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It was a pleasure to have Dan Gans join us on the podcast! Dan, is the founder and managing principal of Polaris Consulting, LLC, a full service lobbying firm on Capital Hill. In this video we discuss his background, what he's working on and seeing in Congress, what the Revenue Based Finance Coalition is doing about regulations in small business lending, and the Brokers Expo NYC along with the Funders Forum + Brokers Expo in 2024. To reach Dan Gans: 202-547-7315 polariswdc.com For more info on the Funders Forum + Brokers Expo in March 2024, watch the below video. Register here thefundersforumbrokerexpo.com/ Learn more about the RBFC revenuebasedfinancecoalition.com/

Leading Through Change: A Conversation with Diego De Sola of Uassist.Me Welcome to an exclusive interview with Diego De Sola, the visionary President of Uassist.me and CEO of the De Sola Group. In this enlightening session, we delve into the world of Business Process Outsourcing (BPO), exploring its pivotal role in the commercial finance sector and beyond. Watch as we uncover the latest trends, strategies, and tips from a leader whose experience spans multiple industries and who presides over companies that have over a century of business evolution in the Americas. Whether you're a small business owner or a key player in the finance industry, this interview promises invaluable insights to help you thrive in today's dynamic business landscape. Topics of Discussion Introduction to Diego De Sola and Uassist.Me Understanding BPO Emerging Trends in Business Success Outsourcing for Small to Medium-Sized Enterprises Expert Tips and Tools for Commercial Finance For those eager to revolutionize their business strategies and stay ahead in the competitive world of commercial finance, contacting Diego De Sola is your gateway to a wealth of knowledge and innovative solutions. Reach out to him to transform your business processes and harness the full potential of BPO in today's rapidly evolving business landscape. To contact Uassist.me: www.uassistme.com/contact-us 1-888-300-0906 Roger Falkenstein rogerf@uassistme.com

If you missed our last live podcast then good news, you can watch the replay with our guest Rachael Schreiber now. There was so much covered and great questions from our audience. Here are some of the topics: State regulatory frameworks Why legislative engagement matters and the role/pace of the state legislatures. Women in finance Funders Forum + Brokers Expo Upcoming state agendas or plans What does 2024 have in store More about Rachael: Rachael Schreiber helps lead CATALYST’s multistate government affairs practice nationally and leads the firm’s Texas office. Leads RBFC multistate efforts for legislative and political strategy. Rachael has a blend of private and public sector experience making her an effective advocate and strategist. You can reach Rachael at: rachael@csga.com Other links: revenuebasedfinancecoalition.com thefundersforumbrokerexpo.com

