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The case against defendant Johanna Michely Garcia , the CEO of  MJ Capital  and several other entities, has crossed its last major hurdle before sentencing. The issue that had to be settled before sentencing: the amount the court would order her to be responsible for due to her wire and mail fraud crimes, which she pleaded guilty to on July 16th, 2024. The prosecutors and defense attorneys had to analyze thousands of transactions spread out over multiple bank accounts belonging to multiple entities and even over $1 million in cash transactions made in person at their offices in Pompano Beach, Florida . Last week, on Nov 4th, a court filing shows Judge Jose Martinez ordered a forfeiture judgment of a staggering $186,312,000. This amount was the total proceeds from investors including the $1.379 million in cash collected by the Receiver from the premises of MJ Capital. The total that has been collected by the Receiver is not mentioned in this most recent court document. The short summary of what Johanna and her accomplices did was solicit investors for money which they would use to fund MCAs between June 2020 and August 2021. However, they only did a few MCA transactions and used much of the money for personal uses. Eventually, they were raising money just to pay back investors with new investor money, a classic Ponzi scheme. Once complaints were lodged from investors who weren't getting paid back, the SEC caught up to them. The government has asked for a continuance in the sentencing currently set for Nov 15th to Nov 22nd . On that date, I will be in the courtroom in Miami to bring you coverage of the sentencing decision on Johanna Michely Garcia.

The ability to effectively analyze and monitor SMB portfolios is challenging. Syh Strategies and MoneyThumb have developed an innovative solution that simplifies how lenders can analyze their portfolios and improve their performance using cash-flow data.   I'm excited to be moderating this session on Monday, November 4th at 4 PM EST ! I’ll be joined by Sherif Hassan, Principal at Syh Strategies , and Sean McKay, VP of Sales at MoneyThumb . Together we'll share strategies to reduce risk, identify opportunities, and increase yield, to build and maintain a healthy portfolio.   What you’ll learn: - The benefits of cash-flow data in portfolio analysis - Proven strategies for identifying risk and fraud - Cash-flow data as an underwriting tool - How results lead to decisions using a real-world case study   Who should attend: - Operations leaders - Underwriting / Risk decision-makers - Sales & marketing executives   Register below and join us on November 4th at 4 PM EST for this insightful session.

