Industry News
Ascentium Capital Hits Milestone
October 9, 2018Ascentium Capital announced yesterday that it had surpassed $2 billion in managed assets during the third quarter of this year. It also had a 22 percent increase in funded volume over the same period last year. Altogether, the company has provided businesses with over $4 billion.
“We had another strong quarter of growth with performance driven by the diversity of our equipment vendors and repeat business efforts,” said Ascentium Capital CEO Tom Depping. “Due to the strong demand for our offering, we continue to expand our direct sales division with recruitment efforts for our offices in Texas, California and New Hampshire as well as expansion of our vendor-specialized sales personnel in Arizona, Michigan and across the nation.”
As a direct lender, Ascentium Capital provides equipment financing, leasing and small business loans, among other products. Ascentium Capital is backed by investment firm Warburg Pincus LLC, among others, and is headquartered in Kingwood, Texas.
Greenbox Capital Introduces On Demand Loan Checkout Process
October 3, 2018Miami Gardens, Fl, 10-03-18
This latest on demand loan process function grants ISO partners the ability to increase term and funding amounts up to one month and 10%, respectively, without submitting a request. “The Box” was developed by CEO Jordan Fein and the innovative Greenbox IT team to give brokers additional flexibility.
The development mandate was to eliminate extraneous steps between the merchant and the broker which would further enhance those relationships and promote long lasting partnerships. “The Box” is now considered the most efficient, convenient user technology available.
“When the difference between winning and losing a deal is time, Greenbox Capital has provided a solution that allows our brokers to make more favorable terms, instantly! We have our pulse on the industry and the needs of our ISO partners. We regularly request feedback and implement upgrades to our technology to meet industry needs,” states Fein.
Greenbox Capital specializes in alternative funding options for small-and medium-sized business averaging at least $7,500 in revenue in each of the past 3 months. Greenbox Capital’s fast business cash advances and short-term small business loans make goals attainable.
The company’s small business financing programs include:
- Merchant Cash Advances (in available USA regions)
- Small Business Loans (in available USA and Canada regions)
- Invoice Factoring
- Business Lines of Credit
- Unsecured Financing
- Collateral-backed Funding
“We empower business owners to succeed by providing what they need most: access to working capital. We are committed to industry leadership in technology and will continue to develop processes that lead to a positive outcome for both merchant and broker,” adds Fein.
Greenbox Capital
855.442.3423
Info@greenbox.capital
National Funding Acquires QuickBridge
October 2, 2018
National Funding announced today that it has purchased QuickBridge. The two companies will combine back-end resources, including advanced technology, innovation and product development, but they will continue to operate independently, as separate brands. Ben Gold, QuickBridge’s founding President, will remain in his current post and will work closely with National Funding founder and CEO Dave Gilbert.
“QuickBridge has an unbelievable front end system that knows how to underwrite small businesses extremely efficiently,” Gilbert told deBanked.
Gilbert also said he was particularly interested in QuickBridge’s 10 year loan product.
National Funding was a minority interest owner in QuickBridge since the company’s founding in 2011, so this acquisition was essentially a buyout of five other partners.
In addition to the technology, Gilbert said QuickBridge’s people and its headquarters in Irvine, California were elements that made it very appealing.
“There’s a lot of great talent in Orange county and there are a lot of finance companies out there, so it’s going to be a great recruiting hub,” Gilbert said.
Given the high quality pool of talent, Gilbert said he believes he can scale QuickBridge quickly. Together, National Funding and QuickBridge have provided more than $3 billion in financing to small and mid-sized businesses and their combined overall financing volume will exceed $600 million this year, according to National Funding. QuickBridge has been recognized in recent years for its rapid rise, including year-over-year double or triple digit percentage growth.
The way that both companies get business is slightly different. Gilbert said that QuickBridge derives 75 percent of its business from ISOs and 25 percent from direct marketing, whereas National Funding’s ratio is the inverse, with a sizable direct sales team.
