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Credibly In the ever-evolving world of fintech, banking, and commercial finance, traditional boundaries are blurring. Commercial lenders, once primarily known for their business loan products, are now venturing into new territories, diversifying their offerings to cater to the dynamic needs of modern businesses. The recent announcement of Credibly's partnership with Green Dot to offer a new checking account is a testament to this trend. Credibly, a renowned name in commercial lending, has been at the forefront of providing business loan products tailored to the unique needs of small and medium-sized enterprises. Their move to introduce a checking account, in collaboration with Green Dot, is not just an addition to their product line but a strategic step in their journey to become a holistic financial partner for businesses. This evolution is not isolated to Credibly The broader commercial lending landscape is witnessing a paradigm shift. Lenders are recognizing that in an age of digital transformation, businesses seek more than just loan products. They desire comprehensive financial solutions that can support their growth, manage their cash flows, and facilitate seamless transactions. By expanding their product lines, commercial lenders are positioning themselves as one-stop financial hubs, capable of addressing a spectrum of business needs. We wrote about how the fintech Novo did the opposite when they recently began offering business financing after they started with business checking accounts and other services The partnership between Credibly and Green Dot is particularly noteworthy. Green Dot, with its expertise in banking and financial services, brings a wealth of knowledge to the table. Their collaboration signifies a fusion of traditional banking prowess with modern fintech innovation. Such partnerships are indicative of the future trajectory of the commercial finance sector, where collaboration and integration will be key drivers of growth. But why this urge to diversify? The answer lies in the changing dynamics of the business world. Today's enterprises operate in a globalized environment, with intricate supply chains, diverse customer bases, and multifaceted financial needs. A simple loan product, while essential, may not suffice. Businesses require a suite of financial tools and services that can help them navigate the complexities of the modern economy. Also, 70% of small business owners without a dedicated business bank account face loan rejections. Recognizing this, commercial lenders are innovating, forging partnerships, and enhancing their product lines. Another interesting tidbit is the role of technology. The fintech revolution has democratized access to financial services. With the advent of digital platforms, mobile banking, and AI-driven financial tools, businesses expect more from their financial partners. They seek agility, flexibility, and a user-centric approach. Lenders like Credibly are tapping into this demand, leveraging technology to offer products that are not only functional but also intuitive and user-friendly. The introduction of Credibly's new checking account, in partnership with Green Dot, is more than just a product launch. It's a reflection of the broader evolution happening in the commercial lending space. As lenders diversify and enhance their offerings, businesses stand to benefit from a richer, more integrated financial ecosystem. And if current trends are anything to go by, this is just the beginning. The commercial finance sector is poised for more innovations, more partnerships, and a future where lenders are not just loan providers but comprehensive financial partners.

Carl R. Ruderman, an 82-year-old Florida executive with previous business connections to Playgirl magazine, has pleaded guilty to conspiracy to commit securities fraud. This admission comes as part of his involvement in a substantial $250 million scheme that adversely affected more than 3,400 investors across 42 states through his company, 1 Global Capital LLC. The company, which filed for bankruptcy in July 2018, was known for providing high-interest loans to small businesses, which have been compared to payday loans. Ruderman misappropriated investors' funds for various personal and familial expenses, which included credit card payments, travel, tuition, mortgage payments, and luxury car payments. Additionally, he diverted investors' money to businesses that benefitted him and his family, all without the knowledge or consent of the investors. Furthermore, Ruderman, along with others, misrepresented information to investors about the company’s profitability and how the invested funds would be utilized. The sentencing for Carl Ruderman is scheduled for January 3, and he could face up to five years in prison along with the forfeiture of more than $250 million. This case underscores a significant downfall after years of financial operations, revealing the depth and extent of the fraudulent activities that took place within 1 Global Capital under Ruderman's leadership. It's also noteworthy that four of Carl Ruderman’s co-conspirators have previously pleaded guilty for their roles in the 1 Global fraud, showcasing the widespread involvement in these illicit activities. You can access the full article here for more detailed information.

