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In a landmark decision, New York Attorney General Letitia James has secured a significant court victory against three merchant cash advance companies known for their predatory lending practices. The companies, Richmond Capital Group, Ram Capital Funding, and Viceroy Capital Funding, collectively referred to as the Richmond companies, along with their principals Jonathan Braun, Tzvi Reich, Robert Giardina, and Michelle Gregg, have been found guilty of harming small businesses through exorbitant interest rates and concealed fees. The lawsuit, filed by the Office of the Attorney General (OAG), alleged that the Richmond companies' merchant cash advances, marketed as short-term, high-interest funding solutions for small businesses, were in reality illegal loans with interest rates that reached the stratosphere. This isn't the first time the business world has witnessed such predatory practices. Over the years, countless small businesses, often desperate for quick cash to keep their operations afloat, have fallen prey to such lenders. These companies exploit the vulnerabilities of small business owners, offering them a lifeline, only to pull them into a vortex of debt. The Richmond companies' modus operandi is a reminder of why more regulations and oversight are being enacted in the business lending industry across the country. Attorney General James's statement resonated with the sentiment of many: "Small businesses are the backbone of our economy, and of all the challenges they face to stay open, predatory lenders shouldn’t be one of them.” The court's decision mandates the Richmond companies to cancel the debt of thousands of small businesses across the nation and reimburse all interest and overcharges, amounting to tens of millions of dollars. The case against the Richmond companies is a testament to the relentless efforts of Assistant Attorneys General Jack Figura, Dami Obaro, Adam Riff, Christopher L. Filburn, and their team. Their dedication has brought justice to countless small business owners who were ensnared in the Richmond companies' web of deceit. Link to the Press Release: https://ag.ny.gov/press-release/2023/attorney-general-james-scores-major-victory-small-businesses-harmed-predatory

As a business owner, you know how essential efficient and effective management is to successfully running your organization. Sometimes, that means seeking additional support. However, bringing on a new employee can be a costly and lengthy process. That's where virtual assistants come in. Virtual assistants can assist with a range of tasks, from administrative duties to marketing and research. Understanding the Role of Virtual Assistants Before you dive into the process of hiring a virtual assistant, it's important to understand precisely what a virtual assistant is and the tasks they can accomplish. Virtual assistants are highly skilled professionals who provide administrative, technical, or creative assistance to clients while working remotely. They use the latest technology to communicate with clients and complete tasks, making them more accessible and cost-effective than having an employee work physically in your office. Virtual assistants come in many different shapes and sizes. Some work as freelance workers, while others work for companies that offer virtual assistant services. They can provide support on a task-by-task, part-time, or full-time basis, depending on your needs and budget. What Can a Virtual Assistant Do? Virtual assistants can perform a vast range of tasks. They are highly skilled professionals who can provide a wide range of services to help you manage your business effectively. Some of the most common tasks performed by virtual assistants include: Email Management: Virtual assistants can help you manage your email inbox by filtering out spam, responding to routine messages, and forwarding important messages to you. Scheduling and Calendar Management: Virtual assistants can help you manage your schedule and keep track of important deadlines, appointments, and meetings. Administrative Support: Virtual assistants can help you with a wide range of administrative tasks, including data entry, bookkeeping, and invoicing. Social Media Management: Virtual assistants can help you manage your social media accounts by creating and scheduling posts, responding to comments, and monitoring your online reputation. Research and Gathering of Data: Virtual assistants can help you gather information and data for your business, such as market research, competitor analysis, and customer surveys. Website Design and Maintenance: Virtual assistants can help you design and maintain your website, including updating content, fixing bugs, and optimizing for search engines. Benefits of Hiring a Virtual Assistant The benefits of hiring a virtual assistant are numerous. For one, you can delegate essential and time-consuming tasks, freeing up your time to focus on core areas of your business. This can help you increase productivity and efficiency, allowing you to grow your business faster. Another benefit of hiring a virtual assistant is that it can save you money on overhead costs, such as office space and equipment. Virtual assistants work from their own