Dropping in on the weekend with a few stories that came out after our Thursday newsletter about the SBA Capital Impact report, an acquisition by Kapitus, and Fundbox put on a prestigious list. SBA Capital Impact Report The U.S. Small Business Administration (SBA) has released its Fiscal Year 2024 Capital Impact Report, revealing a significant surge in small business financing under the Biden-Harris Administration. The report highlights the SBA's delivery of a transformative $56 billion to small businesses and disaster-impacted communities in FY2024, marking a notable increase in capital access programs. Record-Breaking Small Dollar Loans One of the most striking findings is the dramatic increase in small-dollar loans. The report shows a doubling of loans less than $150,000 since FY2020, with a 33% increase from FY2023 alone. This surge is attributed to the agency's historic program reforms implemented in late FY2023, which modernized lending criteria and improved access to affordable small loans. Increased Diversity in Lending The SBA has made significant strides in supporting underserved communities: Black-owned businesses received 5,200 loans totaling $1.5 billion, tripling the loan count compared to FY2020. Latino-owned businesses secured 9,600 loans amounting to $3.3 billion, 2.5 times greater than in FY2020. Women-owned businesses obtained 15,500 loans worth $5.6 billion, doubling their participation relative to FY2020. Impact of the Investing in America Agenda The report also reflects the influence of the Biden-Harris Administration's Investing in America Agenda. Construction emerged as the leading industry in the SBA's 7(a) program, partly due to the significant investment in infrastructure and domestic manufacturing since President Biden took office. Administrator Guzman's Perspective SBA Administrator Isabel Casillas Guzman emphasized the critical role of capital in the entrepreneurial journey. She stated, "Through loans, investments, and surety bond guarantees, the SBA has helped power the small businesses that have in turn powered America's unparalleled economic recovery from the COVID-19 crisis." The FY2024 Capital Impact Report underscores the SBA's commitment to revitalizing Main Streets and innovation hubs across America. It demonstrates the agency's efforts to make capital more accessible to small businesses, particularly those in underserved communities, and highlights the positive impact of recent policy reforms on small business financing. For entrepreneurs and small business owners seeking funding opportunities, the SBA's Lender Match page offers a platform to connect with participating SBA Lenders providing competitive rates and fees. HEAR A FULL BREAKDOWN OF THE SBA CAPITAL IMPACT REPORT ON OUR PODCAST Kapitus Acquires Ten Oaks Commercial Capital Kapitus, a prominent player in the small and medium-sized business financing sector, has made a significant move by acquiring Ten Oaks Commercial Capital. This strategic acquisition marks Kapitus' entry into the equipment financing market, expanding its portfolio of financial products and services. Expansion into Equipment Financing The acquisition of Ten Oaks Commercial Capital allows Kapitus to launch a dedicated equipment financing arm. This new division will focus on providing financing solutions for essential business equipment across various industries. Key Benefits of the Acquisition: Diversification of Kapitus' product offerings Enhanced ability to serve a broader range of business needs Potential for increased market share in the equipment financing sector Leadership and Integration Ten Oaks' founder and CEO, Bill Mayer, will join Kapitus as the Managing Director of Equipment Finance. This move ensures continuity and brings valuable expertise to Kapitus' new equipment financing division. Integration Plans: Leveraging Ten Oaks' existing relationships and expertise Combining Kapitus' technology and resources with Ten Oaks' industry knowledge Potential for developing innovative financing solutions for equipment-intensive businesses The acquisition of Ten Oaks Commercial Capital represents a strategic expansion for Kapitus, positioning the company to better serve businesses with diverse financing needs, particularly in the equipment sector. Fundbox Selected as an Inc.com B2B Power Partner Fundbox, a leading AI-powered financial platform for small businesses, has been recognized by Inc. Business Media as a B2B Power Partner in the Embedded Capital category. This accolade highlights Fundbox's innovative approach to providing financial solutions for small businesses. Recognition in Embedded Capital The selection of Fundbox as a B2B Power Partner underscores the company's leadership in integrating financial services seamlessly into business workflows. This recognition is particularly significant in the evolving landscape of embedded finance. Key Aspects of Fundbox's Success: AI-driven financial solutions tailored for small businesses Innovative approach to embedded capital Strong partnerships with B2B companies Impact on Small Business Finance Fundbox's embedded capital solutions are designed to address the unique financial needs of small businesses. By integrating financial services directly into business processes, Fundbox aims to simplify access to capital and improve financial management for its clients. Benefits for Small Businesses: Streamlined access to working capital Improved cash flow management Potential for faster growth and expansion The recognition by Inc as a B2B Power Partner validates Fundbox's position as a leader in the embedded finance space and highlights the company's commitment to empowering small businesses through innovative financial solutions.

Pipe, a fintech provider of embedded financing solutions for businesses, has recently announced a strategic partnership with GoCardless, a leading fintech company specializing in account-to-account payments, to expand its reach into the UK market. This collaboration is a significant development for both companies and holds immense potential for small businesses in the UK. What does the Partnership Entail? Through this partnership, Pipe's financing solutions will be made available to small businesses in the UK through the GoCardless platform. This integration will streamline the financing process for small businesses, enabling them to access much-needed capital quickly and conveniently. Successful Pilot Program Over the past several months, Pipe and GoCardless conducted a pilot program in the UK, which yielded impressive results. The success of this trial led to the formalization of their partnership, paving the way for Pipe's customer-friendly capital solutions to be introduced to the broader UK market. Why is this Important? This partnership is a win-win for several reasons: Addresses a Critical Need:  Small businesses are the backbone of the UK economy and often face challenges in securing traditional financing. Pipe's solutions, designed to be fast and easy to access, address this critical need by providing an alternative financing option for small businesses. Faster and Easier Financing:   Pipe's financing solutions are known for their speed and ease of access. Unlike traditional lenders, Pipe does not require credit checks, making it a viable option for businesses that may not have a perfect credit history. Wider Reach:   By leveraging GoCardless's extensive platform, Pipe can reach a wider audience of small businesses in the UK. This increased accessibility can benefit the business lending industry by fostering a more inclusive financial landscape. A Promising Move for Small Businesses The Pipe-GoCardless partnership is a positive development for small businesses in the UK. It provides them with a faster, easier, and more accessible way to secure financing that is embedded in their operations, which is crucial for growth and prosperity.

