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A recent court case has thrown a wrench into the implementation of the Corporate Transparency Act (CTA). On March 1, 2024, a federal district court in Alabama ruled that the CTA oversteps Congressional authority and blocked the Department of the Treasury and FinCEN from enforcing it against the plaintiffs in the case. This is a significant development, but it's important to understand its limitations. The ruling only applies to the specific plaintiffs in the case, which include a small business owner, several reporting companies, a small business association, and its members (as of March 1, 2024). What it Doesn't Mean The CTA is Dead: The court's decision is likely to be appealed, and the legal process could take years. Businesses should not interpret this as a signal to disregard the CTA entirely. Pre-2023 Businesses are Off the Hook: Importantly, the filing requirement for businesses formed before March 1, 2023, remains in effect. These entities are still required to report beneficial ownership information to FinCEN by the end of 2024. New Businesses Can Wait? Not Likely: Entities formed in 2024 are legally obligated to file a report with FinCEN within 90 days of formation. While the Alabama decision creates some uncertainty, waiting for the outcome of the appeals process is a risky strategy. The appeals process could take years, and by that time, significant fines could accrue for non-compliance. The Takeaway The recent court ruling is a noteworthy development, but it's important to maintain a clear-eyed view of its implications. Businesses should continue to adhere to the CTA's reporting requirements unless they receive explicit guidance to the contrary. Consulting with a legal professional is always advisable in navigating complex legal matters such as this one. Haven't subscribed to our newsletter The Funding Curve yet, go HERE.

A long-awaited day is almost here for investors of Par Funding as they will learn the plan for getting their money back. For some of the over 1700 investors who gave more than $550 million total over the years, that may not be much at all as they were rejected by the receiver initially and only upon appeal do they have a chance to recover their investment. That is to be determined during a lawyer's conference at 10 AM Monday, March 4th on video conference between all relevant parties including the receiver for Par Funding, who has been scouring the Earth for the money that Par owners bilked from investors, per The Philadelphia Inquirer. So far the receiver has collected over $175 million in cash and assets including multiple properties of Joseph Laforte, owner of Par Funding. He, his wife, Lisa McElhone and financial officer Joseph Cole Barlet have been sued by the SEC on civil fraud charges. They decided not to contest the actual charges, but the amount the Judge said he owed of $200 million is being contested. The receiver still hopes to recover "as much as $60 million owed to Par by borrowers (business owners). The receiver has been writing down the value of these potential assets, as many of the loans have proven to be uncollectible because the borrowers have gone out of business." As this conference is about to take place, new RICO charges were filed against "Joseph LaForte, Joseph Cole Barleta (“Joe Cole”), and James LaForte", per a DOJ press release. "According to the second superseding indictment, codefendants Joseph LaForte, Joe Cole, and James LaForte, and others, were part of an association-in-fact RICO enterprise that conspired to commit several predicate crimes, including crimes related to the fleecing of Par Funding’s many investors and the extortionate collection of credit from Par Funding’s many merchant-customers." The press release goes on to say: "The indictment alleges that the principal purposes of the LaForte Enterprise were as follows: to generate money for its leadership, members, and associates through the commission of various criminal acts, such as securities fraud, wire fraud, the extortionate collection of debt, obstruction of justice, and retaliation; to conceal from investors, auditors, the government, and law enforcement that its members were self-dealing and enriching themselves to the detriment of Par Funding’s investors; to conceal Joseph LaForte’s identity, criminal history, and role as the leader of the enterprise and the functional Chief Executive Officer of Par Funding from Par Funding’s investors, customers, and auditors, and from the government and law enforcement, including through misrepresentations, false statements, and other means; to use extortionate means, including threats of violence, to collect money owed to Par Funding by its merchant-customers; to maintain control over Par Funding after Par Funding was put under the control of a court-appointed receiver, including by acts of obstruction and retaliation intended to frustrate and interfere with the receiver’s efforts to control Par Funding; and to protect the enterprise and its members from detection, apprehension, and prosecution by law enforcement." If found guilty on all charges, the defendants are looking at decades or more of imprisonment. On top of that, they also face full restitution, a fine, and a period of supervised release and/or probation.

As the dust settles on what was an electrifying evening at Bar Rita, we're happy to bring you some moments captured from Funder Intel's recent networking mixer. Our community came together, not just to network, but to forge new partnerships and strengthen existing ones. The success of the Mixer leaves us excited about the future of this event and the positive impact it can have on the industry. We are already looking ahead to the next gathering, which will take place sometime in May or June. Stay tuned for more details, and get ready to join us for another evening of connection, innovation, and growth!

