merchant loans

Hello Square Capital

March 1, 2014
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We’ve seen copies of this notice posted on a few websites now: Square, the well-known micro-merchant processor with celebrity CEO Jack Dorsey is debuting a merchant cash advance program. Truthfully, I’m not surprised in the slightest. Come on in Square, the water’s fine! What is still interesting to this day is the realization that so […]

The Growing Divide

February 28, 2014
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It wasn’t too long ago that everyone in this industry knew everyone else. If not personally, then at least through their credit inquiries or UCC names. You crossed paths and acknowledged each other. It was a small world then. Today, not so much. As the barriers to entry have remained low, the simplicity of ACH […]

Lending Club Business Loans are Here

January 19, 2014
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As mentioned in a thread on DailyFunder, I have personally seen evidence that Lending Club is already doing business loans. The loan was issued this month in the amount of $35,000 and disbursed to a business, not an individual. I have been very outspoken about my belief that peer-to-peer lenders will compete directly against merchant […]

Will Peer-to-Peer Lending Burn the Alternative Business Lending Market?

January 12, 2014
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For months I’ve been saying that peer-to-peer lenders will be companies to look out for, the latest being on December 29th. Lending Club fully intends to make the leap from consumer lending to business lending which may possibly pit them against the world of merchant cash advance. In this video, a Bloomberg reporter asks OnDeck […]

2014 Starts off With a Case of Red bull

January 10, 2014
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business lending red bull

Woah, slow down there fellas. Let us digest one thing at a time. We’re not even 2 weeks into the new year and already we’ve learned that: CAN Capital raised another $33 Million (but that they didn’t need it?) Merchant Cash Advance was the the feature story on the front page of the Wall Street […]

Amazon Quietly Funding Small Businesses

December 30, 2013
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Amazon Capital Services

Ever since Amazon announced their exclusive business loan program last year, they’ve been quietly booking deals. I say quietly because no one really talked about it much ever since. Though the loan program is available only to qualified Amazon.com merchants, it’s very similar to how Kabbage started off with eBay. Amazon’s Business Loan program has […]

Merchant Cash Advance Term Used Before Congress

December 18, 2013
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capitol building

I’d like to think that the term, merchant cash advance, is mainstream enough that a congressman would know what it was. I have no idea if that’s the case though. What I do know is that Renaud Laplanche, the CEO of Lending Club gave testimony before the Committee on Small Business of the United States […]

Is Everyone Buying into the Technology Craze?

December 6, 2013
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automated undewriting

Following a wild 18 months of press releases and technology revolutions, I’m hearing that some ISOs are having technology fatigue. VCs and Private Equity want to invest in companies that are automating everything, but that doesn’t necessarily mean account reps are ready for it. The worst fear an account rep has is using an automated […]

Where Are We Now?

November 6, 2013
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funding toothpaste

How many firms are offering working capital now to small businesses with terms of 18 months or less? It’s more difficult now to estimate than it ever has been before. I’ve come across more new direct funders in the last 6 months than I have in the past 7 years combined. 7 years… and the […]

Merchant Cash Advance Hits Shark Tank

October 26, 2013
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shark tank

If you missed Friday night’s episode of Shark Tank, you absolutely must catch a rerun of it. Jason Reddish and Val Pinkhasov came on the show to pitch their merchant cash advance company, Total Merchant Resources. It was one of the best few minutes in merchant cash advance history for several reasons: Mark Cuban, the […]

Here Comes Lending Club

October 17, 2013
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here comes lending club

As highlighted in BusinessWeek, Lending Club has finally entered the small business lending market. Some of you might say, “bahh… so what!” but you should be paying attention. Lending Club recently got a valuation of $1.55 billion when Google bought a piece of them back in May. To put that in perspective, that’s about 15x […]

Is PayPal’s Working Capital Program a Mistake?

October 5, 2013
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paypal

A few weeks ago, PayPal announced the launch of their Working Capital program as a way to help small businesses in need. They classify it as a loan but the explanation for how it works is textbook merchant cash advance. A percentage of each PayPal sale is withheld and applied as a reduction to the […]

Google Penguin 2.1 Takes Swing at Merchant Cash Advance Industry

October 5, 2013
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google penguin 2.1

If you noticed a shuffle in search rankings for industry keywords last night, it’s because Google unleashed Penguin 2.1. Penguin 2.1 launching today. Affects ~1% of searches to a noticeable degree. More info on Penguin: http://t.co/4YSh4sfZQj — Matt Cutts (@mattcutts) October 4, 2013 Penguin focuses on spammy or purchased backlinks so if you did one […]

The Search for a Bad Credit Startup Loan

October 1, 2013
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possible

Are you trying to start a business despite having no income, bad credit, and no collateral? Well I’ve got news for you… and it isn’t good. There isn’t any hope for you to get a loan. None. Call me a pessimist or a sensationalist for saying so. Heck, I dare someone to prove me wrong! […]

Pop Quiz: Would No Interest Mean No Defaults?

September 21, 2013
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12347448_m

Bring interest rates down to zero and nobody would default right??? Every single borrower has a risk of delinquency or default irrespective of the interest rate. Everyone. Read the now defunct ARC Loan procedural guide: SBA’s ARC Loan Procedural Guide

RapidAdvance Becomes Part of The Quicken Loans Family

September 18, 2013
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rapidadvance quicken loans

This is a follow up to the RapidAdvance/Rockbridge Growth Equity announcement a couple days ago. We now know that RapidAdvance got an enterprise valuation in excess of $100 million. RapidAdvance will become part of the Quicken Loans Family of Companies. Jeremy Brown will be continuing his role as CEO. I share his feelings on this […]

Funder Says Farewell to Car Dealerships

August 26, 2013
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loans for car dealerships

Merchant Cash and Capital announced today that they will no longer be funding car dealerships. See screenshot of their announcement below: Over the last 18-24 months, MCC and many other funders have greatly expanded their lists of accepted business types. It will be interesting to see if any other funders follow suit in re-restricting certain […]

Split Funding is Here to Stay

August 21, 2013
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split-funding

I’ll say it for the hundredth¹ time, the advantage of split-funding is the ability to collect payments back from a small business that has traditionally had average, weak, or poor cash flow. Let’s put that into perspective. There is a distinct difference between a working business with poor cash flow and a failing business. A […]

When Merchant Cash Advance isn’t the Right Fit

August 12, 2013
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not the right fit

“I know you do a million in gross sales monthly but since you process only $5,000 in credit cards, we can only approve you for $7,000.” Before ACH repayment became mainstream, the MCA industry was incredibly restrained in its ability to help businesses. A merchant seeking a half million dollars with the cash flow and […]

Your Merchant Cash Advance Press Release May be Hurting You

August 8, 2013
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spam

Part of keeping up with the merchant cash advance industry means reading up on the press releases published online, but it’s not such an easy job. Legions of funders, ISOs, and lead generators are competing for valuable real-estate in search results and they’ll use every trick in the book to get it. It almost always […]