Search Results

The embedded lending space just got a little more crowded. Liberis , the global embedded finance platform, has partnered with Elavon , a U.S. Bank subsidiary, to launch Quick Capital—yet another revenue-based financing solution now available to small businesses through their payment processor's platform. Another Player in a Growing Field This partnership brings Liberis ' funding capabilities to over 275,000 U.S. merchants through Elavon 's merchant portal, joining the expanding roster of embedded lending options that have been proliferating across payment platforms, POS systems, and business software providers. While it's certainly a welcome addition for businesses seeking capital, it represents the continued growth of an already robust market rather than a revolutionary breakthrough. The embedded lending sector has been experiencing significant momentum as more payment processors and fintech platforms integrate funding solutions directly into their core offerings. Liberis  and Elavon  are essentially following a well-established playbook that companies like Square, PayPal, and Stripe have been executing for years—leveraging merchant payment data to offer quick capital solutions. Market Conditions Drive Demand The timing aligns well with current market needs. The Fed's 2024 Small Business Credit Survey revealed that 41% of U.S. small businesses experienced decreased revenues for the first time since 2021, creating sustained demand for flexible funding options. This economic backdrop has created fertile ground for embedded lending providers, with businesses increasingly open to alternative financing when traditional bank loans prove too slow or restrictive. Liberis  CEO Rob Fairfield highlighted the persistent challenge: "When we talk to small business owners, they tell us the same thing again and again—they're drowning in paperwork just trying to get the funding they deserve." While this pain point is real, it's one that numerous embedded lending platforms are already addressing with similar solutions. Standard Features for a Competitive Market Quick Capital offers what has become the standard feature set in embedded lending: minimal paperwork, fast approval decisions, revenue-based repayment terms, and integration within the existing merchant platform. Eligible businesses across healthcare, retail, services, and restaurants can access funding for typical needs like inventory, marketing, expansion, and cash flow management. The solution uses Elavon 's merchant data to streamline underwriting—an approach that's become commonplace among payment processor-based lending platforms. Elavon  CEO Jamie Walker emphasized their focus on cash flow-friendly solutions: "Quick Capital allows our merchants to access capital through a simple, streamlined process and solutions that work with their cash flow." Proven Model, New Market Entry This U.S. launch expands Liberis ' existing European partnership with Elavon , bringing their track record of funding over 50,000 businesses with more than $3 billion to American merchants. Elavon 's substantial reach—serving over 1.3 million customers and holding strong positions in airlines, hospitality, healthcare, and retail—provides Liberis  with a solid distribution channel. However, Elavon  joins a competitive field of payment processors offering embedded lending. The market has matured considerably, with established players having already captured significant market share and built strong relationships with their merchant bases. Market Expansion Continues The Liberis  and Elavon  partnership underscores the embedded lending market's continued expansion and the ongoing appetite from both providers and merchants for integrated financial solutions. For payment processors, offering capital solutions creates additional revenue streams and deepens merchant relationships. For businesses, having multiple embedded lending options means more choice and potentially better terms through competition. Both companies indicate plans for additional product development based on merchant feedback and market demand, suggesting we'll see continued iteration and expansion of their offering—typical of the competitive dynamics driving innovation in this space. Adding to the Options For small business owners, the Liberis  and Elavon  partnership represents another viable funding option in an increasingly diverse landscape. While it won't necessarily transform how businesses access capital—that transformation has been underway for several years—it does add to the growing menu of embedded financing solutions. The real beneficiary here may be the broader embedded lending market itself. Each new partnership and platform launch reinforces the viability of integrated funding solutions, potentially attracting more businesses to consider alternatives to traditional lending. As the market continues maturing, the focus will likely shift from simply offering embedded lending to differentiating through specialized terms, industry focus, or enhanced user experience.

Big news from CFGMS this morning about offering a new business term loan product. I delve into the news and discuss where we stand in Texas, as well as what other RBF/MCA Funders are doing or discussing at this point.

