Articles by Press Release
LoanGeek to Transform Commercial Real Estate Financing With The Launch of Exciting Platform in Summer 2023
May 5, 2023
New York, NY, May 5, 2023 – LoanGeek today officially announced that it is launching an online financing platform that connects real estate owners and investors to financing sources for all their real estate financing needs. The technology-driven solution, set to launch in the summer of 2023, is revolutionizing the commercial lending process through automation. Customers can submit basic information about their property and financing needs and will be matched with a lender that meets their criteria within minutes. Through strategic partnerships and a proprietary streamlined technology solution, LoanGeek ensures ease, efficiency, flexibility, and an elevated experience.
“We are thrilled to announce the launch of LoanGeek to provide a valuable service and meet a need in the marketplace. Our platform is a one-stop shop for all your real estate financing needs. Whether you are a real estate investor in need of financing to acquire a new property, or looking to refinance an existing one, we have you covered. We expect the platform to be live later this summer but already have a waitlist of referral partnerships,” says Chris Pepe, CEO of LoanGeek.
A New Era for Financing on the Horizon
Under the guidance of a team with more than 20 years of experience in commercial and SMB lending, LoanGeek aims to make applying for a commercial loan and finding the right lender as simple and stress-free as possible. In the past, real estate investors and property owners typically went with whatever offer they received from one lender—unaware of other potential superior options—and this longstanding problem is what LoanGeek will solve.
In building its foundation, LoanGeek puts people, relationships, and transparency at the forefront. When a customer applies through LoanGeek, they can see all options available to help them make an informed decision. Whether a customer is looking for a 50,000 fix-and-flip project or a 200- million-dollar ground-up construction, LoanGeek can accommodate all these needs.
About LoanGeek
LoanGeek is an online financing platform that connects real estate owners with financing options. Through innovative technology, the platform simplifies the loan application process for customers and helps them find the best financing options for their properties. Based in New York, LoanGeek partners with various lenders to provide customers with competitive rates and terms. For more information, visit www.loangeek.com.
Lending Valley is Now Offering Funding Up to $5 Million
May 2, 2023
Lending Valley, based in New York City, is proud to announce that we are expanding funding options for funding up to $5 million. In the years following the global pandemic, Lending Valley helped many small businesses stay afloat, giving them the capital necessary to fund payroll, purchase materials, and keep the lights on even when patronage was at an all-time low. Now, Lending Valley will offer even larger funding to small and mid-sized businesses to keep them thriving.
Since its conception, Lending Valley has offered a wide range of business funding targeted toward supporting small businesses, including the following options:
- Unsecured business funding – No collateral needed. The business owner’s ability to repay the funding is the only thing securing the funding.
- Funding for entrepreneurs with bad credit – Unfortunately, going out on a limb for business ventures can often lead to bad credit for entrepreneurs. Traditional funding won’t consider these merchants, but Lending Valley will.
- Emergency business funding – Any emergency, personal or business, can derail even the best business plan. Short-term emergency funding can prevent long-term damage.
Businesses that have benefited from Lending Valley’s services vary widely, from the film industry to convenience stores and gas stations, cannabis farms and dairy farms, to dental practices and more. Lending Valley is a different type of funder, providing custom tailored funding options. Unlike traditional funding that can take weeks to approve and fund, Lending Valley deposits cash into the business’s account within 24 hours in most cases!
About Lending Valley
Lending Valley is a FinTech company that has already funded a lot of small businesses of all types across the U.S. For all inquiries, email Clark@lendingvalley.com
WBL Secures Anchor Institutional Financing and Resumes Full Operations and Funding
April 24, 2023
World Business Lenders (WBL) is resuming funding this week and relaunching originations through its Traditional, Digital API, and ISO Express channels, following a financing arrangement announced today by WBL CEO Doug Naidus.
“I am excited to welcome our new financing partner, not only enabling WBL to resume loan origination and funding, but affording access to more lending capacity than ever before,” said Naidus. “We are eager to return to market and launch our new business model.”
Initially, WBL will prioritize funding the customers who have remained in its pipeline since December 2022 when the company temporarily paused funding. WBL will begin accepting new loan submissions from its ISO partners, with respect to which additional detail will be provided over the coming days. In parallel with accepting new submissions, WBL will roll out a full-service Digital API business model and a self-service ISO Express business model, for certain qualified ISOs. At the helm of the new business model launch is John Milligan, WBL’s Chief Operating Officer, who now heads loan production.