The NY Times published the findings of their investigation into the commutation of Jonathan Braun who was serving 10 years in prison for running a massive marijuana ring but also had been widely known for being what they call a 'predatory lender' in the merchant cash advance industry. Other major news networks have picked up the story which will continue to shine light on the industry. In October we wrote about how he was permanently banned from the MCA industry by the Federal Trade Commission (FTC) and now new information has been uncovered on the details of the pardon. I will cover some notable details plus what the writers got wrong about how they described the MCA product and the industry. The drug crimes Jonathan Braun's journey to obtaining a last-minute commutation started in 2009. This was after the Brooklyn U.S. attorney's office, in collaboration with the Drug Enforcement Administration, raided a location they identified as a storage site for a marijuana trafficking operation led by Braun, as described in the New York Times. Learning of the raid, Braun took immediate action. He embarked on a non-stop 25-hour drive from Florida to a Native American reservation in upstate New York. There, clad entirely in black, he covertly crossed into Canada, as detailed in legal documents. Subsequently, Braun escaped to Israel. The U.S. Justice Department responded by placing Braun on a special Interpol watch list, requesting Israeli authorities to detain him. By 2010, Braun had returned to New York, faced charges from the Justice Department, and was incarcerated. The pardon We know pardons happen in every administration for convicted criminals so it's not a big surprise that someone with Brauns type of conviction was pardoned. However, Jonathan Braun was also being investigated for financial crimes related to his funding businesses. Per the NY Times, the Justice Department officials were seeking to have Braun cooperate to expose other lenders whom they were investigating for criminal behavior in exchange for being released from prison. Although Braun denies that, his father was reaching out to the Kushner family, Donald Trump's son-in-law, to seek release from prison via a pardon. The two fathers knew each other. Once pardoned and released Jon Braun went back into funding small businesses across America while using the same tactics which got him in trouble. The justice department then had no leverage on Braun to cooperate which really hurt its investigation into other funding companies. Some may breathe a sigh of relief at that information while most of us would want to eliminate the funding companies that continue to take advantage of business owners in a criminal way. What they got wrong Some things that the NY Times and other mainstream writers that write about the merchant cash advance industry, also called revenue based financing, and product get wrong are really a problem for every stakeholder so it's important to call attention to it. In the article, the NY Times uses terms like merchant cash advance "dealers", "predatory lenders", and "loan sharks' to describe the overall industry and individuals. The term 'dealer' seems to be used to portray an even worse image, like that of a drug dealer not of a car dealer, when considering that they classify basically every company that offers the merchant cash advance product as a predatory lender. To be clear while there are many companies out there that this term could apply to, these broad strokes aren't an accurate portrayal of all funders. MCA companies should be referred to as 'Funders' given the history of cases before courts. Merchant cash advance funders are not lenders because an MCA is not a loan. The NY Times does note the legal definition of the MCA product briefly but they don't provide context around the product and it creates the perception that every MCA company is the same. Large fintechs like Paypal, Block, and Shopify offer a merchant cash advance product and others like Stripe (see image right) offer essentially the same structure of an MCA but are legally classified as a loan for a number of reasons including being backed by a bank that funds the loans. What is the major difference? The cost of capital. Yes many MCA funding companies charge high Factor Rates, not interest rates, but the previously mentioned fintechs and others have factor rates in the teens. The conversion to an APR is never perfect and this is, in fact, a legal issue in California right now, but one can safely say that a factor rate of 1.15 over an expected 12 months' payback with no additional fees is approximately equal to a 15% APR. Again, this is to provide context to those that offer an MCA product. The cost of capital is a set amount, not a simple interest rate that is incurring interest charges monthly. To further give context, I would make the comparison to credit cards, business or personal, where there are low-interest credit cards and high-interest and fee credit cards. Not all high-interest credit cards are bad but they can be if used improperly. Also, the product is not solely for business owners in trouble or who cannot qualify for other loan products. Many highly credit-worthy merchants use advances for specific timely needs. So when writing about all the bad about the product, writers need to do more research and be more cognizant of how it's portrayed to business owners who could then miss out on opportunities because they fear being ripped off by a funding company. There are reasonable opportunities out there for funding through this product and some are even better than traditional banks if you consider the time it takes if a business owner could even get approved. Opportunity cost is the key for any business owner. Whats next The new details from the TImes' investigation are intriguing but what is the impact on the merchant cash advance industry? Well, it seems that justice officials from New York and likely other states are investigating MCA funders as you read this. There will likely be more fallout from these investigations and publicity of Braun's pardon, which is now being covered by Rollingstone, MSBNC, and others. This will impact lawmakers from states that have not recently put in place laws for commercial finance regulation. In my opinion, this is not necessarily a bad thing. But I will defend those doing business above board as long as small business owners around the country are benefitting when needed. Read the NY Times Article HERE