A recent report by Visa, as highlighted in an article from PYMNTS , reveals a significant shift in how growth corporates are managing their working capital, showcasing transformative trends identified in the second annual Global Growth Corporates Working Capital Index. This comprehensive report offers valuable insights into the evolving financial strategies of mid-sized businesses, shedding light on the increasing importance of efficient working capital solutions in driving growth and competitiveness. Key Findings from the Visa Report The PYMNTS article emphasizes several crucial findings from Visa's index: 1. Widespread Adoption of Working Capital Solutions: In 2024, an impressive 81% of surveyed companies have adopted at least one working capital solution, indicating a growing recognition of its strategic importance. 2. Substantial Financial Benefits : Top-performing companies achieved remarkable efficiency gains, saving an average of $11 million in interest and fees – a staggering 300% year-over-year increase. 3. Virtual Cards Gaining Traction: The use of virtual cards saw a significant 32% year-over-year increase, closely linked to superior index scores. The Profile of Growth Corporates The Visa index focuses on "Growth Corporates" – organizations generating between $50 million and $1 billion in annual revenue . This segment represents a crucial part of the business ecosystem, often caught between solutions designed for small businesses and large enterprises. Industry-Specific Insights Different sectors have experienced varying degrees of improvement in working capital management: - North America's agriculture sector saw a 17% index surge - Healthcare in Europe and Asia-Pacific led with 16% gains - Retail in Central Europe, Middle East, and Africa witnessed a dramatic 26% increase in index scores These sector-specific trends underscore the importance of tailored working capital strategies across different industries. The Strategic Use of Working Capital One of the most significant revelations from the Visa report is the shift towards more strategic use of working capital. The data shows that: - 62% of working capital use was driven by strategic initiatives - CFOs and Treasurers were 35% more likely to use solutions to invest in company assets - There was a 37% increase in investments in organic growth and expansion compared to the previous year This trend indicates a move away from merely using working capital for day-to-day operations towards leveraging it as a tool for long-term growth and competitive advantage. Challenges and Demands Despite the positive trends, the PYMNTS article also highlights some challenges faced by growth corporates: - Five out of eight industries cited lengthy approval processes and uncertainty about outcomes as significant obstacles - 90% of respondents reported negative consequences when working capital access was denied or delayed These findings underscore the need for more efficient and tailored working capital solutions in the market. The Role of Financial Institutions The Visa report emphasizes the evolving expectations of growth corporates from their financial partners. There's a growing demand for: - Relationship-based banking - Personalized working capital solutions tailored to specific industries and business needs - Bankers with both lending experience and in-depth knowledge of specific industries and regions Looking Ahead The insights from Visa's Growth Corporates Working Capital Index paint a picture of a business landscape where efficient working capital management is becoming increasingly crucial. As growth corporates continue to leverage these financial tools more strategically, we can expect to see: - Further innovation in working capital solutions - Increased collaboration between businesses and financial institutions - A continued focus on industry-specific and personalized financial products This evolution is not just about improving day-to-day operations but is increasingly becoming a key driver of strategic growth and competitive advantage in the mid-sized business segment.