home offices, which means you don't have to provide them with a physical workspace or equipment. Finally, hiring a virtual assistant can help you access a wider range of skills and expertise than you might find in a traditional employee. Virtual assistants are highly skilled professionals who can provide a wide range of services, from administrative support to social media management to website design and maintenance. Overall, hiring a virtual assistant can be an excellent way to take your business to the next level. By delegating essential tasks to a skilled professional, you can free up your time, save money, and access a wider range of skills and expertise. Determining Your Business Needs Starting a business can be challenging, but with the right support, it can be a rewarding experience. One way to make your entrepreneurial journey easier is by hiring a virtual assistant. A virtual assistant can help you manage your workload and free up your time to focus on growing your business. However, before you start your search, it's important to identify the tasks that you need help with and determine the type of support you require. Identifying Tasks to Delegate Make a list of tasks that you find most challenging and time-consuming. This could include administrative tasks such as scheduling appointments or managing emails, social media management, bookkeeping, or customer service. Categorize them based on their priority and frequency. Determine which tasks can be delegated and which ones you want to keep in-house. By doing this, you can ensure that you are hiring a virtual assistant who can provide the support you need. It's also important to note that by delegating tasks, you can focus on your core competencies and grow your business. This can lead to increased productivity and revenue. Assessing Your Budget You need to set a budget for your virtual assistant hiring process. This budget should factor in the cost of finding, onboarding, and paying a virtual assistant. Determine how much you can allocate for this cost and work with it. It's important to note that while hiring a virtual assistant may seem like an added expense, it can actually save you money in the long run. By outsourcing tasks, you can avoid hiring a full-time employee and paying for benefits. Additionally, outsourcing tasks to a virtual assistant can help you scale your business. As your business grows, you can increase the number of tasks you delegate, allowing you to focus on high-level tasks. Deciding on Full-Time or Part-Time Assistance Consider whether you need a full-time or part-time virtual assistant. If the tasks you need help with only require a few hours per week, a part-time assistant would be a more cost-effective option. However, if you have a high workload and require support on a daily basis, a full-time virtual assistant may be the better option. It's important to note that when hiring a virtual assistant, you have the flexibility to adjust their workload based on your business needs. This means that if your workload increases, you can increase the number of hours your virtual assistant works. In conclusion, hiring a virtual assistant can be a game-changer for your business. By identifying the tasks you need help with, assessing your budget, and deciding on full-time or part-time assistance, you can find a virtual assistant who can provide the support you need to grow your business. Finding the Right Virtual Assistant Where to Look for Virtual Assistants Several platforms can help you find virtual assistants. These include: Upwork Fiverr Remote.co FreeeUp Alternatively, you could seek out agencies that specialize in virtual assistant recruitment. Evaluating Skills and Experience Once you identify potential virtual assistant candidates, evaluate their skills and experience. Look at their resumes, portfolios and reviews from previous clients. You should also conduct an interview to assess their communication and interpersonal abilities, work ethic, and organizational skills. Conducting Interviews and Assessments When conducting interviews and assessments, ensure that you consider the following: Availability and Flexibility Communication Skills Technical Skills Attitude and Work Ethic Onboarding Your Virtual Assistant Setting Expectations and Goals Before starting, set expectations and discuss goals with your virtual assistant. Decide where you want to focus their time and energy and the expected turnaround time for specific tasks. This can help to ensure that you're both on the same page and allow for a successful working relationship. Establishing Communication Channels Establish clear communication channels with your virtual assistant to maintain a steady flow of communication. This can include setting regular check-ins, using video conferencing tools or chat applications. Providing Necessary Tools and Resources To ensure that your virtual assistant can work efficiently, provide them with any necessary tools and resources, such as software or hardware requirements, login information, and access to files and databases. By following these guidelines, you can find the right virtual assistant and build a successful working relationship, saving your business time and money while improving efficiency and productivity.