“The API model will enable larger ISOs to leverage a digital integration that will automatically submit merchant applications straight to WBL. The ISO Express model empowers ISOs with the ability to generate offers for their merchants directly online. Both of these digital offerings are high-growth opportunities that will maximize the earning potential of our ISO partners through a combination of speed and simplicity.” said Milligan.
To learn more about how your business can maximize profits by partnering with WBL and leveraging its new API business model, please reach out to John Milligan’s team directly at isorelations@wbl.com. Also, be sure to inquire about meeting times with the WBL team at the upcoming Broker Fair on May 8th, of which WBL is pleased to be a sponsor.
Secured Lenders Maintain Confidence Despite Inflation, Interest Rates
April 13, 2023
NEW YORK, NY, April 13, 2023 ─ Steady confidence in the asset-based lending market marked the fourth quarter, according to data released by the Secured Finance Network. Lenders maintained a positive outlook despite persistent inflation and rising interest rates.
SFNet surveyed bank and non-bank asset-based lenders (ABLs) on key indicators for its quarterly Asset-Based Lending Index and SFNet Confidence Index.
“As the U.S. economy remains under stress, the asset-based lending industry is primed to meet new demand,” said SFNet CEO Richard D. Gumbrecht. “Commitments have increased and portfolio performance remains solid. Should we see a recession, the ABL industry stands ready to provide vital working capital.”
In the most recent Confidence Index, lenders pointed to the resiliency of an industry that Gumbrecht describes as having “all weather” status. The most positive expectations were in the demand for new business, hiring and client utilization. But banks and non-banks shared low expectations around the overall business conditions.
Survey highlights
For banks, asset-based loan commitments (total committed credit lines) were up 2.4% in the fourth quarter compared to the previous quarter. Outstandings (total asset-based loans outstanding) fell by 1.6%, however. Commitment runoff increased by 7.8% quarter over quarter.
“Both new commitments and commitment runoff remain well below their year-ago levels for banks reporting in Q4 2021 and Q4 2022,” the report said. “Lower new commitments and higher commitment runoff reduced net commitments in Q4, the second consecutive quarter of decline.”
Non-bank lenders, meanwhile, saw total commitments rise by 6% last quarter. Total outstandings were up, as well, by 1.7%. Compared to the same quarter last year, total commitments and outstandings for non-banks rose by 10.4% and 18.6%, respectively.
“Further, a large majority of non-banks reported increased new commitments in Q4, which grew by 277% from Q3,” the report said.
Commitments runoff dropped by 21.9% from the third quarter. A sharp rise in new commitments and decreased runoff caused net commitments for non-banks to reach their highest level since Q3 2020, the report said.
In terms of credit-line utilization for bank lenders, the rate fell to 40.1%, marking the second consecutive quarterly decline after more than a year of growth. Non-banks saw a similar trend: Their combined utilization rate dipped from a multi-year high of 59.6% in Q3 to 53.8% last quarter.
“The drop for both bank and non-bank rates suggests that the ABL industry is returning to traditional seasonal fluctuations in utilization,” the report said, “as borrowers pay down outstanding balances, they typically build up in the third quarter of the year as they prepared for the holiday shopping season.”
As for portfolio performance at the end of 2022, banks started to see movement toward “more normal levels” after record strong performance in previous quarters. For banks, criticized and classified loans, non-accruals and gross write-offs all rose in Q4 relative to Q3 but are still at levels well below historic highs. Non-banks continued to report solid portfolio performance; 30% of survey respondents reported a decrease in non-accruals quarter-over-quarter and none saw an increase.
Now, in early 2023, the U.S. economy is at a fork in the road, the report said. “A strong labor market and low energy prices could continue to propel the economy; or, persistent inflation, weak real income growth and sectoral slowdowns could prompt a recession. For now, a period of relatively weak growth is the best bet, but asset-based lending, as an ‘all-weather’ industry, is well-positioned to meet new demand in any scenario.”
Details
For more publicly available information, click here. SFNet members who participate in the surveys have access to additional data and detailed reporting.
For a broader view of ABL trends and this industry, visit SFNet’s Annual Asset-Based Lending Industry Survey for 2022.
