Articles by deBanked Staff
Update on the Kris Roglieri Saga
April 24, 2024
The trustee overseeing Kris Roglieri’s Chapter 11 bankruptcy case asked the Court on Tuesday to convert it to a Chapter 7. That’s because among the facts to come out of that and related proceedings thus far is that Roglieri did not ever maintain financial records for his various business entities, has no revenue coming in, and has no path to keeping his businesses going. The trustee also noted the added complexity of an FBI investigation and that the Receiver in a related civil case believes Roglieri owes creditors more than $100 million, funds that were allegedly derived from a ponzi scheme.
A Chapter 7 is a liquidation. The Court still has to approve it. A Chapter 7 trustee would have added powers that allows them to pursue assets for the benefit of creditors. The assets would be sold off.
Up until at least one month ago, Roglieri’s wholly owned business, the National Alliance of Commercial Loan Brokers conference (NACLB), was still soliciting for sponsorships. However, the ability to purchase tickets was shut off in early April and as of last week the conference website has gone completely offline. Roglieri previously attested that $436,237 was outstanding and due to Caesars Entertainment in Las Vegas for their 2023 conference. The Receiver in the Prime Capital Ventures case has also argued that the NACLB bank account had been the recipient of at least $20,000 in allegedly misappropriated funds and that $200,000 had been withdrawn from the NACLB’s bank account to aid in the present legal defense of Roglieri.
Nominate Yourself to Be on the Small Business Lending Advisory Council
April 21, 2024
The SBA is forming a Federal Advisory Committee to “provide advice and recommendations to SBA on matters relating to small business lending, private sector innovation in the small business lending community, and policy impacting small businesses’ ability to access capital, especially in underserved communities.”
The 25-member council will include 17 members that are current or former representatives of small business leaders, community leaders, representatives of financial institutions, and members of the small business lending community. Might this be you?
“Nominees must have experience and technical expertise in such areas as commercial lending, small business finance, government-guaranteed lending, small business advocacy or advisement, and expertise needed to provide advice on SBA’s loan programs,” the guidelines say.
If you’d like the opportunity to be considered, you can read more here and apply by emailing LendingCouncil@sba.gov with the following information:
1. The first and last name of the nominee, as well as the nominee’s phone number and email address. (you can nominate yourself)
2. The nominator, including either the first and last name of the nominator and their current title, or the name of the organization.
3. The nominee’s state of residence.
4. A nomination letter, not to exceed 2 pages, that highlights the reason the nominee should serve on the Lending Council.
5. A summary of the nominee’s qualifications in a resumé or curriculum vitae, not to exceed 3 pages.
Are Interest Rate Cuts Not Actually Around the Corner?
April 18, 2024
If you were planning on the current interest rate environment loosening up this year, it may be time to reconsider. Inflation is actually going back up, not down. Plus, unemployment is still relatively low and the stock market is near all time highs, with a new record having been set just recently! Even the media which had predicted a minimum of 3 rate cuts this year alone is changing its tune. If you don’t believe us, look:
4/17/24 – The Economist: America’s interest rates are unlikely to fall this year
4/17/24 – CNBC: Wall Street pushes out rate-cut expectations, sees risk they don’t start until March 2025
4/17/24 – Fox Business: Interest rate cut odds dwindle as inflation progress stalls
4/16/24 – Washington Post: The sobering message from the Fed: Interest rate cuts aren’t coming soon
4/15/24 – Axios: The U.S. may be entering a new era of persistently high interest rates
It could even go the other direction. According to CNN, “The Fed might not be done raising interest rates just yet.” Most companies in the industry by now had already adjusted to the current environment (if they’re still around), but it could continue like this for a long or even get more expensive. Prepare accordingly.
Checking in On Stripe Capital
April 15, 2024
Everyone is well aware that Square does revenue-based financing loans, but lesser talked about is that Stripe does too. Stripe has been offering financing to merchants since at least 2019. Valued at more than $65 billion with IPO rumors swirling, Stripe has the potential to become one of the largest online small business lenders in the United States.
Stripe’s loan program is big enough to leave a trail of discussions across the web about their product, including on Reddit where some users have discussed getting loans well into the six figures. In February, one tech founder shared on X that a Stripe Capital loan had been very beneficial for his business.
Originally, Stripe offered a merchant cash advance but has since switched to doing revenue-based loans. In both cases, merchants pay by Stripe withholding a percentage of their card sales in what’s known industry-wide as a split.
Brokers: Attend This Open Bar in NYC
April 14, 2024
Broker Fair’s Pre-show party sponsored by Triton Recovery Group takes place on May 19th from 7-9pm at Somewhere Nowhere NYC. The Pre-show requires a separate ticket from the main event taking place the following day at The Metropolitan Pavilion.
You can register below for one or both! OR do it on the main site at brokerfair.org.
The Status of the Legal Situation in New York
April 8, 2024| A lot has transpired on the legal front in New York State over the last month. If you’re a broker, funder, or lender that does business in New York, you cannot afford to miss this session at Broker Fair on May 20 in NYC. Come and learn about the current status and future outlook of the industry from this panel of knowledgeable attorneys. Your success is dependent on being informed. Take advantage of this opportunity!
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Peter Ribeiro to Speak at Broker Fair 2024
April 8, 2024Brokers, get ready to learn from one of the industry masters. Peter Ribeiro, well known for his ability to build and scale a very successful broker shop, will be speaking at Broker Fair 2024 on May 20 in NYC. If you’ve ever wanted to hear how it’s done from him in person, this is your chance to do it!
Ribeiro also announced just last week that he has become CEO of Capital Gurus.
Revisiting Splits and Payment Methods in the Funding World
March 31, 2024
As most people are aware, ACH debits are only one method used in the small business finance industry to facilitate performance of a deal. Here are some other common ways:
Split Funding
This method has been in use since at least 1998 and is still used by many funding companies today.
See: CC Splits Still Make Profits, Payments Knowledgeable Funders Benefit
Lockbox
A lockbox gives you the protection and visibility of a split but may require additional setup steps. This method was very common in the 2008 – 2012 era and is still available.
Variable ACH
The variable ACH system, made famous by MCC starting circa 2009, is still in use around the industry.
See: Homegrown Software Enables FundKite to Reconcile MCAs Daily Rather Than Monthly