The decision of ‘which software to use for your Merchant Cash Advance business' is a significant one. Many small brokers start off using whatever it takes to make a deal happen, relying on spreadsheets, handwritten notes, and whatever ultra-affordable tools they can find, like basic email, SMS, and lightweight CRM options. As they grow, these brokers begin to realize that not only do they need all their processes and systems under one roof, but that they also are losing time and money with all the manual processes, not to mention potentially missing out on a proportion of deals. Their competition may be using a more streamlined or automated system, with built-in business logic that successfully converts applications faster, and with greater accuracy. Some of these brokers then opt for MCA CRM options that have a small upfront price tag. Many of these solutions work well for what they are, and as systems custom-built for the industry, are often a significant step up from Excel sheets and scraps of paper on a desk. However, they also have limitations in how much they can grow and flex. The end result is that all companies using these smaller platforms are essentially using the same system, with only minor variations between each other. This type of system is often fine for small to medium size brokers who are comfortable with where they are, and willing to live with significant system limitations. However, any broker who is serious about growing and ambitious in their long-term plans, should take a long hard look at investing in a system for MCA built on the world-class foundation of Salesforce, the world’s #1 CRM. That system is Cloudsquare Broker. CS Broker is a turn-key system designed exclusively for MCA and built on top of Salesforce. This software allows brokers to get up and running on the Salesforce platform in a matter of weeks, while also providing unmatched options for flexibility and scalability built right into the application. No matter what stage your business is at, Broker can offer a more intuitive, streamlined, and efficient system for Merchant Cash Advance and Small Business Lending, as well as more long-term value from your CRM. You get the natural scalability of the massive, enterprise platform of Salesforce Salesforce isn’t the top CRM in the world for no reason. This software for connecting to your clients/customers has such robust foundational code, native features and native functionality, that just about anything you can imagine can be built. In fact, it has so much potential that it can be daunting for folks who don’t know the system. However, if you are building a dream house, wouldn’t you want it on a large, high-quality foundation with many acres of land to build on, rather than trying to cram everything you ever wanted into a small neighborhood block? Cloudsquare took the Salesforce foundation and through pre-built settings, workflows, and processes, (and with input from hundreds of industry veterans) designed Cloudsquare Broker, a system to expressly meet the needs of MCA Brokers. We then made just about everything in the system configurable, so that you could have options to tweak the settings, from applications to submissions to renewals, to meet your specific needs. On top of that, both Salesforce and Cloudsquare are constantly rolling out updates and new features. Salesforce is tuned into the cutting edge of business developments, like AI and data-driven decision-making tools, which get built right into the platform as it grows (although often requiring an extra purchase to fully unlock). Other CRM options simply can’t match the scale, flexibility, and power of Salesforce. They can only go as far as their initial code allows, and if you want to expand beyond that, you have to consider buying a whole new system. Build custom business logic One of the most powerful aspects of Salesforce is the ability to automate processes and tasks and to create custom business logic that takes what used to be multi-day manual processes and turn them into an automated matter of hours. While it does often take an experienced developer to create these sorts of game-changing automations, once it is done, your work experience will never be the same and you will wonder how you got by without it. With Cloudsquare Broker you get many of these essential processes pre-built out of the box, so right away, you can start processing deals faster and see ROI on your purchase. We have logged 10’s of thousands of hours consulting for MCA and Lending companies, and taken all that knowledge and experience, and put it into our app. Our thoughtfully designed architecture, which conforms with both Salesforce and industry best practices, can then be tweaked to match your specific business. So, when you sign up with CS Broker, you start with the foundation built on industry experience but also have the flexibility to make modifications as you grow and continue to use the system long-term. Seamlessly integrate with third parties as you expand Have you heard about the Salesforce AppExchange? Well, it’s kind of like the app store on your phone, but for your business. You can find, purchase, and seamlessly integrate thousands of apps to meet all sorts of business use cases and get the specific functionality you need, directly inside your system. By contrast, most other MCA CRM systems have a small and limited number of integration options, and anything outside of those, well you are just out of luck. As you grow with Salesforce and Cloudsquare Broker, if you discover a gap in your business and need a new tool, all you have to do is hop on the AppExchange, and within minutes, potentially