Announcements
LENDUP HIRES FIRST CHIEF FINANCIAL OFFICER, ANNOUNCES SIGNIFICANT GROWTH MILESTONES
November 7, 2017San Francisco, November 8, 2017 — LendUp, a socially responsible fintech company for the emerging middle class, today announced that Bill Donnelly, former VP of Global Financial Services for Tesla, has joined as its first CFO. The company further strengthened its leadership team with the addition of a General Manager for its loans business and a Chief Data Scientist.
“Our strengthened leadership team, from some of the world’s fastest-growing and most impactful companies, will help LendUp accelerate our efforts to build a lasting, iconic company that will be a category leader for years to come,” said Orloff.
Donnelly is a 30-year consumer credit veteran with extensive experience in credit cards and loans products. Donnelly spent the last four years with Tesla as VP of Global Financial Services, responsible for providing financing solutions for Tesla’s customers across 29 countries. He also served as President of Tesla’s captive finance company, Tesla Finance LLC, which offered an industry-leading leasing program innovative for its consumer-friendly agreement and for being the first end-to-end electronic lease with the ability to execute contracts on a vehicle’s touchscreen.
“We couldn’t be more excited to have an executive of Bill’s caliber join our quickly expanding team,” said Sasha Orloff, co-founder and CEO of LendUp. “Tesla is one of the most innovative companies in the world, and completely disrupted the sleepy auto industry. Bill’s experience leading complex global financing programs, and building first-of-their-kind, mobile-first platforms, will be invaluable to us as we continue to build out our product ecosystem and be on the forefront of serving more Americans in need of better financial services options.”
Donnelly previously spent a decade with BMW. As CFO and then President of its industrial bank, he led BMW’s credit card program and was awarded a patent for a new credit card product. In addition, Donnelly’s background includes more than 15 years with the credit card, installment loan, and automotive finance divisions of JPMorgan Chase. He was also President and CEO of retail card issuer First Electronic Bank, where he led the bank’s turnaround and achieved record profits.
“I have long admired LendUp for the important work the company is doing to expand credit access and help people improve their financial health,” said Donnelly. “At Tesla I witnessed how a strong sense of mission combined with a talented, passionate team can lead to incredible success and to overcoming seemingly insurmountable challenges. I have found that same sense of mission among LendUp’s amazingly talented and passionate team. I look forward to leading our finance organization and serving as a strategic partner to the entire team as we continue building innovative and mobile-first financial services products. Together, I can’t wait to achieve extraordinary success — for our customers and for our investors.”
In addition to Donnelly, Anu Shultes has joined as General Manager of the company’s loans business, which recently surpassed $1.25 billion in originations. Shultes has 25 years of experience in financial services across lending and credit card products, primarily focused on underserved consumers. Shultes is passionate about financial inclusion, and has managed multi-billion-dollar loan portfolios and built $1B businesses from product launch to widespread adoption. Shultes most recently served as Chief Operating Officer of mobile-first global gifting platform Swych, and before that served in senior leadership roles at Blackhawk Network, AccountNow, National City Bank, and Providian Financial.
Dr. Leonard Roseman has joined LendUp as Chief Data Scientist, to lead a growing team that uses Machine Learning to improve financial inclusion through expanded credit access and lowering the cost of credit to borrowers. Dr. Roseman has 30 years of experience in modeling credit risk, pricing, and model risk capital. He has worked with a variety of companies as a statistician, technical consultant, and strategy consultant focused on experimental design, predictive modeling, and strategic analysis. Roseman most recently served as Head of Group Decision Sciences at the Commonwealth Bank of Australia, and before that served as Deputy Chief Model Risk Officer at Capital One.
LendUp is also announcing a number of significant growth and social impact milestones. The company has now saved its borrowers $150 million in fees and interest through use of its credit card and loan products. These savings have helped close the gap caused by poor credit, which costs Americans roughly $250,000 more over the course of their lifetimes. Additionally, consumers have taken LendUp’s free online financial education courses more than 1.7 million times. Finally, the company launched one of the most innovative credit cards out of beta at the beginning of 2017.
About LendUp
LendUp is a socially responsible fintech company on a mission to redefine financial services for the emerging middle class—the 56% of Americans shut out of mainstream banking due to poor credit or income volatility. LendUp builds tech-enabled loans and credit cards paired with educational experiences to help people save money and get on a path to better financial health.
Follow LendUp
Twitter: @LendUpCredit
Facebook: facebook.com/LendUpCredit
LinkedIn: linkedin.com/company/LendUp
6th Avenue Capital Secures $60 Million Commitment For Merchant Cash Advance Funding
November 2, 2017Highly Experienced Executive Team Offers Flexible Financing Options to Small Businesses
New York City – November 2, 2017 – 6th Avenue Capital, LLC (“6th Avenue Capital”), a leading provider of small business financing solutions, announced today its securement of a $60 million commitment from a large institutional investor. The investor made their commitment based on 6th Avenue Capital’s industry-leading underwriting, compliance standards and processes. 6th Avenue Capital will draw from this commitment to offer merchant cash advances to small businesses through its nationwide network of Independent Sales Organizations (“ISOs”) and other strategic partnerships, such as banks and small business associations.