A recent settlement between the Federal Trade Commission (FTC) and Biz2Credit , a company that helps businesses secure financing, for $33 million and also fintech Womply for $26 million, sheds light on a trend: deceptive business practices by corporations, and the seemingly toothless consequences they face. The FTC alleges that Biz2Credit misled small businesses about how quickly it could process Paycheck Protection Program (PPP) loans , a critical lifeline during the pandemic. The company also allegedly locked businesses into applications, preventing them from seeking financing elsewhere. This resulted in some businesses missing out on crucial financial aid altogether. Biz2Credit released a statement in response to the settlement that included the following information: "Consistent with its longstanding mission, Biz2Credit focused on funding traditionally underserved small businesses during the Paycheck Protection Program (PPP). During PPP2 (2021), the company processed over half a million applications and provided much-needed funding to more than 170,000 small business owners." While the FTC secured a hefty $33 million settlement from Biz2Credit, one can't help but wonder: is this enough of a deterrent? Here's the million-dollar question: why do consumers continue to do business with companies that engage in such practices? This isn't an isolated incident – companies like Apple , Google , and Uber have all been hit with multi-million dollar fines for deceptive practices, yet they continue to thrive. There are a few explanations: Lack of Awareness:   Many consumers might not be aware of the settlements or the underlying deceptive practices. Information overload and the sheer volume of companies we interact with daily make it difficult to stay on top of every controversy. Limited Choice:   In some industries, consumers may have limited choices. For instance, if you rely heavily on Google services like Gmail or Search, switching to a competitor might be inconvenient or impractical. Perceived Value:   Even after a settlement, consumers may weigh the convenience or perceived value of a service against the potential risks. For many, the benefits of using a familiar platform outweigh the concerns about past transgressions. Ineffective Penalties:   Perhaps the biggest concern is that the financial penalties simply aren't a strong enough deterrent. A $33 million fine might seem like a significant sum to the average person, but for a large corporation, it's a slap on the wrist. These settlements are often seen as the cost of doing business , rather than a punishment that discourages future misconduct. So, what can be done? Stronger penalties and better enforcement are a must. The FTC also needs to do a better job of informing the public about these settlements and the underlying deceptive practices. There are certainly other cases that have caused businesses to change whether it be by a total rebrand, operational improvements, loss of customer base, and other losses. Ultimately , the onus also falls on consumers to be more informed and critical. Researching a company's track record before giving them your business is an important step in protecting yourself from deceptive practices. By holding corporations accountable and empowering consumers, we can create a fairer marketplace where businesses win by providing excellent service, not by resorting to deception.

In the summer of 2020, while small businesses across America struggled to survive the economic devastation of the COVID-19 pandemic, Darren Carlyle Sadler was living a very different reality. The 38-year-old Costa Mesa businessman had discovered what he believed was the perfect opportunity hidden within the chaos of the federal government's rushed response to the crisis. As millions of legitimate small business owners anxiously awaited desperately needed Paycheck Protection Program loans, Sadler was orchestrating something far more sinister. This week, his elaborate scheme finally caught up with him when he stood before U.S. District Judge Thomas M. Durkin in a Chicago federal courtroom and pleaded guilty to wire fraud, a charge that could send him to prison for up to 20 years. The Architect of Deception Sadler's story begins not with a struggling business owner seeking legitimate relief, but with an opportunist who saw the PPP program as his ATM. Unlike many PPP fraud cases that involve individual business owners inflating their loan applications, Sadler built what amounted to a fraud factory, systematically processing false applications for himself and dozens of clients. The numbers tell the story of his ambition. Throughout 2020, Sadler submitted or caused the submission of at least 63 fraudulent PPP loan applications. Each application contained the same fundamental lies: inflated employee counts, fabricated monthly payrolls, and supporting documentation for businesses that either didn't exist or bore no resemblance to their described operations. The scheme worked with devastating efficiency. More than $14 million in loan funds flowed to Sadler and his clients based on these fabricated applications. For his services as a fraud facilitator, Sadler collected over $1.9 million in fees from clients who believed they were paying for legitimate loan assistance. A Pandemic of Luxury What Sadler did with his ill-gotten gains reads like a manual on how not to spend stolen money. While real small businesses used PPP funds to meet payroll and keep their doors open, Sadler embarked on a spending spree that would make any federal prosecutor's case for them. The villa came first, a months-long rental during the height of the pandemic when most Americans were confined to their homes. But Sadler wasn't content to simply hide out in luxury. He took to the skies, traveling across the country on private jets to meet clients at bank branches and facilitate fund transfers. His garage became a showcase of excess. The Rolls-Royce was just the beginning. Multiple Mercedes-Benzes and a Land Rover soon followed. Designer clothing, luxury watches, and endless expensive meals rounded out a lifestyle that stood in stark contrast to the economic suffering surrounding him. Each purchase was not just a display of greed, but also evidence of what would become a federal case. Every transaction created a paper trail that investigators would later use to trace the flow of stolen funds from fraudulent loan applications to personal luxury items. The Unraveling Federal investigators didn't need to search hard to find Sadler's crimes. The PPP program, despite its rushed implementation, created extensive digital documentation of every application and disbursement. The FBI's Chicago Field Office worked alongside the Small Business Administration's Office of Inspector General and the U.S. Postal Inspection Service to piece together Sadler's scheme. The investigation revealed not just the scope of his fraud but also the brazen nature of his spending, which seemed designed to attract attention rather than avoid it. By the time federal agents closed in, Sadler's choices had narrowed considerably. Awaiting Justice As Sadler awaits sentencing, his case serves as both a cautionary tale and a promise of continued enforcement. The luxury lifestyle he funded with stolen pandemic relief money has ended, but the legal consequences are just beginning. Federal sentencing guidelines for wire fraud involving $14 million typically result in substantial prison terms. The private jets and luxury cars are gone, but the consequences of Darren Sadler's choices will last for years to come. Sources: U.S. Department of Justice, U.S. Small Business Administration Office of Inspector General, FBI Chicago Field Office