IMMEDIATE RELEASE NEW YORK, NY, 08/25/25: CFG Merchant Solutions is excited to announce the launch of a brand-new loan product — a significant step in our ongoing mission to provide everyday working capital . The rollout will begin in Texas on September 1st. This new offering will be structured as a fixed-term, installment-based loan. It will uphold the same customer-first approach and streamlined process that clients and partners have come to expect from CFG Merchant Solutions.  Additional product details and operational updates will be shared soon on our website and supporting social media channels.  This launch represents an exciting opportunity for CFG Merchant Solutions, our ISO partners, and the small business owners we serve. For questions or clarification, please contact our team directly. https://cfgmerchantsolutions.com/ PRESS CONTACT  Nick DeFeis Head of Marketing ndefeis@cfgms.com

In a welcome move for Main Street entrepreneurs, Square  has just launched a new grant program  aimed at supporting small business owners who need an extra boost to grow, evolve, or simply stay afloat in a competitive economy. While Square has long been known for simplifying payments and embedded financial tools like loans and cash advances, this new Cornerstone Grant Program initiative shifts the focus from lending to giving . And for many early-stage or underfunded businesses, a grant, not a loan, is exactly what’s needed. What We Know About Square’s Small Business Grant Program Square’s grant initiative is focused on: Direct financial assistance  to eligible small businesses Supporting diverse entrepreneurs  and underserved communities Helping business owners invest in growth, technology, or operations This reflects a growing recognition: not all small businesses need more debt—they need opportunity. How to Apply for Small Business Grants (Including Square’s) Whether you're applying for Square's grant or exploring others, most applications follow similar patterns: Check Eligibility Tell Your Story Submit Financials or a Plan Watch the Deadline Pro Tip : Keep a running document about your business (mission, needs, achievements) you can tweak and reuse across grant applications. Other Notable Small Business Grant Programs Here are five major grant programs worth exploring: 1. FedEx Small Business Grant Contest Annual competition offering cash prizes and services to U.S.-based small businesses. 2. Amazon Black Business Accelerator Designed for Black-owned businesses selling on Amazon, includes financial grants, mentorship, and marketing support. 3. Venmo Small Business Grant Offers $10,000 grants plus promotion for Venmo Business profile users. 4. Comcast RISE Grants and marketing/tech support for minority- and women-owned businesses in select markets. 5. NASE Growth Grants (National Association for the Self-Employed) Quarterly $4,000 grants for NASE members to invest in business needs. Why This Matters For businesses that aren’t ready for loans—or want to avoid interest altogether— grants are a smart alternative . And as major fintechs like Square get involved, this model is becoming more accessible than ever. Brokers, advisors, and lenders who understand this space can better guide entrepreneurs through stepping stones to credit-readiness . Final Word Square’s new Cornerstone Grant Program is a strong signal: financial services companies are realizing they need to support small businesses beyond lending . If you're running a business, now is a great time to explore grants as part of your funding strategy. One timely grant could mean: New equipment A marketing refresh Staff expansion Or the next leap forward All without a repayment schedule.

The American small business sector is a cornerstone of the nation’s economy, comprising nearly all U.S. firms and generating a substantial portion of its economic activity. However, a systemic failure exists within the capital markets to adequately serve this vital ecosystem. While traditional bank lending has long proven inaccessible to a significant segment of this population due to stringent credit, collateral, and history requirements, the rise of non-traditional financing has offered a partial, but fundamentally insufficient, alternative. This report presents a comprehensive analysis demonstrating that the current landscape of non-traditional lending, characterized by its limited scale, restrictive loan terms, and high costs, is incapable of meeting the diverse and immense capital needs of the over 33 million small businesses in the United States. The analysis reveals a critical mismatch between the short-term, high-cost products offered by non-bank lenders and the long-term, strategic capital required for sustainable growth. The vast majority of American small businesses, particularly the millions of "non-employer firms" and new startups, fall into a funding chasm, excluded by both traditional and alternative financing models. This systemic undercapitalization represents a significant drag on economic potential and necessitates a new approach to fostering a more inclusive and robust financing ecosystem. The American Small Business Ecosystem: Scale, Diversity, and Economic Contribution The United States is home to a staggering number of small businesses, a population so large and varied that it defies simple categorization. According to the U.S. Small Business Administration (SBA) Office of Advocacy, there are approximately 34.8 million small businesses in the country, while other sources cite a figure of around 33.2 million. 1  These enterprises constitute 99.9% of all American businesses, underscoring their ubiquity and foundational role in the economy. 1  Small businesses are not merely a large group; they are the primary engine of job creation, having generated 17.3 million net new jobs from 1995 to 2021, accounting for 62.7% of all new jobs in that period. 1  Their contributions extend to 43.5% of the U.S. gross domestic product (GDP) and employment for 61.7 million Americans. 1  The health of the small business sector is, therefore, a direct measure of the nation's economic vitality. A closer look at the data reveals a critical structural reality that fundamentally shapes the challenge of small business financing: the overwhelming prevalence of non-employer firms. While the SBA Office of Advocacy reports a total of 34.8 million small businesses, a breakdown of this figure shows that 28,477,518 of these, or more than 80%, operate without any paid employees. 