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Download Previous deBanked Magazine Issues Free

March 4, 2019
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Did you know that you can download previous deBanked magazine issues for free? Simply click any issue on our digital bookshelf to download it in PDF. To receive future issues in print, subscribe here.

Despite FinTech Disruptions, Many Thing Stay The Same

January 5, 2015
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2014 was an unbelievable year! I kicked off last year by opening an account with Lending Club so that I could understand their product. Today I have tens of thousands of dollars invested on their platform and picking up new loans has become part of my daily routine. You could say I’m not surprised they […]

Getting in on the ONDK and LC IPO

December 4, 2014
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According to Investopedia, “Getting a piece of a hot IPO is very difficult, if not impossible.” The Motley fool says: If the bankers think a stock will soar, they earmark much of the shares for their favorite institutional clients (ones that bring in the most in commissions). In a sense, brokerages use lucrative IPOs to […]

Lending Club’s Site Went Down

December 3, 2014
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A week away from IPO day, Lending Club is undergoing a supposed unannounced mid-day prolonged “upgrade”. There is no word about it on their twitter account. As many probably know, this down time coincides with one of the day’s four normal feeding times when fresh loans are loaded onto the platform in bulk. Are they […]

Merchant Cash Advance Now In-Depth

December 1, 2014
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For quite possibly the first time ever, Google has blessed merchant cash advance with its own array of In-depth articles. What are In-depth articles? Why, they’re featured stories at the bottom of the normal search results. The In-depth feature launched in 2013 and has only worked for certain keywords. Today it appeared for the very […]

Merchant Processing Resource is Now deBanked

December 1, 2014
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Back in July 2010, I launched as an independent resource for merchant processing and merchant cash advance. At that time I was celebrating my 4th anniversary of working in the merchant cash advance business and realized there was little to no information about the industry online. For the last 4 and a half years, […]

Income Correlates With Loan Performance

November 24, 2014
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Income and Loan Performance

Now that I’ve bought into nearly 1,800 personal loans on Lending Club, I think I’ve got a good enough sample to start running analyses. The data isn’t perfect especially since none of the loans have reached maturity yet. Most are still between two and four and a half years away from completion. But strangely, 70 […]

The Funding Calls That Won’t Stop

November 23, 2014
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call center

“Your business has been approved for a loan…” Last week, Chicago Public Radio (WBEZ 95.1 FM) investigated a trend in the small business community, the use of merchant cash advance financing. The station called me in advance to answer some questions about merchant cash advances and I gave my best explanation of the industry and […]

Ready to Trade ONDK and LC?

November 16, 2014
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On November 10th, OnDeck Capital finally made their S-1 public. Immediate reactions from inside the industry were mixed. The bears criticized the years of losses while the bulls pointed out that the tide is turning. With a profitable 3rd quarter, OnDeck’s bet on the long game might finally be proving itself. And without delving into […]

Kabbage TV Commercial

November 1, 2014
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Another company has joined the TV commercial party and this one’s a little different. Atlanta-based Kabbage has chosen Puddles the Clown as their spokesman. What do you think? Not loading? See it here Below are some of their competitor’s commercials:

Keeping Lending Club (and others) Honest

October 19, 2014
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Is Lending Club staying honest?

Now that institutional money is flowing into the alternative lending industry, some retail investors are starting to express concern that the rules are changing. Lending Club for example is no longer considered a peer-to-peer lending platform, but rather an online credit marketplace. Investors don’t exactly make loans to individuals in that marketplace, but that’s sort […]

OnDeck Already Filed Form S-1

September 27, 2014
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confidential s-1

Back on August 14th, the Wall Street Journal reported that OnDeck was preparing to file for an initial public offering. Since then, industry insiders have been bustling with anticipation to see the S-1 filing, the document that would reveal once and for all their true financial standing. Update 11/18/14: Click to see OnDeck’s Public S-1 […]

Lend360: The Industry Event of the Year

September 5, 2014
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It’s being called the full circle of lending. Non-bank business lenders, merchant cash advance companies, peer-to-peer lenders, consumer lenders, lead generators, and Wall Street tycoons are descending on New Orleans from October 14th to 17th to attend Lend360. I’ve partnered up with the event through the DailyFunder name. From the governmental arena, Governor Bobby Jindal […]

On Deck Capital IPO, An Insider’s Perspective

August 16, 2014
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It was August 23, 2011, the day the Virginia Earthquake could be felt all the way up in New York City. The four of us were enjoying outdoor seating at a restaurant on the Upper East Side. The ground shook, my drink spilled and Ace looked at each one of us and said, “Okay so […]

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 […]

Are We in a $300 Billion Market?

August 7, 2014
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stacking turf war

Earlier today on a large group conference call with Tom Green and Mozelle Romero of LendingClub, I learned a few more details about their business loan program. In the Q&A segment, one attendee came right out and asked if they believed their competition was merchant cash advance companies and online business lenders. According to Green, […]

Suspicious Listing on LendingClub

August 4, 2014
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LendingClub Breaking Bad

While perusing LendingClub’s loan platform today, I came across a highly suspicious borrower. It’s member loan #23954784 who is currently a lab assistant in Albuquerque, NM. The reason for the loan request? “Other”. This is what I suspect behind the scenes:

Six Signs Alternative Lending is Rigged

August 3, 2014
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is alternative lending rigged?

There’s a lot of players at the alternative lending table but there are two that have won a string of lucky hands to put them on top. Neither were the first to draw cards, nor do either of them offer something that everybody else does not. These two lenders have something in common of course, […]

Yield Baby Yield

July 30, 2014
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yields are flying

Somebody once called business loans the Cadillac of Credit products and that person is Brendan Ross, the President of Direct Lending Investments (DLI). In a newsletter he put out in September 2013, he began by saying: Business loans are the Cadillac of credit products, with the highest yields and lowest default rates. Portfolio returns of […]

The Missing Puzzle Pieces

July 24, 2014
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the loan puzzle

About 1% of my LendingClub consumer loan portfolio bounces their very first payment. It’s discouraging stuff, especially considering these loans range between 3 and 5 years. Granted, most manage to get caught back up at least for a little while. LendingClub, like the rest of the alternative lending industry relies on ACH debits to retrieve […]