1st Global Capital Sues Capital Stack and Others Over Momentum Auto Group

December 18, 2018
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Momentum Auto Group

The notorious $40 million merchant cash advance deal has a new twist, even more cash advances. On Friday, the now-bankrupt 1st Global Capital filed a lawsuit against Momentum Auto Group, related entities, and 4 merchant cash advance companies including Capital Stack. According to documents filed in the case, Momentum Auto was behind on taxes and […]

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Business That Left Merchant Cash Advance Companies Hanging is Under FBI Investigation

December 16, 2018
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African Queen

In 2017, several judgments were issued in the New York Supreme Court against one Michael Willhoit, a resident and business owner in Springfield, Missouri. No lawsuits were filed, Willhoit had merely confessed judgment to nearly a half million dollars collectively. By the following summer, a visitor would come knocking on the door of Willhoit’s fully-customized […]

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Bloomberg Reporter Wipes His Twitter Account After deBanked Story

December 15, 2018
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tweet unavailable

Hours after deBanked drew attention to a suspicious exchange on twitter between a senior editor at Bloomberg LP and a New York State Senator, one of the Bloomberg reporters behind the highly questionable merchant cash advance series took drastic action, he deleted every tweet he’s ever posted. The series of events began on Thursday when […]

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The Strange Connection Between Bloomberg, the AG’s Office, and the State Senator Proposing Legislation

December 14, 2018
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strange

On Thursday, Bloomberg Senior Editor Robert Friedman publicly thanked New York State Senator Brad Hoylman and his colleagues over twitter for pledging to propose legislation in response to the (highly questionable) merchant cash advance series he produced with reporters Zachary Mider and Zeke Faux. When deBanked Chief Editor Sean Murray replied to it, to urge […]

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The Funder: From Office of One to Eighteen in Under a Year

December 13, 2018
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Jay Avigdor

Not even a full year in business, Velocity Capital Group announced that it has secured $15 million in financing; $5 million in a series A, plus a $10 million line of credit. The entire investment comes from a family hedge fund in California, according to Jay Avigdor, Velocity’s President and CEO. Twenty-six year old Avigdor […]

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Defunct MCA Company Tried to Escape Signed Confession of Judgment

December 13, 2018
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New York Supreme Court

When a Florida-based merchant cash advance company, World Global Financing (WGF), declared bankruptcy this past May, it entered into a binding settlement agreement with its largest creditor, a hedge fund known as Eaglewood. There was a caveat. Eaglewood required that WGF sign a Confession of Judgment (COJ) as part of the agreement that would afford […]

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Senate Bill Introduced to Ban Confession of Judgments Nationwide

December 6, 2018
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Senator Marco Rubio

Senators Sherrod Brown and Marco Rubio have called for a nationwide ban on Confessions of Judgment in response to the Bloomberg Businessweek series published last month. The bill, which would amend the Truth in Lending Act, may be named the Small Business Lending Fairness Act. You can download the bill here Though Businessweek has been […]

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OnDeck Expands Canadian Business with Merger

December 5, 2018
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Welcome to Canada

OnDeck announced today that it has entered into an agreement to merge its Toronto-based Canadian business with Evolocity Financial Group (Evolocity), an online small business funder headquartered in Montreal. OnDeck will have majority ownership of Evolocity and the combined entity will be rebranded as OnDeck Canada. “The combination of OnDeck’s Canadian operations with Evolocity will […]

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Popular Business-Lending Marketplace Dealstruck Restructures

December 3, 2018
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dealstruck logo

CEO Addresses Rumors that Dealstruck Shut Down VALLEY STREAM, N.Y., Dec. 3, 2018 — Innovative online business-lending marketplace Dealstruck.com (which has been featured in CNBC, The New York Times, Forbes and many other publications) has reorganized. A private investment group of fintech experts acquired the company. “This acquisition represents a significant strategic opportunity for our […]

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What We Learned About Credibly From Credibly’s Securitization

November 29, 2018
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mca vs loans credibly

Today, Credibly CEO Ryan Rosett told deBanked that the company’s October securitization will be used, in part, to roll out its new Market Expansion Product (MXP), which will allow Credibly to service merchants with FICO scores as low as 500 and those that have been in business for less time. “We believe the MXP will […]

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