The Shift from OCR to Agentic AI: A New Era in Consumer Lending Let’s get one thing straight: OCR was great—for its time. It gave us a way to turn piles of documents into structured data. A huge leap forward, like going from hand-copying books to the printing press. But here’s the problem: OCR doesn’t think. It doesn’t connect the dots. It just sits there like an overachieving intern—fast, efficient, and completely clueless when things get interesting. Think of OCR as a strawberry-sorting machine. It’s great at saying, “Yep, that’s a strawberry.” But what happens when you need more than sorted strawberries? What if your supplier slipped in some raspberries? What if the crop looks off this season, hinting at a supply chain problem? OCR won’t catch it. OCR doesn’t ask  questions—it just sorts. And in lending, that’s a problem. Because documents aren’t just isolated data points—they tell a story . That story and context are the reason the industry has been loath to let automation take the reins. OCR treats every document like an island, while the real power comes from seeing the entire archipelago. That’s where Agentic AI flips the script. Enter Agentic AI: More Than Just Extraction Agentic AI doesn’t just extract data—it interprets it, learns from it, and acts  on it. Instead of treating a single number on a pay stub as an isolated fact, it cross-references it against bank statements, employer records, and spending patterns to see if it actually makes sense . It doesn’t just see the numbers—it sees the relationships between them. This is where we move beyond traditional automation-as-a-service —beyond SaaS models that still rely on manual oversight to complete the reasoning cycle. Imagine this: Instead of logging in, pulling reports, and manually piecing together borrower risk factors, your system sends you a notification  and says, “Hey, that applicant’s credit card payments don’t match their reported income. Might want to look into that.”  Or “Heads up, this borrower’s spending patterns just shifted—historically, that’s a pre-default red flag.” The difference between OCR and Agentic AI? OCR is like waiting for your assistant to hand you a report. Agentic AI is like your assistant running into your office, coffee in hand, and saying, “You’re going to want to see this.” From Processing to Understanding Agentic AI doesn’t just extract numbers from a pay stub or credit report—it cross-references them against every other document in the file, borrower disclosures, and lender risk models in real time . Let’s break it down: If a borrower reports $75K in income , the AI doesn’t just pull numbers from a tax return—it cross-checks them against bank statements, employer records, and spending patterns. If it detects an inconsistency  (like credit card payments that don’t align with reported income), it doesn’t just flag it for manual review—it assesses the discrepancy and suggests solutions (e.g., identifying supplemental income sources, evaluating cash flow). Instead of relying on human validation , it continuously learns and refines its decisioning logic based on past loan performance and repayment behaviors. OCR extracts data. Agentic AI turns it into intelligence. Agentic AI doesn’t just extract—it cross-references, contextualizes, and adapts.  It looks beyond the surface and into the relationships between data points. It understands: Subtle fraud indicators —small discrepancies in reported income vs. spending patterns that traditional models might miss. Spending and savings behaviors —not just what’s on a credit report, but why  the trends matter. Employer-reported income codes —it doesn’t need someone to explain a garnishment paycode. It already knows . Market and economic conditions —adjusting risk assessments in real time  as external factors shift. OCR works in isolation, processing one document at a time. Agentic AI operates holistically , connecting the dots across multiple sources. That’s the difference between automation  and decision intelligence . Why Misreads Are Less Concerning with Agentic AI The biggest fear with AI in lending? Hallucination—because let’s be honest, no lender wants their underwriting engine making up borrower income like a pathological liar on a first date. But here’s where Agentic AI flips the script: Instead of making a best guess , it cross-checks across multiple sources until it gets the right answer. It doesn’t need to “hallucinate” a number when it can validate it across: Borrower-provided documents (pay stubs, tax returns, bank statements). Third-party databases (employment verification systems, credit bureaus). Historical lending patterns (is this borrower’s financial behavior normal  or a red flag ?). Instead of being a passive data product (like OCR), Agentic AI is an active reasoning engine . It doesn’t guess —it knows . The Final Take: The End of Logins, The Rise of Intelligence The future of consumer lending isn’t just about eliminating paper. It’s about eliminating manual friction . OCR was the first step, but Agentic AI is the real revolution. The real test? We’ll know Agentic AI has arrived when we no longer need to log in  to find information—because the AI will already know  what we need, when we need it, and serve it up  before our morning coffee even kicks in. Lenders who embrace this shift will gain the holy trinity: speed, accuracy, and intelligence. And those still clinging to OCR? Well, let’s just say it’s never fun to be the guy at the party still talking about his Blackberry. BIO Ruth Lee, CMB , is a seasoned mortgage industry executive with over 30 years of experience in origination, compliance, technology, and executive leadership. A Certified Mortgage Banker (CMB) and recognized expert in mortgage lending and fintech, she has built and led multiple successful mortgage companies, including a retail mortgage lender, a jumbo correspondent platform, and a tech-enabled fulfillment firm. Ruth began her career as a top-producing originator, funding over $5 million per month in the early ’90s. Today, she is a sought-after consultant and advisor, helping lenders navigate complex industry challenges, optimize operations, and leverage AI-driven solutions. A frequent speaker at industry events and a published author, Ruth is known for her sharp insights, no-nonsense approach, and ability to make complex topics accessible. For consulting inquiries or to connect, email info@getbigthink.com .