In addition to QuickBridge’s headquarters in Irvine, it also has a small satellite office in New York, which will remain. Of the company’s roughly 100 employees, Gilbert said that virtually all of them will stay on. Founded by Gilbert in 1999, National Funding is based in San Diego and employs roughly 230 people.
Funding Circle Stays Global; Goes Public in London
September 29, 2018
Funding Circle became a public company yesterday on the London Stock Exchange, listed as FCH. Founded in 2010, the peer-to-peer lending platform for small and medium-sized businesses, was initially priced at 440 pence (£4.40), which was on the low end of the 420-530 pence per share price range. But it opened at 460 pence, placing the value of the tech company at roughly £1.5 billion, or $2 billion, according to a Reuters report. In conjunction with the company’s IPO, it raised approximately £300.
The stock price dropped below the initial 440 pence per share on Friday to 435 pence, but went back up by the end of the day. The company was founded by Samir Desai, James Meekings and Andrew Mullinger, who all met at a pub in Oxford, England, according to a University of Oxford publication. Desai and Meekings were both studying Economics and Management at the university.
Among the company’s investors are Union Square Ventures, Blackrock and Index Ventures, in addition to a £150 million investment from Danish billionaire Anders Holch Povlsen.
According to the company’s September 2018 prospectus, Funding Circle’s total revenue has steadily increased over the past few years with $32 million in revenue in 2015 and $50.9 million and $94.5 million in 2016 and 2017, respectively. The company has facilitated £5 billion in loans its inception in 2010.
In August, Funding Circle rebranded with a new logo, and in June, the company expanded its partnership with Kansas-based INTRUST Bank, strengthening it presence in the U.S. market. Funding Circle offers small business financing from $25,000 to $500,000 with repayment options up to 5 years. While headquartered in the UK, the company also services customers the U.S., Germany and the Netherlands. Its headquarters is in London and it also has an office in San Francisco.
Renaud Laplanche Barred From the Securities Industry
September 28, 2018
The SEC announced today that it charged LendingClub Asset Management, formerly known as LendingClub Advisors LLC (LCA), and its former president and co-founder Renaud Laplanche, with fraud – for improperly using fund money to benefit LendingClub Corporation, LCA’s parent company. LCA, Laplanche and Carrie Dolan, LCA’s former CFO, also were charged with improperly adjusting fund returns.
LCA, Laplanche and Dolan have agreed to settle the SEC’s charges against them and will pay penalties of $4 million, $200,000, and $65,000, respectively. The SEC also barred Laplanche from the securities industry for three years. LCA, Laplanche, and Dolan agreed to the entry of the SEC’s order without admitting or denying the agency’s findings.
This follows Laplanche’s ouster from LendingClub in May 2016 amid revelations of falsified loan records and conflicts of interest under Laplanche’s leadership. He is now the CEO of Upgrade, a San Francisco-based online lender, and he has been hailed recently for his resilience for making such a quick comeback.
A representative from Upgrade provided deBanked with a statement from Laplanche:
“I am pleased to have worked out a settlement with the SEC to put to rest any issues related to compliance lapses that might have occurred under my watch at Lending Club. Consistent with SEC policy, I have agreed not to admit nor deny the specific narrative of the events contained in the settlement order. I would like, however, to provide additional context:
1. To the extent there was an imbalance between 60-month and 36-month loans in one of the LCA funds as compared to its initial target, the specific 36/60-month balance was disclosed to investors every month.
2. Any manual adjustments used by the LCA team as part of the funds valuation methodology had a total net impact of 0.08% of the funds value over 5 years, and I strongly believe those adjustments were made by the LCA team in good faith.
In any event, I am glad that we can now put these issues behind us and focus on the important goals of making credit more affordable to consumers and delivering attractive returns to investors through disciplined underwriting and exciting product innovation. With the benefit of my prior experience, I feel better equipped to establish a strong culture of compliance and effective internal controls under the supervision of capable professionals.”