find the exact solution to whatever your business problem may be. Better connect to robust web applications & build partner portals That robust foundation of Salesforce also allows you to integrate into any web application you may want to use, making it easy to connect to any external workflow or process. You can have it live easily inside your system, so no matter the use case, you can get the results and ROI you are looking for. In addition, robust partner portals can be set up, allowing you to provide a smoother, more user-friendly and efficient experience for any of your partners and ISO’s. Have you ever dreamed of having a single place where your partners could log in, see open offers, applications, and the status of deals, while all that data is synced directly into your system? Salesforce and Cloudsquare Broker can handle that. Easily manage user profiles and access As you grow, you are of course going to be constantly expanding your database of users. From new hires to partners, to consultants, it's inevitable that more and more people will need access. This can be a scary proposition though if your system has limited user profile and access options. In the ideal world, each new user gets to see exactly what they need to see, and nothing more, AND this can be assigned to them with only a couple of clicks. On Cloudsquare Broker, and with the native Salesforce permissions system, this is standard. World-class security and uptime of Salesforce Your data is your lifeblood. The more you grow, the more you need it to be 100% secure, not only for your peace of mind but because the big players expect it from you. When you use Salesforce and Cloudsquare Broker, your data is stored on the Salesforce servers, which are basically airtight. Nothing gets out that isn’t supposed to and for all practical purposes, there is no risk of any data breach from external forces, nor of any unscrupulous internal players digging into accounts. Any app provider you choose to add to your Salesforce, Cloudsquare included, will have no ability to access the data you store on Salesforce even though you are using their products. In addition, Salesforce being a world-class system means that it has multiple backups, redundancies, and fail-safes for system uptime. In short: your system is (almost) guaranteed to be online whenever you need it and won’t suffer from system slowdowns due to underpowered servers. When you are growing, even one hour of downtime could be calculated as thousands of dollars of lost revenue. With that much at stake, you can’t afford to be running on anything but the best foundation. Conclusion If you want a system that has the potential to be built to your unique specifications and has the native foundational infrastructure to enable growth, Salesforce is where you want to be. If you don’t want to take the time to look for a consultant, pay for hundreds of hours, and wait months for the custom system to be built, the turn-key system for MCA, Cloudsquare Broker, is the solution for you. Want the power of Salesforce, but don’t want to just broker deals, but fund them as well? Take a look at Cloudsquare Lend.

In the dynamic world of commercial lending, risk is an ever-present companion. From fluctuating market conditions to borrower defaults, lenders face a myriad of challenges that can impact their bottom line. Effective risk management is not just a necessity; it's an art that distinguishes successful lenders from the rest. In this article, we'll delve into the importance of risk management in commercial lending and explore strategies to mitigate potential pitfalls. Understanding the Landscape of Risks Before diving into risk management strategies, it's crucial to understand the types of risks inherent in commercial lending: Credit Risk: The possibility that a borrower will default on their loan obligations. Market Risk: Changes in market conditions, such as interest rate fluctuations, that can affect the profitability of a loan. Operational Risk: Risks arising from internal processes, systems, or external events. Liquidity Risk: The risk that a lender will not have sufficient funds to meet its obligations. Strategies for Effective Risk Management Comprehensive Due Diligence: Before approving any loan, conduct a thorough analysis of the borrower's financial health, business model, and market conditions. This includes reviewing financial statements, assessing the management team, and understanding the borrower's industry. Diversify the Portfolio: Avoid concentrating loans in a particular sector or region. A diversified loan portfolio can cushion the impact of adverse events in any single area. Implement Advanced Analytics: Utilize data analytics to gain insights into borrower behavior, market trends, and potential red flags. Predictive analytics can help lenders anticipate issues before they become significant problems. Regularly Review Loan Policies: Ensure that lending policies are up-to-date with current market conditions and regulatory requirements. Regular reviews can help identify areas of improvement. Stress Testing: Periodically test the loan portfolio against various adverse scenarios to understand potential vulnerabilities and make necessary adjustments. Continuous Monitoring: Once a loan is disbursed, the job isn't over. Regularly monitor the borrower's financial health and stay updated on any changes in their business or industry. Conclusion Risk management in commercial lending is a continuous journey. By staying proactive, leveraging technology, and maintaining a keen eye on the market, lenders can navigate the challenges and ensure successful loan outcomes.