2  Another source notes that 81% of small businesses are non-employer firms, totaling 26,485,532 enterprises. 3  The consistency across these data points demonstrates that the primary cohort of American small businesses consists of sole proprietorships, freelancers, and home-based ventures. These businesses often lack formal financial records, have no significant business assets to pledge as collateral, and their revenues are frequently intertwined with personal finances. The capital needs of this immense segment are distinct from those of traditional employer firms, yet the lending market has largely failed to evolve to serve them. Furthermore, the small business landscape is not only vast but also incredibly diverse, both in its industry composition and the demographics of its ownership. The top five industries, by business count, include Professional, Scientific, and Technical Services (4,688,321 firms), Transportation and Warehousing (3,822,271 firms), and Construction (3,550,170 firms). 2  The sector is also demographically rich, with 13.3 million businesses owned by women, 5.1 million by Hispanics, and 4.3 million by Black or African Americans. 2  These demographic and industry characteristics create unique challenges. For example, traditional lenders often flag certain industries, such as construction and restaurants, as "high-risk" due to their perceived seasonality and high failure rates. 4  This systemic bias means that millions of firms in top-five industries are effectively pre-disqualified from conventional financing, regardless of their individual creditworthiness or business performance. This forces a massive portion of the market to seek alternatives, but as the analysis will show, these options are largely ill-equipped to address their specific needs. The Traditional Lending Gap: A Catalyst for Alternative Financing The limitations of traditional bank lending have created a persistent and widening gap in the small business financing market. A significant portion of small businesses—a "shocking" 52%—fail to secure the necessary financing or receive only a fraction of the amount requested. 6  This chronic undercapitalization is directly linked to business failure, with 29% of small businesses running out of capital and failing as a result. 6 The reasons for loan denial from traditional institutions are well-documented and consistent across multiple sources. They typically include: Poor Credit History:  A low personal or business credit score (below 650) is a major red flag for lenders. 4  This can be a result of late payments, loan defaults, or a short credit history. Insufficient Cash Flow:  Lenders scrutinize a business's cash flow to determine its ability to comfortably make monthly debt payments. Gaps where expenses outweigh revenue, or a general lack of profitability, are common causes for rejection. 4 Lack of Collateral:  Banks often require small businesses to pledge assets like commercial real estate or equipment to secure a loan. Many small firms, particularly non-employer businesses, simply do not have enough assets on their balance sheet to meet this requirement. 4 Limited Business History:  Traditional lenders typically require a minimum of two years of business history before considering a loan application. This is a significant barrier for startups and early-stage ventures that have not yet established a track record of profitability or creditworthiness. 4 Risky Industry:  As discussed, some industries, such as construction, are considered inherently riskier than others, leading to automatic rejection from certain lenders. 4 The challenges for small businesses are compounded by the declining role of community banks, which have historically been a more accessible source of capital. Data shows that the number of U.S. community banks has dropped by 46% over the last two decades. 7  This trend is particularly detrimental given that small banks have consistently shown higher loan approval rates. In 2022, 82% of small business applicants were at least partially approved for loans from small banks, compared to just 68% at larger banks. 7  The approval rate for non-employer firms at small banks was 58%, significantly higher than the one-third approval rate at larger banks. 7  The structural consolidation of the banking industry means that as larger, less personalized financial institutions with lower approval rates proliferate, the primary channels for relationship-based lending are diminishing. This forces a growing number of small businesses into an increasingly difficult position, with fewer and fewer traditional options to turn to. The lack of access to capital creates a vicious and self-reinforcing cycle. When businesses are denied financing due to poor credit, they are often unable to secure the capital needed to stay solvent, leading to further financial distress and potential failure. The lack of capital becomes the very cause of the poor performance and credit history that led to the initial rejection. This cycle traps the businesses most in need of a financial boost in a state of perpetual struggle, accelerating failure rather than preventing it. 4 The Landscape of Non-Traditional Lending The significant lending gap left by traditional banks has given rise to a diverse ecosystem of non-traditional or non-bank lenders. These entities, which include finance companies, asset-based lenders, Fintechs (online lenders), invoice factoring services, and merchant cash advance providers, have grown rapidly, and they now account for approximately half of all new credit extended to small businesses. 