In a significant development for the defrauded investors of Par Funding, a Philadelphia-based merchant-cash-advance company, there emerges a glimmer of hope. The court-appointed receiver, Ryan Stumphauzer, announced the approval of investor claims totaling $250 million. This marks a pivotal moment for the 1,730 investors who have been entangled in this financial debacle since Par Funding ceased operations and fell under court receivership in 2020. Par Funding, also known as Complete Business Solutions Group, is accused of raising over $550 million from investors between 2011 and 2020 through materially false and fraudulent statements about its leadership and financial stability. The company, by offering high-interest loans to small businesses unable to secure bank loans, generated substantial profits for early investors. However, allegations suggest that the company's owners misappropriated a significant portion of these funds for personal use, leading to a halt in investor repayments. The case, which is under the scrutiny of the U.S. Securities and Exchange Commission (SEC), revealed that Par's founders and salespeople failed to register the raised funds as securities. Moreover, investors were misled about the investments being insured and were not informed of the criminal history of Joseph LaForte, Par Funding's principal founder, who had previously served time for fraud. Joseph LaForte and Lisa McElhone, his wife, are currently facing separate criminal charges and have agreed to repay nearly $200 million in connection with the SEC complaint. The process of reimbursing investors involves the distribution of assets collected by the receiver. These assets include $133 million in cash and $43 million in various properties, vehicles, artworks, jewelry, and other items confiscated from LaForte, McElhone, and other former Par officers and salespeople. Additionally, the receiver anticipates recovering up to $45 million from an insurance settlement against Philadelphia lawyer John Pauciulo and his former firm, Eckert Seamans, which advised agents selling the unregistered Par Funding investments. Despite the substantial amount recovered, the repayment to each investor varies, depending on the nature of their investment and the duration for which they received the promised annual interest of over 10%. Some investors, like labor-relations consultant Joseph Brock, have expressed dissatisfaction with the proposed repayments, finding the appeal process daunting and the amount insufficient compared to their initial investment. The public hearing scheduled for a federal court in Miami will further address the issue of investor repayment. This hearing represents a critical juncture for those affected, offering a platform for their voices and concerns to be heard. This case highlights the risks associated with unregistered securities and underscores the importance of thorough due diligence for investors. The ongoing legal proceedings and the efforts of the receiver to reimburse the defrauded investors serve as a cautionary tale about the pitfalls of high-yield investment schemes.

The energy is buzzing! The Funder Intel Mixer is happening TODAY at Bar Rita, and we can't wait to welcome you to this exciting gathering of industry leaders, innovators, and visionaries like yourself. But here's a quick heads-up, Online ticket sales close at 12 PM EST, meaning you only have a few hours left to secure your spot at the best price. Don't miss out on: Engaging conversations- Network with influential professionals, share ideas, and spark meaningful connections that could fuel your career and business. Cutting-edge insights- Dive into insightful discussions about the latest trends and disruptors shaping the future of finance. Innovative solutions- Discover cutting-edge tools and technologies showcased by our incredible sponsors. The Ft. Lauderdale magic- Enjoy a vibrant atmosphere, great drinks, and the opportunity to connect in a relaxed, inspiring setting. Still on the fence? We understand. But remember, online ticket prices are available until noon only. After that, at-the-door tickets are subject to availability and a higher price. See who's going and arrange meetings** Login to our site and goto the MEMBERS->Groups tab, view Events Group. Get your ticket now and join us for a wonderful evening!

In this podcast, we dive deep into the world of revenue-based financing (RBF), the financing product fueling small businesses, with Andrew Mallinger, COO of PIRS Capital. PIRS Capital is now among the top funders by volume in the Revenue Based Finance industry. Shane and Andrew get into the following topics: Where the RBF industry is today and where it's going RBFs importance in driving SMB growth RBFC/Funders Forum + Brokers Expo Generative AI use cases 2024 outlook Keys to success within the industry Q & A from the guests ( great questions! ) To reach Andrew Mallinger or the PIRS Capital team, see below: PIRS Capital (888) 494-4881 info@pirscapital.com To learn more about our sponsor, the Revenue Based Finance Coalition, visit their site.