Dear Financial Maverick, Navigating the unpredictable seas of business loan sales isn't for the faint-hearted, but with the right strategies, you're destined to captain your ship toward unrivaled success. Let's dive into 10 foolproof tactics to generate more leads for your brokerage: 1. Referral Programs Example: Reward existing clients for bringing in new blood. Nothing like a “Thank You” that’s both heartfelt and monetary. 2. Content Marketing Example: Launch a blog or video series on financial literacy. Offer tips with real bite, not just nibbles of common sense. 3. Local Sponsorships and Events Example: Make your presence felt at business events or workshops. Visibility in the community is more than just a logo; it’s an ethos. 4. LinkedIn Outreach Example: Create compelling posts about success stories with your loans. Engage with small business groups on LinkedIn. Remember, LinkedIn is like a business party, but without the awkward dance moves. 5. SEO and PPC Campaigns Although SEO is changing with the growth of AI and cookieless browsing, it's still critical. Example: Make sure you’re the first name businesses see when they hit “search”. Aim to be the Beyoncé of the loan world: always on top. 6. Email Marketing Example: Craft newsletters that people won’t send straight to trash. Being informative is good; being captivating is even better. 7. Network with Complementary Businesses Example: Forge bonds with accountants and attorneys. Your network can be both your net-worth and your safety net. 8. Host Webinars Example: Lead sessions on financial strategies. Give them the roadmap, and they’ll come to you for the vehicle. 9. Customer Reviews and Testimonials Example: Let your satisfied clients do the talking. Authenticity speaks volumes. 10. Direct Mail Campaigns Example: In a digital age, a physical touchpoint can be a game changer. Be the pleasant surprise between bills and junk mail. To sum it up, navigating the business loan sales game requires both tact and audacity. With these strategies in hand, you're geared up for success. Time to turn those leads into gold!

Embedded finance is not just a buzzword; it's a transformative force reshaping the financial landscape throughout the world. By integrating financial services directly into non-financial applications and platforms, embedded finance is creating seamless experiences for consumers and new revenue streams for businesses. Let's delve into the mechanics of embedded finance, its impact across industries, regulatory considerations, and how businesses can leverage this trend. What is Embedded Finance? Embedded finance refers to the integration of financial services such as payments, lending, insurance, and banking within third-party business platforms. It allows non-financial companies to offer financial products directly to their customers without the need for traditional financial intermediaries. For example, a ride-sharing app may offer instant loans to drivers, or an e-commerce platform may provide integrated payment solutions. Recognizable brands like Uber and Shopify have embraced embedded finance to enhance customer experience and drive growth. Impact Across Industries While embedded finance is making waves across various sectors, it's particularly prominent in: Retail and E-commerce: Platforms like Amazon and Walmart are offering financial products like credit and insurance directly to consumers and sellers. Healthcare: Embedded finance is enabling seamless payment solutions for healthcare providers and patients. Technology and SaaS: Tech companies are integrating financial services to enhance their product offerings and create new revenue channels. Regulatory Considerations In the U.S., embedded finance is subject to various regulatory frameworks, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Bank Secrecy Act. Compliance with anti-money laundering (AML) regulations and consumer protection laws is paramount. Businesses venturing into embedded finance must work closely with legal experts to navigate the complex regulatory landscape. Technological Aspects Implementing embedded finance requires a deep understanding of technology and collaboration with fintech partners. Key considerations include: API Integration: Application Programming Interfaces (APIs) are the backbone of embedded finance, allowing seamless integration between financial services and existing business platforms. Open banking APIs, for example, enable access to banking data and functionalities. Platform Compatibility: Ensuring that financial services are compatible with existing platforms and user interfaces is crucial. This may involve customizing solutions to fit specific business models and customer needs. Security and Compliance: Implementing robust security measures, such as encryption and multi-factor authentication, is essential to protect customer data and financial transactions. Compliance with data privacy regulations like GDPR and CCPA must also be considered. User Experience (UX) Design: Creating intuitive and seamless experiences for customers requires thoughtful UX design. This includes easy navigation, clear instructions, and a consistent look and feel that aligns with the brand. Scalability and Performance: As embedded finance grows, the underlying technology must be scalable to handle increased volumes of transactions and users. Performance optimization ensures