Articles by deBanked Staff
What a Prime Customer Would Expect From a Non-Bank Lender
March 15, 2023In the current banking environment, we asked what a prime customer would expect from a non-bank lender should they be forced to go that route:
Customer Experience:
I would expect a seamless, user-friendly online or mobile application process, with responsive customer support via phone, chat, or email. I would appreciate transparency in terms and fees, as well as clear communication about the loan approval process and timeline.
Interest Rates:
Since non-bank lenders typically have less stringent regulations and higher risk tolerance than traditional banks, I would expect the interest rates to be somewhat higher than those offered by prime credit banks. However, I would still look for competitive rates, possibly through comparing multiple non-bank lenders, to ensure I’m getting the best deal possible.
Loan Terms:
I would expect flexible loan terms, such as the ability to choose the loan duration, repayment schedule, and options for early repayment without penalties. Additionally, I would expect clear terms and conditions, including any fees associated with the loan, such as origination fees, late payment fees, or prepayment penalties.
In summary, while I would anticipate higher interest rates and potentially less stringent lending requirements, I would still expect a high level of customer service, transparency, and flexible loan terms from a non-bank lender to make the borrowing experience as positive as possible.
Signature Bank Shuttered By Regulators, Customer Service to Continue Uninterrupted
March 12, 2023
If you’ve been following the news, then you’ve heard that Signature Bank was shut down by the New York Department of Financial Services on Sunday. Signature was a popular bank in the small business finance industry. Although it is now under the control of the FDIC, “Depositors and borrowers will continue to have uninterrupted customer service and access to their funds by ATM, debit cards, and writing checks in the same manner as before,” the FDIC said. “Signature Bank’s official checks will continue to clear. Loan customers should continue making loan payments as usual.”
The FDIC is now marketing the institution to potential bidders. All depositors will be made whole, thanks to a special exception ordered by the Treasury Department.
Signature Bank relied mainly on commercial customers and enjoyed a famous director, former Congressman Barney Frank, the architect of Dodd-Frank, aka the Wall Street Reform and Consumer Protection Act of 2010.
All Registered Sales-based Financing Providers in Virginia (List)
March 11, 2023Is the revenue-based financing provider you do business with registered to operate in Virginia? On July 1, 2022, Virginia’s commercial financing disclosure law went into effect and with that the necessity to register one’s business. As of March 8, 2023, this is the official list of registered sales-based financing providers:
- Advance Servicing Inc.
- Accredited Business Solutions LLC dba The Accredited Group
- Advance Funds Network LLC dba Advance Funds Network
- AdvancePoint Capital LLC dba advancepoint
- Ally Merchant Services LLC
- Alpine Funding Partners, LLC
- Business Capital LLC
- Byzfunder NY LLC dba Tandem dba Nano-FI
- Bridge Capital Services, LLC
- CFG Merchant Solutions, LLC
- Clarify Capital II LLC dba Clarify Capital
- Cloudfund VA LLC dba Cloudfund LLC
- Capflow Funding Group Managers LLC
- Clear Finance Technology (U.S.) Corp. dba Clearco
- Coast Premier LLC dba Coast Funding
- Commercial Servicing Company, LLC
- Corporate Lodging Consultants, Inc.
- Crown Funding Source LLC dba Crown Funding Source
- Diesel Funding LLC
- Direct Capital Source Inc.
- Dealstruck Capital LLC
- EBF Holdings, LLC
- Essential Funding Group Inc
- Errant Ventures LLC
- FC Capital Holdings, LLC FundCanna
- Fidelity Funding Group LLC
- Front Capital LLC
- Finova Capital, LLC
- Fintegra, LLC
- First Data Merchant Services LLC
- FleetCor Technologies Operating Company, LLC
- Flexibility Capital Inc.
- Fora Financial East LLC
- Forward Financing LLC
- Fox Capital Group Inc.
- Fundamental Capital LLC
- Funding Metrics, LLC dba Quick Fix Capital
- Good Funding, LLC
- Granite Merchant Funding, LLC
- Invision Funding LLC
- Itria Ventures LLC
- Jaydee Ventures, LLC dba 1 West Capital dba 1 West Commercial
- Kapitus LLC
- Knight Capital Funding III, LLC
- Lexington Capital Holdings Ltd
- LG Funding LLC
- Legend Advance Funding II, LLC dba Legend Funding
- Liberis US Inc.
- Libertas Funding, LLC
- Liquidibee 1 LLC dba Liquidibee LLC dba Altfunding.com
- Loanability, Inc.
- Millstone Funding Inc.
- National Funding, Inc.
- Nav Technologies, Inc.
