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The year has been a wonderful year for Funder Intel. We have grown in almost every way possible, whether it be members of our site, our service and product offerings, website visitors, revenue, and held our first in-person networking event! In 2024, we expect more of the same and other plans so stay tuned. We also wanted to know how other industry members from a variety of business types felt about their year and the following is what they had to say. “Although the rate hikes may have made many cautious with their spending, we have seen organizations increase their budget in technology to get ahead of the competition. We anticipate that 2024 will bring confidence back into the markets, and those that took advantage of the slowdown will be rewarded.” Jeffrey Morgenstein CEO Cloudsquare "In 2023, Upfunding Capital experienced a year of notable growth, expanding our team and making strides into new markets within the industry. As a company in its early stages, we dedicated the year to refining our internal operational processes to ensure the delivery of high-quality services. Looking forward to next year, we’ll prioritize enhancing technology and reinforcing commercial teams, better assisting ISOs and brokers for improved and efficient approvals." Javier Alvarez Wrobel Co-Founder & CPO Upfunding "In 2023, Financial Lynx experienced remarkable growth, boasting an impressive 80% increase in sales. We've expanded our team with six new members, including two seasoned business banking experts with over 20 years of experience. Additionally, our network has grown stronger through partnerships with over 300 new broker referral partners, extending our industry reach. Finally, we've diversified our product offerings, introducing a specialized equipment lending division and adding over 30 new banks to our line of credit program which marks a significant milestone in our commitment to providing top-tier solutions for business owners and real estate investors." Juan Caban Financial Lynx "The Revenue Based Finance Coalition (RBFC),  made great strides during 2023 celebrating wins in the legislative process and also celebrating growth of the trade group signature events The Funders Forum and Brokers Expo between both events  RBFC saw record numbers in sponsors, vendors, and participants. This means that the goal of the organization to educate our partners, funders, and those who regulate our industry is happening in a major way.  We look forward to continued growth in 2024 especially in our membership. Thank you to our Executive Board and our members and partners." Deveron Gibbons CEO/Executive Director RBFC

Novo, a financial solutions platform for small businesses, has announced a partnership with Squarespace, a website design platform for building online businesses. This partnership aims to support small businesses by offering Novo's customers benefits like a free Squarespace domain for a year, savings on other services, and a $75 reward for Novo account holders who meet certain spending criteria. Squarespace will list Novo as a preferred vendor and customers who obtain a Novo account will get access to Novo's banking services which include working capital loans. Novo's initiative to partner with companies like Squarespace, LegalZoom, and QuickBooks is part of a broader strategy to provide small businesses with access to a range of affordable and high-quality services to facilitate growth. For more details, you can read the full article on Novo's website. This partnership has a similar strategy behind it as when Square acquired Weebly back in 2018. Shopify, an e-commerce platform, has been offering business financing to its customers for years. It's surprising others like Wix and GoDaddy haven't also made some similar direct partnerships or acquisitions. With the trend of banks and fintechs partnering with website builders and other services, it's evident that such collaborations are becoming increasingly crucial for providing comprehensive support to small businesses and loan sourcing for fintechs and other business financing providers. These partnerships not only offer financial solutions but also integrate essential business tools, thereby creating a more seamless and supportive ecosystem for small business owners. By aligning with platforms that small businesses frequently use, like website builders, banks and fintechs can effectively broaden their reach and impact, offering more tailored and accessible services to this vital sector of the economy.

In the dynamic world of commercial finance, the pressing need for working capital stands as a crucial element for businesses, especially for small and medium-sized enterprises (SMBs). A recent study by PYMNTS Intelligence, in collaboration with Enigma, reveals a significant gap in the availability of financing for these companies, underscoring the challenges they face in expansion and daily operations. The research, titled "Main Street Health Q2 2023: Credit’s Key Role in SMBs’ Plans," highlights that SMBs require more financing sources than are currently available. This disparity is most acute among younger and smaller companies. For example, those with less than three years of operation and under $150K in revenue seek 26% more financing than what is accessible. These companies often have lower credit ratios, further complicating their access to financial resources. The construction and utilities sectors, in particular, face notable financial challenges. Due to the nature of their industries, which necessitate substantial capital investments, there is a 20% gap between the financing they need and what is available. The hospitality sector, with an 18% gap, also grapples with financial constraints, significantly impacted by the recent economic downturn and reduced sales and profitability. To bridge these financial gaps, many SMBs resort to alternative means. The study found that nearly a quarter of SMBs have used personal credit cards for business financing, and over 15% have taken personal loans from banks. This reliance on personal financing sources underscores the extent of the financial challenges, especially when considering that only 18% of companies have cash reserves equivalent to 60 days of revenue. This financial vulnerability among SMBs signals a critical area of concern in the commercial finance sector. The report sheds light on the essential role of credit in supporting SMBs, not just in managing expected expenses but also in navigating unforeseen economic challenges. As such, the findings of this study call for a closer examination and response from financial institutions, policymakers, and stakeholders to address these gaps and support the growth and sustainability of SMBs even with all of the alternative business funding sources on the market.