As we gear up for Funder Intel's networking mixer this Thursday, February 22nd, at the vibrant Bar Rita, we want to spotlight the distinguished sponsors who are making this event possible. Each sponsor brings a unique set of opportunities and insights to the table, making this an unmissable event for professionals in the business lending and commercial finance industry. Here's why you should be excited to meet them: Cloudsquare Cloudsquare is a trailblazer in providing innovative Salesforce solutions, helping businesses transform their operations through technology. Their tailored approach to CRM and business process optimization has revolutionized the way funding companies interact with their customers and manage their workflows. Everest Business Funding Everest Business Funding is a leader in providing accessible, fast, and flexible funding solutions for businesses looking to scale. Their commitment to supporting growth and overcoming financial hurdles makes them a perfect partner for businesses at any stage. Revenue Based Finance Coalition The Revenue Based Finance Coalition is dedicated to advancing the understanding and adoption of revenue-based financing models. The members include funders, brokers and select vendors that provide technology and operations services to the industry. Meridian Leads Meridian Leads stands at the forefront of marketing solutions, specializing in generating high-quality leads that drive growth. Their expertise in navigating the complex landscape of digital marketing and lead generation makes them an invaluable resource for businesses looking to expand their reach. Meeting Meridian Leads could be the key to unlocking new avenues of growth for your business. CFG Merchant Solutions CFG Merchant Solutions is a trusted name in merchant financing, offering a range of customized funding solutions designed to meet the unique needs of businesses. Their focus on flexibility, speed, and service has made them a go-to resource for businesses seeking to navigate cash flow challenges and seize growth opportunities. WeFund WeFund is at the cutting edge of connecting businesses with the capital they need through a comprehensive platform that simplifies the funding process. Their innovative approach and dedication to transparency have demystified the path to securing funding, making it easier for businesses to access the resources they need to thrive. Why Attend? This is more than just a networking event; it's an evening of connecting with your existing partners and finding new partnerships, gaining more industry insights and solutions that could dramatically shape the future of your business. Secure your spot now and join us for an evening of meaningful connections, insightful conversations, and the potential to propel your business forward. See you Thursday!

In the fast-paced world of business lending and fintech, efficiency is key. But let's face it, clunky, time-consuming online forms can leave your clients frustrated and potentially leave your website before finishing the application. That's where a robust funding application web form comes in, acting as your digital gateway to smoother operations, and more clients. But with so many options available, choosing the right web form can feel overwhelming. Here's why you, as a business loan broker, should seriously consider a solution like Funder Intel's funding application web form: 1. Designed for Busy Brokers Funder Intel's web form understands your time constraints. Its multi-page format guides applicants through the process one step at a time, ensuring they capture all necessary information without feeling overwhelmed. This streamlined approach reduces errors and saves you valuable time clarifying missing details. Our application has been approved by direct funders for having all of the information needed for underwriting. If an update is needed to comply with regulations, it's very simple to do so. 2. No Coding Headaches Integration should be seamless, not stressful. Our webform requires no coding knowledge for installation. Once purchased, you receive a URL that you can use to duplicate the form. Follow the platform-specific instructions, and you're up and running, ready to accept applications in minutes. This means more time focusing on what you do best: securing the best loans for your clients. Have a WordPress site? There is a plugin from Jotform that provides a simple install. For most website builders you will find it easy to install the web form. This video shows you how to Clone our form in Jotform 3. Built to Scale with You As your business grows, your webform shouldn't hold you back. Funder Intel's solution is built on Jotform, which can handle unlimited application volume, ensuring it can adapt to your increasing success. Plus, their paid plans offer features like custom branding and data exporting, allowing you to personalize the experience and gain valuable insights. 4. Affordability Meets Functionality Investing in the right tools shouldn't break the bank. Our webform strikes the perfect balance, offering exceptional functionality at an accessible price point of $159. This makes it a smart investment for brokers of all sizes, delivering significant value without straining your budget. 5. The Power of Jotform Integration Built on the reliable Jotform platform, Funder Intel's web form inherits its robust features and security. You can rest assured knowing your clients' data is safe and secure, while you enjoy the benefits of a user-friendly interface and seamless integration with various tools. Beyond the Basics: The Competitive Edge But our web form goes beyond just collecting data. It offers additional features that give you a competitive edge: Conditional logic: Tailor the application experience based on user responses, ensuring relevant questions are asked and streamlining the process for everyone. E-signatures: Eliminate the need for printing and scanning with secure electronic signatures and an audit trail, expediting the approval process. Progress tracking: Keep applicants informed and engaged with real-time updates on their application status. The Bottom Line In today's competitive landscape, efficiency and a positive client experience are crucial for business loan brokers. Funder Intel's funding application web form empowers you to achieve both, with its user-friendly design, and scalability. It's the smart choice to streamline your operations, impress clients, and ultimately, secure more deals. Ready to transform your application process? Click below to get started.