- Pearl Alpha Funding, LLC
- Pearl Beta Funding, LLC
- Pearl Delta Funding, LLC
- Proto Financial Corp.
- PWCC Marketplace, LLC
- Parafin, Inc.
- PayPal, Inc.
- Payability Commercial Factors, LLC
- Pinnacle Business Funding LLC dba Custom Capital USA dba EnN OD Capital
- Platform Funding LLC
- Prosperum Capital Partners LLC dba Arsenal Funding
- QFS Capital LLC
- RFG USA Inc.
- Rival Funding, LLC
- Riverpoint Financial Group Inc.
- Rocket Capital NY LLC
- ROKFI LLC
- Ruby Capital Group LLC
- Rapid Financial Services, LLC
- Reliant Services Group, LLC
- Retail Capital LLC dba Credibly
- Revenued LLC
- Rewards Network Establishment Services Inc.
- Secure Capital Solutions Inc.
- Sky Bridge Business Funding, LLC
- SMB Compass LLC dba SMB Compass
- Santa Barbara Tax Products Group, LLC
- SellersFunding Corp.
- Sharpe Capital, LLC
- Shine Capital Group LLC
- Shopify Capital Inc.
- Shore Funding Solutions Inc.
- Streamline Funding, LLC
- Stripe Brokering, Inc.
- The LCF Group, Inc.
- United Capital Source Inc.
- Upfront Rent Holdings LLC
- Upper Line Capital LLC
- Vader Servicing, LLC
- Velocity Capital Group LLC
- Vivian Capital Group LLC
- Vox Funding, LLC
- ZING Funding I, LLC
In The Funding Biz? Here’s What to Know
March 9, 2023Are you in the biz of funding small biz? Listen to these execs tell you how to make it work!
Effective Broker Training
Successful Digital Marketing With Zack Fiddle
Measuring the Impact of Technology on Your Funding Business With Adam Schwartz
Building a Successful Funding Brokerage With Frankie DiAntonio
Funding Circle US Originates $393M in 2022
March 2, 2023The American arm of Funding Circle originated $393M in business loans in 2022, according to the company’s latest public financial statements, nearly quadruple the previous year.
The majority of Funding Circle’s loans are currently projecting annualized returns in the vicinity of US inflation levels. A graph of their loans by cohort is below:
Funding Circle US has a fairly diversified base of capital, having worked with eight forward flow funders in 2022, one of which was a credit union.
The UK still remains the overall company’s primary market. It originated £723M in business loans in 2022, not including those part of government support scheme programs.
A Glimpse At How Big Fintechs Are Approaching The Small Business Loan Market
March 1, 2023| Company Name | Status | Notes |
| Square Loans | Just recorded its biggest originations year ever. $4.07B funded in 2022 | |
| Enova/OnDeck | Seeing tremendous demand. Focusing on diversification. $2.97B funded in 2022 | |
| Shopify Capital | Reporting strong renewals. Just had its biggest originations year ever with $1.66B funded in 2022. | |
| Upstart | Suspended business loan originations only 6 months after it started them. | |
| LendingClub | Has suspended its equipment financing and commercial real estate lending divisions. | |
| SoFi | Not interested in joining the small business loan market at this time. |
Square Loans Completes Monster Funding Year
February 26, 2023
Square Loans rose to the top of deBanked’s small business loan originations leaderboard last year after announcing $1.16B in originations in Q4. That brought the company, which is a subsidiary of Block (formerly Square), to over $4B funded for the year total, spread out across 461,000 loans.
In its annual shareholder letter, Block said that “Square Loans achieved strong revenue and gross profit growth during the fourth quarter of 2022.” Demand for loans has been steady and loss rates have stayed consistently within historical ranges.
Square Loans typically approves merchants for less than 20% of a merchant’s expected annual Square gross payment volume, is repaid by withholding a percentage of credit card sales, and enjoys a borrower base that pays off its loans in less than 9 months on average.
Block’s business is so large and now has so many components that Square Loans did not even come up in Block’s Q4 earnings call. Overall, the company generated $5.7B in revenue in 2022.
The small business loans originations leaderboard contains a lot of blanks. That’s because several public companies have attempted to obscure their business lending figures or non-public ones have opted to not disclose their figures. If you want your company’s figures to be added, email info@debanked.com.
New Commercial Financing Disclosure Bills Emerge in Several States
February 24, 2023Several states have resumed efforts to pass a commercial financing disclosure bill this year, following successes that have already taken place in other states. Below are three on the table so far:
- Illinois – Small Business Truth in Lending Bill
- Maryland – Consumer Credit Commercial Financing Transactions
- Connecticut – An Act Requiring Certain Financing Disclosures