8  The appeal of these alternative options lies in their promise of speed, convenience, and more flexible qualification criteria, often catering to businesses that would be rejected by a bank. The provided research material identifies several key players and their specific offerings, which are summarized in the table below. Lender Name Loan Type Maximum Loan Amount Repayment Terms Noteworthy Features Ascentium Capital Short-Term Loans $250,000 1 to 24 months Holistic approval process, quick decisions, same-day funding Breakout Finance Term Loans, Factoring, Asset-Based $1,000,000 Up to 24 months Customized options, flexible payback schedules (daily, weekly, monthly) CAN Capital Term Loans $250,000 6 to 24 months Fast approval, funds in as little as one business day Funding Circle Term Loans $500,000 6 months to 7 years Fast approval (24 hours), funds in 3 days, low monthly payments IOU Financial Flexible Term Loans Undisclosed Up to 36 months Quick application and pre-approval, premier loan for high-credit borrowers NewtekOne Business Loans $15,000,000 7 to 25 years Dedicated specialist, lengthy terms OnDeck Short-Term Loans $250,000 Up to 24 months Same-day funding, automatic daily/weekly payments, loyalty benefits QuickBooks Capital Term Loans Undisclosed Undisclosed No origination, prepayment, or late fees Fundbox Line of Credit $250,000 Undisclosed Low time-in-business requirement (3 months), fast funding Credibly Undisclosed Undisclosed Undisclosed Lowest credit score requirement on the list As this table illustrates, these lenders offer a variety of products with varying terms, but a pattern of limitations quickly emerges. The most common loan caps are in the $250,000 to $500,000 range, and repayment terms are typically measured in months rather than years. While some lenders like NewtekOne offer high loan amounts and long terms, they are outliers in this ecosystem. 9  These options are designed to address immediate needs like working capital, covering short-term cash flow gaps, or funding small purchases, but they are not structured for the kind of long-term, strategic investments required for major growth. The Insufficiency Analysis: A Critical Look at the Non-Traditional Model Despite the proliferation of non-traditional lenders, a critical analysis of their offerings reveals a fundamental insufficiency that prevents them from serving the American small business ecosystem in a meaningful and comprehensive way. The limitations are not a minor flaw but rather a direct result of a structural disconnect between the products and the needs of the market. Mismatch of Scale: The Inadequate Capital Pool The most immediate and quantifiable limitation of the non-traditional lending market is its sheer scale relative to the size of the small business population. In 2019, non-bank lenders held an estimated $550 billion in outstanding loans to American small businesses. 8  While this figure may seem large, when viewed in the context of the 33 to 34 million small businesses, it represents an average of just under $16,000 per firm. This simple calculation demonstrates that the total capital available from non-traditional sources is not large enough to provide meaningful funding to the majority of the market. Even with rapid growth, the sector's total capacity can only ever serve a fraction of the demand, reinforcing its role as a niche player rather than a systemic solution. Capped Solutions for Unlimited Ambition The core of the insufficiency argument lies in a fundamental mismatch of purpose. The overwhelming majority of non-traditional loans are capped at $250,000 to $500,000 and have short repayment terms, often measured in months or a couple of years. 9  While these products are effective for addressing short-term cash flow gaps, covering payroll, or purchasing a piece of equipment, they are utterly unsuited for major capital expenditures. A business seeking to purchase commercial real estate, build a new manufacturing facility, or refinance significant existing debt cannot do so with a $250,000 loan that must be repaid within 24 months. The options offered by these lenders are designed to be a patch for symptoms, not a cure for the underlying disease of long-term capital deficiency. The Narrow Funnel: Exclusionary Criteria Persist While non-traditional lenders are often touted as a more accessible alternative, they are not a catch-all solution. A business with no credit history, for example, may be able to secure a loan from a lender like OnDeck or Credibly, but a startup with no operational history is still likely to be denied. Traditional lenders require at least two years of business history 4 , and even a non-traditional lender like Fundbox, which is listed as being for startups, requires a minimum of three months in business. 10  This requirement, however low, still excludes millions of the nearly 2.7 million business applications filed in the first six months of 2023 alone. 1  The financing landscape has a chasm that exists between a startup's inception and the point at which it meets even the most lenient time-in-business requirements. This results in the paradoxical situation where the very firms driving the entrepreneurial spirit are the ones most underserved by the entire financing ecosystem. The Cost of Convenience: A Financial Burden The speed and accessibility of non-traditional loans come at a significant cost. For businesses with poor credit, the interest rates are almost always higher, with some lenders charging 1-3% per month, which translates to a 12-36% annual rate, far exceeding the 4% to 10% rates for government-backed SBA loans. 6  When a business already struggling with poor cash flow takes on high-interest (or fees), short-term debt with daily or weekly repayments, the financial burden can become unsustainable. The high cost of borrowing erodes profitability, and the rapid repayment schedule puts immense pressure on a firm's cash reserves. This can lead to a state of perpetual borrowing to service existing debt rather than to invest in growth, creating a debt trap that can ultimately accelerate business failure. 