smooth and fast service delivery. Data Analytics and Insights: Leveraging data analytics tools can provide valuable insights into customer behavior and preferences. This data-driven approach enables businesses to tailor financial products and enhance customer engagement. Collaboration with Fintech Partners: Many businesses collaborate with fintech companies that specialize in embedded finance. These partnerships provide access to cutting-edge technology, regulatory expertise, and a wide range of financial products. Cloud Computing: Utilizing cloud-based solutions offers flexibility and scalability, allowing businesses to quickly adapt to market changes and customer demands. Cloud infrastructure also facilitates collaboration between different stakeholders in the embedded finance ecosystem. By focusing on these technological aspects, businesses can successfully integrate embedded finance into their operations, offering innovative and secure financial solutions that meet the needs of today's digitally-savvy consumers. Competitive Landscape The rise of embedded finance has led to the emergence of key players like Stripe, Square, and Plaid, offering various embedded financial products. The competitive landscape is marked by innovation, collaboration, and a focus on customer-centric solutions. Wrap Up Embedded finance is more than a trend; it's a strategic imperative for businesses in the U.S. As it continues to evolve, companies must evaluate how embedded finance can enhance their business processes, drive revenue, and create competitive advantages. The time to assess the potential impact of embedded finance on your business is now.

Getting signed up with most funders as a business loan broker is not as simple of a task as it used to be. Funders have been changing requirements for years but the addition of new regulations, higher default rates, escalating and sometimes more sophisticated fraud have pushed Funders to enact new policies to make sure they partner with the best possible brokers or other referral partners. What has changed This evolution has been going on for several years but has reached a point where the differences are obvious. Funders have added actions to their due diligence process on Brokers (ISOs) to ensure they meet all standards and minimum requirements. Funders have long taken into consideration things like how long the broker has been in business, how many deals they get per month, experience, key performance requirements, and some funders did background checks. Now background checks are the norm. Funders want more experience and a minimum deal flow. They will do a phone interview and/or a video conference with several team members. They check the accuracy of the physical address, understand a broker's full scope of services, whether the broker charges a PSF fee, ask about how they get their leads, thoroughly research their online presence, and more. Where is the process going The process and difficulty of securing a partnership with certain funders will only become more competitive and difficult. Some of the reasons are going to be some of what has already been mentioned plus new laws going into effect that will force the funder's hands to prevent any backlash for non-compliant ISOs. Funders have already taken steps to ensure compliance by updating their ISO agreements to reflect the new policies and terminating ISOs that aren't keeping up with the changes. This will continue as more states add disclosure laws and registration requirements. There are likely to be more steps in getting signed up as a broker and also required in the closing of deals. Since we have foreseen the difficulty in checking multiple state websites and finding ISO or Funder company accounts, we have already added fields onto both Funder and ISO profiles where information like being registered in Virginia can be easily found. How laws affected the decisions and process New laws in certain states put liability on Funders for business practices, behavior, and compliance of their ISOs and other referral partners. More states will follow. This means Funders will not tolerate anything that jeopardizes them as they could be fined, sued, lose the ability to fund in a state or other penalties. They will be quick to terminate any partner that deviates or doesn't comply with the policies, even if it means less deal flow in the short term. The funders who don't care about the new laws will still get some brokers but they will dwindle as their hands are forced by laws and the penalties that come with not abiding by them if the enforcement agencies come after them as promised. The competition will get even more fierce as a result. What to do if you are a new broker If you are new to this industry and aren't signed up with enough funders, then you need to sign up with as many as reasonably possible or partner with another broker who already has the relationships. There may be some funders where you won't meet their qualifications. However, you can continue to work with the ones you have until you have built up enough of a lead flow that you can consistently submit the volume of deals necessary to get signed up and stay with certain funders. If you haven't already visited our MCA Funders List to see who is actively signing up ISOs, you can do so today. Funders can update their profile anytime by visiting the Update Underwriting page.