A joint report by OnDeck, a leading small business lender, and Ocrolus, a document AI and cash flow analytics platform, paints a picture of growing optimism among small businesses despite ongoing challenges. The report, based on a survey of nearly 500 businesses and data from over 3 million loan applications, reveals key findings: Positive Outlook: Most businesses anticipate growth in 2024, fueled by steady revenue increases. Profitability Focus: As inflation cools, in Q4 it was still a concern. Businesses are shifting focus towards improving profitability and cash flow to support expansion. Hiring Hurdles: Over half of businesses struggle to find and hire qualified staff, posing a potential roadblock to growth. Other details from the report: "Growth expectations are generally consistent across the country, with 25% of businesses expecting significant growth over the next 12 months. In Boston, Minneapolis and St. Louis, growth expectations are more muted, averaging just 16%." "70% of small businesses have less than four months of operating cash (they would like more), and the cash flow data shows that for most businesses, 90% of revenue is consumed by operating expenses (before interest, debt repayment and taxes)." "Over 65% of small businesses in major metropolitan areas — including Boston, Chicago, Cleveland, Kansas City, Philadelphia and Minneapolis — were moderately, very or extremely concerned about hiring qualified staff." While the report highlights an upbeat mood among small businesses, concerns remain. The ongoing talent shortage could hinder expansion plans. This highlights the need for deeper insights into specific industry trends and regional variations to understand the full picture. Want to learn more? The full Small Business Cash Flow Trend Report by OnDeck and Ocrolus offers a comprehensive data analysis, including industry breakdowns, regional comparisons, and expert insights. Dive deeper and gain valuable knowledge to navigate your own business in today's dynamic market. Go HERE for the full report.

In a major victory for small businesses, New York Attorney General Letitia James announced yesterday a major $77 million judgment against three merchant cash advance companies: Richmond Capital Group, Ram Capital Funding, and Viceroy Capital Funding. The companies and their principals, Jonathan Braun, Tzvi Reich, Robert Giardina, and Michelle Gregg, were accused of usury and fraud for illegally high-interest, short-term loans and undisclosed fees, disguised as merchant cash advances, the lawsuit claimed. "These predatory lenders preyed on small businesses, trapping them in a cycle of debt with sky-high interest rates and hidden fees," Attorney General James said. "This judgment sends a clear message that we will not tolerate these abusive practices in New York." The judgment requires the companies to stop collecting on their outstanding debt and to repay thousands of small businesses the unfair interest they had to pay. It also prohibits the companies from doing business in New York for five years. "This is a huge win for small businesses across New York," said John Whelan, president of the National Federation of Independent Business in New York. "These predatory lenders have been a scourge on our communities, and Attorney General James has taken a strong stand to protect them." The lawsuit against the companies was filed in 2020. The companies were accused of charging interest rates of up to 260% on their loans, far exceeding the legal limit in New York. They were also accused of hiding fees and misrepresenting the terms of their loans, which many would call merchant cash advances. "These companies were preying on the desperation of small businesses," Attorney General James said. "They knew that these businesses were in need of cash, and they took advantage of them." Key points: New York Attorney General Letitia James secured a historic $77 million judgment against three merchant cash advance companies: Richmond Capital Group, Ram Capital Funding, and Viceroy Capital Funding and principals Jonathan Braun, Tzvi Reich, Robert Giardina, and Michelle Gregg. The companies were accused of usury and fraud for illegally high-interest, short-term loans and undisclosed fees. The judgment requires the companies to stop collecting on their outstanding debt and to repay thousands of small businesses the unfair interest they had to pay. It also prohibits the companies from doing business in New York for five years.