4  The solution, in this case, becomes part of the problem, highlighting the fundamental inadequacy of this model for fostering sustainable, long-term growth. The following table synthesizes the primary barriers to traditional financing and maps them to the solutions offered by non-traditional lenders, while also highlighting the inherent limitations of those solutions. This juxtaposition clearly illustrates that while non-traditional options may provide an answer to a specific problem, they do not offer a holistic or sustainable solution. Traditional Bank Denial Reason Non-Traditional Solution Inherent Limitation of Solution Poor Credit History Lenders for "bad credit" (OnDeck, IOU, Credibly) Higher interest rates, risk of a debt trap 4 Insufficient Cash Flow Short-term loans, invoice factoring High-cost capital can worsen cash flow over the long term; does not address root cause of unprofitability 4 Lack of Collateral Invoice factoring, merchant cash advance Funds are limited to specific accounts receivable; does not provide capital for asset acquisition or expansion 4 Limited Business History Lenders with low time-in-business requirements (Fundbox) Still excludes the millions of brand-new startups with zero history 4 Risky Industry Industry-specific lenders Lenders still have discretionary restrictions and higher costs for these firms 4 Conclusion and Recommendations The analysis presented in this report confirms that the over 33 million small businesses in the United States operate within a financing landscape that is fundamentally ill-equipped to meet their needs. The traditional banking system, burdened by stringent criteria and a structural shift away from relationship-based community lending, is inaccessible to the majority of firms. While non-traditional lenders have filled a crucial void, their offerings are quantitatively and qualitatively insufficient. The total capital from non-bank sources is a drop in the bucket compared to the aggregate needs of the sector, and their products are too small, too short-term, and too expensive for sustainable growth and strategic investment. The greatest failure of the current system is its inability to serve the millions of non-employer firms and new startups that constitute the most dynamic segment of the small business economy. These firms are largely excluded from both traditional and alternative financing models, leaving a massive chasm in the market that hampers innovation and economic development. To bridge this critical funding gap, a new paradigm is required. The following recommendations are presented for policymakers, entrepreneurs, and the financial industry to foster a more robust, equitable, and sustainable financing ecosystem: For Policymakers:  Reevaluate and expand the scope of government-backed lending programs (like the SBA) to better serve non-employer and startup firms. This could involve creating new, micro-loan programs that are not tied to traditional metrics like credit score or collateral, but rather to real-time cash flow data or projected business activity. For Entrepreneurs:  Increase financial literacy and strategic planning. Businesses must be empowered to navigate the complex financing landscape, understand the true cost of non-traditional options, and build robust financial records from inception to position themselves for future capital. For Investors:  Incentivize investment in new financial models and technologies that can accurately assess risk for non-traditional borrowers. This includes the development of alternative credit scoring models that do not rely on traditional credit history and the use of machine learning to analyze real-time business data. For the Financial Industry:  Encourage the development of new financial products that are not tied to traditional metrics, but rather to a business's operational reality. The report calls for a new paradigm of financing that meets the small business ecosystem on its own terms, rather than forcing it to fit a model that has long been obsolete. Works cited Small Business Statistics in 2024 – Expert Reviews - NAWBO National, accessed August 22, 2025, https://nawbo.org/expert-reviews/blog/small-business-statistics/ United States 2024 - SBA Office of Advocacy - Small Business Administration, accessed August 22, 2025, https://advocacy.sba.gov/wp-content/uploads/2024/11/United_States.pdf Frequently Asked Questions About Small Business, 2021, accessed August 22, 2025, https://advocacy.sba.gov/wp-content/uploads/2021/12/Small-Business-FAQ-Revised-December-2021.pdf 7 Reasons You May Have Been Denied Business Financing - America's SBDC, accessed August 22, 2025, https://americassbdc.org/7-reasons-you-may-have-been-denied-business-financing/ Was Your Business Loan Denied? Don't Panic! - Pursuit Lending, accessed August 22, 2025, https://pursuitlending.com/resources/business-loan-denied/ 10 Statistics to Know When Taking Out Business Loans - Capital Bank, accessed August 22, 2025, https://www.capitalbank.com/10-statistics-to-know-when-taking-out-business-loans/ Small Banks, Big Impact: Community Banks and Their Role in Small Business Lending - Federal Reserve Bank of St. Louis, accessed August 22, 2025, https://www.stlouisfed.org/publications/regional-economist/2023/oct/small-banks-big-impact-community-banks-small-business-lending Nonbank Lenders and Small Business Financing - Bipartisan Policy Center, accessed August 22, 2025, https://bipartisanpolicy.org/explainer/nonbank-lenders/ Term Loan Lenders | Funder Intel, accessed August 22, 2025, https://www.funderintel.com/businessloanlenders Best Small Business Loans: $1k - $5M | LendingTree, accessed August 22, 2025, https://www.lendingtree.com/business/small/

In my April article, Why Liquidity is Still the Missing Piece in Revenue-Based Financing , I wrote about how informal syndication, recycled capital, and opaque performance data hold the revenue-based finance market back — and how tokenization can address those bottlenecks by making receivables transparent, transferable, and easier to syndicate in real time. Tokenization solves for speed and access. But speed alone doesn’t bring the kind of stable, large-scale capital the sector needs to truly scale. Capital doesn’t follow hype — it follows frameworks. If tokenization got us in the door, standardization is what will get us on the shelves. Tokenization Alone Isn’t Enough You can tokenize a bad deal just as easily as a good one. The blockchain doesn’t care — but the buyer does. Without enforceable structure, rating mechanisms, and comparability across deals, a token is just a faster email. Liquidity without structure is volatility with prettier packaging. A trustless environment still needs trustable assets — assets an institutional investor can underwrite, rate, and slot into a portfolio with