Discovering the right equipment financing can be a game-changer for businesses looking to grow without straining their cash flow and business loan brokers offering their products to their clients. A recent article from CNBC highlights the best equipment financing options for 2024, offering valuable insights for companies navigating this crucial decision. While we have our list of top equipment finance companies, we wanted to explore their list and whether they are the best equipment financing options for business loan brokers. Top Equipment Lenders The CNBC article identifies five standout lenders in the equipment financing sector broken down into different types of businesses they may be best for: National Funding is a top choice for businesses with fair credit, providing tailored solutions that cater to diverse financial situations. OnDeck shines with its same-day funding capabilities, ideal for businesses that need quick access to capital. Cardiff is recognized for its competitive offerings, making it a strong contender in the market. Kapitus provides a range of financing options, ensuring that businesses can find a solution that suits their needs. Crest Capital rounds out the list with unique solutions designed to meet various equipment financing demands. Key Takeaways The article emphasizes the importance of comparing different financing options before making a decision. Each lender has its strengths, and what works best for one business may not be ideal for another. Key factors such as credit score requirements, funding speed, and down payment options should be carefully evaluated to find the best fit. Partner Channels for Loan Brokers An intriguing aspect of these lenders is their partnership channels with business loan brokers. Many offer partner channels, enabling brokers to expand their product offerings and provide comprehensive solutions to their clients. For example, National Funding and OnDeck have established partner programs that leverage quick funding and flexible credit requirements, however, they may be difficult for new loan brokers to get signed on with given their requirements. Cardiff, Kapitus, and Crest Capital also likely offer similar opportunities, though specifics may vary. These partner channels can be invaluable resources for loan brokers, providing access to a wider range of financing options and potentially increasing revenue streams. Brokers interested in equipment financing should consider reaching out to these lenders to explore partnership possibilities. Their methodology CNBC says the following for their methodology: "To determine the best equipment financing options, CNBC Select analyzed a dozen U.S. small business loan lenders offering equipment financing options. For this roundup, we didn’t evaluate business lines of credit, invoice factoring/financing or merchant cash advances since they either have a long application process (like SBA loans) or act differently than a traditional term loan or equipment financing loan. We compared each equipment financing option on a range of features, including: Minimum and maximum loan amounts Credit score needed Application requirements Streamlined application process Fund disbursement Customer support Better Business Bureau rating Customer reviews, when available The rates and fee structures for equipment financing and small business loans are subject to change without notice, and they often fluctuate in accordance with the  prime rate . However, once you accept your loan agreement, a fixed-rate APR will guarantee that the interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness." Your Experience Matters What has been your experience with the above-mentioned equipment financing lenders? We invite you to share your thoughts in the comments below. Your insights could be beneficial to others navigating the complex world of equipment financing.

In a recent article, the ABF Journal offers a detailed look at the Small Business Administration's (SBA) new Working Capital Pilot (WCP) program, which launched on August 1, 2024. This innovative initiative aims to provide small businesses with more flexible and affordable access to working capital through lines of credit. Kathryn Frost, the SBA’s associate administrator in the Office of Capital Access says " it is already exceeding expectations in terms of market adoption". Program Highlights The WCP program introduces several key features designed to support small business growth: 1. Versatile Financing Options: The program accommodates both transaction-based project lending and asset-based lending, catering to diverse business needs. 2. Global Applicability: One of the program's strengths is its ability to finance both domestic and international sales under a single loan facility, simplifying the process for businesses engaged in global trade. 3. Cost-Effective Fee Structure: The WCP introduces an annual short-term guaranty fee, allowing borrowers to pay only for the time they actually use the facility. Eligibility and Implementation To qualify for the WCP program, businesses must meet certain criteria: - A minimum of 12 months of operational history - Ability to produce timely and accurate financial statements - Commitment to annual updates of financial information The article notes that the program will be available through SBA-approved lenders, with some lenders receiving delegated authority to streamline the process. SBA's Vision SBA Administrator Isabel Casillas Guzman emphasizes the program's significance in the current economic climate. As quoted in the article, Guzman states, "The Working Capital Pilot program will help small businesses access the affordable financing they need to seize opportunities and create jobs as we continue to power our historic economic recovery." Looking Forward As the WCP program gains momentum, it presents promising opportunities for both small businesses and lenders. The SBA's network of Export Finance Managers stands ready to provide support and guidance, ensuring participants can maximize the benefits of this new financing option. The ABF Journal's overview underscores the potential of the WCP program to empower small businesses, foster growth, and contribute to overall economic strength. As the program evolves, it will be interesting to see its impact on the small business landscape and its role in supporting economic initiatives.

