merchant loans

Should Licensing and Accreditation Come to MCA?

August 13, 2014
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It’s not said often, but it has been suggested by some players in the merchant cash advance industry to introduce sales licensing requirements. Anybody can sell and broker MCAs or alternative business loans, even your mom. That’s been a boon for growth but a bust for maintaining any kind of uniformity or standards. That’s a […]

What Would Barney Frank Say?

July 16, 2014
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While crowd funders navigate the JOBS Act and a possible revision to what constitutes an accredited investor, non-bank business lenders are raising eyebrows with sky high interest rates. Annual Percentage Rates (APRs) are reaching into the triple digits and critics are reaching for their megaphones to say something about it. Unfortunately APRs don’t spell out […]

Access to Capital – A Dose of Reality

June 15, 2014
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So much for a lack of transparency… While sitting directly next to Maria Contreras-Sweet, the head of the Small Business Administration, OnDeck Capital’s CEO corrected U.S. Senator Cory Booker’s comments about the APR of their loans. High teens? Not so, said Noah Breslow who explained their average 6 month loan has an APR of 60% […]

Do Opportunities Abound?

June 8, 2014
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Just recently I found myself in an office surrounded by some folks who had each worked in the merchant cash advance business for more than 10 years. The first generation of MCA pioneers are still out there of course but it’s rare to be in the presence of so many at one time. It was […]

Make Your Voice Heard

May 29, 2014
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survey

Have an opinion on which way the industry is headed? Or eager to read about events that you feel are most relevant? DailyFunder is running a preliminary research survey geared towards those involved in merchant cash advance and alternative business lending. It’s completely anonymous and it will be used to help steer the direction of […]

Industry Leaders Tell All (Videos)

May 25, 2014
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A few weeks ago, I recapped my two days at the LendIt conference in San Francisco. The State of Alternative Business Lending Big Government and Big Data Peter Renton of Lend Academy, who hosted the conference, is putting up the professionally finished videos on his youtube channel. I’ve embedded the ones I think you’ll find […]

The Deal

May 25, 2014
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shark

When times are tough, small businesses take chances. Last year, a family run business in Cohasset, MA made a snap decision and agreed to a $75,000 loan with infinity percent interest, literally. The principal was completely repaid in just 74 days but as per the contract, they still had to make fixed interest payments for […]

The Real Impact on Small Business

May 22, 2014
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the truth

It’s not easy being in the lending business. Just talking about money can make people uncomfortable. Bringing up how much money you have, don’t have, or wish you had is like bringing up politics at Thanksgiving dinner. It’s taboo in this society. It’s even rude to ask somebody how much they make a year. That’s […]

Big Deal #2 Struck in MCA Industry

May 21, 2014
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big deal

Another day, another capital raise for some company or other involved in alternative business lending. That’s the way it is these days, but the news about the American Finance Solutions (AFS)/CapFin Partners deal announced on Wednesday is markedly different. It’s the Rockbridge Growth Equity (RGE)/RapidAdvance deal all over again, the welcoming of a major MCA […]

Alternative Lending: Big Government and Big Data

May 7, 2014
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big data

“Who wants to fill out financial paperwork? We’d rather go pick out a pair of sunglasses” – Professor Michael Barr at LendIt 2014 One of the clear themes of the LendIt 2014 conference was that borrowers are willing to pay extra for speed and convenience. Regulators have taken note of this trend but they’re still […]

LendIt Conference: The State of Alternative Business Lending

May 6, 2014
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LendIt Panel

Have you heard? Banks aren’t lending. Nobody at LendIt seems to mind though. Ron Suber, the President of Prosper Marketplace, said earlier today that banks are not the competition. That’s an interesting theory to digest when contemplating the future of alternative lending. If banks are not the competition, then who is everyone at LendIt competing […]

Regulatory Paranoia and the Industry Civil War

April 11, 2014
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Regulation

Stacking is on everyone’s minds in the merchant cash advance (MCA) industry but that war is little more than smoke compared to the fire burning in our own backyard. One of the major topics of debate at Transact 14 has been Operation Choke Point, a federal campaign against banks and payment processors to kill off […]

Is Alternative Lending a Game of Thrones?

April 8, 2014
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Funding Kings

It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it […]

Merchant Cash Advance Syndication: Crowdfunding?

March 28, 2014
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merchant cash advance syndication

You might not have known this, but one of the most lucrative opportunities in merchant cash advance is the ability to participate in deals. It’s a phenomenon Paul A. Rianda, Esq addressed in DailyFunder’s March/April issue with his piece, So You Want to Participate? Syndication is industry jargon of course. You probably know the concept […]

Fund it and Ask Questions Later

March 25, 2014
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FUND!!!

Ever since OnDeck Capital stopped doing verbal landlord references, the underwriting landscape of alternative lending has changed dramatically. Kabbage will supposedly fund applicants in just 7 minutes. Everybody’s under the gun to streamline their process, fund deals faster, and produce record breaking numbers month after month. And why shouldn’t they? Investors are practically foaming at […]

Kabbage Has Leverage With Patents

March 23, 2014
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kabbage Patents

If you’re planning on introducing new technology to the merchant cash advance or alternative business lending space, you might want to start filing a patent, or else end up violating someone elses. I’ve brought up Kabbage and patents before, but another one of theirs caught my attention. In their invention named, Method and Apparatus to […]

Lending Club Threatens The Status Quo

March 20, 2014
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3 billion pound gorilla

In late 2013, consumer peer-to-peer lender Lending Club announced their plans to start offering small business loans. That caused a stir in the merchant cash advance world for a few weeks, but the hype died down. The general consensus was that there would be little to no overlap between the applicants each target. To this […]

Are Loan Underwriting Algorithms Limited?

March 15, 2014
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Declined loan

As news of OnDeck Capital’s $1 billion milestone spread yesterday, Crossing the $1B mark in small business loans from OnDeck to #smallbiz around the country! Great way to end the week! pic.twitter.com/U3KUNxjyez — Noah Breslow (@noahbreslow) March 14, 2014 I couldn’t help but reflect on a major detail revealed about their operation a week prior […]

Is There Cause for Alarm?

March 8, 2014
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Brick and mortar chain stores died this week, after a long illness. Born along Main Street, raised in shopping malls across post-World War II America, the traditional store enjoyed decades of good health, wealth and steady growth. But in recent years its fortunes have declined. Survived by Amazon.com and online outfits too numerous to list. […]

What’s the Reason Behind the Rise of Non-bank Financing?

March 6, 2014
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OnDeck Capital CEO Noah Breslow is no stranger to CNBC. Just as word hit the press that his company had raised another $77 million, he made a television appearance to discuss their success. So why are small businesses owners turning to alternatives? Many businesses that use alternatives such as OnDeck qualify for traditional bank financing […]