confidence. What Traditional Securitization Teaches Us Mortgage-backed securities (MBS), asset-backed securities (ABS), and similar markets didn’t scale because of new tech. They scaled because of standardization . Mortgages became investable when loans were pooled, structured, and guaranteed under uniform guidelines. Auto finance and floorplan lines became bankable when deals followed repeatable formats with predictable cashflows. The difference between a local lender and a global market? Tranches, waterfalls, and disclosure standards. Tokens speed up the rails; securitization builds the bridges. As Paul Volcker once said, “The function of capital markets is not to invent risk, but to standardize and price it.” We’ve already seen securitization make inroads into revenue-based financing and merchant cash advance portfolios — but only for a handful of large, established players. In 2018, Kapitus completed a $105 million ABS backed by MCA receivables. OnDeck has issued multiple MCA-backed securitizations, including a single deal exceeding $300 million, and Fundbox has tapped the ABS market to finance its small business receivables. Even Credibly has placed rated ABS transactions in recent years. These transactions prove the asset class can meet institutional standards — but they’ve been limited to originators with the scale, data consistency, and servicing infrastructure to satisfy banks and rating agencies. For the vast majority of revenue-based financing funders, the operational and structural lift required has kept securitization out of reach. That’s the gap Receivabull is positioning to close — by creating a shared, standardized framework that allows any conforming deal, regardless of originator size, to flow into rating-ready portfolios. The Fannie Mae Parallel Fannie Mae didn’t originate a single mortgage. It created liquidity by buying paper everyone could trust — loans that conformed to an accepted standard. That consistency allowed for a deep, liquid secondary market, which in turn built the modern U.S. housing finance system. In revenue-based finance, the opportunity is similar. A buyer of standardized, rating-ready paper can open the door to institutional capital at scale. As Larry Fink put it: “Create the infrastructure and the capital will come. Capital is always looking for yield — but only when it understands the risk.” The Synergy Between Tokenization and Securitization Tokenization and securitization aren’t competing approaches — they’re complementary. Tokenization provides transparency, traceability, and efficient transfer of assets. Securitization packages those assets into investment-grade, rating-ready products that fit into institutional mandates. When you add standardization to the mix — uniform docs, consistent servicing protocols, common scoring — you get a market that is faster, more transparent, and institutionally consumable. Imagine tokenized receivables flowing into a programmatic cashflow waterfall, with investor payouts triggered automatically based on merchant remittances. What the Future Revenue-Based Finance Ecosystem Could Look Like Uniform deal structures and underwriting rails across participating funders. Instant access to performance history, scoring, and cashflow health for every asset in the pool. Investor dashboards showing real-time portfolio data, with the ability to buy or sell fractional positions in seconds. Tokenized remittance streams that feed into rating-ready SPV portfolios built for QIBs and institutional allocators. Not every deal should be a phone call. Not every syndicate should be a group text. In a standardized, tokenized, securitized RBF ecosystem, funders and institutions can operate on equal footing — trusted, liquid, and scalable. From Illiquidity to Infrastructure We’re not here to reinvent credit. We’re here to make it programmable, portable, and trusted — at scale. Tokenization got us in the door. Standardization gets us on the shelves. Securitization gets us to scale. As I said recently, “In every market, infrastructure always wins. It doesn’t shout, it doesn’t hype — it just moves the capital.” And in revenue-based finance, building that infrastructure is how we get from a fragmented, relationship-driven market to one with true institutional reach. Scott Goldman, CEO Receivabull Inc.

First Automated B2B “Buy Now, Pay Later” Platform for Cannabis Industry The cannabis industry has long struggled with limited access to traditional financing. With federal restrictions still in place, many businesses are left to navigate an uneven playing field when it comes to working capital. This week, FundCanna  announced a first-of-its-kind solution: an automated business-to-business (B2B) Buy Now, Pay Later (BNPL) platform  designed specifically for cannabis companies. According to the announcement , this marks the industry’s first fully automated BNPL program , allowing cannabis businesses to manage vendor payments and supply chain purchases more efficiently. The platform is built to handle the compliance and regulatory complexities unique to the cannabis sector, while giving operators the kind of flexible financing solutions that mainstream industries already take for granted. The move comes at a critical time. Cannabis operators across the U.S. continue to face cash flow challenges  due to banking limitations, high taxes, and slow payment cycles. Traditional lenders are largely absent from the space, leaving companies dependent on private financing or vendor terms. FundCanna’s BNPL program effectively bridges that gap, empowering businesses to delay payments, preserve liquidity, and focus on growth. This launch also positions FundCanna at the intersection of two fast-growing trends: Cannabis financing , a niche with rising demand but little institutional support. BNPL services , which have surged across consumer and business markets as companies seek flexibility in managing short-term obligations. FundCanna’s founder and CEO, Adam Stettner, emphasized that the program is not just about extending credit, but about creating operational stability  for cannabis businesses. By leveraging automation and technology, the company hopes to scale quickly while reducing friction between buyers and sellers in the industry.