6th Avenue Capital launched formal operations in 2016 to help finance small businesses that are often ineligible for funding due to traditional underwriting criteria. 6th Avenue Capital evaluates each application for funding individually and keeps the merchant’s short and long-term needs in mind including, most importantly, what they can afford. 6th Avenue Capital also understands that small businesses may need funding quickly. The company’s data-driven underwriting processes, expertise and technology can give the merchant secure and equitable approvals of qualified requests and funding within hours.
Leading the team, CEO Christine Chang oversees all strategic aspects of 6th Avenue Capital. She also serves as COO to sister company Nexlend Capital Management, LLC. She brings more than 20 years experience in institutional asset management, including alternative lending. Previously, Chang served as Chief Compliance Officer at Alternative Investment Management, LLC, COO at New York Private Bank & Trust and Vice President at Credit Suisse. She serves on the board of Blueprint Capital Advisors, LLC and Bottomless Closet, a not-for-profit empowering economic self-sufficiency in disadvantaged NYC women.
“Our mission at 6th Avenue Capital is to help small businesses grow, and we continue to expand our existing network of ISO and strategic partners to ensure these businesses have access to capital in hours,” said Chang. “Our leadership team of financial industry experts has extensive experience navigating multiple economic cycles. We know how to serve merchants and how to deliver quickly while meeting the highest operational standards for our investors.”
COO Darren Schulman joined the team in March 2017. Schulman is a 20-year veteran of the alternative finance and banking industries. He is responsible for oversight of 6th Avenue Capital’s origination, underwriting, operations and collections, as well as strategic initiatives. Schulman served previously as COO at Capify (formerly AmeriMerchant), a global small business financing company, and President and CFO at MRS Associates, a Business Process Outsourcing (BPO) company specializing in collections. In addition, Schulman was an Executive Vice President at MTB Bank.
“We form strong relationships with the merchant and consider it essential for our underwriters to speak to every merchant, on every deal, regardless of its size,” said Schulman. “We also make our underwriters available for discussions with ISOs whenever necessary. We are proud to offer competitive volume-based commissions, buyback rates and white label solutions.”
About 6th Avenue Capital, LLC
6th Avenue Capital is changing the small business financing landscape by offering a data-driven underwriting process and fast access to capital. The company employs a unique blend of industry experts and is committed to the highest operating standards, high touch merchant service, including a policy of direct merchant access to underwriters. 6th Avenue Capital is a sister company of Nexlend Capital Management, LLC, a fintech investment management firm founded in 2014 and focused on marketplace lending (consumer loans). For more information, visit www.6thavenuecapital.com.
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Fundera Passes $500M in Loans Funded to 8,500+ Small Businesses
November 1, 2017(New York, NY–Nov 1, 2017) – Fundera, the trusted advisor and online marketplace for small business financing, today announced that it has surpassed the $500 million mark in loans funded to over 8,500 small businesses on its platform.
Fundera’s platform allows small business owners to apply to a curated network of 25-30 lenders in the industry with one easy common application. Small business owners come to Fundera for all of their financing needs, from credit cards to SBA loans and everything in between.
“It’s about more than just saving time and money for the small business owner,” said Jared Hecht, CEO and cofounder of Fundera. “At Fundera we’re truly able to become a partner in these businesses’ financial decisions. Our goal is to use our resources and technology to educate small business owners on their credit eligibility, improve their creditworthiness over time, and help them graduate into better and better financing products.”
Fundera replaces small business loan brokers with software and algorithms, making the process faster and easier to navigate. The average loan size on Fundera’s platform is about $60,000, and although no single industry accounts for more than 10% of Fundera’s customer base, the most popular industries include ecommerce and retail.
Since launching in 2014, Fundera has raised over $20M in equity financing.
StreetShares Reports $6.2M Loss For Fiscal Year 2017
October 31, 2017StreetShares, the veteran-run small business lender, continued to post sizable losses, according to their June 30th fiscal year-end financial statements. The company had a $6,193,154 loss on only $2,168,067 in revenue. While StreetShares has generated significant buzz for their particular focus on military-owned small businesses, the lender only made 751 loans in the 12-month period and there is no requirement that the businesses they lend to actually be military-owned.
The company spent more on payroll and payroll taxes alone ($3,258,960) than they earned in revenue. They had 32 full-time employees and 1 part-time employee as of June 30th.
