Announcements
ELFA Wins Nationwide Relief from Section 1071 for Equipment Finance Industry
October 26, 2023
WASHINGTON, D.C., October 26, 2023 – In a major victory for members of the Equipment Leasing and Finance Association and the entire equipment finance industry, today the U.S. District Court for the Southern District of Texas issued a nationwide injunction delaying implementation of Section 1071 for all covered financial institutions. This action is in direct response to the efforts of ELFA and the other parties that intervened in the case in recent months. Functionally this means that the deadlines for compliance with Section 1071 are delayed by approximately 10 months for all ELFA member companies.
In response to the Court Order, ELFA President and CEO Ralph Petta said, “This is a big win for ELFA members and the equipment finance industry as a whole. We applaud the action taken by the court today, which underscores the value of our association’s ongoing efforts to ensure Section 1071 doesn’t make it more burdensome for our members and their customers in the $1 trillion equipment finance industry to do business together.”
Earlier this year the court had issued a partial injunction in response to litigation filed by Rio Bank, the Texas Bankers Association and the American Bankers Association. That initial injunction had, until that point, only covered those three entities. In August ELFA intervened in the lawsuit to ensure that the initial relief provided by the judge would apply equally to all ELFA members.
The action taken by the court today broadens the injunction to delay implementation of Section 1071 for all financial institutions covered by the rule. The delay will last until the Supreme Court issues a decision in a different, but related, case. The Supreme Court decision is expected in the spring/summer timeframe of 2024. This means that compliance will likely now be pushed out approximately 10 months from all the dates published in the original rule.
ELFA has been working for over a decade to improve Section 1071. The association has been proactively engaged in both the legislative and regulatory arenas to defend its members’ interests and reduce the measure’s onerous reporting regulations. Section 1071 is a part of the Dodd-Frank Act, which when implemented by the Consumer Financial Protection Bureau (CFPB) will require commercial finance companies to collect information about credit applicants and report it to the CFPB on an annual basis, along with extensive financial data associated with the application’s disposition, including extensive pricing information.
The “Order Granting Intervenors’ Motions for Preliminary Injunction” is available on the ELFA website at https://www.elfaonline.org/1071. ELFA will be sharing more information with its members in the coming days and weeks about the implications of this ruling.
About ELFA
The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $1 trillion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its 580 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. ELFA has been equipping business for success for more than 60 years. For more information, please visit www.elfaonline.org.
Media/Press Contact: Amy Vogt, Vice President, Communications and Marketing, ELFA, 202-238-3438 or avogt@elfaonline.org
ELFA Announces Leigh Lytle as New President and CEO
October 23, 2023
PHOENIX, ARIZONA, October 23, 2023 – The Equipment Leasing and Finance Association (ELFA) today announced the appointment of Leigh Lytle as President and CEO, effective Dec. 4, 2023. ELFA Board Chair Bob Neagle made the announcement this morning at the General Session of the 62nd ELFA Annual Convention in Phoenix, Arizona. Lytle will succeed Ralph Petta, who is retiring from the association at the end of the year.
“We are pleased to welcome Ms. Lytle to ELFA as our new President and CEO,” said Neagle. “Leigh is a dynamic leader whose experience, passion and vision make her uniquely qualified to guide our association into the future. Her experience in banking, operations, advocacy and education, and most recently with a fintech company and a fintech trade association, will add momentum to our current ELFA efforts in those same areas. After conducting a national search, we are delighted with this outcome and the opportunity it offers our organization. I would like to thank our search committee for their tremendous work throughout the process.”
As the Head of North American Policy at Plaid, Lytle led education and engagement efforts with regulators and financial institutions. In this role, she advocated for protecting consumers’ rights within the digital financial ecosystem and in Washington, D.C. She also served as the Chair of the Board of Directors of the Financial Technology Association (FTA), which represents innovative companies shaping the future of finance. The industry trade group champions the power of technology-centered financial services and advocates for the modernization of financial regulation to support inclusion and responsible innovation. Before joining Plaid, Lytle spent over 15 years in the Federal Reserve Bank system in various executive roles ranging from engagements in monetary and regulatory policy to operations and data analytics oversight.
