of Judgment

The investigation into Barbarovich began in May 2018, 4 months before Bloomberg News published their story, details published by the City reveal.

Earlier this year, New York State passed a law restricting COJs from being entered against non-New York state debtors.

David Goldin is BACK – The Scoop Behind His Return

November 7, 2019
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David Goldin Headshot“When I started, the term merchant cash advance didn’t even exist. There really were no business loans back then, the word ‘fintech’ didn’t exist, ‘alternative lender’ didn’t exist … Back in the day it was all about getting a credit facility, and that was like the iPhone 5, and now we’re the iPhone 11. There’s more ways to be a lot less stressful, a lot more productive, and a lot less time consuming. There’s other financial instruments to really help companies excel.”

This is how David Goldin speaks of the difference between the early days of the alternative funding industry, a marketplace which he helped form in the pre-crash years of the noughties, and now, a moment which sees the CEO’s return to the market after years abroad.

Having founded Capify, an alternative finance company, in 2002, Goldin had worked in the space for over a decade before he exited the US market in January of 2017, choosing to instead focus his efforts on the UK and Australia.


Over two years later, Goldin is back in the States with Lender Capital Partners, offering capital to commercial finance companies, with a priority given to those who deal in MCAs and business loans. “It’s very exciting, I’m coming in from a different perspective,” noted Goldin. “It’s still a great industry. I’m just coming at it from a different angle which I think could be a lot more productive and scale a lot faster.”

And as well as funding the funders, this new angle includes forward flow programs, a commitment to participate in deals up to $1 million, credit facilities in the range of $20-100 million, a system by which point of sale providers are able to provide merchant financing via their software, and the Broker Graduate Program. The last of these being LCP’s in-house channel open to brokers who originate a minimum of $500,000 a month, and who want to receive capital and advice from LCP in order to become a direct funder.

When asked why he chose to return via this more top-down approach to the industry, Goldin explained that “there’s enough good players here that are trying to originate on the merchant side, so rather than try to reinvent the wheel I thought I’d come in with my years of experience running a MCA alternative lending platform in the US, knowing what the pain points are.”

Made possible through a partnership with Basepoint Capital, LCP is there to help MCA and business loans companies through both the good times and the bad, according to its founder, saying that what was a lesson for him partly informs LCP’s model.


“The time to raise money is when you don’t need it. If you run into trouble where your lender gets spooked or either has their own financial issues, or it’s a regulatory or macroeconomic condition, you just can’t bring in a new lender within 30 or 60 days, and if you do it’s not going to be on favorable economic terms. It’s really going to be a desperate attempt to get it … It’s almost like having more than one internet connection in your office, if one goes down you have a backup with no downtime.”

PIRS Capital, Fundera Make Crains’s Fast 50

November 7, 2019
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newspaper headlineCrain’s New York Business has revealed its Fast 50 companies. Among them are Fundera (#22 with 720% 3-year growth) and PIRS Capital (#50 with 230% 3-year growth).

Crain’s says that to be considered for the Fast 50, firms had to be at least four years old, generate at least $10 million in 2018 revenue and be headquartered in the New York metropolitan area, which includes the five boroughs; Nassau, Suffolk and Westchester counties; and Bergen, Essex, Hudson, Morris and Union counties in New Jersey.

#1 on the list was Hoboken-based Bear Mattress with 3-year growth of 13,481%.

You can view the list here.

Who Exactly Got Paid In Knight Capital’s Sale… And How Much? ($27.8M)

November 6, 2019
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Knight Capital Sale
Update 11/7/19 9:05 AM: Ready Capital Corporation confirmed this morning that Knight Capital’s total sale price was $27.8M. $10M was in stock.

When Ready Capital Corporation acquired Knight Capital last week for $10 million in stock and an undisclosed amount of cash, questions abounded over who directly benefitted from the sale and how much cash was actually exchanged.

Documents later submitted by Ready Capital revealed that Knight Capital was owned by a San Jose, CA-fund named Len Co, LLC. Len Co began lending to Knight Capital in 2014 and later converted a large principal balance into a major equity investment in Knight in early 2018.

Several months later, Len Co’s primary creditor forced Len Co into Chapter 7. Shares in Knight, being a major asset of Len Co, became a talking point of that proceeding, ultimately propelling Knight into the hands of an eager buyer, Ready Capital Corporation.

The stock in the sale was therefore almost entirely paid out to the Estate of Len Co, LLC (640,205 of the 658,771 Ready Capital Corporation shares to be precise). This being the case was a reflection of the predicament Len Co was in, not necessarily that there was anything adverse about Knight.