“As an early stage, venture-funded company that is not yet profitable, we rely heavily on capital investments to fund our operations,” the company wrote in their annual report. “Based on our current financial situation, it is likely we will require additional capital within the next twelve months beyond our currently anticipated amounts to fund the operations of the Company.”
The chart plotting their loan performances by grade below is from their annual report:
Their loan amounts typically range from $2,000 to $150,000 and require weekly payments for anywhere from 3 months to 3 years.
Even though the company spent nearly triple on marketing in this fiscal year ($1,727,478) versus the previous year ($579,331), revenue only doubled.
StreetShares plans to raise additional capital towards the end of this year through a Series B Round.
CommonBond Closes $248 Million Securitization, Secures Inaugural S&P Rating of AA
October 27, 2017NEW YORK (October 27, 2017) – CommonBond, a leading financial technology company that helps students and graduates pay for higher education, today announces the close of a $248 million securitization of refinanced student loans. The offering’s most senior notes achieved AA ratings from Moody’s, S&P, and DBRS – Aa2, AA, and AA (high), respectively – the company’s highest ratings to date.
The transaction was CommonBond’s fifth and largest to date. Investors submitted $1 billion in orders, making the deal more than four times oversubscribed. Goldman Sachs served as structuring agent, co-lead manager, book-runner, and co-sponsor. Barclays and Citi also served as co-lead managers and book-runners on the transaction, while Guggenheim Securities served as co-manager.
“Investor demand for CommonBond paper has never been greater,” said David Klein, CommonBond CEO and co-founder. “The strong market reception is a reflection of our pristine credit quality, continued ratings progression, and track record of consistent results.” Klein added, “As a programmatic issuer, we look forward to continuing to bring consistently high performing bonds to the market, providing investors with world-class capital deployment options.”
The transaction was the first of CommonBond’s to be rated by S&P, who assigned AA ratings to the transaction, alongside similar ratings from Moody’s and DBRS. Moody’s and DBRS also recently upgraded CommonBond’s ratings on previous deals in recognition of the company’s strong credit performance.
The securitization marks a significant period of growth for CommonBond, which earlier this year introduced student loans for current undergraduate and graduate students nationwide, to complement its established student loan refinance product. CommonBond is the only financial technology company to offer a full suite of student loan solutions, including new student loans to current students and refinanced student loans to graduates. The company has funded over $1 billion in student loans, and continues to grow its enterprise platform, CommonBond for Business™ – which enables employers to contribute a monthly payment to employees’ student loans, in addition to offering an evaluation tool for employees to determine their best repayment options.
About CommonBond
CommonBond is a financial technology company on a mission to give students and graduates more transparent, simple, and affordable ways to pay for higher education. The company offers refinance loans to college graduates, new loans to current students, and a suite of student loan repayment benefits to employees through its CommonBond for Business™ program. By designing a better student loan experience that combines advanced technology with competitive rates and award-winning customer service, CommonBond has funded over $1 billion in loans for its tens of thousands of members. CommonBond is also the first and only finance company with a “one-for-one” social mission: for every loan it funds, CommonBond also funds the education of a child in need, through its partnership with Pencils of Promise. For more information, visit www.commonbond.co.
Katherine Fisher to testify before House Small Business Subcommittee
October 24, 2017
Hanover, Maryland, October 23, 2017 – Katherine “Kate” Fisher, a partner in the Maryland office of Hudson Cook, LLP, is scheduled to speak at a hearing before the Congressional House Committee on Small Business in Washington, D.C., on October 26, 2017.
The Committee on Small Business Subcommittee on Economic Growth, Tax and Capital Access will meet for a hearing on “Financing Through Fintech: Online Lending’s Role in Improving Small Business Capital Access.” The hearing will provide the subcommittee with an opportunity to examine recent trends in how small businesses obtain capital, the different business models in the industry and how online lending fits into the overall lending landscape. Fisher is one of several witnesses who will testify before the subcommittee.
Fisher’s practice focuses on consumer financial services and small business financing. She represents banks, finance companies, private equity and investment bank investors, merchant cash advance companies, and small business lenders establishing new programs and products. She also conducts due diligence and compliance reviews of consumer lending and business financing portfolios.
The hearing is scheduled to begin at 10:00 a.m. on Thursday, October 26, 2017, in Room 2360 of the Rayburn House Office Building. The hearing will be published live on the committee’s website on Thursday.
About Hudson Cook, LLP
Celebrating its 20th anniversary this year, Hudson Cook, LLP focuses its practice on banking, consumer and commercial financial services, and privacy law, both state and federal, from its 13 offices across the country. With more than 60 attorneys, the firm offers legal services to local, national and international clients, providing practical and innovative solutions to their legal issues. For more information, visit www.hudsoncook.com.