“I am honored to be joining the Equipment Leasing and Finance Association as the organization moves into its next phase and navigates the digital landscape and abundant opportunities on behalf of our members,” said Lytle. “The association has an incredible board, members and team championing this critical sector that adds tremendous value to the American economy. I am proud to join the ELFA staff to build on the solid foundation established by Ralph Petta and the team, and look forward to meeting with and working with our members in the coming months.”
About ELFA
The Equipment Leasing and Finance Association (ELFA) is the trade association that represents companies in the $1 trillion equipment finance sector, which includes financial services companies and manufacturers engaged in financing capital goods. ELFA members are the driving force behind the growth in the commercial equipment finance market and contribute to capital formation in the U.S. and abroad. Its 575 members include independent and captive leasing and finance companies, banks, financial services corporations, broker/packagers and investment banks, as well as manufacturers and service providers. For more information, please visit www.elfaonline.org.
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Media/Press Contact: Amy Vogt, Vice President, Communications and Marketing, ELFA, 202-238-3438 or avogt@elfaonline.org
Lending Industry Expert Joe Valeo Appointed President of SmallBusinessLoans.com
October 20, 2023NEW YORK SmallBusinessLoans.com (SBL) is pleased to announce the appointment of Joe Valeo as its new President. With over 35 years of experience in finance and sales, Valeo brings a breadth of knowledge to his executive leadership role at SBL, where he is committed to making the “right fit” lending solutions more accessible to small business owners.
In his previous positions, Valeo gained strategic development and consumer/business lending experience, serving financial services organizations such as LendingPoint, where he held the position of EVP/GM for POS merchant lending and direct-to-consumer loans. Before that, at Capital Access Network, he led sales strategy and management. His extensive background in payment services to merchants at First Data Corporation and Citicorp, managing e-commerce, ISOs, and franchises, as well as his experience managing acquirer and issuer relationships with key financial institutions at VISA, uniquely positions him to lead SBL to new heights.
Valeo’s vision for SmallBusinessLoans.com is straightforward and ambitious. His growth strategies include connecting with his deep finance industry network and implementing financial and business solutions to meet SMBs’ needs.
With his leadership, SmallBusinessLoans.com is positioned to:
- Be the preeminent destination for small businesses seeking financing and related business services digitally. The SBL platform cuts out time-consuming research and matches small businesses with trusted lenders who offer a variety of financing to suit every business need.
- Provide a simple, efficient application journey to help small businesses qualify for the right product and solution, ensuring easy access to financing and business services.
- Assist business owners in meeting immediate financing needs, helping them thrive in the long run. SBL serves various industries, including agriculture, commercial trucking, construction, landscaping, medical practices, and more.
Known for his problem-solving skills and quick thinking, Valeo is excited about leading a team of dedicated bridge-builders who will connect businesses and consumers to the funding they need to build their businesses and improve their lives. His commitment to customer-centric solutions makes him an ideal fit for SBL.
Valeo expressed his enthusiasm for his new role, “I strongly believe we’re doing something special, different, and market leading. Our mission is to provide a simple and easy way for businesses to access financing and business solutions.”
As passionate advocates for small businesses, Valeo and the SBL team are eager to converse with potential partners and business owners seeking small business financing and operations solutions.
For more information and to connect with us, please visit us at: www.SmallBusinessLoans.com.