About Secured Finance Network
Founded in 1944, the Secured Finance Network (formerly Commercial Finance Association) is an international trade association connecting the interests of companies and professionals who deliver and enable secured financing to businesses. With more than 1,000 member organizations throughout the US, Europe, Canada and around the world, SFNet brings together the people, data, knowledge, tools and insights that put capital to work. For more information, please visit SFNet.com.
Media Contact:
Michele Ocejo, Director of Communications
Secured Finance Network
mocejo@sfnet.com, 212-792-9396
New California Disclosure Rules Reduce Capital Available to Small Businesses
March 21, 2023In a poll conducted by a leading trade association, since new CA disclosure rules were implemented in December 2022, 40% of respondents were found to be “no longer lending” to prospective borrowers who fall within the regulations’ threshold of less than $500,000. The poll was conducted by The Secured Finance Network (SFNet), an 80-year-old nonprofit with members representing the $4T U.S. secured finance industry. The new law, requiring sweeping financial disclosures, introduced by CA State Senator Steven M. Glazer in 2018, faced four years of strong opposition before being rolled out in December of 2022.
According to the poll, commercial finance companies would rather not lend to small businesses than comply with what they believe are “misguided and un-compliable” requirements. Mark Hafner, president and CEO of Celtic Capital Corporation, based in Calabasas, CA, said, “Unfortunately, we must now shy away from smaller deals (under the $500k threshold) as the disclosure requirements are extremely complicated to figure out and would require getting our attorneys and CPAs involved to ensure compliance. It’s just not worth the costs involved to fund a small deal anymore. The statute is not user friendly and, frankly, not representative of the true costs as there are numerous assumptions that have to be made to calculate the APR based on the state’s requirements. I honestly don’t think it was designed to meet the stated goal of the statute.”
Robert Meyers, president of Republic Business Credit, which does business with many California-based businesses, explained, “While the fines and penalties are clear under the regulations, the state has been unwilling to confirm our compliance or anyone else’s compliance. That fear is what has stopped 40% of our non-banks from doing business in the state, thus reducing access to capital for small- and medium-sized businesses. I expect this number to increase as time goes on. If the goal of this law was to better inform, it is actually doing the opposite as APR just doesn’t apply to our products.”
SFNet reports that its member companies provide “tens of billions” of capital annually in California to small businesses for essential working capital that funds everything from inventory, to work in process to payroll.
“Forty percent of billions is a large number,” said SFNet CEO, Richard D. Gumbrecht. “In attempting to find a one-size-fits-all solution to financial transparency, the State has created a complex set of requirements that misrepresent the actual cost of borrowing. Lenders are saying it’s not worth the cost and risk of complying. If this sample of 50 lenders is indicative of what we can expect, clearly that was not the intent of the legislation. And considering the demise of Silicon Valley Bank, it’s more important than ever that capital is not restricted in California.” The trade association is working with State legislatures to revise the statute. “Other states have found a simpler and more accurate way to protect small borrowers, and given the unintended consequences we are seeing, we are hopeful California will be receptive to these alternative approaches.”
To demonstrate how vital small businesses are to the U.S. economy, and the importance of not curtailing funding, consider these statistics: According to the U.S. Small Business Association (SBA), small businesses of 500 employees or fewer make up 99.9% of all U.S. businesses and 99.7% of firms with paid employees. Of the new jobs created between 1995 and 2020, small businesses accounted for 62%—12.7 million compared to 7.9 million by large enterprises. A 2019 SBA report found that small businesses accounted for 44% of U.S. economic activity.
About Secured Finance Network
Founded in 1944, the Secured Finance Network (formerly Commercial Finance Association) is an international trade association connecting the interests of companies and professionals who deliver and enable secured financing to businesses. With more than 1,000 member organizations throughout the U.S., Europe, Canada and around the world, SFNet brings together the people, data, knowledge, tools and insights that put capital to work. For more information, please visit SFNet.com.
Media Contact:
Michele Ocejo, Director of Communications
Secured Finance Network
mocejo@sfnet.com, 551-999-5283
Commercial Funding Partners promotes Bailey Turner to Senior Vice President of Market Strategies
March 8, 2023
Commercial Funding Partners (CFP) has announced the promotion of Bailey Turner to Senior Vice President of Market Strategies. In this new capacity Turner will be responsible for overseeing marketing strategies and efforts to improve the company’s market positions and achieve desired business goals.