A few years ago we set out on a journey to provide information and resources that were not readily available or complete with enough information that could benefit the alternative business lending industry. One of our first provider lists was the merchant cash advance direct funders list. Our site has evolved since then to include many lists but this one helps brokers evaluate and decide if they want to work with an MCA funder in seconds. And now we can help our site members get connected more quickly! Read on. What is it The most complete merchant cash advance funders list anywhere online to be used as a resource to find new partners, check underwriting guidelines, and directly connect with certain vetted funders. Some business owners will even see if the funder they are in contact with is listed and any other information they can gather without being a member. We have over 200 merchant cash advance (also called revenue or sales-based) companies that directly fund businesses at least some percentage of the time, which means they could also have a sales team or broker out deals. Many if not most companies do some of both, given that they want to monetize leads and keep customers in their ecosystem. And sure there are other MCA/Revenue based funding companies in existence but they are smaller or keep a very low profile. We are always adding more funders so if you don't see your company on the list please contact us. Why provide this MCA companies list We offer this list to be used as a resource when seeking information about mca funding companies that someone could potentially work with and for funders to promote their business. The direct funders who keep their page updated are the ones who get the most benefit because brokers can quickly compare their guidelines against others in our 'compare funders' function. Funding companies are encouraged to update their underwriting guidelines and notes as they make changes or offer bonuses periodically. Some benefits of being a Funder Intel site member See the full page of each funder with underwriting details and other notes compare funders side by side ability to quickly connect with a vetted funder direct message member who works for the funder group chat with funders and brokers Our verification process In our list, you will see 'verified' companies. We have a criteria and process to determine that. Nothing is guaranteed as business processes change, but our main focus is to ensure that the company funds at least some percentage of deals with its own in-house funds. That means the funds are being directly deposited from that company. Having an ACH withdrawal from a merchant does not always prove that the company is directly funding. There are other things we look at including online presence like website and social media. We look at employees connected to the Funder on LinkedIn because it says a lot if the company is not set up online with a level of transparency. We do not decide whether a company is good or bad, but we do have the right to remove any funder if there are major concerns or other issues. To see more on what we need to verify a direct funder go to the Add Your Business page. Funder Referral Program We have been providing funders with the ability to get connected with Funders through our site at no cost to them as long as they are members and have actively used the site. Our new referral program is where the funder will gain added benefits to increase their online presence to ISOs/brokers and make it easier for brokers to request to connect or get their questions answered with a warm introduction from Funder Intel. Some details: Funder Intel will refer ISOs they source directly to Funder to get on board via email, phone, or text. Funder must update Underwriting guidelines on MCA Funders list Funder will decide if they want to onboard that ISO. Click the button to learn more and sign up.

Earlier this year we released the first of its kind merchant cash advance/revenue-based financing underwriting course and since then we have had many students completing the course. Well since it's that time of year for special deals, we thought we would join in on the fun. So we are offering a Black Friday deal, from now until November 25th, 2023, where you would get 30% off the course! Go to our SHOP to use this code: bfsale23 This course is for you whether you are a broker, ISO manager, salesperson, processor, office manager, changing jobs, or seeking to enter into alternative business finance. This course is not intended for seasoned MCA underwriters. Once purchased, you will find the course in your ‘My Programs’ section in the member's area. The course is designed to give those who are interested in furthering their knowledge in underwriting for this particular financing product. It will cover: what an underwriter does the underwriting process from submission to funding what's involved in credit models how to analyze bank and credit card statements review other documents and stipulations required to approve deals like Tax Returns information brokers can use to close more deals and much more. Some key benefits are: pick deals better to syndicate on communicate better with underwriters improve operations of your ISO business manage deals better become an underwriter onboard and train employees more quickly understand the latest underwriting strategies earn a certificate of completion Deal lasts until Nov 25, 2023 Click the button below to see more details. If you have any questions please feel free to email or call our office number.