White Oak Commercial Finance, LLC (WOCF) , a leading provider of non-bank asset based lending to lower and middle market companies, has secured a substantial $1.1 billion credit facility, according to a press release from yesterday. This significant financial boost was arranged by Wells Fargo and involved 11 other banks, underscoring WOCF's strong position and credibility in the commercial finance industry. The $1.1 billion credit facility will enable WOCF to expand its lending capabilities, broaden its product offerings, and enhance its operational efficiency. This move reinforces the company's commitment to supporting small and medium-sized businesses across various sectors, including manufacturing, transportation, construction, and healthcare. "White Oak Commercial Finance’s working capital facilities can range from $10 million to $250 million or more. Products include accounts receivable purchase facilities, asset-based revolving loans, asset-backed term loans, supply chain finance, and traditional factoring", they noted in the press release. Key Highlights Increased Lending Capacity : With an additional $1.1 billion in credit, WOCF will have greater financial flexibility to provide larger loan amounts and cater to a wider range of clients, presenting new opportunities for business growth and expansion. Diversified Product Portfolio : The influx of capital will allow WOCF to diversify its product lineup, potentially introducing new financing solutions tailored to specific industries or business needs, further solidifying its position as a comprehensive commercial finance provider. Operational Enhancements : The credit facility will enable WOCF to invest in technology, streamline processes, and enhance operational efficiencies. This could translate into faster turnaround times, improved customer service, and a more seamless experience for clients. Expanded Geographic Reach : With increased resources, WOCF may explore opportunities to expand its geographic footprint, providing access to a broader network of potential clients across multiple regions. Reputation and Stability : The $1.1 billion credit facility, arranged by a reputable institution like Wells Fargo, reinforces WOCF's credibility and financial stability, instilling confidence in businesses seeking reliable and trustworthy partners in the commercial finance space. Press Release White Oak Commercial Finance

You may think that you have all the knowledge that you need for your business to succeed, but a SWOT analysis will compel you to look at your business from a different perspective and in new ways. When you take the time to do a SWOT analysis, you’ll be armed with a solid strategy for prioritizing the work that you need to do to grow your business. You’ll look at your strengths and weaknesses, and how you can leverage those to take advantage of the opportunities and threats that exist in your market. Existing Funders and ISOs can use a SWOT analysis to assess their current situation and determine a strategy to move forward. But remember that things are constantly changing and you’ll want to reassess your strategy, starting with a new SWOT analysis every six to 12 months. Below is a real world example of a SWOT analysis of a direct funding company in the alternative finance space. Final versions may not all look alike or include the same details like 'solutions'. I've made some minor edits to protect the company's identity and IP. Strengths Low factor rates Experienced underwriters Been in business for many years, which gives credibility Speed to offer from submission Loan structured product forthe best merchants Few clawbacks Low default ratio Weaknesses Website- overall too simplistic, not updated, little SEO content, portal not working Solutions - Update and add useful functions for brokers like calculator, portal, articles/blogs with relevant content for brokers, not necessarily merchants Technology setup for partners. Solutions - having a standard web API or open API that allows for quick transmission of data from potential partners. Also, anything else like an affiliate marketing program with link tracking or banner ads to promote on other websites. Transparency on funded deals. Solutions - Further reporting internally of breakdown and details of deals like factor rates, months, industry type, etc... Brand awareness within the broker community. Solutions - create more awareness campaigns on social media, message boards, and groups/organizations with results measured. Customer feedback is measured and promoted; the saying for what your brand is goes something like 'you are what customers say you are'. Solutions - take surveys from brokers and merchants at various times, whether it be after funding a deal, at renewal stage, randomly on social media, or when brokers log in to portal. We need to know exactly what brokers think of the service they experience so we can act on that feedback. Meetings with remote staff to build a team. Solutions - monthly company meetings or weekly team meetings to review current status and future goals. Job and skills training. Solutions - since we offer reimbursement for educational programs, we should recommend programs to take, like CFI for Certified Banking & Credit Analyst. Strict underwriting guidelines. Solutions - This may be fine as is, being that we have low defaults or want to be A paper funder, but it also limits us in funding higher volume. Stipulations are not consistent. Solutions - although some basic stips are always required, stips are inconsistent on almost every deal, and they can be excessive. There has to be a way to reduce that friction. Opportunities Using technology to gain referral partners in other verticals. Develop open API or other features that differentiate yourself Build brand within ISO community. Need to be more creative with content, consistent, and higher volume in all channels. This year, especially MANY businesses need capital. All funders have same opportunity as businesses that need money, especially once PPP runs out. Better delivery of the Offer to ISO, can be improved with technology. There are other funding companies that feature web-based offers to allow for a more automated selection and revision of offers, which reduces friction and the time it takes for underwriting to do those same revisions. Increased funding volume. With all of the things mentioned and beyond, we can increase volume with new strategy and implementation. Improve brand awareness directly to businesses also. Even though not trying to cater to business owners or drive direct traffic from them, it still creates brand awareness and trust once the business owner knows the contract through you. Threats Economic uncertainty amid the Pandemic - Need continuous updates and any adjustments made quickly. Government action against funding companies - Need to stay on top of government lawsuits, other actions, and stay within compliance Laws for APR on MCA products More sophisticated fraud tactics and occurrences Conclusion With this year being one unlike any other in our lifetime, it would be wise to use as many tools as possible when strategically planning for your business. It certainly doesn't stop with a SWOT analysis. Funders and loan brokers should be taking some basic steps to improve their business, and this is one tool that will help as you move forward.

