Articles by deBanked Staff
Virginia Hops on the Commercial Finance APR Disclosure Bandwagon
January 14, 2022
Add Virginia to the list of states introducing initiatives to codify disclosures in commercial finance. Virginia House Bill 1027 is aimed squarely at “sales-based financing providers.”
The Virginia bill calls for an estimated APR to be disclosed on sales-based financing contracts using methods conceived in New York’s recent legislation.
As has been witnessed, however, New York’s regulators recently discovered weaknesses in their own law.
The Virginia bill is in its very early stages. It was introduced on Wednesday, January 12th by Delegate Kathy K.L. Tran (D).
DailyFunder Surpasses Two Million Page Views Again
January 10, 2022
DailyFunder, the small business finance forum founded in 2012, once again surpassed two million annual page views.
“This community draws in hundreds of thousands of visitors each year,” said DailyFunder founder Sean Murray. “We’re very impressed by its continued popularity ten years after it was founded.”
The forum is currently beta testing a new form of native advertising that was automatically extended to existing advertisers. The site continues to be one of the primary drivers of b2b finance traffic for the industry.
“There’s a reason that people keep coming back,” Murray added. “There’s really nothing else like the DF.”
Trial For Brendan Ross in Direct Lending Investments Case Postponed
January 7, 2022The criminal trial of Brendan Ross, the former alternative lending hedge fund operator accused of wire fraud, has been postponed to July 26, 2022. Ross has been out on bond. He has pled not guilty.
And One of the Largest Small Business Funders is… Pipe?
December 22, 2021
It’s not a loan, Pipe says. Instead businesses can sell their future recurring revenue to investors on a trading platform for cash upfront today. Led by CEO Harry Hurst, the former founder of a rental car delivery service, Pipe has provided an astounding $1.2B worth of capital to businesses this year, putting them on pace to become one of the largest small business finance companies nationwide.
The company claims to have made recurring revenue into an asset class while making Miami their home base, much to the joy of the city’s tech-friendly mayor.
I am so grateful for everyone participating and joining forces to make Miami a global hub for innovation.
This is just one of many! @harryhurst @m_cieplinski @pipe
Read more: https://t.co/OtxrRad0yq
— Mayor Francis Suarez (@FrancisSuarez) December 22, 2020
Pipe considers itself to be the “Nasdaq for revenue” and calls its employees “plumbers” instead of sales agents, underwriters, and engineers.
People wonder how big @pipe is.
In our first full year of trading we’ve provided access to over $1.2B in financing to companies of all shapes and sizes, from bootstrappers to public co’s – all on their terms.
Proud of our team of 76 plumbers is an understatement.
Bring on ‘22!
— Harry Hurst (@harryhurst) December 21, 2021
Pipe has already raised $300 million of equity financing in the last year from investors including Shopify, Slack, Okta, HubSpot, Next47, Marc Benioff’s TIME Ventures, Alexis Ohanian’s Seven Seven Six, Chamath Palihapitiya, MaC Ventures, Fin VC, Greenspring Associates, Counterpoint Global (Morgan Stanley) and more at a valuation of over $2 billion.
“Pipe is levelling the playing field for companies in the capital markets,” said Chamath Palihapitiya, Founder & CEO, Social Capital, to finledger. “By taking the underlying contracts that generate recurring revenue streams and making them tradable for the first time, Pipe has unlocked a multi-trillion dollar asset class, revenue.”
Transition to NMLS Extension Postponed to March 15, 2022
December 21, 2021With permission for reprint from Leasing News and credit to Ken Greene
The California DFPI has extended the deadline for transitioning to the NMLS to March 15, 2022 for all those with a California license.
I had a long talk with the DFPI NMLS specialist and the agency is well aware that the transition process is not simple, and that many companies are having difficulty with it. I was also advised that if an application is pending but not approved when the deadline passes, your license will not be revoked. That is also good news.
This three-month extension should give everyone sufficient time to get the transition done. The process is confusing, but the folks at the DFPI are quite helpful. I urge anyone having difficulty to call them. Still, don’t wait until the last minute!
Here is the announcement:
Extension – NMLS Transition for California Financing Law Licensees: Deadline Extended to March 15, 2022
Notice of Extension
The deadline for licensees under the California Financing Law not currently on NMLS to transition onto NMLS is extended to March 15, 2022.