About SmallBusinessLoans.com (SBL)
SmallBusinessLoans.com (SBL) helps small business owners connect with their best financing solution. With a commitment to simplifying the lending process and making it easy for business owners to find trusted, reliable lenders, the SBL platform matches business owners with lenders who offer fast funding, flexible terms, personalized options, and more to help small businesses thrive. SBL aims to become the go-to digital destination for small businesses seeking financing and business services. For more information, go to www.SmallBusinessLoans.com
Contact:
Susan Almon-Pesch
sue@speschialpr.com
858-205-0516
Maxim Commercial Capital Doubled Fundings in Q3 2023
October 19, 2023LOS ANGELES, CALIF. (Oct. 17, 2023) – Maxim Commercial Capital (“Maxim”) announced robust demand across its diverse financing programs for the third quarter of 2023. The hard asset secured lender reported a 100% year-over-year increase in truck financings for the period. Furthermore, it experienced a surge in demand for second-lien mortgages to refinance Merchant Cash Advance (MCA) loans and to support working capital. Maxim is a national provider of loans and leases from $10,000 to $3 million collateralized by class 6 and 8 trucks, trailers, heavy equipment, and real estate.
“The current climate of healthy residential real estate valuations, coupled with low-cost first mortgages and conservative banking practices, makes our Real Estate and Structured Finance programs highly appealing,” noted Michael Kianmahd, Maxim’s Executive Vice President. “Many homeowners don’t realize they have liquidity in their homes that can be tapped to grow their businesses, often at significantly less expense than MCA loans.”
Notable fundings during the period include a $400,000, 5-year second-lien mortgage at a 60% combined loan-to-value (LTV) for an experienced optometrist with four business locations in Los Angeles. The funds were used to pay off MCA loans, reducing monthly debt service by $15,000, and for working capital. Maxim also funded aa $125,000 second-lien mortgage to an experienced construction project manager in Las Vegas at 58% combined LTV to fuel business growth and pay off an expensive MCA loan.
Maxim’s credit matrix featuring lower down payments for truck owner-operators, ranging from better credit to subprime borrowers, continued to prove popular among loan brokers and truck vendors in Q3 2023. Truck financings during the period included 75% purchase financing for an experienced owner-operator with a 607 FICO to buy a 2018 Peterbilt 579 with 399K miles for $58,695; 68% purchase financing for an owner-operator with a 593 FICO to buy a 2019 Peterbilt 579 with 547k miles for $62,250; and 71% financing for a start-up owner-operator with a 618 FICO to buy a 2020 Freightliner Cascadia with 465K miles for $51,275.
“Fortunately, the used truck market has softened in light of the current economic volatility “We are committed to helping hard-working truck drivers stay on the road, earning a living,” noted said Behzad Kianmahd, Maxim’s Chairman and CEO. “The current economic volatility has improved truck pricing while also causing some lenders to retract, creating an opportunity for Maxim to fill a void.”
About Maxim Commercial Capital
Maxim Commercial Capital helps small and mid-sized business owners nationwide by providing loans and leases (“financing”) from $10,000 to $3 million secured by trucks, trailers, heavy equipment, and real estate. It funds equipment purchase financings and leases, working capital, and debt consolidations. Maxim’s more creative financing structures leverage equity in real estate and owned heavy equipment to facilitate growth and preserve customers’ cash. As a leading provider of transportation equipment financing, Maxim supports startup and experienced owner-operators and non-CDL small fleet owners by funding loans and leases for class 8 and class 6 trucks, trailers, and reefers. Learn more at www.maximcc.com or by calling 877-776-2946.
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Contact:
Michael Kianmahd
Executive Vice President
Maxim Commercial Capital
michael@maximcc.com
(213) 984-2727
Survey: Factoring Sector of Finance Industry Shows Resilience Despite Decreased Volume
October 18, 2023Secured Finance Network Releases Mid-Year Report
NEW YORK, NY, Oct. 16, 2023 ─ The factoring sector began 2023 on a positive note and has continued to show resilience in an uncertain economy, according to the MidYear Factoring Industry Survey, released by the Secured Finance Network (SFNet). The survey included the Factoring Confidence Index, which found that despite a lingering threat of recession, member organizations are optimistic about the demand for new business and portfolio performance. General business conditions and industry employment levels, meanwhile, were predicted to remain the same.