OAREX Secures $10,000,000 in Funding, Strengthens Digital Media Presence
October 24, 2017
CLEVELAND, OH – OAREX Capital Markets, Inc. (“OAREX”), a leading non-bank financing institution providing financing for digital media companies, today announced that it has closed on a $10,000,000 line of credit from a group of lenders, led by Arena Investors, LP, a New York-based global investment firm.
OAREX accelerates programmatic advertising revenue for digital publishers such as websites, app developers, ad networks and supply-side platforms. Accelerated cash flow allows media companies to scale their content promotion and user acquisition campaigns, and pay supply side partners and vendors sooner.
“This transaction significantly improves our ability to fund publishers,” Hanna Kassis, founder & CEO said. “It will allow us to continue to provide liquidity in a timely and efficient manner, allowing clients to better match their income with expenses to scale rapidly,” said Kassis.
Since inception, OAREX has helped accelerate programmatic advertising revenue for hundreds of websites and apps, and has purchased millions of dollars in outstanding receivables. “We tailor our service to our clients’ individual needs, making sure they’re positioned for growth,” Kassis said.
Capital & Credit as a Service
OAREX offers a non-loan product, making it appealing to many new digital media companies that are not interested in assuming debt and providing personal guarantees. OAREX accomplishes this by financing publishers’ advertising receivables, providing immediate liquidity for growth. Clients can sign up for one-time funding, or a monthly facility between 6 and 12 months. OAREX funds clients on a weekly or monthly basis, depending on their needs and cash flow.
“We are not a lender,” Kassis said, “we are a capital partner with the aim of helping clients grow.” OAREX takes a hands-on approach to servicing its clients, despite newly developed back-end technology that allows OAREX to verify receivables instantly. “We believe human interaction is critical to our providing the best service, even in the digital age,” said Kassis. As a value-add, OAREX offers a database to clients of all payment, collection and credit data on ad networks, ad exchanges and other intermediaries in the digital media ecosystem. “If this information can help our clients, then it can only help us by sharing it with them,” said Kassis.
About OAREX Capital Markets, Inc.
OAREX Capital Markets, Inc. (www.oarex.com) provides fast, flexible funding for companies in the digital media ecosystem earning revenue from advertising, affiliates and marketplaces such as the App Store. Established in 2013, OAREX is an acronym for the “Online Advertising Revenue Exchange”, and is located in the heart of Cleveland’s historical Tremont neighborhood. For more information, please contact Hanna Kassis or Taylor Haddix at (855) 466-2739.
About Arena Investors, LP
Arena Investors, LP (www.arenaco.com) is a global investment firm and merchant capital provider that invests across the entire credit spectrum in areas where conventional sources of capital are scarce. Arena focuses on corporate private credit, real estate private credit, commercial & industrial assets, structured finance, consumer assets as well as structured private investments in public securities.
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Online Small Business Lending Provides Benefits to Small Business Owners, Finds New Survey
October 23, 2017
Washington, D.C., October, 23, 2017 – Four leading trade associations – Electronic Transactions Association, Innovative Lending Platform Association, the Marketplace Lending Association, and the Small Business Finance Association – commissioned a comprehensive survey of U.S. small business owners from Edelman Intelligence. The survey conducted by Edelman Intelligence found that a large majority (70%) of small business owners believe there are more credit options today when compared to five years ago, and 97% of those feel that the growing number of financing options is a good thing.
Small businesses owners need quick and streamlined access to credit to grow their businesses and the American economy. Online small business lenders are financial firms that provide credit to small business owners through automated, technology-enabled platforms. They regularly work with traditional lenders to deliver loans. By leveraging the ubiquity, speed and convenience of the Internet, online small business lenders use sophisticated software platforms to provide American small business owners with fast, easy and affordable credit.
Key findings of the study include:
- An overwhelming majority of small business owners reported more lending options available now than five years ago. 70 percent of small- and medium-sized business owners say there are more lending options now, and 97 percent of those believe that the increase in options is a positive thing for their businesses.
- Most small business owners reported using online small business lenders to help them expand their locations, make necessary hiring and equipment purchases, and help manage cash flow.
- Of the small business owners considering taking out a loan in the next 12 months, close to 40 percent say they will consider borrowing from an online lender.
- Online small business lenders have high levels of satisfaction and scored high marks for ease of use and business growth enablement. According to the study, 98 percent of small business owners who have used online lenders say they are likely to take out another loan with an online lender.
- For many small business owners, online small business lending platforms are a popular alternative to asking friends and family for a loan.
Media inquiries should be directed to:
ETA PRESS CONTACT:
Laura Hubbard, lhubbard@electran.org
ILPA PRESS CONTACT:
Jim Larkin, jlarkin@ondeck.com
203-526-7457
MLA PRESS CONTACT:
Nat Hoopes, nat.hoopes@marketplacelendingassociation.org
SBFA PRESS CONTACT:
Steve Denis, sdenis@sbfassociation.org
