Industry News

Lending Club Hits Record for Originations

August 7, 2018
Article by:

Scott Sanborn, Lending Club CEO

In the second quarter of 2018, Lending Club originated a record high of $2.8 billion, up 31% from the same time last year. Net revenue also hit a record high of $177 million, up 27% year-over-year. During today’s earning call, Lending Club CEO Scott Sanborn said that the company completed a successful securitization this quarter […]

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SoFi Has Massive Loss in Second Quarter

August 7, 2018
Article by:

SoFi sign

SoFi had a second quarter adjusted loss of about $200 million, according to a Bloomberg story from yesterday, citing people familiar with the company’s situation. “Our Q2 financial results were negatively impacted by significantly lowered valuation of legacy loans and assets as well as the slow start to increasing prices in the face of a […]

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OnDeck Profitable, Again

August 7, 2018
Article by:

OnDeck NYSE

OnDeck posted a profit this morning, the 2nd time in the last 3 quarters. The company reported $5.8 million in net income for Q2. The average loan size decreased and the average effective interest rate increased (36.1%). Although the Fed has been gradually raising interest rates, OnDeck’s costs of funds actually went down to 6.6% […]

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Lengthy Investigation Leads to Arrest of Former Funding Company Employee

August 2, 2018
Article by:

Former Yellowstone Capital employee arrested

A former Yellowstone Capital employee was arrested yesterday in New York City, the culmination of what Yellowstone CEO Isaac Stern said was a nearly year-long investigation that involved law enforcement in New York, New Jersey and Florida. The former employee was charged as a Fugitive of Justice in New York. And he is being charged […]

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Square Capital is Funding $130 Million a MONTH

August 1, 2018
Article by:

Outside the Square Headquarters in San Francisco

Today Square released its Q2 2018 earnings, revealing that in the second quarter Square Capital facilitated over 60,000 business loans totaling $390 million. This is an increase of 22% year over year, and a 13% increase compared to last quarter’s loan volume of $339 million. Square’s growth was also driven by its Instant Deposit, Caviar […]

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Shopify’s Merchant Cash Advance Business Grows

July 31, 2018
Article by:

shopify glyph

Today Shopify released its Q2 2018 earnings report, revealing that Shopify Capital issued $68.5 million in merchant cash advances in the second quarter of 2018, an increase of 84% compared to the $37.2 million issued in the second quarter of last year. Shopify Capital has advanced nearly $300 million to merchants since they launched in […]

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Syndication at Heart of SEC and Criminal Investigation into 1st Global Capital

July 31, 2018
Article by:

Hallandale Beach

New light was shed into the bankruptcy filing of 1st Global Capital this morning. The investigations by the SEC and the US Attorney’s office are related to possible securities law violations, “including the alleged offer and sale of unregistered securities, the alleged sale of securities by unregistered brokers, and the alleged commission of fraud in […]

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1 Global Capital Files Chapter 11

July 30, 2018
Article by:

bankruptcy court

UPDATE: A joint motion filed this morning explained that the companies were forced to file bankruptcy “in order to address a sudden and acute liquidity crisis and to preserve their assets and business operations for the benefit of the individual lenders and all other constituencies. As a result of the investigations commenced by the US […]

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Enova’s Small Business Financing Originations Drop

July 30, 2018
Article by:

enova

Enova CEO David Fisher revealed last week that their small business financing operations had declined. “Our small business financing portfolio represented 8% of our total loan book at the end of Q2,” Fisher said on the July 26th earnings call. “We are remaining cautious on this space as the market rationalizes. As a result, our […]

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90% of PayPal Merchant Advances and Business Loans Are Performing On Pace

July 28, 2018
Article by:

PayPal LoanBuilder

As of June 30, 90.6% of PayPal’s merchant advances and business loans were performing within the original expected repayment period, the company disclosed this week. That equated to $1.27 billion worth of deals. Only 4.2% of their merchants were more than 90 days behind their expected pace. PayPal had $1.4 billion in outstanding merchant loans, […]

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