Last Thursday’s Funder Intel Industry Mixer at CT Cantina & Taqueria  was one for the books, and a sold-out success ! We’re thrilled to have brought together brokers, funders, fintech providers, and industry partners for an evening of conversations, connections, and plenty of good vibes. The energy in the room was electric. Deals were discussed, new relationships were formed, and old colleagues reconnected over great food and drinks. A huge thank you goes out to everyone who joined us and made the night such a success. 📸 Pictures are now live! Relive the night or spot yourself in the crowd here:

The Department of Justice announced last week that three women, including former SBA Loan Officer Rena Barrett , have pleaded guilty in separate COVID-19 relief fraud schemes  that have become all too familiar at this point. These cases, prosecuted in the Northern District of Georgia, demonstrate both the scale of pandemic-era fraud and the government’s ongoing push to hold offenders accountable. Rena Barrett, 45, of Covington, Georgia, pled guilty on August 11, 2025  to making false statements to the SBA in connection with applications totaling more than $550,000 . According to court filings, Barrett joined the SBA in October 2020. In May 2021 she submitted a fraudulent EIDL  application for $170,000 . SBA initially declined the request. Two months later, in July 2021, Barrett approved the loan herself , leveraging her role to override the earlier decision. Investigators later determined she had also approved additional loans submitted by herself or relatives. Barrett received nearly half of the approximately $550,000  she sought, then resigned  after her conduct was discovered. She is scheduled for sentencing on November 12, 2025 . Federal officials framed the conduct as a breach of public trust. U.S. Attorney Theodore S. Hertzberg  said the EIDL program provided critical relief to small businesses and that it is intolerable for an entrusted loan officer to put personal greed ahead of honest work. The SBA Office of Inspector General’s Amaleka McCall‑Brathwaite  emphasized the commitment to protect taxpayer dollars. In a related case , Sheena Thompson , 49, of Conyers, Georgia, pled guilty earlier this year to making false statements to the SBA. Thompson admitted to trying to obtain more than $150,000  in fraudulent EIDL  loans. She is scheduled for sentencing on August 28, 2025 . Separately, Detra Lewis , 40, of Atlanta, pled guilty on August 12, 2025,  to making false statements to the SBA. According to prosecutors, Lewis obtained more than $1.25 million  after submitting a false PPP loan application  on behalf of God’s Anointed Youth Ministry . She is scheduled for sentencing on November 14, 2025 .

The tug-of-war between traditional banks and fintechs over consumer financial data  has just intensified. In a pointed response, major banking groups are blasting a fintech coalition that has been lobbying regulators for what they call “free access” to consumer account data. At the heart of the fight is a fundamental question: Who controls financial data, the banks that safeguard it or the fintech platforms that want to use it? The Fintech Coalition’s Argument Fintech firms have argued that broad, no-cost access to consumer financial data is essential for driving innovation, increasing competition, and providing small businesses and consumers with more options. By making it easier for fintech apps to plug into banking systems, they claim, borrowers and entrepreneurs would benefit from faster underwriting, streamlined payments, and more transparent financial services. Banking Groups Fire Back But banking groups say not so fast. They argue that: Data security costs real money.  Maintaining safe, secure, and compliant systems for data-sharing is expensive, and expecting banks to provide this infrastructure for free puts an unfair burden on them. “Free rides” could undermine trust.  If fintechs can simply plug in without oversight or cost-sharing, banks fear it could open the door to cybersecurity risks  and misuse of sensitive consumer data. Level playing field concerns.  Banks point out that while they are tightly regulated under federal banking laws, many fintech firms are not. Giving fintechs the same access without the same compliance responsibilities, they argue, tilts the market unfairly. Why It Matters for Lending For lenders and fintech operators, this debate is far from academic. The outcome could reshape: How underwriting is done.  If fintechs gain wider access, expect faster, algorithm-driven lending models that pull from real-time cash flow data. Costs of doing business.  If banks succeed in requiring fintechs to share costs or operate under stricter oversight, smaller fintechs could be squeezed out, consolidating power among larger players. Consumer trust.  Both sides know that trust in how financial data is handled is key. One breach, or one scandal, could trigger regulatory crackdowns. The Bigger Picture This fight over data mirrors a larger global debate. The EU’s open banking regulations  have already forced banks to share data with fintechs under defined rules, and the U.S. may not be far behind. But how regulators handle this standoff could determine whether America ends up with a truly open, competitive lending ecosystem, or one where banks remain the ultimate gatekeepers. In other words, the stakes go far beyond technical plumbing. They cut to the heart of who will control the future of financial innovation : traditional banks or fintech disruptors.