In a world where digital connections have become the norm and remote work is more prevalent than ever, the value of face-to-face networking has never been clearer. As we gear up for Funder Intel's next networking mixer at Bar Rita on February 22nd, let's dive into why meeting in person is still the gold standard for building meaningful professional relationships. The Unmatched Value of In-Person Interactions While digital tools and social media platforms offer convenience and a broad reach, they lack the depth and authenticity of in-person interactions. Here's why face-to-face networking remains irreplaceable: Non-Verbal Cues: A significant portion of communication is non-verbal. Body language, eye contact, and handshakes convey trust, confidence, and sincerity in ways that emojis and video calls simply cannot match. Deeper Connections: Face-to-face meetings allow for spontaneous conversations and shared experiences that form the foundation of strong, lasting relationships. These interactions often lead to more meaningful connections than those formed online. Focused Attention: In a digital world full of distractions, in-person interactions provide a rare opportunity for undivided attention. This focused engagement makes it easier to forge genuine connections and understand the needs and goals of your peers. Memorable Impressions: Meeting someone in person leaves a more lasting impression, making it easier to recall and reach out to them in the future. The shared experience of an event like our mixer at Bar Rita can become a memorable touchstone in your professional relationship. Why You Shouldn't Miss Funder Intel's Mixer at Bar Rita Now that we've explored the benefits of face-to-face networking, let's talk about why Funder Intel's upcoming mixer is the perfect opportunity to put these principles into practice: A Curated Crowd: Our mixer brings together professionals from the business lending and commercial finance industry, ensuring that you're connecting with peers who share your interests and challenges. A Vibrant Venue: Bar Rita offers a lively yet relaxed atmosphere that's conducive to open, friendly conversations. It's the perfect backdrop for making new connections and catching up with old ones. Structured for Success: While the ambiance is casual, the event is structured to facilitate networking, with activities and opportunities designed to help you meet and engage with a wide range of professionals. Take Action Now If you've heard about our mixer but haven't taken the plunge to secure your tickets, now's the time. 'ONLINE' TICKET SALES WILL STOP AT 12PM ON FEB 22ND AND THEN YOU CAN ONLY GET THEM FOR THE 'DOOR' PRICE. Don't miss this chance to expand your professional network, uncover new opportunities, and enjoy an unforgettable evening at Bar Rita.

33%. That's the percentage of SMBs generating revenue of less than $1 million that say credit cards with rewards are their most used borrowing tool, per a report from PYMNTS Intelligence in collaboration with US Bank. The report on SMB Borrowing Dynamics provides a comprehensive analysis based on a survey of 2,668 executives from SMBs generating less than $25 million in annual revenue. The survey, conducted from October 9, 2023, to November 17, 2023, explores the trends, tools, and decision drivers affecting SMB borrowing. They use 3 revenue segments: 0-$1mil (low), $1-10mil (med), and $10-25 mil (high). The following are some key insights from the 18-page report: 90% of SMBs used at least one tool to borrow in the last year Rewards credit cards top the list, used by 51% of SMBs — far higher than the 15% that use other, non-rewards credit cards. Lines of credit, at 36%, and Buy Now, Pay Later (BNPL), at 33%, are also widely used flexible borrowing tools. Fixed-term products are notably less popular, with bank loans, at 31%, and ‘merchant loans’, at 30%, the most common. (They use the term merchant loans for what I believe to be merchant cash advances). Among the SMBs that used a borrowing tool in the last 12 months, high-revenue SMBs employed 3.5 different tools, on average. Size Matters! Revenue size is a strong predictor of borrowing strategy and comfort with leveraging debt. SMBs' borrowing behavior and annual revenue exhibit a clear correlation. Twenty percent of low-revenue SMBs refrained from using any borrowing tool in the year leading up to the survey, while just 5.1% of medium-revenue and 2.9% of high-revenue SMBs did the same. This disparity highlights smaller SMBs' cautious stance on borrowing and suggests a potential gap in accessible borrowing tools targeting lower-revenue firms. SMBs use borrowing tools for a variety of purposes. Sixty-eight percent of firms surveyed that used a borrowing tool in the last 12 months did so for business expansion, 55% for operational efficiency, and 48% for financial stability. However, priorities vary by business size. Low-revenue SMBs place much greater emphasis on supply chain management, at 28%, than high-revenue firms, at 11%. Similarly, low-revenue SMBs prioritize financial stability disproportionately more than high-revenue firms, at 19% and 11%, respectively. In contrast, high-revenue SMBs are comparatively more focused on achieving operational efficiency, at 25%, and market presence, at 18%, than low-revenue firms. SMBs are concerned about borrowing costs and managing debt. The data shows that 34% of SMB executives overall highlight borrowing costs as a concern. Among those who cite it as the most important concern, it is particularly acute for low-revenue(< 1 million) SMBs: 18% cite cost as their most significant concern, compared to just 10% of high-revenue SMBs. Similarly, taking on additional debt is the most pressing fear for 18% of low-revenue firms. Key Points for Business Lenders SMBs are increasingly using borrowing tools to achieve their business goals. This presents an opportunity for lenders to develop innovative products and services that meet the specific needs of SMBs. SMBs are looking for flexible and accessible borrowing tools. Lenders should focus on developing products that offer multiple options and favorable terms. SMBs are concerned about borrowing costs and managing debt. Lenders should be transparent about their fees and offer guidance on debt management. Overall, the SMB borrowing landscape is dynamic and evolving. Lenders and brokers who can adapt to the changing needs of SMBs will be well-positioned for success. To read the full report, go HERE.