Articles by deBanked Staff
Dream Data Services Files Chapter 7 Bankruptcy
August 29, 2024Dream Data Services LLC filed a voluntary petition for bankruptcy last week. The New Jersey-based company had claimed to sell MCA leads including Submissions with all of the merchant’s information. Alan Tunit was declared as the sole member of the LLC. Dream Data Services claimed on its petition that it only had assets of between $0 – $50,000 and liabilities of $100,001 – $500,000.
Steve McLaughlin to Speak at B2B Finance Expo
August 29, 2024Steve McLaughlin will appear on stage at B2B Finance Expo for a fireside chat. McLaughlin is the Founder and CEO of FT Partners and former senior banker at Goldman Sachs covering FinTech and Financial Services for over 20 years. Steve was recently Ranked #1 on Institutional Investor’s “Most Influential Dealmakers in FinTech” report and named “Investment Banker of the Year” and ranked #1 FinTech Banker in Silicon Valley by The Information. FT Partners was founded in late 2001 and has won “Investment Banking Firm of the Year” four times since 2004. Steve has personally led and closed hundreds of FinTech M&A, Capital Raise and IPO Advisory transactions. @ftpartners www.ftpartners.com
Greg Smith, a Managing Director for FT Partners, will also be giving a keynote at B2B Finance Expo.
B2B Finance Expo takes place at Wynn, Las Vegas September 23-24. Registration is still available here. The room block has already SOLD OUT.
Whoa, QuickBooks Capital Shoots Up in Business Loan Originations
August 22, 2024Intuit’s fiscal year ending July 31, 2024 revealed a stunning detail, $2.4B in financing through QuickBooks Capital over 12 months. This was up 28% from the prior year. That number likely puts Intuit’s business loan volume ahead of Shopify’s but that’s still less than Enova and Square. Customers of QuickBooks Capital can apply for financing by clicking a button right in their QuickBooks software.
QuickBooks Online accounting revenue grew 17% in Q4 and 19% in fiscal 2024, the company reported. Intuit has the advantage of many related QuickBooks services slowly merging into one such as payments, payroll, capital, and Mailchimp. Intuit also owns Credit Karma.
Navigating SBA Lending at B2B Finance Expo
August 21, 2024Looking to do more in SBA lending? Make sure you attend this panel of SBA lending professionals at B2B Finance Expo, taking place on Day 1 of the conference on September 23!
Moderated by Bob Coleman of the Coleman Report, this discussion will feature Carissa Sousa, Adam Seery, Jared Weitz, and Ryan Baderian.
California Bill Aims to Add Consumer Debt Collection Protections to Commercial Debts
August 20, 2024Among several commercial finance bills currently making their way through the legislature in California is SB1286, which would apply consumer debt collection protections to commercial debts.
If this bill were to eventually pass commercial debt collectors would need to obtain the same license currently required under existing law for consumer collectors. In addition, it would be a crime for a collector of a commercial debt “to send a communication that simulates legal or judicial process or that gives the appearance of being authorized, issued, or approved by a governmental agency or attorney if it is not.”
There are still more components that would require compliance as well. Like the fact that under current law a debt collector is required to stop collecting a consumer debt when an alleged debtor provides the debt collector with certain information, including information relating to the debtor’s status as an alleged victim of identity theft. This would also apply to commercial debts. The full language of the bill can be read here.
Another bill moving along right now is SB1482, which would “would impose various duties on commercial financing providers and brokers, including, among other things, prohibiting the taking of a confession of judgment or power of attorney at any time before a default.”
Although both bills were introduced all the way back in February, they are currently being passed through committees.
Prosper Continues to Chug Along
August 18, 2024Prosper originated $512.2M in consumer loans in Q2 of 2024, which was down 14% from the same period last year. This was “primarily due to the reduced usage of our Warehouse Lines to purchase loans, as well as decreased third-party investor demand,” the company said in its quarterly report.
Prosper rates its borrowers from AA (best) to HR (worst). They are AA, A, B, C, D, E, HR. Twenty two percent of their borrowers in the first half of 2024 were given a B rating. 15% had an E rating and only 10% had a AA rating.
Overall, Prosper has been chugging along, generating an insignificant net loss of only $500,000 for the quarter. The fact that it supplies public quarterly reports is unique in that the company is not public but continues to sell notes to retail investors, making it more-or-less the only remaining peer-to-peer lender to remain from what is now a bygone era.
Kris Roglieri Alleged to Have Transferred Assets to Third Parties
August 16, 2024The Chapter 7 Trustee managing the personal bankruptcy of Kris Roglieri brought new information to light on Thursday by alleging that Roglieri lied heavily in his original bankruptcy petition. In addition to hiding assets, income, expenses, debts, gifts, and records from the bankruptcy process in part by running them through many business entities he owned, he also moved funds from his personal account into his Commercial Capital Training Group, LLC (CCTG) bank account just weeks before filing for personal Chapter 11 bankruptcy back in February. From there, assets from CCTG and assets from the National Alliance of Commercial Loan Brokers, LLC (NACLB), another business he owned, were transferred to third parties to be preserved as safekeeping for Roglieri’s own benefit.
“[Roglieri] thereafter transferred the assets including without limitation operations, funds, good will, client lists, and other personal property of Commercial Capital Training Group, LLC and the National Alliance of Commercial Loan Brokers, LLC to third parties,” the Trustee wrote. “[Roglieri] facilitated the transfer of assets from the Debtor Entities to dissipate the value of the Debtor membership interest in the Debtor Entities as a potential source of payment to creditors of the Debtor bankruptcy estate.”
On May 15, deBanked reported that the NACLB Conference had changed its name to Commercial Loan Broker Association (CLBA).
“The third parties are preserving the value of the transferred assets for the benefit of the Debtor,” the Trustee wrote. Assets belonging to the Roglieri estate were to have been turned over to the Trustee but were not.
Roglieri allegedly “facilitated the transfer of assets, including operations, funds, goodwill, client lists, and other personal property of Prime Commercial Lending, LLC to third parties” as well.
The Trustee has asked the Court to deny Roglieri a discharge of his bankruptcy. The full complaint can be viewed here.
Shopify Capital’s Funding Business Grows in Q2
August 14, 2024Shopify Capital originated ~$700M in business loans and merchant cash advances in Q2. During the earnings call, Shopify CFO Jeff Hoffmeister referred to its Capital division as a “growth business” that had increased in volume. Shopify has otherwise seemed to downplay mention of this division since early last year. In terms of origination volume, the company is still not as big as Enova or Square Loans.
Shopify’s rival, Amazon, used to offer funding to its clients directly as well, but switched to referring its clients to third party lenders earlier this year.
