Business Lending

IOU Financial Originated $41.4M in Loans in Q3, Continued Profitability

November 14, 2019
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IOU Financial originated $41.4M in business loans in Q3, according to the company’s latest published financial statements. The figure is a modest increase over Q2’s $38.5M. IOU also kept up its trend of profitability with net income $1M. Shares of IOU, which trade on the Toronto Stock Exchange, are valued at around (CAD) 14 cents […]

Costs, Losses Soar At StreetShares

November 12, 2019
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StreetShares increased revenue by nearly 40% year-over-year, according to the company’s latest fiscal year 2019 filing, but costs soared and increased by almost 90%. StreetShares reported a staggering $12.3M loss on only $4.4M in revenue. That loss was much wider than the previous year’s loss of $6.5M on $3.2M in revenue. Whereas startups may spend […]

Factoring for Freelancers

November 8, 2019
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The number of freelancers in America is quickly growing year on year, with a recent study indicating the percentage of full-time freelancers has increased from 17% of the workforce in 2014 to 28% in 2019. Representing a host of fields, from writing and photography to marketing and programming, the incomes and needs of such workers […]

Selecting a Third-Party Commercial Collection Agency

November 8, 2019
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It’s said that anyone can lend money out but the hard part is getting paid back. The latter part is full of nuance, a 32-page white paper authored by Minnesota-based Dedicated Commercial Recovery (Dedicated) reveals. “Choosing a third-party commercial collection agency is a matter of comparing potential returns and risks in order to achieve an […]

David Goldin is BACK – The Scoop Behind His Return

November 7, 2019
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David Goldin

“When I started, the term merchant cash advance didn’t even exist. There really were no business loans back then, the word ‘fintech’ didn’t exist, ‘alternative lender’ didn’t exist … Back in the day it was all about getting a credit facility, and that was like the iPhone 5, and now we’re the iPhone 11. There’s […]

GoDaddy Now Offers Kabbage Business Lines of Credit To Its Customers

November 4, 2019
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godaddy kabbage

A curious thing popped up in my Godaddy account dashboard on Monday. Underneath the section to manage my domains, a “Deals from GoDaddy Partners” box offered me $300 in Free Yelp Ads on one side and a business line of credit from Kabbage up to $250,000 on the other. The Kabbage offer is brand new, […]

Shopify Capital Originated $141M Of Loans And MCAs In Q3, Says It’s a Meaningful Part Of The Shopify Business

October 29, 2019
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shopify glyph

Shopify Capital, Shopify’s small business funding division, originated $141 million in loans and merchant cash advances last quarter, an 85% increase over Q3 last year. The company has now cumulatively originated $768.9M since it began funding in April 2016. On the earnings call, Shopify COO Harley Finkelstein commented on the company’s recent initiative to fund […]

Become Closes Series A with $12.5 Million

October 29, 2019
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Become, formerly known as Lending Express, has finished its Series A funding round with $10 million having been raised from Benson Oak Ventures and Magenta Venture Partners, among others, as well as an additional $2.5 million in venture debt from Viola Credit. “We strongly believe it is time to disrupt conventional and ‘alternative’ lending practices,” […]

OnDeck Repurchased 3.2M Shares, Reports $8.7M Q3 Profit

October 24, 2019
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OnDeck

OnDeck announced this morning that it has repurchased 3.2M of its own shares for $11M since making its buyback announcement on July 29th. The company intends to repurchase another $39M worth. OnDeck was profitable in Q3, reporting a net income of $8.7M on originations of $629M. Although that was an increase over the previous quarter, […]

The FTC Wants To Police Small Business Finance

October 22, 2019
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FTC Police

This story appeared in deBanked’s Sept/Oct 2019 magazine issue. To receive copies in print, SUBSCRIBE FREE On May 23, the Federal Trade Commission launched an investigation into unfair or deceptive practices in the small business financing industry, including by merchant cash advance providers. The agency is looking into, among other things, whether both financial technology […]

How Business Financing Has Changed

October 22, 2019
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Canadian Dollars

The first thing small business owners think about when deciding to take on funding to grow their business is the ten-year, 3% bank loan that was the standard ten to twenty years ago. The application and approval process was much slower, and if a borrower didn’t fit the mold that mainstream lenders were looking for, […]

Consultative Selling in Small Business Finance

October 16, 2019
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consultative

This story appeared in deBanked’s Sept/Oct 2019 magazine issue. To receive copies in print, SUBSCRIBE FREE It’s nearly impossible to teach fiscal responsibility to most consumers, according to researchers at universities and nonprofit agencies. But alternative small-business funders and brokers often manage to steer clients toward financial prudence, and imparting pecuniary knowledge can become part […]

BFS Capital Launches Canadian Tech Hub

October 16, 2019
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Toronto Canada

Small business lender BFS Capital is making an expansion push with the creation of a new data science and engineering hub in Toronto. BFS, which serves customers in a trifecta of jurisdictions that in addition to Canada includes the U.S. and the UK, has undergone a technological transformation that includes building out a tech team […]

The Broker: Funding Businesses The Irish Way

October 10, 2019
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Grand Canal Dock Dublin

I’m sitting in the lobby of The Marker Hotel, a 5-star 7-story property on the edge of Dublin’s Grand Canal Dock. Here in Ireland’s major tech hub, I’m waiting for a self-identified corporate finance broker by the name of Rupert Hogan, the managing director of BusinessLoans.ie. Outside of our email exchanges, I don’t really know […]

Mecklenburg County Launches Small Business Loan Program

October 10, 2019
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Mecklenberg County

This week Mecklenburg County, North Carolina launched its Small Business Loan Program. Offering up to $75,000 dollars with fixed 2% interest rates, the county has appropriated $2.75 million to fund the program for its first year. Being managed by the Carolina Small Business Development Fund, the CSBDF will have the authority to sign off on […]

How Ireland’s Spark Crowdfunding Got its Start

October 5, 2019
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spark crowdfunding dublin ireland

“We’ve not invented anything new,” Chris Burge, CEO of Spark Crowdfunding, tells me. “We saw the rise of crowdfunding in Europe, the states, and the world and we thought, ‘well why doesn’t Ireland have one?’” We’re in the lobby of a Dublin hotel drinking coffee, right around the corner from Spark’s offices on South William […]

How Linked Finance is Linking Irish SMEs With Quick Loans

October 1, 2019
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Google Maps was convinced that I was already at my destination, but that didn’t make sense because I was still sitting in my cramped Airbnb rental apartment in Dublin and hadn’t left to go anywhere yet. “Oh man please tell me Google works in Ireland,” I said to myself while glancing at the time and […]

deBanked Around The World

September 28, 2019
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Members of the deBanked editorial team returned from Ireland this week. The Republic of Ireland will be the latest in our international series on nonbank finance. Stay tuned for our stories on that. In the meantime, be sure to check out our international coverage of: Canada Canada story series Magazine Feature: Canada’s Alternative Financing Market […]

A Side-By-Side Look At Small Business Funding Securitization Pools

September 6, 2019
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securitization chart

Several small business funding companies have closed majored securitization deals since 2018 with Kroll Bond Rating Agency rating the transactions. For the most recent transaction with National Funding, Kroll compared each securitized pool side-by-side in a chart. An abbreviated version of it is below: NFAS 2019-1 (National Funding) RFS 2018-1 (Rapid Finance) CRDBL 2018-1 (Credibly) […]

Snapshot On Australia: Growth In The Making

August 30, 2019
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This story appeared in deBanked’s Jul/Aug 2019 magazine issue. To receive copies in print, SUBSCRIBE FREE The Australian alternative lending market continues to gain momentum, bolstered in part by increased awareness, heightened competition and growing dissatisfaction with the status quo. Indeed, there’s been significant growth in the few years since deBanked first wrote about the […]