Turner joined CFP in 2017 as Business Development Officer and was quickly promoted to Vice President and subsequently Partner in the firm. During his tenure, Bailey has been a tremendous asset to the growth of the company. “Bailey’s contribution to bottom line growth of CFP has been paramount. We are excited to use his years of experience and excellent leadership skills to continue to expand our sales revenues and innovate our client experience,” said Buddy Zarbock, President of CFP.
Commercial Funding Partners is a national lender that provides businesses with no-hassle asset financing and leasing. CFP’s industry leadership and a wide array of financing products have helped its customers prosper since 1987. Please visit their website at www.com-funding.com
CFG Merchant Solutions Closes $20 Million Corporate Note Financing
March 6, 2023NEW YORK, NY. March 6, 2023
– CFG Merchant Solutions, LLC (“CFGMS”), a technology-enabled specialty finance and alternative funding provider, announced the closing of a $20.0 million investment-grade rated corporate note financing from a group of leading U.S.-based institutional investors. The transaction was assigned a BBB rating by a nationally recognized statistical ratings organization.
Since its founding in 2015, CFGMS has a proven track record of asset performance and profitability, and has funded more than $1.0 billion to over 25,000 small and medium-sized businesses (SMBs) across diverse industries throughout the U.S. The Company plans to use proceeds from the issuance to refinance a portion of existing debt and support continued growth of the business.
“Across the U.S. there are millions of healthy SMBs looking for financing to grow. This sector, however, is increasingly under-served by traditional financial institutions,” said Andrew Coon, Chief Executive Officer of CFGMS. “This transaction will provide CFGMS with additional flexibility and enable the Company to continue to grow our business and deliver valuable capital to customers.”
Bill Gallagher, President of CFGMS, added, “Given the volatile capital markets, the successful closing of this transaction demonstrates that institutional investors have confidence in our platform and financial performance, and expect to see continued growth. This credit investment significantly increases our funding capabilities and enhances our ability to take advantage of potential market opportunities.”
Brean Capital, LLC served as the Company’s exclusive financial advisor and sole placement agent in connection with the transaction.
About CFG Merchant Solutions
CFG Merchant Solutions (“CFGMS”) is an independent, technology-enabled alternative funding platform focused on providing capital access to small and mid-sized businesses that have historically been undeserved by traditional financial institutions and may have experienced challenges obtaining timely financing. The Company uses its historical transactional data, proprietary underwriting, predictive analytics, and electronic payment technologies and platforms to assess risk, and provide access to flexible and timely capital.
For additional information about the Company, visit: https://cfgmerchantsolutions.com/.
Contact:
Name: Richard Polgar
Title: Chief Financial Officer
rpolgar@cfgms.com
Mulligan Funding Closes $100 Million Securitization
February 6, 2023February 6, 2023 – SAN DIEGO – Mulligan Funding, one of the largest providers of SMB access to working capital in the country, today announced the closing of a $100 million asset-backed securitization (ABS). This new financing continues a history of impressive growth for the company, even during difficult market conditions. As Mulligan Funding’s first securitization, the senior bonds achieved an A rating from Kroll Bond Rating Agency (KBRA), the highest rating they will award a first-time issuer in this asset class. The facility has a 3-year revolving period and is expandable to $500 Million.
Mulligan Funding, known for its commitment to full transparency and its exceptional customer service, started in 2008 in the midst of the financial crisis, when traditional banks began to pull back from the small and medium-sized business lending market. The private, family-owned business, which has so far provided access to over $1bn in working capital to its customers, is honored to have achieved the noteworthy milestone of closing its first securitization.
David Leibowitz, chief executive officer at Mulligan Funding, shares, “This is a really significant step forward for us. It adds materially to the funding we require in order to continue on the path of responsible growth to which we remain committed. We’re particularly pleased that the ratings afforded to these notes by KBRA, constitute an affirmation of the disciplined approach to credit management which has always been at the core of our business strategy.”
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About Mulligan Funding
Headquartered in San Diego and named on the prestigious Best Places to Work SoCal 2022 List by Best Companies Group, Mulligan Funding serves as a leading provider of working capital ($5K – $2M) to the small and medium-sized businesses that fuel our country. Since 2008, we have prided ourselves on our collaborative, innovative, and customer-focused approach. Through our unique ability to combine technology, a human touch, and unwavering integrity, we help those we serve bring their dreams to life with our people-first culture.