Hey folks, It's been a little while since I published a video but with all of the events in the last week, I wanted to provide a recap of things. In the following video, I talk about last week's Funders Forum + Brokers Expo and some of what has happened with the banking crisis that started while I was at the conference. As I mention in the video, here are a few AI tools that I have used in the past that could be useful to you besides ChatGPT: Synthesia video creation software Copy.ai writing tool Quillbot.com paraphrasing and writing tool Jasper.ai content creation There are many more! Here's our video montage of some of the moments from the event. Thanks for watching and reading!

Happy to have Javier Alvarez Wrobel join me in this video interview. We cover a number of topics including: The story behind Upfunding Current state and demographics of Latinx-owned businesses in the US Their best practices for serving these communities To connect with Javier, or get signed up with Upfunding, you can find him on Funder Intel if you are a member or use the below contact information: Javier Alvarez Wrobel Upfunding 786-442-3988 hello@upfundingcapital.com Thanks for watching! Have something you want to talk about on Funder Intel? We would be happy to discuss this. Contact us today.

Fintech company Novo, known for its business bank accounts, has launched an MCA product with some interesting features. With my initial review of this product, it seems Novo has set up a product that differentiates itself in the market. I'll discuss those and some other notes from the Press Release. Novo MCA product The press release states that Novo secured a $125 million facility from Victory Park Capital (VPC) to provide working capital through this new offering. Novo Funding aims to offer small businesses a quick and flexible way to access working capital. Nothing new there, however, it's noticeable that Novo does not mention the phrases 'merchant cash advance' or 'revenue-based financing' in the press release, instead choosing to use 'working capital'. On their website, they do use merchant cash advances. What does this mean? To me, it meant they thought there is enough of a negative connotation to the phrase merchant cash advance that it would be better to use different terminology. However, if the cost of capital is low enough, no business owner is going to care what you call it. Something that new entrants continue to say, as Novos' CEO did, is that for small businesses there are 'limited options for access working capital'. I don't agree with that notion any longer as there are hundreds of MCA funders alone, not to mention the other great alternative-to-bank business financing options. The more pressing issues today for merchants are finding a trustworthy funder or broker that has a cost of capital that meets their needs if they qualify for it. Other Key points: Novo says their 'monthly rates' (factor rate) are as low as 1.5%, which when compared to other well-capitalized MCA funders in today's economy is a good rate. Novo claims, as many do, that their application process is streamlined, with a review completed within 24 hours and instant access to up to $75,000 of working capital once approved. That relatively low maximum tells you that their target audience is truly small businesses and since most MCAs are less than $75,000 anyways, this maximum shouldn't hurt their ability to meet the market's needs. A key differentiator for Novo Funding is that they offer monthly payments, which is rare. Even rarer and another differentiator, Novo Funding offers revolving access to the approved funding amount and lets the business owner draw on the MCA partially if they want to which is similar to a Line of Credit (LOC). The business owner would get 6-month repayment options with each draw. So it's really a hybrid MCA/LOC product! Novo will give businesses full discretion over the use of the funds and only pay for the funds accessed. Novo Funding is available to small businesses that have been operational for at least six months, have at least six months of business checking account transaction history, and currently require you to maintain an open Novo business checking account. There is no mention of a Referral Partner channel in the press release or on Novo's website. Right now it seems it's all direct to the merchant. So if you're a business owner, I would get signed up with a Novo Business Bank account first just so you have financing options down the line. It's the same reason for having your processing setup with a company like Stripe which offers MCA-type loans. I actually went through the process of getting a bank account to write this article. It was absolutely seamless, took about 5 minutes to fill out the application, and got approved in less than 30 seconds. All I needed was some basic information, my EIN, Legal business name, and a photo of my DL. There was no credit check. Business owners can use this account as a backup, worst-case, so it's worth it to me given all of the new services Novo offers. To get started with Novo click the button below.