All licensees not yet on NMLS must establish an account in NMLS and submit their information through NMLS on or before the March 15, 2022 deadline.
Begin by Establishing an Account in NMLS
Licensees seeking to transition onto NMLS may access NMLS’s website here. From this homepage, select the button for “Getting Started – Company.”
To facilitate creating an account in NMLS, all transitioning CFL licensees should be familiar with the documentation required when setting up the account. This NMLS Account Creation Help Document describes step-by-step how to create an NMLS account and the documents needed.
Input Licensee Information
After establishing an account, a licensee must input its information on two electronic forms (three electronic forms if the licensee has branch locations). Information about the licensee is entered on the “Company Form,” MU1. Information about each key personnel (owners, officers, directors, managing members, partners, etc.) is entered on the “Individual Form,” MU2. Information about branch locations/licenses is entered on the “Branch Form,” MU3. After completing the applicable information, submit the information through NMLS.
NMLS has state-specific checklists to assist licensees transitioning onto NMLS, and FAQs for guidance on transitioning a license onto NMLS.
Questions
For questions regarding the creation of an account in NMLS, contact the NMLS Call Center at (855) 665-7123. For questions regarding transitioning a CFL license onto NMLS, contact DFPI at CFL.Inquiries@dfpi.ca.gov or (866) 275-2677.
Finally, for those of you who missed it, here is a link to my Leasing News article from 12/8/21 outlining the CFL to NMLS transition process:
https://leasingnews.org/archives/Nov2021/11_15.htm#cfl
Ken Greene Leasing & Finance Observations
https://leasingnews.org/Pages/greene_observations.html
Ken Greene
Tel: 818.575.9095
Fax: 805.435.7464
ken@kengreenelaw.com
Alternate: kengreenelaw@outlook.com
QuickBooks Capital’s Small Business Lending Originations Surge
December 13, 2021
QuickBooks Capital, part of Intuit, originated $125M worth of small business loans in the fiscal quarter ending October 31, 2021.
For context, the company originated $232M across the entire fiscal year of 2021 ending on July 31st and $243M for the entire fiscal year of 2020. The company’s best fiscal year so far was 2019 when it originated $316M.
The company is now on track to surpass all previous years.
During the earnings call, CEO Sasan Goodarzi said that one of the company’s big bets is “to become the center of small business growth by helping our customers get customers, get paid fast, manage capital, pay employees with confidence and grow in an omnichannel world.”
“60% of small businesses struggle with cash flow and we are continuing to innovate to create solutions for customers to overcome this challenge,” Goodarzi said.
Intuit recently acquired Mailchimp and acquired Credit Karma last year.
Kabbage Re-enters Small Business Funding Arena
December 8, 2021
When Kabbage stopped lending in the Spring of 2020, many assumed they would pick up where they left off when they were acquired by American Express. Not quite. Since the deal in August 2020, Kabbage had been repurposed as a checking account service.
On Wednesday, however, Kabbage finally announced a return to funding.
“Kabbage from American Express today launched Kabbage Funding™, offering eligible small businesses flexible lines of credit between $1,000 and $150,000—now with the powerful backing of American Express. With Kabbage Funding, small businesses can apply in minutes to access working capital 24/7 to help manage their company’s cash flow.”
The only strange thing about it is the marketing that makes it sound as if Kabbage had never actually been in the funding business until just now.
Kabbage had been one of the largest online small business lenders in the country in 2019, generating approximately $2.7 billion in loan originations. At the time, it was more than Square, OnDeck, ClearCo, Funding Circle, Amazon, and Shopify.
Broker Fair is HERE
December 5, 2021
Monday kicks off Broker Fair 2021 at Convene at Brookfield Place in lower Manhattan. The venue can be found on the 2nd floor of 225 Liberty Street. You must have a ticket and proof of vaccination to enter. The event is sold out.
deBanked TV will be streaming live from inside the venue where host Johny Fernandez will be talking to attendees throughout the day. You can tune in to watch live on debanked.tv starting in the morning on December 6th.
If you see the below entrance on the 2nd floor of the building on December 6th, you’re at the right place:
