Business Lending

Thrasio Acquires Yardline to Offer E-Commerce Funding

June 16, 2021
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Amazon merchant conglomerate Thrasio bought Yardline to incorporate e-commerce finance into the product offering. Thrasio has been active with Yardline since the firm’s initial backing of the company, and is now making Yardline a wholly owned subsidiary.

Yardline Chief Revenue Officer Seth Broman said that historically, e-commerce has been risky with no barrier to entry like traditional brick and mortar shops. Broman added that online stores used to be for supplements, but through Amazon’s third-party marketplace and Shopify’s help, scaling a quality business has become possible.

“Through COVID, the script was flipped,” Broman wrote in a statement. “E-commerce businesses became less risky, and brick-and-mortar businesses suffered the most. It’s also a much smaller universe and harder to target than a brick-and-mortar business.”

Thrasio boasts it is the largest acquirer of Amazon brands globally, and co-founder and co-CEO Carlos Cashman said 40% of brands they approach end up selling. Now, they can help scale those brands.

“Yardline will be an asset in creating more opportunities for these entrepreneurs and offering more sophisticated avenues for growth,” Cashman said in a statement. “They’ve been doing something different in the space—their strategic approach to providing embedded capital across e-commerce marketplaces is unique—and we’re eager to have their technology and proficiency on our team.”

Tomo Matsuo, president of Yardline, will be joining Thrasio’s senior leadership team. “It’s conceivable that every eCommerce-related platform will have FinTech capabilities in the future,” he said in a statement. “And our acquisition by Thrasio demonstrates that.”

Live Stream With Oz Konar

June 2, 2021
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I will be speaking with Oz Konar, the founder of Business Lending Blueprint, at 12:15pm ET on deBanked TV.

Konar teaches people how to build successful home-based businesses in the alternative finance industry and has a highly popular youtube channel.

Tune in at 12:15 on deBanked TV.

Oz Konar

After Funding Millions, Alt Financier Hosts Funding CEO Challenge

May 25, 2021
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Leo KenellLeo Kanell, a funder from Utah, runs the 7 Day Funding CEO Challenge, a seven-day marathon video livestream of inspirational and educational funding content.

“So how [the challenge works] is basically, we’re looking for communities, and we’re building a community,” Kanell said. “Our focus is how can we help existing loan brokers, and then how can we help people who are looking for an additional stream of income that they can do from home obviously with the pandemic.”

All the action happens in a livestream on Facebook.

“Everybody kept asking ‘we need some training,’ so we built out a custom website for them so that they can build their funding empire from home,” Kanell said.

Many of the brand new market entrants are sales-minded individuals that are interested in working from home. Kanell has a sales mind and a small business funding background. He grew up in a family of nine from a small town in Utah with a population of only 3,000. He knew he would be a salesman when he turned a summer painting business internship into a $60,000 operation. After college, he tried his hand at real estate, but after 2008 he started looking for another industry.

“I started and went ‘Well, I’m gonna need money for that business,'” Kanell said. “I started looking at the different options to get financing for that next business venture, and it was very difficult, especially for a new business, especially if you’re a pre-revenue business or you don’t have a lot of sales and or collateral.”

He realized SMB funding was the business he should be getting into so he jumped in with both feet. From there he veered into a business education program alongside products like business credit cards.

He soon said that he was doing well, but he heard the funding industry calling his name. “Everything pulled me back into funding,” Kanell said and he decided to combine his education system toward loan broker training programs. He said many brokers don’t realize startups and pre-revenue bushiness can qualify for 0% for up to 15 months.

Now, Kanell hosts an industry podcast that features financial industry guests, and alongside funding, he looks forward to building a community of broker and funder education services.

“We’re going to not only get you the best funding guaranteed, but we’re going to educate you and empower you along the way,” Kanell said. “They can work as direct funders and keep 100% of the commission, and that if they want us to do the work you know, we can do splits.”

One on One With Joe Camberato at National Business Capital

May 23, 2021
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I sat down with Joe Camberato (@GrowByJoe), CEO of National Business Capital in Bohemia, NY. He shared tips about how to run a successful business and gave me a personal tour of his company’s office.

Ebay to Launch Sales-Based SMB Loans in UK

May 13, 2021
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eBayEbay is launching a small business working capital product in the UK, offering sales-based loans to 300k SMBS through YouLend.

The product, called “Capital for eBay Business Sellers,” offers loans repaid through a percentage of daily sales and a lump sum. A year after eBay first ventured into offering merchant payments services, the firm is joining the likes of PayPal, Shopify, and Amazon by offering a business loan product. Loans will vary in size based on sales volumes, from £500 to £1 million, or about $640- $1.3M.