On May 31, the bankruptcy court presiding over Len Co approved a proposed sale of Knight Capital to a confidential buyer for a grand total of $25 million, via $10 million in stock and a whopping $15 million in cash to be completed by December 31, 2019.

The buyer was identified as a publicly traded company. Assuming no better bids were received by Mid-August, the company would be sold for the $25 million under the terms offered to the publicly traded buyer. The court reaffirmed it on August 15th.

In October, Ready Capital Corporation announced that they had acquired 100% of Knight Capital in a deal for $10 million in stock and an undisclosed amount of cash.

Update: After this story was posted, Ready Capital confirmed on a morning earnings call that the sales price was slightly more than $25M and was finalized at $27.8M.

Lendio Says There’s Been a Strong Uptake Of Sunrise

November 6, 2019
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Brock Blake LendioLast week Lendio announced that its bookkeeping and invoicing service, Sunrise, had partnered with WePay, an integrated payments business of JPMorgan Chase, to form the freemium product Sunrise Pay.

Stemming from an acquisition in Q1 of this year, Sunrise, formerly Billy, was picked up by Lendio after the company realized many of its customers who were small business owners were struggling to manage their accounts and invoices.

As such, Lendio CEO Brock Blake claims that there’s been a strong uptake of Sunrise amongst their clients. “They love that it goes out and pulls your bank data every day. That you can sync your credit card to it. That it is a double-entry accounting system. And that it does all your invoicing, your profit and loss, and balance sheet.”

The service is free to Lendio customers, with tiered versions that offer human bookkeepers being available to those willing to pay. Sans such add-ons however, the base product will allow small business owners to collect payments faster through WePay’s streamlining of the payments process.

“Simplifying the invoicing and payments processes for small business owners means they have more time to spend growing their operations,” said WePay VP of Marketing Jennifer Lewis. “WePay’s partnership with Lendio will help small businesses across the country to grow, create jobs, and increase their economic impact.”

Lending Club Originated $3.3B in Loans in Q3

November 5, 2019
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Scott SanbornLending Club originated $3.3B in loans in q3 and reported a minor net loss of $400,000. That loss was a $22.4M improvement over the same period last year, mainly due to an increase in “net revenue” and a decrease in class action and regulatory litigation expense. One of those class action lawsuits against them was dismissed on October 31.

Lending Club is the number one provider of personal loans in the country and is continuing to grow their marketshare, CEO Scott Sanborn said during the earnings call. One analyst asked if their continued lead on that could be due to the market’s declining emphasis on growth as a performance metric. Sanborn responded by saying that the competition had not let up at all on marketing and that direct mail marketing and competition is still at operating at an extremely high level.

Merchant Cash Advance Industry Pioneer David Goldin Launches Lender Capital Partners To Provide Financing To Merchant Cash Advance / Alternative Business Loan Providers

November 5, 2019
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Lenders Capital PartnersWhite Plains, NY – November 5, 2019 – David Goldin, one of the merchant cash advance industry pioneers who founded one of the first US merchant cash advance providers in 2002, Capify (formerly known as AmeriMerchant), that later expanded to the UK and Australia has partnered with a subsidiary of Basepoint Capital, a seasoned specialty finance group, to form Lender Capital Partners ( Basepoint has provided over $300 million in committed financings / forward flow purchases in the merchant cash advance / alternative business loan industry.

Lender Capital Partners (LCP) provides MCA and alternative business lending platforms with strategic capital including:

  • Forward flow programs – LCP funds 100% of the amounts disbursed by the platform in connection with their funding of advances / business loans including sales commissions to their customers to free up cash and avoid the burden of equity requirements or “hair cut” money associated with traditional asset-based credit lines.
  • Participations / Syndication – by having LCP purchase a participation in larger deals, the platform is able to offer larger size approvals to their customers and brokers / referral partners without taking on concentration risk. LCP can participate up to $1 million in each deal and provide strategic capital by offering our many years of industry experience underwriting larger size deals.
  • Credit facilities – LCP provide credit facilities for MCA and alternative business loan providers that begin at a minimum of $20 million and can go up to $100 million+. Our credit facilities typically offer a higher advance rate than a bank and less stringent concentration limits.
  • Broker Graduation Program – LCP will allow brokers to take the next step of becoming a direct lender by providing the capital and know-how needed to fund deals on their own. Designed for brokers that can originate a minimum of $500k/month, LCP can provide the capital needed and set up brokers with one of our partners to provide a back office if needed for underwriting / servicing without having to make the investment on their own.
  • Point of Sales / Credit Card Processor Merchant Cash Advance / Merchant Financing Program – LCP can provide a turnkey solution for POS / Credit Card Processing companies to offer a merchant financing program to their merchants to compete with some of the larger POS providers / credit card processors that are now offering these programs in-house and have had great success. LCP can provide the capital needed for a merchant financing / merchant cash advance program as well as introduce one of our underwriting/servicing partners if needed.

