OnDeck Expands Canadian Business with Merger

December 5, 2018
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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 […]

Popular Business-Lending Marketplace Dealstruck Restructures

December 3, 2018
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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 […]

What We Learned About Credibly From Credibly’s Securitization

November 29, 2018
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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 […]

How Bloomberg Played Fast And Loose With A Wall Street Tale And Got Sued

November 24, 2018
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On a cool Halloween evening in 2016, Bloomberg published its latest financial thriller, a story about a smooth talker that convinced bankers to invest $32 million and then vanished. Readers ate it up. Less than three weeks later, Bloomberg would face a defamation and libel lawsuit that would come to haunt them for years. For […]

Multimillionaire CEO Claims Predatory Lenders are Causing Him to Sell His Furniture for Food

November 22, 2018
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Two months ago, a billionaire hedge-fund manager named Philip Falcone, the 377th richest person in the United States who once “put the squeeze on Goldman Sachs,” led a Virginia-based investment group to make a strategic purchase of a local Telemundo TV station in Columbus, Ohio. The seller, a company led by local businessman Richard Schilg, […]

The Six Figure Wipeout

November 21, 2018
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Doug Duncan shows off his ride on facebook. He and his wife continued to draw a $130,000/year combined salary from the company Bloomberg Businessweek reported had been wiped out by a $40,000 transaction with a “predatory lender.” Prior to that, the Duncans’ business was averaging $4.3 million a year in sales In June 2017, Florida […]

Largest MCA Deal in History Suffers Multiple Closures

November 17, 2018
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Momentum Auto Group

Above: Momentum Auto Group’s signature location as displayed in their facebook video commercial The $40 million merchant cash advance deal, a conglomerate of auto dealerships in California, that was facilitated by 1st Global Capital, hit an obstacle last week when six locations shut their doors without notice. deBanked had not previously revealed the name, but […]

Dan DeMeo is Back in Action… at Lendr

November 15, 2018
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Daniel DeMeo has been hired as Chief Revenue Officer by the Chicago-based funder, Lendr. DeMeo has been working as an independent consultant for the last two years, according to LinkedIn. Prior to that he was the CEO of CAN Capital, a company he had dedicated himself to for nearly seven years until an internal account […]

IOU Continues to Post Positive Earnings

November 14, 2018
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Phil Marleau IOU Financial

Above: Phil Marleau, CEO, IOU Financial Loan originations for IOU Financial’s third quarter were $36.1 million, an 85% increase over last year’s Q3 originations of $19.6 million. This is also IOU’s fourth consecutive quarter with positive earnings. “IOU continued to deliver strong loan origination growth and earnings performance during the third quarter of 2018 and […]

Clearbanc Swaps VC Investing for MCA

November 13, 2018
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The business model for many startups is that the business won’t even be close to profitable for years until it gets enough clients or users. But this isn’t the case for all startups. Some of them actually generate considerable revenue after just months. For companies like these, that also need capital for marketing or expansion, […]

Another Debt Settlement Defendant Pleads Guilty, Faces 30 Years in Prison

November 11, 2018
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behind bars

Mark Farnham, a co-conspirator in a high profile merchant cash advance debt settlement fraud case, pleaded guilty on Friday to conspiracy to commit bank fraud. He faces a sentence of 30 years in prison and a $1 million fine. According to the Department of Justice, Farnham, along with others, used a number of fraudulent companies […]

The Broker: How Industry Veteran Joe Cohen Closes Deals and Dodges Backdooring

November 11, 2018
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Joe Cohen Business Finance Advance

Role: I’m the manager of Business Finance Advance in Brooklyn. I manage a team of about 20.       Years in the business: Since the beginning. 2005/2006. How he closes a deal:    You have to really know the customer. You have to have a feel for what his needs are. Is his hot button the […]

Big MCA Deal Was Really Just a Massive Ponzi Scheme

October 30, 2018
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Entrance to FBI Building in Washington DC

Bank deposits were apparently the entire business model for Daniel Rudden, a 72-year old from Denver who fashioned himself the owner of a life insurance company called Financial Visions. In reality, there hadn’t been any such business in almost a decade. In July, Rudden sent out a mass email admitting that his whole operation was […]

Shopify Capital Issued $76.4M in Merchant Cash Advances in Q3

October 25, 2018
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shopify glyph

Shopify Capital, Shopify’s funding arm, issued $76.4 million in merchant cash advances in the third quarter, the company revealed. That brings the total to $375 million advanced since April 2016. Overall, the company reported Q3 revenue of $270.1 million and a net loss of $23.2 million. The company operates an e-commerce platform for online stores […]

In New Jersey, Yellowstone Capital Buoys Volunteer Ambulance Organization

October 19, 2018
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hatzalah ambulances

Hatzalah of Union County, New Jersey, a volunteer ambulance organization, has saved hundreds of lives thanks to its volunteer-only team and its three ambulances, all funded by donations from Yellowstone Capital CEO Isaac Stern and the company’s employees over the past seven years. Total donations from Yellowstone Capital, including from Stern, have exceeded $300,000. “[Stern] […]

“Out Of State” MCA Funder Not Precluded From Entering COJs in New York, Court Rules

October 18, 2018
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lawyer going to the courthouse

In May 2017, Funding Metrics (FM), a small business funding provider, entered a signed Confession of Judgment (COJ) in Westchester County, NY against a California-based customer. The Court issued a judgment a mere five days later. That should have been the end of it, but on July 26th, the customer hired law firm White & […]

NYIC – IFA Northeast – AFBA – deBanked Conference Recap

October 17, 2018
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NYIC Event Panel - Arno Ristorante

Panel from left to right: Lindsey Rohan, Platinum Rapid Funding Group & the AFBA | Chris Murray, Stein Adler Dabah & Zelkowitz LLP | Robert Zadek, Buchalter | Richard Simon, Mandelbaum Salsburg Yesterday, the New York Institute of Credit (NYIC) hosted a conference in Manhattan with attendees from several segments of the commercial finance industry, […]

The Broker: How Andy Savarese Changes Collars and Closes Deals

October 12, 2018
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Andy Savarese JustiFi

Title: I’m the Managing Partner at JustiFi Capital, a brokerage in Farmingdale, Long Island.  I started it September 2017 with my cousin, who’s the owner and my best friend. We do mostly MCA, but also some term loans. His schedule: I have a part-time/full-time job in the mornings. I work in sanitation for the town […]

Yoel Wagschal Becomes Last Chance Funding’s CFO

October 10, 2018
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Yoel Wagschal

Above: Yoel Wagschal speaks at Broker Fair in Brooklyn, NY | May 14, 2018 Yoel Wagschal, an accountant who specializes in servicing MCA funding companies, told deBanked today that he will now be the CFO for Last Chance Funding (LCF), which has been one of his clients for about five years. Wagschal said he will […]

The Largest Merchant Cash Advance in History

September 28, 2018
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auto dealership

How would you like to be the funder to do a $40 million MCA transaction? According to the Securities & Exchange Commission, a deal of such magnitude was one of the many negligent acts that 1st Global Capital CEO Carl Ruderman did with investor money. Though the SEC refers to the merchant as an auto […]