Two respected financial institutions, Eagle Point Credit Management  and Apple Bank , have announced the formation of a new lending platform called Newton Commercial Finance . Newton will focus on providing equipment financing  to small- and mid-sized businesses throughout the United States. With Eagle Point’s expertise in credit asset management and Apple Bank’s strong deposit base and lending experience, the joint venture is designed to meet growing demand for capital in sectors that rely heavily on equipment and long-term project financing. According to the announcement , Newton Commercial Finance will aim to deliver structured finance solutions tailored to 'essential-use assets backed by strong collateral.' Backed by seasoned institutions, the platform is expected to offer a combination of reliable capital, speed, and flexibility , all essential traits in today’s evolving business lending landscape.

In another strong signal of confidence in small business lending, Libertas Funding  has announced a $100 million credit facility from Victory Park Capital (VPC) . The facility will be used to support the firm’s continued growth in providing working capital solutions to small and medium-sized businesses (SMBs)  across the United States. Libertas, a fintech platform based in Greenwich, Connecticut, specializes in revenue-based financing and other non-bank funding solutions  tailored for growing businesses. According to the press release, the new credit facility will enhance Libertas’ ability to scale its offerings and extend capital access to more business owners nationwide. The news comes at a time when alternative lenders are playing a vital role  in filling the gap left by traditional financial institutions. Notably, this deal follows other recent announcements in the space: Parafin  secured up to $360 million in a forward flow agreement  with Cross River Bank Ualett , which targets gig workers, landed a $150 million debt facility  from Thiele Capital Fundbox  announced an integration into EverCommerce platforms to streamline embedded lending These developments collectively highlight a clear trend: private credit providers and fintech platforms are stepping up to offer flexible capital solutions, often embedded in software platforms or revenue ecosystems. As for Libertas, this latest move positions them to remain competitive in the increasingly fast-moving SMB funding landscape, where speed, flexibility, and non-traditional underwriting  continue to differentiate leading providers.

A New Era for Gig Workers Ualett, a fintech platform designed specifically for 1099 workers, has just announced that it has secured a $150 million debt facility from Thiele Capital Management. This move is a significant boost for Ualett’s mission to support gig workers with real-time, accessible financial tools. For those unfamiliar, Ualett provides fast cash advances to rideshare drivers, delivery couriers, and other independent contractors. What makes the platform stand out is its focus on flexibility. There are no credit checks, no personal guarantees, and no traditional loan structures. Instead, Ualett verifies a worker’s earnings in real-time and offers advances based on actual performance. Expanding Opportunities for Gig Workers This new capital will enable Ualett to reach even more gig workers nationwide and expand into new markets. It also comes at a time when many independent workers are still overlooked by banks and traditional lenders. “From day one, Ualett’s disciplined approach to serving gig workers stood out to us,” said Alex Thiele, CEO of Thiele Capital Management. “This new debt facility reflects our confidence in their ability to scale responsibly while continuing to meet the unique financial needs of independent workers.” Ualett and Thiele Capital have actually been working together for three years. Their partnership first began in September 2022, and this expanded agreement shows just how far they’ve come. The announcement was even marked with a celebratory board meeting at Target Field, home of the Minnesota Twins. The Vision for the Future Ricky Michel Presbot, Ualett’s co-founder and CEO, shared what the new funding means for the company’s future: “This partnership with Thiele Capital isn’t just about capital. It’s about long-term alignment. With this facility, we’re accelerating our ability to reach more workers, offer more products, and reinforce what makes Ualett different: trust, transparency, and technology purpose-built for the gig economy.” With more than 400,000 users, Ualett is quickly becoming a leading name in gig worker financing. This $150 million facility is a sign of growing momentum, not just for the company, but for the broader shift toward financial services that better reflect how people actually work today. The Importance of Financial Flexibility In today's gig economy, financial flexibility is crucial. Many gig workers face unique challenges that traditional financial institutions often overlook. Ualett’s approach addresses these challenges head-on. By providing fast cash advances without the usual hurdles, they empower workers to manage their finances more effectively. Imagine a delivery driver who needs to cover unexpected expenses. With Ualett, they can access funds quickly without the stress of lengthy applications or credit checks. This kind of support can make all the difference in a gig worker's life. Building Trust in the Gig Economy Trust is a vital component of any financial relationship. Ualett understands this and has built its platform around