Online Lending

Google Bans Loan Apps From App Store If Personal Loan Offers Exceed 36% APR

October 12, 2019
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Google is implementing new rules for consumer lenders who have apps in the Google Play app store. And they’re pretty strict. If a lender offers loans that exceed 36% APR, their app will be banned. If the repayment period of the loan is 60-days or less, the app will be banned. It doesn’t matter what […]

What Happened to Borro?

October 6, 2019
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In 2013, Borro, an innovative online lending company that was poised to disrupt pawn shop lending forever, invited me to their stylish offices at 767 Third Avenue in Manhattan. It wasn’t for a story per se, but rather to learn more about each other’s place in the world of online lending. deBanked was still called […]

No Fees, Ever – Is Goldman Sachs Winning Or Losing The Online Lending Battle?

September 30, 2019
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Peer-to-Peer lending in the United States died the day Goldman Sachs launched a rival online lending company in 2016. Armed with a low cost of capital and the trust of a household name, Marcus, as Goldman Sachs referred to themselves, sought to further disrupt consumer lending by eliminating every type of fee including late fees. […]

Earnin, Say What’s Your Price? Nas-backed Earnin Comes Under Investigation

September 17, 2019
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Earnin, the self-proclaimed alternative to payday loans, is part of a new online lending category that is under investigation in eleven states and Puerto Rico for its similarities to payday loans. With such loans being banned in sixteen states, the app-based personal loans company has drawn the attention of various regulators after it was suggested […]

For Sale: Three Loan Portfolios Held By Direct Lending Investments

August 19, 2019
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for sale

The Court-appointed receiver of the now-defunct hedge fund, Direct Lending Investments (DLI), is gearing up to sell three loan portfolios with an aggregate par amount owed of $29.8 million. The portfolios comprise of business loans, consumer loans, and merchant cash advances. An official notice of the proposed sale will be published in the Wall Street […]

LendingPoint Places Seventeenth on Inc. 5000

August 14, 2019
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LendingPoint

Today Inc. 5000 released is 2019 list of the fastest growing private companies in America, featuring alternative finance company LendingPoint in seventeenth place after it witnessed a three-year revenue growth of 9,265%. LendingPoint offers consumer loans of up $25,000 and provides financing to merchants, service providers, and medical institutions via its LendingPoint Merchant Solutions program. This is […]

Lending Club Still Logging Losses, But Not For Long?

August 9, 2019
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Scott Sanborn

LendingClub released its second quarter report this Tuesday. Loan originations reached a new high of $3.1B, but the year-over-year growth rate for the quarter clocked in at only 11%, down from the 18% growth experienced the three straight previous quarters in a row. The company also generated a net loss of $10.6M. Beyond Q2 however, […]

Fox Corp / Credible Deal – What’s Online Lending Got To Do With TV Broadcasting?

August 5, 2019
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Fox Flag

On Sunday Fox Corp announced it had agreed a deal to buy a majority share of 67% in Credible, a San Francisco-based online lending platform that is publicly traded in Australia. Credible, which was valued at $397 million by Fox, provides credit checks for mortgages, personal loans, and student loans; gathers the information yielded; and […]

Lending Express Rebrands to Become

July 16, 2019
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Lending Express, a company whose CEO was once a master gamer, has rebranded to Become. “This transition comes at a pivotal point in the company’s growth and highlights its dedication to providing businesses with opportunities to improve fundability, secure funding, and ultimately become more,” a company spokesperson wrote. According to the company, their online loan […]

Amazon Now Among The Top Online Small Business Lenders in The United States

May 8, 2019
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Jeff Bezos

Amazon has joined PayPal, OnDeck, Kabbage, and Square as being among the largest online small business lenders. On Tuesday, Amazon revealed that it had made more than $1 billion in small business loans to US-based merchants in 2018. Amazon says the capital is used to build inventory and support their Amazon stores. By selling on […]

Small Businesses Rank Online Lenders More Transparent Than Big Banks

April 16, 2019
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challenges with lenders

When it comes to business loans, small businesses say online lenders are more transparent than big banks. Specifically, 15% of respondents to a Federal Reserve survey reported challenges with transparency experienced at big banks versus only 12% with online lenders. Small businesses also ranked big banks worse on credit decision wait times, application process difficulty, […]

Direct Lending Fund CEO Resigns, Investigation

March 20, 2019
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Ross moderates a panel

In this dark blurry photo, Ross moderates an online lending panel in 2014 Direct Lending Fund CEO Brendan Ross, has resigned, according to Bloomberg News and numerous individuals identifying themselves as investors on an industry blog. The fund not only lost nearly 25% of its portfolio in a single sour investment, but it’s reported that […]

Elevate Reflects on Success of Fintech in Personal Loans

February 21, 2019
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The unsecured personal loan market hit an all-time high in 2018, jumping 17 percent year-over-year to $138 billion, according to data from TransUnion released today and featured in a CNBC story. “The rapid growth in consumer loans sits squarely on the shoulders of fintechs,” said Jason Laky, senior vice president and leader of TransUnion’s consumer […]

‘Peers’ Are Almost Gone From Lending Club’s Funding Mix

February 20, 2019
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Lending Club breakdown

Long gone are the days of peer-to-peer lending. On Tuesday, Lending Club, a pioneer in the peer-to-peer lending space, reported that only 6% of its Q4 originations came from individual self-managed accounts. Accounts professionally managed for individuals made up 16%, with the rest of the loans being funded by a combination of banks, institutions, and […]

LendingPoint Gets Even More Financing

February 4, 2019
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lending point

LendingPoint announced today that it has closed an increase of its mezzanine funding, a hybrid of debt and equity financing. The company’s mezzanine financing now totals more than $67.5 million. Paragon Outcomes Management LLC is the primary investor and was joined for this round by an unnamed co-investor. “Paragon Outcomes continues to provide outstanding support […]

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, […]

LendingClub Funds $1 Billion in CLUB Certificates

November 20, 2018
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Scott Sanborn - Lending Club

LendingClub announced today that it has funded $1 billion in CLUB Certificates, in just under a year since the company introduced the offering. According to its website, CLUB Certificates are “pass-through securities with CUSIP numbers backed by LendingClub prime or near prime personal loans.” What does this mean? LendingClub was unreachable at the time, but […]

Credit Karma Moves Towards Home Mortgages with Acquisition

August 20, 2018
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home equity

Credit Karma acquired Approved last week, according to a blog post written by Approved CEO and founder Andy Taylor. Approved is a platform that simplifies and facilitates the process of obtaining home mortgage loans. “When we left Redfin three years ago to tackle the often painful and tedious process of getting a home loan, nearly […]

SoFi Has Massive Loss in Second Quarter

August 7, 2018
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SoFi sign

SoFi had a second quarter adjusted loss of about $200 million, according to a Bloomberg story from yesterday, citing people familiar with the company’s situation. “Our Q2 financial results were negatively impacted by significantly lowered valuation of legacy loans and assets as well as the slow start to increasing prices in the face of a […]

CommonBond Issues Securitization

August 3, 2018
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CommonBond, which helps people finance student loans, announced today its second AAA-rated securitization from Moody’s and DBRS. At $292 million of total collateral, the transaction is the company’s largest to date. It is CommonBond’s second securitization of 2018 and its seventh altogether. The company, which competes with SoFi, now has a total securitized loan amount […]