In a move that could prove pivotal for America's small business landscape, the U.S. Small Business Administration (SBA) is establishing a first-of-its-kind federal advisory committee dedicated to small-business lending. This announcement, made during a White House summit on Tuesday, marks a significant step towards ensuring the voices of entrepreneurs are heard and their concerns addressed when it comes to securing crucial funding. SBA Administrator Isabel Casillas Guzman emphasized the committee's role in "keeping up with changes in the sector and fine-tuning existing programs." By directly engaging lending experts, including small-business owners themselves, the SBA aims to bridge the gap between policy and the realities faced by entrepreneurs seeking loans. Guzman acknowledged the persistent challenge of small-dollar lending, loans typically under $150,000 often deemed less attractive by traditional lenders. Referencing the success story of Jeni's Splendid Ice Cream – a business that thrived with the help of a $35,000 SBA loan – she highlighted the committee's focus on empowering "entrepreneurs who create ideas... to grow organically in the marketplace." This initiative comes on the heels of the SBA's August reforms, which expanded its lending network to include new fintech and non-bank entities. The agency has already witnessed positive results, with small-dollar loans under $50,000 and $500,000 increasing by 20% and 14% respectively within just 75 days of implementing the changes. Despite a record-breaking year for the SBA, with nearly $35 billion deployed through its signature lending programs in the past fiscal year, access to capital remains a major obstacle for many entrepreneurs. An October survey by Goldman Sachs revealed that 78% of small-business owners harbor concerns about securing funding. The SBA, however, remains undeterred. Guzman emphasized their commitment to "not only simplifying our products, but also expanding our distribution network." This includes partnering with community banks and leveraging technology to streamline processes for both lenders and borrowers. The creation of this advisory committee marks a promising step towards a more inclusive and responsive small-business lending ecosystem. By giving entrepreneurs a seat at the table, the SBA is demonstrating its commitment to fostering an environment where innovation and growth can flourish. This is not just about numbers on a balance sheet; it's about empowering the dreams and ambitions of America's entrepreneurial spirit. Key Takeaways: The SBA is forming a new federal advisory committee focused on small-business lending. The committee will include small-business owners, lending experts, and other stakeholders. The goal is to improve access to capital for entrepreneurs, particularly through small-dollar loans. This initiative builds on the SBA's recent reforms, which have already shown positive results. The SBA remains committed to simplifying its products and expanding its lending network. Sources: Inc. Magazine: "Details Emerge on the SBA's New Small-Business Lending Advisory Committee: Entrepreneurs to Get a Seat at the Table" U.S. Small Business Administration: "SBA Administrator Guzman Announces Two Federal Advisory Committees to Accelerate American Innovation and Access to Capital for Small Businesses and Startups" Goldman Sachs 10,000 Small Businesses Voices: "October 2023 Small Business Sentiment Survey"

In November 2023, Big banks' loan approval rates for small businesses stagnated at 13%, a continuation since June of the same year, according to the most recent Biz2Credit Small Business Lending Index™. This stagnation contrasted with the growth seen in small banks and alternative lenders, with approval rates at small banks rising slightly to 19.7% and alternative lenders reaching a significant milestone of 30%. These changes in lending patterns reflect a dynamic financial environment where small and alternative financial institutions are increasingly pivotal in supporting small businesses. This shift is not just a financial statistic but a signal of changing strategies in business financing during challenging economic times. “The last time loan approvals rates from alternative lenders reached 30% was in March 2020, the month before all approval percentages were cut in half due to the COVID pandemic,” CEO of Biz2Credit Rohit Arora said. “This should be a good sign for small business owners.” For a full understanding, you can read the article on Yahoo Finance: Small Business Loan Approvals Stalled at Big Banks, Rose at Small Banks and Alternative Lenders in November 2023. In an earlier article from Yahoo, research from Biz2Credit showed that in 2022 Accommodation & Food Services and Healthcare & Social Assistance had the highest approval rate for all financing applications at 37%. After that, it was Manufacturing (32%), Wholesale Trade (31%), and IT (30%).