“After exiting the US MCA business in 2017, I have decided the time is right to offer my 17+ years of global MCA / business lending experience to the industry by partnering with Basepoint to supply capital to the MCA / business loan industry. I believe the various programs we offer at Lender Capital Partners are tailored for just about any company in the industry – for both current lenders as well as larger brokers/ISOs that are looking to graduate to the next step of becoming a lender as well as to POS providers / merchant acquirers looking to offer an in-house program to their merchants. And my 17+ years industry experience is a great value-added benefit that very few lenders, if any can bring to the table”, says David Goldin, a principal of Lender Capital Partners.”


Lender Capital Partners provides capital to commercial lenders, particularly in the merchant cash advance / alternative business loan industry. One of the founders of Lender Capital Partners is David Goldin. David is the Founder of Capify, one of the first merchant cash advance providers in the US founded in 2002. David scaled Capify to 225 employees operating in 4 countries and sold the US business to a competitor in 2017 and secured a $95 million credit facility with Goldman Sachs to fund Capify UK and Capify Australia which has over 125 employees total today operating in each of those markets. David has over 17 years experience in the merchant cash advance / alternative business finance industry and is considered a pioneer in the industry. David’s extensive expertise allows Lender Capital Partners to bring strategic value to our relationships, not just capital. For more information on Lender Capital Partners, visit

GoDaddy Now Offers Kabbage Business Lines of Credit To Its Customers

November 4, 2019
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KabbageA curious thing popped up in my Godaddy account dashboard on Monday. Underneath the section to manage my domains, a “Deals from GoDaddy Partners” box offered me $300 in Free Yelp Ads on one side and a business line of credit from Kabbage up to $250,000 on the other.

The Kabbage offer is brand new, according to a joint announcement that came out the same day publicizing a “strategic partnership” between the two companies.

By clicking on it, I found that GoDaddy customers can transmit their account information to Kabbage by clicking a button to begin the loan application process. If a loan is approved, GoDaddy customers save up to $100 on their first monthly loan fee, the website states.

While a simple web domain may only cost around $10 a year, Kabbage has suggested that funds be used for other purposes like staffing up for the busy holiday season, purchasing additional inventory or equipment, or applying it toward digital marketing initiatives.

Borrowers will be able to access the Kabbage dashboard from their Godaddy accounts, an FAQ says.

Below are some screenshots:

godaddy kabbage

godaddy kabbage

Janene Machado Appointed Director of Programs for PCMA’s New York Chapter

November 4, 2019
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Janene Machado, CMP - deBankedDeBanked’s Director of Events, Janene Machado, has been appointed the Director of Programs for Professional Convention Management Association’s (PCMA) New York Chapter. Machado will oversee the Program Committee for a three-year term (January 2020 – December 2022). The Committee is responsible for deciding on the topics, programming, logistics, and speaker invitations for the New York Chapter events.

PCMA, a volunteer driven organization, is the world’s largest, most respected and most recognized network of business events strategists with more than 7,000 members and activities in 30 countries.

Machado has overseen and directed deBanked’s exceptional events including CONNECT and Broker Fair since joining the company in July 2018. The volunteer position with PCMA will be in addition to her continuing to work for deBanked.

Lenders, Leaders, and Las Vegas: Money20/20 Review

November 3, 2019
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money2020Two things arrived in Las Vegas last month: the first being an unusual dip in local weather, with temperatures dropping to the low forties at times and woolen hats making an appearance; the second being Money20/20.

Now in its seventh year, the conference runs smoothly to the point of being habitual, a trait several attendees mentioned to me when asked how they felt about the 2019 edition.

Running from Sunday the 27thto Wednesday the 30th, each day offered a different focus. The first of these being alternative finance, blockchains, and cryptos. Here, leaders from LendingClub, Kabbage, and OnDeck, among others, took to the stages to discuss issues ranging from strategies in the face of a recession to AI in lending. Running throughout were conversations about where cannabis banking regulation was headed and what can be done to prepare. Of note was Jontae James of NatureTrak, who spoke from the Leadership Lodge Stage, pitching his company as a solution to compliance issues facing lenders who want to work with cannabis companies.

