Announcements
Hundreds of Brokers Registered for deBanked CONNECT MIAMI
January 9, 2024
MIAMI BEACH – Hundreds of small business finance brokers are registered for this year’s deBanked CONNECT MIAMI. Taking place on Thursday, January 11 at the Miami Beach Convention Center, the event’s modified format includes the first-ever Broker Battle™ with a $5,000 grand prize to the winning broker, on top of an all-kosher food experience. That’s in addition to a featured presentation from David Goldin, the first-of-its-kind Broker Brilliance education session, tech demos, networking, and cocktails. Bitty Advance is the Title Sponsor.
“This is our sixth event in Miami,” said conference founder and deBanked President Sean Murray. “I think kicking off a new year is as good a time as ever to reinvent yourself and change things up. I’m really excited for this show and I think 2024 is going to be a truly unique year.”
Registration opens at 1pm on Thursday and the event culminates with the Broker Battle at 5:10pm. That will lead right into the cocktail networking reception.
About deBanked CONNECT Miami
deBanked CONNECT events are operated by Foinse, LLC. Foinse, LLC is an events company based in Brooklyn, NY. To learn more visit: http://www.debankedmiami.com. For inquiries, email events@debanked.com.
Levo Funding Makes Debut
January 8, 2024January 8, 2024 — We are excited to present Levo Funding, a new addition to the financial industry. A dynamic and innovative fintech company, Levo Funding has launched with a team of industry veterans at the helm. With a wealth of experience and a reputation for excellence, this new venture is committed to reshaping the industry.
“We are thrilled to introduce Levo Funding,” said Christopher Ives, the company’s Co-Founder and CEO. “Our team comprises industry veterans who have successfully navigated the complexities of the finance sector for years. This includes learning from our successes and our failures. We’ve come together to create a fintech company that focuses on the simplicities of what we do; help businesses access capital, and ensure that entrepreneurs and companies have the resources they need to thrive. We are committed to doing business the right way, and are looking forward to working with those that share the same values.”
Levo Funding aims to fill an emerging gap in the market by providing flexible funding options, streamlined application processes, and personalized support, while not being anchored by covenants and the increasing costs of capital. Their approach is rooted in a deep understanding of the challenges faced by businesses of all sizes, and they are committed to delivering financing solutions that empower growth and success.
As a testament to their expertise and accelerated growth, Levo Funding has already secured significant investment backing from reputable partners and investors who share their vision for the future of finance. This substantial funding ensures that the company is well-prepared to meet the capital needs of businesses across various industries.
Christopher added, “Our team’s collective experience spans various sectors, including banking, venture capital, private equity, credit and underwriting. We understand that one size does not fit all when it comes to financing. We are dedicated to tailoring our solutions to the unique goals and challenges of each client. Our team was carefully selected to build a culture of trust and encourage open communication. When people are comfortable sharing ideas, everyone wins.”
For more information about Levo Funding, please visit levofunding.com. Stay updated on their latest developments and news by following them on Linkedin.
Contact
(619) 908-1372
info@levofunding.com
Expansion Capital Group Announces $1 Billion Funding Milestone — Supporting the Expansion of U.S. Small Businesses
December 13, 2023
L-R: Herk Christie, Chief Operating Officer; Brittney Newell, Chief Financial Officer; Vincent Ney, Chief Executive Officer;
Tim Mages, Chief Strategy Officer; Mike Beattie, Chief Technology Officer
Photo Credit: Reistroffer Design
SIOUX FALLS, SOUTH DAKOTA—Expansion Capital Group, LLC (“ECG”) is pleased to announce its billionth dollar in funding, reinforcing its mission to support the “Expansion” of America’s Small Businesses with simple and efficient capital. Since inception in 2013, ECG has provided services to over 20,000 small businesses across multiple industries nationwide. ECG’s core solution, a six to 11 month working capital product, meets the needs of small business owners that are not in a position to wait for a traditional bank loan.
Tim Mages, Chief Strategy Officer of ECG said, “The ECG team is proud of its efforts to fulfill the capital needs of small business owners. Capital challenges have been magnified since COVID and the recent muted lending environment by regional and community banks. During the last three years, inflationary pressures have negatively impacted many hardworking small business owners. ECG has continued to be a reliable partner and a key resource as business owners navigate these headwinds.”
He continued, “In the last two years, we’ve seen accelerated growth of our platform. This growth is being driven by two key factors. First, our industry-leading Partner Portal is designed to create a transparent and seamless process for our referral partners. Second, investments in new technology and data sources have positioned ECG to provide underwritten approvals in less than an hour. These innovations would not have been possible without the trust of our valued customers and dedication of our 85+ team members.”
ECG’s Chief Operating Officer, Herk Christie, said, “Paramount to our success is the support from our referral partners. Since inception, we’ve also seen over one million applications from small business owners. Our financing alternatives provide business owners with more options and availability, so they can successfully execute their business objectives.”
As an on-balance sheet working capital provider, ECG is committed to providing customized solutions for small businesses. ECG works directly with small business owners and with hundreds of referral partners who are trying to meet their clients needs. ECG utilizes proprietary data, analytics, and systems to provide access and capital in a timely manner. Its robust underwriting models and flexible Partner Portal platform allows business owners to compare options and select a product that fits their needs.
Brittney Newell, ECG’s Chief Financial Officer added, “We hope to continue this growth in the coming years and appreciate the support of our long-time capital provider Bastion Management. As many market participants have tightened lending standards throughout 2023, ECG is committed to continuing to meet the increased demand for our services and offerings.”
PR Contact: tamara@tamaraedwards.co
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Expansion Capital Group is headquartered in Sioux Falls, SD and operates as a technology-driven specialty lender harnessing data and analytics to offer tailor-made solutions for small business enterprises. The company primarily serves small businesses across the United States with annual revenues of less than $10 million. For more information, please visit www.ecg.com and follow us on LinkedIn and Twitter.
Recent ECG News
Sioux Falls Business Journal: Fast but careful money: Sioux Falls firm offers new kind of capital
Inc. 5000: Financial services firm partnering with small business owners to provide working capital solutions with speed, simplicity and service.
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