The video below is a very informative presentation on the rise of Revenue Based Financing by Harvard PhD candidates that is a must watch for anyone in the space regardless of experience level as it explores the positive impacts of flexible finance. It gives a high-level overview of the product and then drills down to details like how merchants try to avoid repayment and different contract structures that are used across the globe. In their research paper they focus on two key questions: 1) How do FinTech platforms’ non-lending interactions with small businesses affect classic contracting frictions in lending? 2) Under what circumstances will these platforms be more or less successful in mitigating these frictions? These questions are important for evaluating the long-term potential of FinTech platforms as small business lenders (funders) and the extent to which they can more efficiently provision capital than traditional lenders. The study is based on US, European, and African fintech providers such as Square, Toast, Shopify, and Velocity. This global view should help those who work for direct Funders with information that may not otherwise be available. Drop your comments below about the video!

Lemon, a Manchester-based fintech company, has recently introduced a financing platform specifically designed for Software-as-a-Service (SaaS) vendors in the UK, according to a post on their website. This initiative aims to alleviate the financial burden on small-to-medium-sized businesses (SMBs) by allowing them to manage their subscription costs more effectively. The newly launched product enables SaaS companies to receive upfront payments for annual or multi-year contracts while their SMB customers can opt for manageable monthly payments. This dual benefit not only enhances cash flow for vendors but also makes premium software more accessible to smaller businesses, which often struggle with high upfront costs. Lemon's model promises to save SMBs up to 50% on their SaaS expenditures and reduce customer churn for vendors, addressing critical pain points in the SaaS landscape. Key Features Upfront Payments: Vendors receive full contract values immediately, improving financial stability. Flexible Payment Plans: SMBs can enjoy the benefits of annual subscriptions without the hefty initial payment. Cost Savings: The platform aims to streamline subscription management, potentially reducing overall spending by 20%. Strategic Partnership with Shawbrook Bank Lemon's collaboration with Shawbrook Bank is pivotal, providing essential financial resources and lending capabilities that will facilitate rapid scaling and product development. This partnership underscores the commitment to delivering tailored financing solutions that meet the unique needs of UK SMBs. Comparison with Pipe There are several fintechs offering revenue based financing now but since Lemon is being built for Saas companies right now my initial thought is that they are doing what Pipe started a few years ago. While Lemon focuses primarily on the UK market and aims to enhance SaaS financing specifically, Pipe launched in the U.S. and has taken a broader approach by offering revenue-based financing solutions across various business types after they initially only focused on SaaS. Pipe's model is very similar otherwise by allowing businesses to trade future revenue for immediate capital, which addresses the specific challenges faced by SMBs. As Lemon continues to develop its offerings, it has the potential to become a key player in the UK fintech landscape. By providing innovative financing solutions tailored for SaaS vendors and their SMB clients, Lemon is well-positioned to transform how software subscriptions are financed, ultimately fostering growth and efficiency in an increasingly competitive market.

