Articles by deBanked Staff

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Square Capital On Pace to Overtake OnDeck in Small Business Lending

February 28, 2019
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OnDeck’s annual loan origination volume has more than doubled since 2014, from $1.2 billion to $2.5 billion, allowing them to retain the top spot in deBanked’s small business funder rankings. But Square Capital, the small business lending division of Square, has grown by 16x since 2014. In the course of 5 years, they’ve gone from […]

New York Legislators Introduce Small Business Usury Bill

February 20, 2019
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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 […]

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

February 20, 2019
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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 […]

1 Global Capital Issued Securities, Court Rules

February 17, 2019
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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 […]

Commonbond Receives Financing From Major Banks

February 14, 2019
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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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

PayPal Has a Lot of Merchants and Venmo Is Adding a Boost

February 1, 2019
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Venmo

More than 21 million merchants accept PayPal to take advantage of the 246 million consumers who use it. That’s a lot of merchants to offer value-added products like PayPal Working Capital and invoicing services. But then there’s Venmo, a fast growing digital wallet that PayPal also owns that processed $19 billion in payment volume last […]

Top Accounting Officer at StreetShares Resigns

January 31, 2019
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Military finance

Jesse Cushman, who served as StreetShares’ Chief Business Officer and Principal Financial & Accounting Officer, has resigned, according to a Form 1-U filed with the SEC this week. His exit was made effective as of January 1, 2019. StreetShares president Michael Konson is currently filling the role in an interim capacity until a permanent successor […]

Parris Sanz Joins Petal as General Counsel

January 31, 2019
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Parris Sanz-2

Former CAN Capital CEO Parris Sanz is now the General Counsel for Petal, according to a company announcement. Petal is a US credit card aimed at the unbanked that recently closed a $30 million Series B round led by Peter Thiel’s Valar Ventures. According to a story in TechCrunch, Petal had more than 100,000 potential […]

deBanked CONNECT Miami 2019 Photos

January 28, 2019
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deBanked CONNECT Miami 2019

Photos from the event are below Register For The Next Industry Event!

BFS Capital Surpasses $2 Billion in Financing

January 22, 2019
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Ruddock

BFS Capital announced this morning that it has exceeded $2 billion in financing to over 22,000 small businesses across the United States, Canada and the UK. “This is a major originations milestone,” said Mark Ruddock, CEO of BFS Capital. “We’re incredibly proud to see these investments take root, as BFS Capital continues to solidify its […]

Confessions of Judgment in MCA Make the Evening News

January 21, 2019
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news 4

Erie County Clerk Michael Kearns is no longer processing Confessions of Judgment (COJs) in Erie County for merchant cash advance companies, according to a statement his office published this week. Prior to being elected Clerk, Kearns was an assemblyman in the New York State legislature. On Monday night, Kearns appeared on Channel 4’s evening news […]

Coming Soon: The End of Confession of Judgments (COJs) in New York State

January 16, 2019
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cuomo speech

New York State plans to outlaw the use of Confession of Judgments (COJs) in small business loan contracts this year, according to details revealed in Governor Andrew Cuomo’s newly published Justice Agenda. The proposal, dubbed “Stopping Predatory Merchant Cash-Advance Loans,” is a 3-part plan to: Codify an FTC rule that prohibits COJs in consumer loans […]

Kabbage Finances US Small Business Customers of Alibaba

January 14, 2019
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Alibaba

Kabbage announced today that it has partnered with Chinese e-commerce giant, Alibaba, to provide financing to small businesses that purchase materials on the platform. The financing program, offered by Alibaba and powered by Kabbage, is called Pay Later. “Financing at the point of sale requires a fully automated solution that can handle the immense volume […]

Trial of Debt Settlement Mastermind Sergiy Bezrukov Postponed, Again

January 13, 2019
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buffalo map

The trial of debt settlement mastermind Sergiy Bezrukov has been postponed until April 1, 2019, court records indicate. The planned January 14 start date was just the latest in a series of postponements. Bezrukov is charged with conspiracy to defraud, mail fraud, wire fraud, bank fraud, and money laundering. The charges carry a maximum penalty […]