transparency and reliability. Gig workers need to know they can count on their financial tools, especially when times get tough. Ualett’s commitment to transparency means that users can see exactly how their advances are calculated. This level of clarity fosters trust and encourages more workers to utilize their services. The Future of Gig Worker Financing As Ualett continues to grow, the future looks bright for gig worker financing. The $150 million debt facility is just the beginning. With plans to expand their offerings, Ualett is poised to become a leader in this space. The gig economy is evolving, and so are the financial needs of its workers. Ualett is at the forefront of this change, providing solutions that resonate with the realities of modern work. In conclusion, Ualett's recent funding is not just a financial milestone; it's a step toward a more inclusive financial landscape for gig workers. As they continue to innovate and expand, Ualett is set to redefine how independent workers access the financial tools they need to thrive. For more insights on specialty business funding, check out specialty business funding .

If you're running a software platform and you're not  offering embedded finance yet, you just ran out of excuses. Worldpay, the payments giant processing 50 billion transactions annually, just launched something that should terrify traditional banks and excite every software CEO: The Embedded Finance Engine . And here's the kicker: One of their early adopters went from integration to funding their first loan in 13 days . Let that sink in. Thirteen. Days. The "Everything Platform" Arms Race Just Accelerated Remember when software companies just... sold software? Those days are dead. Now, if you're a vertical SaaS platform serving restaurants, retail stores, branded merchandise makers, or literally any industry, your customers expect you to handle their: Payments ✓ Working capital ✓ Business banking ✓ Card issuing ✓ Probably their taxes and personal problems next Worldpay's new Embedded Finance Engine is essentially a "financial services in a box" solution. It bundles embedded lending, business banking, and commercial card issuing into a single integration that platforms can deploy without building armies of compliance officers or drowning in regulatory paperwork. The 13-Day Case Study That Changes Everything Let's talk about Inktavo, a software platform for branded merchandise makers (think custom t-shirts, promotional products, that kind of business). Timeline: Day 1:  Integrated Worldpay's embedded lending Day 13:  Funded their first working capital loan Since launch:  $14.2 million in capital deployed James Armijo, Inktavo's CEO, nailed why this matters: "By integrating Worldpay's capital lending into our software and payments solution, we addressed a critical need, stood out from competitors, and made a significant impact." Translation: They differentiated their platform, created a new revenue stream, and  made their customers stickier, all in less than two weeks. That's not a pilot program. That's not a proof of concept. That's go-to-market speed. Why This Is Different From Other Embedded Finance Plays You might be thinking: "Didn't we just read about Parafin doing something similar?" Yes. But here's the difference, and it's massive: Parafin's Model: White-label infrastructure Powers platforms like Amazon, DoorDash, Walmart Raises capital, manages underwriting, handles servicing Platform integrates Parafin's tech Worldpay's Model: All-in-one suite  for platforms already using Worldpay for payments Lending + banking + card issuing through one integration Pre-built widgets and modern APIs "Launch out of the box" philosophy Plans to rapidly expand capabilities Think of it this way: Parafin is a specialist that masters one thing (embedded capital). Worldpay is building the operating system  for platform-based financial services. And because Worldpay already processes payments for thousands of platforms, they're essentially saying: "You're already integrated with us for payments. Want to add a full financial services suite? Cool, here's three new APIs. You'll be live next week." The "Single Sprint" Promise Here's what caught my attention in the announcement: "Embedded Finance in a Single Sprint." For non-tech folks, a "sprint" in software development is typically 1-2 weeks. Worldpay is claiming you can go from zero to launching embedded financial services in one development cycle. Eric Elwell from 2Touch (a POS system for bars and nightclubs) confirmed this: "We quickly completed the low-code integration and almost instantly the first working capital loan was funded." He added something even more interesting: "Once integrated to the Embedded Finance Engine, we're able to quickly turn on new services to constantly meet our clients' needs without new tech development or operational overhead ." Read that again. No new development. No operational overhead. Just flip a switch and offer a new financial product. That's the dream, right? Build once, expand forever. The Compliance And Risk Problem (Solved?) Here's where it gets really interesting. Embedded finance isn't hard because of technology, it's hard because of compliance, fraud prevention, and regulatory risk. Launching embedded lending means dealing with: State-by-state lending regulations Fair lending requirements Anti-money laundering (AML) rules Know Your Customer (KYC) processes Ongoing fraud monitoring Regular audits and reporting For a software company, that's an absolute nightmare. It requires dedicated