“The overall outlook for the U.S. economy has improved in recent months due to strong consumer spending and easing inflation,” the report said. “The odds of a ‘soft-landing’—a further easing of inflation without a recession—have increased somewhat, but recession risks remain.”
Factoring is the process by which a buyer—a non-bank lender or bank affiliate referred to as a “factor”—purchases the accounts receivable of a client, at a discount. Clients are typically companies involved in textiles, apparel, business services, shipping, transportation and other industries that want to improve cash flow, according to SFNet.
Factoring activity
This industry, like many others, continues to feel the pressures of a post-pandemic economy. Overall factoring volume in the first half of this year decreased by 13.5% compared to the same period in 2022, the report said. U.S. volume was down 13.3% and international volume fell by 23.7%. Apparel/textiles remained the top client industry for volume at 30.2% after holding a similar position in SFNet surveys in recent years.
“The number of factoring clients edged down by 0.3% from H1 2022 to H1 2023,” the report said, “with U.S. clients dropping by 0.4% and international clients increasing by 5.7% over the same period. Banks and brokers were the top two sources of client referrals, accounting for over half of all referrals during those periods.”
Regionally, there was little change year-over-year in factoring volume and clients, the report said, but the distribution of volume was notably different from the distribution of clients. The Northeast had the highest share of volume in the first half of this year (58%), but the Southeast had the highest share of clients (27%).
“Non-recourse factoring continued to comprise the vast majority of total volume (85.9%) while full recourse factoring comprised the majority of clients (81.8%),” the report said. “Notification factoring comprised a slight majority of volume (51.1%), with its share of volume declining steadily from H2 2021 (77.0%). Notification factoring still comprised the vast majority of clients (96.5%) and was relatively unchanged.”
More factoring survey highlights:
- Average loan turnover saw a slight increase to 47.8 days in the first half of 2023 and average days sales outstanding also rose, to 50.7.
- For portfolios, write-offs were up slightly from the same period in 2022 as a share of volume, from 0.04% to 0.11%. Provisions for loan loss accounted for 0.44% of volume.
- Factoring revenues decreased by 26% from midyear 2022, with net interest revenue holding steady at 58%. The share of service fees, meanwhile, saw a slight increase.
- Average return on assets rose 4.2% while average return on equity increased 15.2%, the report said. Survey respondents reported pre-tax income at 0.63% of volume in the first half of this year.
- The number of employees in factoring grew from the previous two quarters, but not by much: 1.2%.
Details
Follow the link for more publicly available information on the MidYear Factoring Industry Survey. SFNet members have access to additional data and detailed reporting.
About Secured Finance Network
Founded in 1944, the Secured Finance Network (formerly Commercial Finance Association) is an international trade association connecting the interests of companies and professionals who deliver and enable secured financing to businesses. With more than 1,000 member organizations throughout the US, Europe, Canada and around the world, SFNet brings together the people, data, knowledge, tools and insights that put capital to work. For more information, please visit SFNet.com.
Media Contact:
Michele Ocejo, Director of Communications
Secured Finance Network
mocejo@sfnet.com, 551-999-5283
Fundfi Secures New Credit Facility
October 2, 2023
Fundfi Merchant Funding LLC, a leading provider of Merchant Cash Advances (MCA), is proud to announce securing their newest credit facility to continue growing its funding portfolio.
The new line of credit, secured through a strategic partnership with Crown Partners LP, exemplifies Fundfi Merchant Funding’s unwavering commitment to supporting small and medium-sized businesses by providing them with accessible and flexible funding solutions.
This substantial financial injection arrives at an opportune moment for Fundfi Merchant Funding as it seeks to capitalize on a growing demand for alternative financing options among businesses facing challenges in securing traditional bank loans.
