Articles by deBanked Staff

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New York Legislators Introduce Small Business Usury Bill

February 20, 2019
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brainstorming

Two members of the New York State legislature have introduced a bill to apply consumer usury protections to small businesses. Bill A03638, introduced by New York Assemblymembers Yuh-Line Niou and Crystal Peoples-Stokes define a small business as “one which is resident in this state, independently owned and operated, not dominant in its field and employs […]

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‘Peers’ Are Almost Gone From Lending Club’s Funding Mix

February 20, 2019
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Lending Club breakdown

Long gone are the days of peer-to-peer lending. On Tuesday, Lending Club, a pioneer in the peer-to-peer lending space, reported that only 6% of its Q4 originations came from individual self-managed accounts. Accounts professionally managed for individuals made up 16%, with the rest of the loans being funded by a combination of banks, institutions, and […]

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1 Global Capital Issued Securities, Court Rules

February 17, 2019
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1st Global Capital Bankruptcy

1 Global Capital founder Carl Ruderman suffered a major setback in his case with the SEC earlier this month, when the Court ruled that his company’s Syndication Partner Agreements and Memorandums of Indebtedness were in fact, securities. Ruderman had filed a motion to dismiss the SEC’s claims against him personally but the Court struck it […]

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Commonbond Receives Financing From Major Banks

February 14, 2019
Article by:

David Klein

Commonbond announced today that it has signed $750 million in lending capacity from Goldman Sachs, Citibank, Barclays, BMO, and ING. “From the start, we have set out to build the highest levels of trust with our customers and our capital partners,” said CommonBond CEO and co-founder David Klein. “Access to this level of capital, and […]

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Shopify is Quickly Climbing the Ranks of the Largest Small Business Funders

February 12, 2019
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shopify glyph

Shopify originated $277 million in merchant cash advances in 2018, according to their quarterly earnings reports. That figure already places them among the largest small business funding providers nationwide. Below is a look of how they stack up thus far: Company Name 2018 Originations 2017 2016 2015 2014 OnDeck $2,484,000,000 $2,114,663,000 $2,400,000,000 $1,900,000,000 $1,200,000,000 Kabbage […]

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With Interest Rates Up, OnDeck’s Cost of Funds Comes Way Down

February 12, 2019
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OnDeck NYSE

OnDeck’s cost of funds dropped significantly in 2018, according to their last quarterly report. The rate was 5.6% in Q4, compared to the 6.8% it started off at in Q1. During the earnings call, OnDeck CEO Noah Breslow said, “We improved the terms and structures of our credit facilities and increased the number and quality […]

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How Much Elevate Spends to Acquire Customers

February 11, 2019
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Elevate Cost of Acquisition

How much does a non-prime consumer lender spend to acquire a borrower? According to Elevate’s Q4 earnings report, the company spent less than $150 per borrower to originate $31 million in loans towards their partnership with FinWise Bank. Overall, however, their cost of acquisition has hovered below $245. From Elevate’s Q4 Earnings Slides Elevate’s direct […]

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New Jersey MCA & Business Loan Disclosure Bill Update (S2262)

February 6, 2019
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new jersey

Bill S2262 in the New Jersey State Senate mandating disclosures on MCA and business loan contracts, was amended last week. In its current form, the bill, if it became law, would require MCA providers to disclose: the total dollar costs to be charged to a small business concern, assuming the small business concern delivers all […]

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LendingPoint Gets Even More Financing

February 4, 2019
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lending point

LendingPoint announced today that it has closed an increase of its mezzanine funding, a hybrid of debt and equity financing. The company’s mezzanine financing now totals more than $67.5 million. Paragon Outcomes Management LLC is the primary investor and was joined for this round by an unnamed co-investor. “Paragon Outcomes continues to provide outstanding support […]

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New York Introduces Bill to Ban COJs in Financial Contracts

February 4, 2019
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New York Assembly

New York Assemblymembers Yuh-Line Niou and Crystal Peoples-Stokes have introduced a bill that would prohibit Confessions of Judgment (COJs) from being used in any contract or agreement for a financial product or service. Peoples-Stokes’ district was one of the first districts to boycott COJs originated by merchant cash advance companies after Erie County Clerk Michael […]

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