It was an incredible night in Fort Lauderdale as many business lending industry members gathered for our Holiday Mixer looking to make new connections and deepen their ties with existing ones. We appreciate everyone who came out to join us at our first in-person event, and it won't be our last! We will let you know when the next one is so stay tuned. Thanks for coming out everyone, see you again soon! P.S. If you have pictures of the event drop them in the comments below! Industry Holiday Mixer Pictures

If you missed our last live podcast then we will forgive you, and enable you to watch the replay today! We spoke with Bill Gallagher, President of CFG Merchant Solutions, about what is happening in the economy and industry, where it's going, the Revenue Based Finance Coalition, Funders Forum, how CFG is operating in these times, tips for Brokers to close more deals, and more valuable insight. Drop a comment below after watching the video letting us know your thoughts and questions. You can reach Bill at: WGallagher@cfgms.com 844-662–3467 cfgmerchantsolutions.com

As the sun sets this Wednesday, Dec 6th, a unique gathering is set to unfold at Bar Rita, Fort Lauderdale. Funder Intel's inaugural networking mixer is just two days away, and it's shaping up to be an evening that the South Florida business lending, fintech, and commercial finance community won't forget. Why This Mixer Is a Must-Attend Imagine an evening where the air buzzes with potential – a space where industry leaders, innovators, and enthusiasts come together. This isn't just another networking event; it's a launchpad for ideas, partnerships, and friendships. Exclusive Networking: This is your chance to connect with the best in the business in an intimate and sophisticated setting. Early Connections: By securing your ticket now, you gain access to our exclusive online group on Funderintel.com. Start networking before the event, see who's attending, and plan your conversations ahead of time. A Night of Opportunities: Beyond the handshakes and exchange of business cards, this mixer is a chance to be part of a community that's driving the future of business lending in South Florida. Last Chance to Join Us We're down to the wire, and tickets are almost gone. ONLINE TICKET SALE ENDS AT NOON ON DEC 6TH, but you can pay more at the door if space is available. A Sneak Peek into the Evening As you step into Bar Rita, expect an ambiance that perfectly blends business with pleasure. From insightful conversations to great food and drinks, the evening is designed to foster connections that go beyond the usual business card exchange. Don't Miss Out This Wednesday, as we raise our glasses at Bar Rita, we're not just celebrating the night; we're celebrating the future of our industry. Be there to experience it firsthand.

If you haven't tested the latest updates to OpenAI's Chat GPT4 then you are about to see some of its amazing capabilities as showcased in this video about a rollercoaster of a deal as experienced by business loan brokers. GPT4 now has internet browsing and advanced AI image creator Dall-E all built in so you don't have to go elsewhere or use plugins for tasks that would use these two features. The extraordinary experience I had with GPT4 is worth sharing because of the immense value it could bring to your business in several ways. The applications are as varied as the business landscape itself, but one thing remains constant: storytelling is an integral part of business today. Watch the video below!

An event is coming up that Funders and Brokers in the business finance space should not pass up the opportunity to attend. That event is called the Funders Forum. The second installment of this event is presented as “the first conference organized for the small business finance industry, by the small business finance industry.” Funders Forum is taking place on March 9-11th in Hollywood, Florida(between Ft. Lauderdale & Miami) at the Diplomat Hotel, which has hosted everything from major party political events to the Super Bowl teams. Among those that will be in attendance to discuss issues facing the small business finance industry are funders, brokers, industry thought-leaders, and policymakers. Some topics include: Issues facing small business financers across the country. The latest on key policy developments directly from the policymakers who are shaping the future. Solutions that will ensure a safe and transparent method of access to capital for small businesses in this country who need it the most. This forum is where “Politics, Policy, and Business intersect.” The headline speaker is Kevin O'Leary, many might know him as Mr. Wonderful from Shark Tank. “Outside of his hosting Shark Tank, Mr. O'Leary is also an entrepreneur/investor and co-host for the Discovery Channel's Project Earth series that explores innovative ways man could reverse global warming implementing large scale geoengineering infrastructure projects.” So to all of you who are seeking more information on where the industry is going, speaking directly to difference-makers, or just want to listen to Mr. Wonderful in person, register soon to lock in your ticket. Also, it doesn't hurt that March is one of the best times of year in South Florida! Learn more about the agenda and register here: Book your stay at The Diplomat Beach Resort. A grand re-imagining of a legendary Florida resort, The Diplomat Beach Resort brings iconic hospitality back to South Florida’s premier meeting destination. The Diplomat hosts bright, coastal contemporary rooms with views from the Atlantic Coast to the Intracoastal Waterway. We are excited to host FundersForum 2022 at such a great location.

Funder Intel was happy to have Scott Crockett, CEO of Everest Business Funding, join us for great conversation regarding the revenue-based finance industry and answering questions from attendees. If you couldn't catch it live, don't worry, we got your back, but you didn't get to ask questions directly to Scott. Watch the video reply below and let us know your comments! We Aren't Done! We plan on holding another webinar September 28th at 1pm EST with another guest speaker that will cover topics very critical to doing business in this space. Stay tuned for the final details!

Watch the Replay of Our Live Podcast with our guest Kate Fisher, Partner at Hudson Cook LLP. Kate is a leading attorney for small business and revenue-based financing industries. She shared her insights about the most recent topics that have been affecting the industry, issues that will make an impact on your funding business, Brokers Expo, the RBFC, and took some questions. To reach Kate Fisher: 410-684-3200 hudsoncook.com Don't miss our next live podcast on October 12th at 1 p.m. EST!