teams, expensive consultants, and constant vigilance. Worldpay's pitch: "We'll handle all of that." They absorb the compliance burden, manage regulatory requirements, and oversee fraud prevention, letting platforms focus on their core business. And here's the key part: as Worldpay adds new services, platforms can activate them without incurring extra compliance costs or dedicating new resources. That's the unlock. You're not just buying embedded lending, you're renting a financial services compliance department  that scales automatically. What's Actually In The Box? Right now, the Embedded Finance Engine includes: 1. Embedded Lending Working capital loans Revenue-based financing/Merchant cash advances Delivered directly through the platform's interface 2. Embedded Banking Business bank accounts Transaction management Cash flow tools All branded as the platform's own service 3. Commercial Card Issuing Virtual and physical cards Expense management Purchasing controls Custom branding Coming Soon:  They explicitly said they're planning to "expand capabilities rapidly over the coming months." Reading between the lines, expect payroll services, insurance products, maybe even accounting integrations. The Strategic Implications Are Wild For Platforms: This is now a competitive necessity , not a nice-to-have. If your competitor can offer working capital and business banking while you're just processing payments, you're going to lose customers. The economic model is compelling too: Revenue share on financial products Massive boost to customer retention (who switches platforms when their business banking is integrated?) New data streams that improve your core product Platform becomes indispensable, not just convenient For Banks: This has to be terrifying. Worldpay is essentially helping software platforms disintermediate traditional banks at scale. Why would a restaurant owner use Chase Business Banking when their POS system offers banking that's actually integrated  with their daily operations? The data advantage is devastating. A POS system knows your revenue, customer traffic, inventory levels, and seasonality patterns in real-time . A bank knows what you tell them once a quarter. For Parafin and Other Embedded Finance Specialists: The specialists are getting squeezed. Worldpay's integrated approach means platforms might not need point solutions anymore. Why integrate with three different vendors when Worldpay offers everything through one integration? That said, the market is enormous. There's room for both horizontal platforms (Worldpay) and vertical specialists (Parafin). The question is who captures what share. For Small Businesses: This is unambiguously good. More competition, better products, seamless experiences. The days of filling out 20-page loan applications and waiting several weeks for a decision are ending. The Pattern We're Seeing (Connect The Dots) Let's zoom out and look at what we've covered recently: Richmond Fed Report:  CDFIs struggling with capacity, softening demand, declining bank partnerships Parafin Deal:  $360M forward flow commitment, embedded capital scaling rapidly Worldpay Engine:  One-stop shop for platforms to become full-service financial providers The pattern:  Traditional finance infrastructure is being replaced by platform-native  financial services delivered through embedded experiences. The winners aren't building better banks. They're making banks invisible by embedding financial services into the workflows where business actually happens. What To Watch For 1. Adoption Velocity How many Worldpay platform partners activate the Embedded Finance Engine? Does the "13-day integration" become the norm or was that an outlier? 2. Product Expansion What new services launch in "coming months"? Payroll? Insurance? Accounting? All of the above? 3. Competitive Response Does Stripe launch something similar? Do other payment processors scramble to build their own versions? Do specialists like Parafin partner or compete? 4. Platform Economics What revenue shares are platforms actually getting? Does embedded finance become a primary revenue driver or stay supplementary? 5. Market Consolidation Do platforms start switching payment processors to get access to better embedded finance? Does this trigger a wave of M&A in the payments and embedded finance space? The Bottom Line Worldpay just commoditized embedded finance infrastructure. What used to require 12-18 months, millions in investment, and a dedicated team can now happen in a single development sprint. If you're a software platform that's not  exploring this, you're about to watch your competitors become full-service financial institutions while you're still just... software. And if you're a traditional bank still requiring fax machines and in-person meetings, well, Worldpay just made it possible for thousands of software platforms to become your competitors, all at once. The question isn't whether embedded finance will eat the world. It's whether you're building the infrastructure, using the infrastructure, or being replaced by it. Thirteen days.  That's how long it took to turn a branded merchandise software platform into a working capital lender. How long until every platform makes the same move? Reality Check:  Worldpay processes 50B+ transactions across 174 countries. They're not a startup making bold claims, they're a payments infrastructure giant with the regulatory relationships, balance sheet, and technical capability to actually deliver on this promise. That's what makes this announcement so significant.