LendingClub, the actual company, or LendingClub Corporation, was spared any charges from the SEC because of its cooperation with the agency. The SEC press release explains below:
“The SEC’s Enforcement Division determined not to recommend charges against LendingClub Corporation, which promptly self-reported its executives’ misconduct following a review initiated by its board of directors, thoroughly remediated, and provided extraordinary cooperation with the agency’s investigation. LCA also reimbursed approximately $1 million to investors who were adversely impacted by the improperly adjusted monthly returns.”
Lending Club, which Laplanche brought public 2014, did not respond in time to questions before publication.
Three Men Indicted in $345 Million Consumer Debt Ponzi Scheme
September 26, 2018
On September 19, a federal grand jury indicted three men on charges of conspiracy, wire fraud, identity theft and money laundering in connection with a $345 million ponzi scheme, tracing back to January 2013, according to the U.S. Department of Justice.
Simultaneously, the SEC obtained a court order to shut down the ponzi scheme allegedly created by these men, Kevin B. Merrill, 53, Jay B. Ledford, 54, and Cameron Jezierski, 28. The SEC complaint alleged that these men attracted investors to their scheme by promising sizable profits from the purchase and resale of consumer debt portfolios. However, the defendants were allegedly fabricating documents and forging signatures in a complex scheme to entice investors and perpetuate the fraud.
The SEC complaint alleges that Merrill and Ledford stole at least $85 million from investors to maintain lavish lifestyles, spending millions of dollars on luxury items, including $10.2 million on at least 25 cars, $330,000 for a 7-carat diamond ring, $168,000 for a 23-carat diamond bracelet, millions of dollars on luxury homes, and $100,000 to a private fitness club.
According to a story from WBAL TV, a Baltimore-area NBC news affiliate, SEC employee Stephanie Avakian said that from one investor’s $500,000 investment, “Merrill allegedly used [it] for a $400,000 payment for a 2014 Bugatti sports car, made payments to prior investors and repaid $20,000 of his own credit card debt.”
According to the WBAL TV story, a related complaint filed by the Securities and Exchange Commission, alleges that the investors included small business owners, restaurateurs, construction contractors, retirees, doctors, lawyers, accountants, bankers, talent agents, professional athletes and financial advisers in Maryland, Washington, D.C., Northern Virginia, Las Vegas, Texas and elsewhere.
“Most of these investors are just learning that they have been victimized,” said U.S. Attorney Robert K. Hur. “The effects of this kind of fraud can be devastating. We urge anyone who thinks they may be a victim to contact the FBI at MerrillLedford@fbi.gov.”
If convicted on the criminal charges, Merrill and Ledford could face up to 262 years in prison and Jazierski could face up to 120 years in prison.
Yellowstone Capital Introduces a Smarter Box In Move Towards Transparency
September 26, 2018Yellowstone Capital CEO Isaac Stern announced a “Smarter Box” through social media channels this morning. The itemized box will be provided to merchants through a post-funding email as part of a company effort to maximize transparency.
According to the announcement:
“[We are] very serious about maximum transparency and disclosure to our funding partners’ great merchant customers. In addition to our new Purchase and Sale Agreement we will be using with each of the funding partners on our platform, we are also implementing a transaction summary email to ensure that all applicable fees, costs, disbursements and hold-backs are clearly understood by all parties. Our new contract will increase disclosure while simplifying the product, while our summary confirmation ensures greater understanding and improved communication between our funding partners and their customers.”
Example of the box:
Based in Jersey City, NJ, Yellowstone Capital has originated more than $2 billion to small businesses since inception.
RDM Capital Funding is a Sponsor of deBanked CONNECT – San Diego
September 19, 2018RDM Capital Funding is a sponsor of deBanked CONNECT San Diego. The half-day event for funders, lenders, brokers and industry professionals is being held at the Andaz on October 4th!
Check out photos from deBanked’s past CONNECT event in Miami