In the shifting landscape of small business financing, the latest Biz2Credit Small Business Lending Index™ has revealed a notable trend: while big banks are tightening their belts on loan approvals, alternative lenders are stepping up to fill the void. According to the report, loan approval rates at big banks with assets exceeding $10 billion have seen a slight decrease from 13.1% in September to 13% in October 2023. This continued decline underscores the challenges small businesses face in securing financing from traditional banking institutions. Rohit Arora, CEO of Biz2Credit and a recognized authority in small business finance, notes that the path to obtaining a small business loan from a big bank is becoming increasingly arduous as the months roll by. In contrast, small banks have shown a modest but consistent increase in loan approval rates, climbing from 19.3% in September to 19.5% in October. This marks a steady rise since June 2023, suggesting that small banks are becoming a more reliable source for borrowers, particularly due to their focus on SBA lending and a higher rate of loan closures. The real story has been the performance of alternative lenders. For the tenth consecutive month, these non-traditional financial institutions have seen an increase in loan approval rates, reaching 29.9% in October, up from 29.7% in September. This category, along with institutional investors, which also saw a slight increase to 27.6%, represents the highest loan approval percentages among the five categories of lenders monitored in the Index. Arora emphasizes the growing reliability of these non-bank lenders as financing options for small businesses, a trend he believes will persist. The rise of alternative lenders is reshaping the small business lending landscape, offering a lifeline to those who find the doors of big banks closed to them. This shift comes against the backdrop of a broader economic context, where total nonfarm payroll employment rose by 150,000 in October, and the unemployment rate remained stable at 3.9%. Notably, small businesses have been instrumental in job creation, particularly in sectors like health care, government, and social assistance, even as manufacturing saw declines due to strike activity. Key to contextualizing this report is that the Biz2Credit Small Business Lending Index™ is a reflection of loan requests from companies in operation for more than two years with credit scores above 680, based on data from over 1,000 small business owners who applied for funding on Biz2Credit's platform. As the financial ecosystem evolves, it's clear that alternative lenders have become increasingly significant players in supporting the growth and sustainability of small businesses. Their rise is a testament to the adaptability of the financial sector and the enduring spirit of entrepreneurship. For small businesses navigating the complex terrain of financing, the message is clear: alternative lenders are not just a temporary alternative, but a growing force in the financial sector, offering new avenues for growth and stability in an ever-changing economic landscape.

We are always seeking guests on our podcast that will bring value to you, and that's exactly what our most recent guest does in this video! It was great having Jeffrey Morgenstein, CEO of Cloudsquare, join us to talk about software solutions for commercial finance brokers and funders, AI and other technology shaping the current and future environments, their software for brokers and funders as well as tips for them to help grow their business. Whatever your role is in alternative business lending you will get valuable information from this interview. Watch until the end for their special offer! To contact Cloudsquare and request a demo, CLICK the button below: YouTube Demo Video Jeffrey Morgenstein CEO Cloudsquare cloudsquare.io

In the bustling marketplace of business lending three titans—Shopify, Block, and PayPal—are charting different courses through the choppy waters. Shopify, with sails unfurled, is surging ahead, boasting an impressive $833 million in loans and merchant cash advances, marking a significant jump of $253 million since the close of 2022. Meanwhile, Block is navigating the currents with steady hands, facilitating over 120,000 loans this year, a modest increase from the previous year. In contrast, PayPal is taking a more measured approach, scaling back its lending by almost a billion dollars, reflecting a cautious strategy in an uncertain financial climate. Shopify's Surge Shopify's recent earnings report is a beacon of growth, signaling a bullish stance in the lending arena. The company's aggressive increase in lending assets is a bold statement of support for its commerce customers, empowering them with the financial tools needed to expand and succeed. This is not just a side note in their financials; it's a headline. Coupled with a 25% rise in revenue and a 36% uptick in gross profit year-over-year, Shopify is not just riding the wave—it's making its own. Block's Balanced Path Block, with its Square Loans product, is holding a steady course. Their approach is less about making a splash and more about maintaining a reliable stream of support for businesses that rely on them. The 4% year-over-year increase in loan originations suggests a balanced approach, one that offers consistency in a market that's anything but predictable. PayPal's Prudent Pivot PayPal, once a trailblazer in the fintech space, is showing signs of a strategic retreat. Their lending arm has retracted, with a nearly 30% reduction in their business loans portfolio. It's a move that speaks volumes about their risk assessment in the current economic landscape. With a slight uptick in late payments, PayPal's decision to tighten its lending criteria is a clear nod to prudence in a time when the future seems as volatile as the stock market. The Story Unfolds These three fintech companies, each a powerhouse in its own right, are telling a collective story about the state of business lending. Shopify's aggressive growth in lending assets is a stark contrast to PayPal's pullback and Block's steady-as-she-goes philosophy. It's a tale of differing strategies and a reflection of each company's read on the economic environment. For SMBs, these narratives are more than just corporate reports—they're chapters in their own stories of growth, challenge, and the pursuit of success. Shopify's lending boom could be a lifeline for many, offering a glimmer of hope and a chance to pursue their business dreams. Block's consistent lending practices suggest a reliable partner in an unpredictable world. And PayPal's conservative pivot might be a sobering reminder of the need for caution and adaptability. As we turn the page on this fiscal year, the actions of Shopify, Block, and PayPal will be key indicators of the health and direction of business lending. Their reports are not just a ledger of profits and losses but a map of the financial frontiers that lie ahead for businesses big and small.