Ten Charged in $9M COVID Loan Fraud, Facing Long Sentences A federal grand jury has indicted ten individuals  in a sweeping fraud and money laundering plot tied to COVID relief programs. Most notably, David Nathaniel Black, Jr. , age 31, of Newnan, Georgia, faces up to 20 years per wire fraud count  plus 2-year mandatory consecutive terms  for aggravated identity theft, on top of potential jail time for more than 100 money laundering counts (each carrying up to 10 years ). Also charged are: Rashad Avery , Tara Batson , Chris Elvins Constant , Nicole Cooley , Reginald Douglas , Yvenord Guerilus , Carson Merice , Rise Robinson , and George Thompson , predominantly from Georgia and Florida. In addition to EIDL and PPP abuse, Black  and Constant  are accused of laundering fraudulent unemployment insurance proceeds, increasing their legal jeopardy. Authorities say the group submitted inflated loan applications using stolen business and identity information, then spent the proceeds on luxury items like: $200,000 for a 2022 Bentley Bentayga; $350,000 for a 2020 McLaren 720S convertible; $142,680 for the down payment of a 2023 Mercedes-Benz G-Class Wagon; and $180,645 to pay the annual rent for a luxury home. The scale of the fraud is staggering, and the DOJ’s crackdown is still in full force. eBay Integrates Open Banking into Seller Capital Program eBay is moving deeper into fintech.  The company announced that it will integrate open banking technology  into its Seller Capital program, which provides small business financing for merchants on its platform. This shift means faster access to capital for sellers, as open banking allows secure, real-time data sharing  between financial institutions and eBay’s lending partners. The integration is designed to reduce friction in the application process, improve risk assessments, and ultimately help small businesses scale without the bottleneck of traditional underwriting. It’s another example of how big platforms are embedding financial services  directly into their ecosystems. For brokers and lenders, the move highlights growing competition from non-traditional players who can leverage large user bases and tech efficiencies to deliver capital more seamlessly. Appeals Court Reverses Ruling on CFPB Layoffs A federal appeals court has overturned a temporary injunction that had blocked the Consumer Financial Protection Bureau (CFPB)  from firing employees. The injunction, issued earlier this summer, had temporarily restricted the agency after a group of staff argued that their dismissals were retaliatory and potentially unlawful. With the appeals court’s ruling, the CFPB now has broader authority to move forward with its planned layoffs and internal restructuring.  While the court emphasized that employees may continue to pursue legal challenges through other avenues, the decision removes the immediate restriction that had tied the bureau’s hands. The case underscores ongoing scrutiny of the CFPB’s structure and leadership powers, which have long been the subject of political and legal challenges. For now, the ruling provides CFPB leadership with flexibility as it adapts to evolving priorities, but it also signals continued turbulence for the agency as it balances regulatory oversight with its internal workforce disputes.

Tonight, the Funder Intel Industry Mixer takes over CT Cantina & Taqueria, and the room is going to be buzzing. We’ve got brokers, funders, lenders, fintech pros, and service providers all under one roof starting at 6:30 PM . The energy is set, the cocktails are ready, and the opportunities are real. This isn’t just another industry event — it’s your chance to make the connections that could change the trajectory of your deals for the rest of the year. 3 Quick Tips to Maximize Your Mixer Experience 1. Have a Clear “Why” for Attending Whether you’re looking for new broker-funder relationships, scouting fintech tools, or expanding your service partnerships, come in with a mission. Knowing your “why” makes your conversations sharper and more productive. 2. Bring More Than Just Business Cards Sure, cards are great, but make yourself memorable. Have a quick, engaging intro ready, your name, what you do, and the type of deals you’re interested in. Keep it concise and confident. 3. Follow Up While the Energy’s Hot Networking magic fades if you don’t act on it. Before you leave tonight, make notes on who you want to follow up with. Send those messages tomorrow morning while the conversation is still fresh. Bonus Tip: Have a goal of meeting a certain number of people. 📅 Event Details: Thursday, August 14 6:30 – 8:30 PM CT Cantina & Taqueria – Dania, FL Dress Code: Business Casual Tickets: A few remain, but none sold at the door  → Reserve Now Whether you’re closing deals or planting seeds for future opportunities, tonight is about vibe funding , where the right people and the right energy meet. We’ll see you there.