While everyone's been obsessing over AI and crypto, something quietly revolutionary just happened in small business finance. And it involves a name you've probably never heard of. The Deal Few Are Talking About (But Should Be) Parafin, a San Francisco fintech that's already extended $14.5 billion in financing offers, just locked in a $360 million forward-flow commitment from Cross River Bank. Yawn , right? Another fintech funding announcement? Wrong. This deal is actually a window into the future of how small businesses will access capital. Let me explain why this matters more than it sounds. First: What Even Is Parafin? Here's the genius part: you've probably already used Parafin without knowing it. Ever sold on Amazon and seen those working capital offers pop up in your seller dashboard? That could be Parafin. Same with DoorDash, Walmart, and other major platforms. Parafin doesn't compete with these platforms, they power  them. It's "embedded finance," which is just fancy talk for "the money stuff happens right where you're already working, without leaving to visit a bank website from 2007." Since launching in 2020, they've built the infrastructure that lets platforms offer their small businesses instant access to capital. No separate applications. No waiting weeks. No hoping your local banker understands your e-commerce business model. The Forward Flow Agreement: Why It's Brilliant Here's where it gets interesting. This isn't equity funding (they just raised $100M in December at a $750M valuation). This is something different, a forward flow agreement . Think of it like this: Cross River Bank is essentially saying, "We'll buy up to $360 million of the loans you originate." For Parafin, this is their first  off-balance sheet capital commitment. Translation: they can now make way more loans without tying up their own capital. It's like having a guaranteed buyer for everything you produce. For Cross River, they're buying into a portfolio of small business loans that have been underwritten by Parafin's tech-driven models and are delivered through trusted platforms where businesses already operate. What This Really Means 1. Banks Are Admitting Defeat (Sort Of) Cross River isn't stupid; they're one of the most forward-thinking banks in the embedded finance space. This deal essentially says: "We can't build what Parafin built, so we'll provide the capital and regulatory infrastructure while they handle the tech and distribution." It's the same playbook that's transforming every industry: the incumbents own the balance sheet and regulatory relationships, while the insurgents own the technology and customer experience. 2. Small Business Lending Is Going Invisible Remember when getting a business loan meant: Printing out bank statements Driving to a branch Meeting with someone named Gary Waiting 6-8 weeks Probably getting rejected That world is dying. What is already happening: you're already on DoorDash running your delivery business, you click "Get Capital," answer three questions, and boom, you've got funding. No Gary required. 3. Data Is The New Collateral Traditional banks look at your credit score and tax returns. Parafin looks at your platform data, transaction volumes, customer ratings, sales velocity, and inventory turnover. Who do you think has better information about whether your Amazon business can handle a $50,000 working capital advance? A loan officer reviewing PDFs, or an algorithm analyzing 18 months of real-time sales data? 4. The "Platform Economy" Just Got Rocket Fuel Every major platform now has a financial incentive to add financial services. Why? Because when your sellers/merchants/gig workers succeed, you succeed. And embedded capital is one of the highest-impact tools for driving that success. Parafin makes this plug-and-play. Platform gets happy customers + revenue share. Small businesses get instant capital. Parafin gets scale. Cross River gets yield. Everyone wins, except traditional banks still requiring extensive paperwork. The Timing Is Everything This deal comes at a fascinating moment. Remember that Richmond Fed report we just analyzed? CDFIs are seeing demand soften, capacity constraints, and declining bank partnerships. Meanwhile, Parafin just secured $360 million in committed capital and has extended $14.5 billion in offers through platforms serving hundreds of thousands of businesses. The contrast is stark: mission-driven community lenders are struggling to scale, while tech-enabled embedded finance platforms are attracting massive capital commitments and reaching businesses at unprecedented scale. What To Watch Next If you're a platform:  Every marketplace, payment processor, or vertical SaaS company should be asking: "Why aren't we offering embedded capital?" The infrastructure is now commoditized. If you're a bank:  You have two choices, build your own version (expensive, slow, probably bad), or partner with companies like Parafin (faster, cheaper, better). Cross River chose wisely. If you're a small business:  Your next working capital loan probably won't come from a bank. It'll come from wherever you're already doing business. And it'll happen so seamlessly you might not even realize you're getting "financed." If you're an investor:  The embedded finance infrastructure layer is where the value is accumulating. Not in the consumer-facing brands, but in the pipes that power them. The Bottom Line A $360 million forward flow agreement might not generate headlines like a flashy Series D or a massive acquisition. But it signals something profound: the unbundling of financial services is accelerating, and the infrastructure players are winning. Parafin isn't trying to become the next Chase or Wells Fargo. They're building the rails that let every platform become  a financial services provider to their own customers. And with Cross River writing a $360 million check to fund that vision, they're saying that future is already here. Want to dig deeper into embedded finance trends or community lending dynamics? Drop a comment or reach out. This is just getting started. About the Companies: Parafin  (founded 2020) provides embedded financial infrastructure for platforms like Amazon, Walmart, and DoorDash, backed by Ribbit Capital, Thrive Capital, and GIC Cross River Bank  is a tech-forward infrastructure bank specializing in embedded financial solutions through its Principal Finance Group