Amazon Prime Big Deals Day is here, and it's the perfect time to stock up on office essentials.  From October 8th to 9th, Amazon is offering incredible deals on a wide range of office products, from printers and laptops to desks and chairs. Below we highlight the top 10 office products  you can snag at amazing prices during Amazon Prime Big Deals Day. Apple 2024 MacBook Air 15-inch Laptop with M3 chip Hiearcool USB C Hub, USB C Multi-Port Adapter for MacBook Pro, 7IN1 USB C to HDMI Phone Headset 2.5mm with Noise Canceling Mic & Volume Control Ooma Provisioned Yealink T31W Wi-Fi Business IP Phone. Canon® imageCLASS® MF455dw Wireless All-in-One Monochrome Laser Printer SANSUI Monitor 27 inch 165Hz 1ms PC Computer Monitor -FHD 1080P GABRYLLY Ergonomic Office Chair, High Back Home Desk Chair with Headrest, Flip-Up Arms, 90-120° Tilt Lock and Wide Cushion SIHOO M18 Ergonomic Office Chair for Big and Tall People Adjustable Headrest with 2D Armrest Lumbar Support Dell S3222HN Curved Monitor - 31.5-inch FHD (1920x1080) 75Hz HMKCH Dual Wireless Lavalier Microphones for iPhone Android Camera Laptop PC Don't miss out on these amazing Prime Day deals! Head over to Amazon now and start shopping.

HSBC and Tradeshift have joined forces to introduce SemFi , a new solution aimed at enhancing the landscape of embedded business finance. With the rapid rise of digital financial services, this initiative targets small and medium-sized enterprises (SMEs) by embedding finance directly into their daily operations through digital platforms. SemFi integrates HSBC’s extensive range of financial services—spanning from payments to trade and working capital solutions—into Tradeshift's global B2B e-commerce network. This collaboration enables SMEs to manage cash flow more effectively and provides tools such as digital invoice financing and virtual card solutions. Addressing Market Needs This new platform is designed to tackle several key challenges faced by businesses in modern supply chains: Liquidity Enhancement : The solution offers early payment options, allowing suppliers to improve their cash flow management. Process Optimization : By integrating Tradeshift's digital invoicing with HSBC's financing capabilities, the platform streamlines traditionally complex processes. Increased Transparency : Real-time data and analytics provide better visibility into supply chain operations, facilitating informed decision-making. SemFi’s launch in the UK marks the beginning of a broader strategy to tackle liquidity challenges and improve access to financing for businesses of all sizes. As embedded finance becomes increasingly central to the fintech space, platforms like SemFi will likely play a pivotal role in shaping the future of business transactions, offering a seamless bridge between finance and operational efficiency. In an environment where faster financial tools are becoming critical to staying competitive, SemFi is positioned to provide meaningful benefits to both SMEs and large enterprises looking to streamline their financial workflows. With HSBC’s backing and Tradeshift’s extensive marketplace reach, this platform is expected to set a new standard for embedded business finance.

NewtekOne, Inc . (NASDAQ: NEWT) has announced loan closure figures for the third quarter of 2024, demonstrating significant growth across its lending portfolio. The company closed a record $371.8 million in loans across all products for the three months ended September 30, 2024, marking a 17.3% increase from the previous quarter's $316.7 million. So when you hear people say banks aren't lending, these stats show otherwise. The company's SBA 7(a) loan program showed particularly strong performance, with closings of $245.3 million in Q3 2024. This represents a 6.6% increase over Q2 2024 and a 12.5% year-over-year growth. Looking ahead, NewtekOne projects total SBA 7(a) loan closings of $935.0 million for 2024, which would signify a 14.7% increase from 2023. Barry Sloane , President, Chairman, and CEO of NewtekOne, highlighted the company's exceptional track record in loan performance. He noted that their 504 loan portfolio, valued at approximately $500 million, has reportedly not experienced any charge-offs since 2019. No charge offs? A truly surprising statistic if accurate, but it would be a testament to NewtekOne's robust underwriting processes and risk management strategies. Additionally, the company's alternative loan program, which has funded about $380 million since 2019, has only written off approximately $3.0 million in principal value. These figures underscore NewtekOne's strong position in the lending market and its ability to maintain loan quality while achieving significant growth. As the company continues to expand its loan portfolio, investors and industry observers will likely keep a close eye on its performance and risk management practices.