“Capital for eBay Business Sellers is intended to help plug this gap, giving small businesses quick access to a range of financing options,” Murray Lambell, GM of eBay UK, said. “With 300,000 UK small businesses trading on eBay, this proposition will help them reinvest, protect jobs, and succeed, even as the government’s support schemes dry up.”

The application process will take five to ten minutes, the firm attests, landing funds that same day.

“Our focus is on giving leading e-commerce platforms, tech companies, and payment service providers the ability to offer their customers rapid funding through our technology platform,” CCO of YouLend Jakob Pethick said. “We’re delighted to partner with eBay UK to support their business sellers thrive and grow.”

North Carolina Joins States Proposing Commercial Financing Disclosures

May 12, 2021
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Raleigh North CarolinaNorth Carolina is the latest in a series of states to introduce a commercial financing disclosure bill.

The “Small Business Truth in Financing Act” introduced on May 11th, would cover business loans, factoring, and merchant cash advances.

The language was copy and pasted from bills elsewhere, like the recent one in Connecticut. The “double dipping” term is noticeably absent from this one, however.

The North Carolina bill was introduced by Rep James D. Gailliard (D). If it succeeds in moving forward, it’s written to go into effect on May 1, 2022.

You can read the full text of the bill here.

Square Capital Originated $392M in SMB Loans in Q1

May 6, 2021
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Square in San FranciscoSquare Capital originated 78,000 small business loans in Q1 for a total of $392M. That figure does not include PPP lending, which comprised of 57,000 loans for a total of $531 million.

“After pausing flex loan offers from early March to late July of 2020, we have been measured in our ongoing ramp of offers to sellers,” Square said. “Revenue from Square Capital was down on a year-over-year basis due to a lower mix of flex loans during the quarter.”

Square Capital originated slightly under $1 billion in 2020, down from the $2.3 billion in 2019.

Noah Breslow Has Left OnDeck

May 6, 2021
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OnDeck CEO Noah Breslow announced that as of April 30th, he had left OnDeck. He wrote the following in a May 6th post on LinkedIn:

“It is hard to believe, after a nearly 14 year run, that last Friday was my final day as an OnDecker. Working to build OnDeck with our incredible team, our partners, our board members and investors, and of course, our small business customers was the greatest professional experience I’ve had, and I am eternally grateful for the efforts of everyone involved in the company over so many years. I am proud of everything we accomplished together – pioneering the online lending industry, delivering nearly $14 billion dollars to small businesses, building a trusted brand and phenomenal culture, and achieving numerous industry firsts along the way.

I am especially proud of the way our team and our leaders handled themselves last year under the pressure of COVID. We worked together to navigate a very challenging situation, and I’ll never forget the teamwork and collaboration under stress that allowed us to land the company safely and become part of Enova – a transaction that I firmly believe was the right thing to do for the company’s stakeholders.”

Noah Breslow, CEO, OnDeckThough Breslow was not the founder of OnDeck, he was one of its earliest employees and he later steered the company as its chief executive up through and past the point of it going public on the NYSE. In 2020, OnDeck was acquired by Enova.

Breslow updated his LinkedIn profile to say that as of May, he is now an “Operator in Residence” for Bain Capital Ventures.

Bain Capital Ventures posted a lengthy welcome to Breslow on Medium immediately after.

“Noah joins BCV this week as an operating partner, and we couldn’t be more delighted,” wrote Matt Harris, partner at Bain Capital Ventures. “You can reach him at nbreslow@baincapital.com with your next amazing idea.”

Breslow followed it with another post on LinkedIn:

“So, what’s next? Well, those who know me know I am passionate about the craft of entrepreneurship, and I have served as an angel investor and informal advisor to many startups and founders over the years.

After the OnDeck acquisition closed, Matt Harris, a longtime close friend and early OnDeck investor, reached out to me to chat about what might be next. Matt is a special person, and a renowned fintech investor – in fact, Matt was responsible for getting me into OnDeck 14 years ago, and that worked out pretty well! So, when he floated the idea of joining him at Bain Capital Ventures to do this type of work more formally, I was all ears.

I knew I wanted to spend some time working with innovative startups and exploring some new technology areas before diving into my next big thing – after all, it might last another 14 years! So, I am thrilled to announce I am joining Bain Capital Ventures as an operating partner – working with our portfolio CEOs and helping the firm invest in fintech and tech companies across all stages. Excited for what’s next!”