Efraim Kandinov, Co-Founder and CEO of Fundfi Merchant Funding LLC stated, “This line of credit not only bolsters our financial capabilities but also underscores our unwavering commitment to supporting businesses on their journey to success.
We understand the unique challenges entrepreneurs face, and this new funding empowers us to make a more profound impact in helping them thrive and achieve their dreams.”
Natasha Dillon, Co-Founder and CFO of Fundfi Merchant Funding LLC, commented, “This infusion represents a tremendous vote of confidence in our company and its mission. We are excited to leverage these funds to continue supporting businesses when they need it most and to innovate our offerings to better serve our clients.”
About Fundfi
Fundfi Merchant Funding LLC, headquartered in New York, is a leading provider of Merchant Cash Advances (MCA), offering tailored financing solutions to businesses across various industries selected.
Actum Processing brings Instant Credits, Powered by Real-Time Payments to Funders in the Cash Advance Industry
September 20, 2023Austin, Texas, September 20, 2023 – Actum Processing, a leading ACH payment provider in the lending space, is proud to introduce Instant Credits, a groundbreaking solution that is poised to transform the way Funders in the Cash Advance industry send money. With Instant Credits, clients can enjoy the convenience of depositing funds instantly, 24/7, 365 days a year.
Vinny Lipari, President and Co-Founder of Actum, emphasizes the paramount importance of speed in delivering working capital to merchants. Real-Time Payments, the backbone of Instant Credits, will provide Actum’s clients with a significant edge in the evolving industry landscape. Actum has forged a strategic partnership with one of the largest Financial Institutions in the country to bring this exclusive offering to the lending space. This collaboration ensures that Actum’s clients will have access to a secure and reliable platform for their processing needs.
Whether you are seeking to fund a deal, pay commissions, or deliver cash to your investors and syndicates, Real-Time Payments empowers you to do it instantly. Actum’s clients can leverage this service through various channels, including direct API integration, integrated SaaS platforms or Actum’s user-friendly Virtual Terminal.
“We are thrilled to introduce Real-Time Payments and Instant Credits to our valued clients,” says Vinny Lipari. “This innovative solution is a testament to our commitment to providing cutting-edge services that meet the evolving demands of the market.”
To learn more about Real-Time Payments and the full range of valuable services Actum brings to the market, contact Actum today.
Contact Information:
Email: sales@actumprocessing.com
Phone: (800) 975-5640
The LCF Group Acquires Key Strategic Assets from Reliant Funding and Sets Course for a Record-Breaking Year
September 18, 2023New Hyde Park, NY, September 18, 2023 – The LCF Group, the leading capital provider specializing in subprime merchants across all U.S. industries, announced the successful acquisition of select strategic assets and licensing rights for Reliant Funding, a foremost authority in prime funding.
“We’re excited to announce The LCF Group’s successful acquisition of key assets from Reliant. This strategic move not only enhances LCF’s portfolio but also empowers us to offer merchant funding through both ISO partners and directly under the LCF and Reliant brands. With this step, LCF solidifies its position as the leading provider of quick access to working capital for small to mid-size businesses,” shared Andy Parker, CEO of LCF. “We’re making significant progress in our integration, capturing synergies, and realizing the financial advantages of this acquisition. Our focus remains unwavering: to meet the growing funding needs of small businesses nationwide.”
While LCF has resumed funding under the Reliant brand in the direct business, ISOs should stay tuned as the company plans to roll out funding options through the wholesale side of the business with select ISO partners in the coming months.
For information on The LCF Group, visit www.thelcfgroup.com. Learn more about Reliant Funding at www.reliantfunding.com.
About The LCF Group
Founded in 2011 and headquartered in New York, The LCF Group is a seasoned MCA capital provider. The company specializes in funding small businesses across all states, industries, and risk factors. To date, LCF has funded more than 8,000 businesses and receives a glowing 4.7 / 5 star rating from more than 1,000 customers on Trustpilot.