Greetings finance enthusiasts! We're on the brink of a milestone moment for Funder Intel. After months of anticipation, we're thrilled to unveil our very first in-person networking mixer in the heart of South Florida. And the best part? This is just the beginning. Why This Event is the Talk of the Town Set against the backdrop of the chic Bar Rita in Fort Lauderdale, this isn't just another business event. It's a celebration, a gathering of the business lending and commercial finance industry's best and brightest. It's where connections are forged, partnerships are born, and where the future of finance in South Florida is shaped. What's on the Agenda? Unparalleled Networking Opportunities: Dive into meaningful conversations, exchange business cards, and discover opportunities in the commercial finance landscape of South Florida. Knowledge Beyond Spreadsheets: Engage in discussions that go beyond numbers. Share insights, debate trends, and explore the future of business lending in an ever-evolving market. A Touch of Fun: At Funder Intel, we believe in mixing business with pleasure. Expect light-hearted banter, giveaways, and an ambiance that's as warm and inviting as the Florida sun. Be a Part of the Movement Our inaugural networking mixer is more than an event; it's the start of a movement. A movement that promises to shape the future of business lending and commercial finance in South Florida. Spaces are filling up fast, so don't miss out and be a part of this transformative journey. As the sun sets on December 6th, Bar Rita will light up with conversations, laughter, and the promise of a brighter tomorrow. We look forward to welcoming you!

We are thrilled to welcome our next guest on the live podcast on Nov 9th, Rachael Schreiber, Government Affairs for Catalyst! Rachael helps lead Catalyst’s multistate government affairs practice nationally and leads the firm’s Texas office. After two decades of navigating government from the municipal to the federal level, Rachael has a unique blend of private and public sector experience making her an effective advocate and strategist. Why should you join? Learn about why state regulatory frameworks and legislative engagement matter in commercial finance. Find out how to get involved to help your business Get your questions answered directly by someone tied to top leaders in government across the country Look forward to you all joining us! Register today: Nov 9th, 1 pm EST.

In a landmark decision, the Federal Trade Commission (FTC) has secured a permanent ban against Jonathan Braun, a prominent figure in the merchant cash advance sector. Braun, who was at the helm of the small-business funding company RCG Advances, has been barred from both the merchant cash advance and debt collection industries following a series of deceptive practices that targeted vulnerable small businesses. For many veterans in the industry, Braun's name and the names of his companies are all too familiar. His past is marred with controversy, including a pardon by the Trump administration for a drug trafficking charge. According to the New York Times, "Once free, Braun returned to lending and racked up new complaints from borrowers who said they were tricked by companies associated with him. Tallying the debts in the cases showed the companies had loaned at least $17 million since Braun’s release, and that’s just the loans that ended up in court." Now, his deceptive tactics have caught up with him once again. The FTC's lawsuit against Braun revealed a disturbing pattern of behavior. Braun and his company, RCG Advances (formerly known as Richmond Capital Group), were found to have misled small businesses about the terms of their merchant cash advances. But the deception didn't stop there. The company employed aggressive and sometimes even violent collection practices, threatening physical harm to ensure payments. Furthermore, Braun and his associates made unauthorized withdrawals from clients' accounts and coerced businesses into signing confessions of judgment, allowing them to swiftly secure uncontested court judgments in case of alleged defaults. Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, commented on the case, stating, "Mr. Braun and his company targeted small business consumers with an egregious array of tactics, from predatory contract terms to violent threats, and the court’s opinion is a significant win on their behalf." Levine further emphasized the FTC's commitment to protecting small businesses from such predatory practices. The court's decision not only bans Jonathan Braun from the merchant cash advance and debt collection industries but also mandates him to contact credit agencies to rectify any negative information resulting from his actions. A trial is set for January 2024 to determine the monetary relief for Braun's violations. While Jonathan Braun's ban is a significant victory for the FTC and small businesses alike, it serves as a stark reminder of the need for vigilance in the commercial finance sector as there are still some businesses out there that operate similarly.