The following days contained a mix of subjects, with Monday featuring many events relating to payments and entrepreneurship; Tuesday being the day for cybersecurity, regulation, and banking; and Wednesday closing the show with various talks on emerging technologies. Among the highlights of these were a talk from David Marcus of Calibra on the currency’s efforts to alter the financial landscape, a discussion on growth in emerging markets from Ant Financial’s Douglas Feagin, and words from BlueVine’s Eyal Lifshitz on the needs of small businesses.

Money2020 stageOutside of the stages where these were held was the main expo hall. Dotted with booths and stands, the narrow pathways that were carved out by these were lined with a mix of businesses.

In overwhelming numbers though were companies offering identity verification services. A growing industry in today’s increasingly online world, their presence dominated the hall, with it being hard to turn around without being offered a pamphlet on the importance of knowing who your customers are and how much it will cost to confirm their existence and authenticity.

And while walking through the hall and stopping at stalls to talk offered pleasant and informative conversation, there was an underlying tenseness to some of the chatting. Perhaps it was the unrelenting air conditioning that caused this? Or the endless stream of coffee available had rattled some nerve endings? Or maybe it was the frequency with which an oncoming recession was referenced in the titles of talks?

Who knows, what is likely though is that if it is the last of these possibilities, in the case of a “looming crisis,” as one event labelled it, what was talked about in Vegas may not stay in Vegas.

Canadian Lenders Summit To Take Place on Nov 20, 2019 in Toronto

November 2, 2019
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The annual Canadian Lenders Summit produced by the Canadian Lenders Association will take place on November 20th in Toronto. Registrants can use promo code: debanked40 for 40% off the ticket price.

Register here

Canadian Lenders Summit

deBanked CONNECT San Diego Is A Hit

November 1, 2019
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San Diego Gaslamp QuarterUnder the California sun, our most recent CONNECT event kicked off last week in San Diego’s Hard Rock Hotel. Home to Ron Burgundy, we were a few days too early in the city for any sex panther cologne-infused costumes to make an appearance, although that didn’t stop one attendee donning a money-clad suit.

Beginning in the afternoon, event-goers were able to choose between starting the day with a session from Will Murphy and Josh Feinberg on their Equipment Broker School, a program that aims to arm participants with the knowledge to enter the equipment financing scene; or to dive straight into networking.

Following this, deBanked President and Chief Editor Sean Murray delivered an introductory speech laden with his disappointment in the New York Yankees, a gloom that revealed to him a particular silver lining: “if you’re going to lose, make sure you lose to the best.” Embracing it as a mantra, Murray encouraged brokers to carry out their dealings at the event with this perspective in mind, before expounding on what the future of the industry may hold.

Next up was Justin Thompson, CRO of National Funding, who spoke on the importance of building relationships, providing customers with options, and getting “hooks” into customers in order to plan for your company in the long term. A message that led into the proceeding discussion involving leaders from LoanMe, BFS Capital, and Ocrolus on how businesses are leveraging technology to improve their standing in the market and ensure longevity.

And concluding this panel was a ticket giveaway for the upcoming deBanked Miami event in January, which saw four winners pull a guitar pick from under their seat in a musical chairs-inspired take on Willy Wonka.

Closing out the show were a conversation about California’s unique licensing requirements and what one needs to be aware of when striving for legal compliance; and a series of tech demos showcasing a range of verification software from Truepic, Ocrolus, and Nationwide Management Services.

Left with naught to do but enjoy the rest of the evening, the remainder of the sunshine set on the Hard Rock’s outdoor Woodstock area, where food, drinks, and (mostly) poorly played drums were available to the attendees.

With the atmosphere being breezy and the conversation being comfortable, we left California happy. All that’s really left to say is until next time, you stay classy, San Diego.

Knight Capital Has Been Acquired

November 1, 2019
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knightPublicly-traded Ready Capital Corporation has acquired 100% of Knight Capital LLC. The total sales price was undisclosed but it consisted of cash and 658,771 common shares of Ready Capital stock. A share currently trades at $15.83, valuing the stock portion in excess of $10 million.

More details may emerge when Ready Capital publishes quarterly earnings next week.

“The acquisition of Knight Capital expands Ready Capital’s product offering to small businesses and does so on a platform that has achieved scale,” said Tom Capasse, Ready Capital’s Chairman and Chief Executive Officer, in a public statement. “Furthermore, the addition of Knight Capital will allow us to leverage its proprietary technology to further increase the efficiency of Ready Capital’s lending platform, enhance our borrowers’ experience and expand existing customer acquisition channels.”

Ready Capital, a multi-strategy real estate finance company, is better known by its management company, Waterfall Asset Management, LLC. Waterfall has previously provided credit facilities to companies like OnDeck, Fundation, and UK-based Lendable.

Ready Capital is headquartered in New York City and employs 400 lending professionals nationwide.