The story from the Miami New Times says, "On July 25, a grand jury indicted Ruderman, once dubbed the "invisible man" of the porn industry, in the Southern District of Florida, alleging he spearheaded the sprawling scheme to defraud investors through his firm 1 Global Capital. The company had raised money from investors across dozens of states while amassing a $50 million cash deficit before filing for bankruptcy, the feds say." Many were wondering if Carl Ruderman would ever see criminal charges after he had dealt with civil charges from the Securities and Exchange Commission and federal fraud penalties over the alleged investment scheme, and it finally happened. "The Hallandale Beach-based business provided short-term cash advances to small and medium-sized businesses, many of which did not qualify for traditional bank lending. Ruderman, who once owned a 9,600-square-foot apartment in Aventura, would seek out investors to fund the merchant cash advances (MCAs) by "promising significant returns on investment, including that 1 Global would generate double-digit returns," according to the indictment." This case has been going on for over 5 years, with 3 executives from 1 Global Capital sentenced 2 years ago on conspiracy to commit wire fraud and securities fraud. Andrew Ledbetter was sentenced to 60 months in prison and ordered to pay $149 million in restitution. Steven Schwartz was sentenced to 60 months in prison and ordered to pay $149 million in restitution. And Jan Atlas was sentenced to eight months in prison and required to pay roughly $29 million in restitution. READ THE FULL STORY https://www.miaminewtimes.com/news/carl-ruderman-charged-with-fraud-in-1-global-capital-case-17496245

The merchant cash advance industry is a dynamic and intricate landscape, teeming with various stakeholders, each playing a unique role. Amid this bustling scene, syndication has become one of the real income opportunities for all. One company has recently come under the spotlight for its controversial operations - Disruptive MCA. This Miami-based firm's story, as detailed in an in-depth, insightful article by Izzy Kapnick and Naomi Feinstein for the Miami New Times, serves as a stark reminder of the potential risks and challenges that industry stakeholders may encounter. Disruptive MCA, a merchant cash advance firm, has been the center of investor concern since it ceased payments in December 2022, citing a computer system hack. The company is linked to Angelo Jose Sarjeant, a sport-horse enthusiast from Doral, who was previously accused by federal regulators of operating a deceptive trade scheme through another firm, Driver Loan. Despite Sarjeant being ordered to reimburse nearly $3 million in the Driver Loan case and being permanently banned from deposit-taking, Disruptive MCA, registered under Sarjeant's wife Dayanna Delgado, continued to attract new investors, including by having a 'sharp looking website', as the article states. The company's investment model mirrored that of Driver Loan: investors would provide their funds, which would allegedly be used to fund third-party loans or small-business cash advances. However, many investors have reported significant losses, with some losing hundreds of thousands of dollars. The article also brings to light the personal stories of some of the investors who have been affected by their dealings with Disruptive MCA. One investor, identified as Mark, invested more than $400,000 in the company and now fears he will not see much of it returned. Another investor, who had also invested in Driver Loan, lost tens of thousands of dollars while caring for a newborn child and a mother battling cancer. The story of Disruptive MCA underscores the importance of regulatory oversight and due diligence in the merchant cash advance industry. It raises critical questions about the regulatory mechanisms in place to monitor companies like Disruptive MCA, especially given the previous federal action against Sarjeant. It also highlights the potential risks involved in investing in merchant cash advances and the need for investors to conduct thorough due diligence before handing over their funds. The tale of Disruptive MCA serves as a sobering lesson for industry stakeholders. It underscores the importance of regulatory oversight, investor due diligence, and the potential risks involved in the merchant cash advance industry. It is a reminder that while the industry offers many opportunities, it also comes with its share of challenges and risks. For a more detailed look at the story of Disruptive MCA and its impact on investors, I highly recommend reading the full article on the Miami New Times website. It provides a comprehensive and insightful look at the company and its dealings, offering valuable insights for industry stakeholders. Read the full article here https://www.miaminewtimes.com/news/investors-reeling-from-losses-in-miamis-disruptive-mca-driver-loan-programs-17228761