ACH Advances

On Deck Capital IPO, An Insider’s Perspective

August 16, 2014
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It was August 23, 2011, the day the Virginia Earthquake could be felt all the way up in New York City. The four of us were enjoying outdoor seating at a restaurant on the Upper East Side. The ground shook, my drink spilled and Ace looked at each one of us and said, “Okay so […]

Industry Survey Results

July 6, 2014
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Curious what the general consensus is on a variety of issues? DailyFunder® polled business lending industry insiders and analyzed the results. Click below to expand the graph, check out the image, or scan the text beneath it: Text version #1 What’s a Merchant Cash Advance? 61% consider it to be strictly a purchase of future […]

Access to Capital – A Dose of Reality

June 15, 2014
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So much for a lack of transparency… While sitting directly next to Maria Contreras-Sweet, the head of the Small Business Administration, OnDeck Capital’s CEO corrected U.S. Senator Cory Booker’s comments about the APR of their loans. High teens? Not so, said Noah Breslow who explained their average 6 month loan has an APR of 60% […]

Do Opportunities Abound?

June 8, 2014
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Just recently I found myself in an office surrounded by some folks who had each worked in the merchant cash advance business for more than 10 years. The first generation of MCA pioneers are still out there of course but it’s rare to be in the presence of so many at one time. It was […]

Throw Out the 5 Cs?

May 19, 2014
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the credit struggle

The 5 C’s of lending? “Throw that book out” says Darrell Esch, VP of SMB Lending for Paypal. At the Federal Reserve Bank’s New York Small Business Summit last week, critics hammered away at the high rates being charged by some alternative business lenders. In the first video below, PayPal’s small business loan program (which […]

A Look at Data Security

May 17, 2014
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Data Privacy

In the latest issue of DailyFunder, Cheryl Conner explored data security in the alternative business lending industry. Its basis was rooted in the ETA’s 2008 Merchant Cash Advance White Paper that stated Merchant Cash Advance companies must be PCI compliant. That white paper was drafted in a different era, particularly when 99% of all transactions […]

Would an APR Help?

May 14, 2014
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merchant cash advance APR

Merchant cash advance industry hater Ami Kassar added to his collection of rants today in the Wall Street Journal by writing about the True Costs of Cash-Advance Loans. Bloomberg BusinessWeek writer Pat Clark, knowing full well that Kassar and I have sparred online, tweeted: curious what @financeguy74 thinks RT @akassar: The true cost of cash […]

Alternative Lending: Big Government and Big Data

May 7, 2014
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big data

“Who wants to fill out financial paperwork? We’d rather go pick out a pair of sunglasses” – Professor Michael Barr at LendIt 2014 One of the clear themes of the LendIt 2014 conference was that borrowers are willing to pay extra for speed and convenience. Regulators have taken note of this trend but they’re still […]

LendIt Conference: The State of Alternative Business Lending

May 6, 2014
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LendIt Panel

Have you heard? Banks aren’t lending. Nobody at LendIt seems to mind though. Ron Suber, the President of Prosper Marketplace, said earlier today that banks are not the competition. That’s an interesting theory to digest when contemplating the future of alternative lending. If banks are not the competition, then who is everyone at LendIt competing […]

CAN Capital Still King – $4 Billion Funded

April 29, 2014
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While college kids across the country are creating alternative lending platforms in their dorm rooms, industry king CAN Capital announced today that they have provided small businesses with more than $4 billion. That puts them on pace to be funding approximately $1 billion a year. ($3 billion milestone back in March 2013). Word apparently leaked […]

What if there were Trigger Leads?

April 27, 2014
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Just recently, a user in DailyFunder’s forum complained that a deal of his had been poached by a competitor. There’s nothing new about that story, but it is what followed that drew interest. He was in the process of renewing his client for additional funds, when out of the blue popped up a competitor that […]

Alternative Lending Took Over Transact 14 (PHOTOS)

April 13, 2014
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Think the payments industry is just about banks and hardware companies? Think again! The ETA conference continuously hosts the largest gathering of alternative lenders and merchant cash advance companies year after year. Below are some photos from the Transact 14 show: The Money Team AKA Merchant Cash Group were out in force. Noah Breslow and […]

Would You Fund This Business?

April 12, 2014
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lost our lease

Is the site inspection dead? One of the strangest byproducts of the automation age is that underwriting tools once deemed absolutely essential are being replaced with APIs, digital verifications, and algorithmic scoring. Speed is everything, but why? Faster speed through automation allows for scaleability. The promise of speed to a potential customer also encourages them […]

Regulatory Paranoia and the Industry Civil War

April 11, 2014
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Stacking is on everyone’s minds in the merchant cash advance (MCA) industry but that war is little more than smoke compared to the fire burning in our own backyard. One of the major topics of debate at Transact 14 has been Operation Choke Point, a federal campaign against banks and payment processors to kill off […]

Is Alternative Lending a Game of Thrones?

April 8, 2014
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Funding Kings

It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it […]

Join Me at Transact 14

April 1, 2014
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Electronic Transactions Association

I’ll be at the ETA’s Transact 14 Conference in Las Vegas next week (Apr 8 – 10) wearing my journalist hat for DailyFunder. DailyFunder is currently the only publication dedicated to merchant cash advance and alternative lending and is a media sponsor of this year’s event. All attendees will be able to pick up a […]

Yellowstone Capital Matures With New Executive Team

March 30, 2014
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yellowstone capital news

In an email newsletter that went out this morning, NYC-based Yellowstone Capital announced changes and additions to their executive team. Managing Partner Isaac Stern who has long been the public face of the firm is now the Chief Executive Officer. Marwan Salem is now the Chief Financial Officer. Josh Karp has been named the Chief […]

Merchant Cash Advance Syndication: Crowdfunding?

March 28, 2014
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merchant cash advance syndication

You might not have known this, but one of the most lucrative opportunities in merchant cash advance is the ability to participate in deals. It’s a phenomenon Paul A. Rianda, Esq addressed in DailyFunder’s March/April issue with his piece, So You Want to Participate? Syndication is industry jargon of course. You probably know the concept […]

The Best Free Lead Source

March 25, 2014
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what is a merchant cash advance?

In what is likely a Knowledge Graph hiccup, Google is giving New York-based AmeriMerchant a wonderfully free source of advertising. Merchant Cash Advance is a product in a multi-billion dollar a year industry. What is a merchant cash advance, you ask? Why it’s something that only AmeriMerchant invented and offers apparently. What’s perhaps more ironic […]

Fund it and Ask Questions Later

March 25, 2014
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Ever since OnDeck Capital stopped doing verbal landlord references, the underwriting landscape of alternative lending has changed dramatically. Kabbage will supposedly fund applicants in just 7 minutes. Everybody’s under the gun to streamline their process, fund deals faster, and produce record breaking numbers month after month. And why shouldn’t they? Investors are practically foaming at […]