6th Avenue Capital Announces Promotion of Darren Schulman to President
April 26, 2018Former Chief Operating Officer also appointed to company’s Board of Directors along with Chief Executive Officer Christine Chang
New York City – April 26, 2018 – 6th Avenue Capital, LLC (“6th Avenue Capital”), a leading provider of choice for alternative small business funding, announced today the promotion of Darren Schulman to President, effective immediately. In his new position, Schulman has oversight over originations, underwriting, operations, collections and strategic initiatives. He previously served as Chief Operating Officer, and will continue to report directly to Chief Executive Officer Christine Chang.
The company also announced today that Chang and Schulman have been appointed to the company’s Board of Directors.
“We are extremely fortunate to have a well-respected industry expert and innovator like Darren on our leadership team,” said Chang. “He’s made immeasurable contributions to our strategic direction and growth since joining us last year. I am confident Darren will continue to play a critical role in guiding our business forward in his new position as President.”
Schulman brings two decades of experience in small business financing and additional experience in banking to his new position. He joined 6th Avenue Capital in March 2017. Previously, Schulman served as COO at Capify (formerly AmeriMerchant), a global small business financing company, and President and CFO at MRS Associates, a Business Process Outsourcing (BPO) company specializing in collections. In addition, Schulman was an Executive Vice President at MTB Bank.
“6th Avenue Capital is made up of exceptional individuals who are focused daily on advancing the capital needs of small businesses. I am honored by the promotion and delighted to be joining the Board with Christine,” said Schulman. “Together we will continue to set a strategic course for our company and build on the momentum we’ve established over the past year helping small businesses across the country grow.”
For more information on these updates, or if you’re interested in discussing partnership opportunities with 6th Avenue Capital as an ISO, please contact Marc Seidel at bizsuccess@6thAveCap.com. You can also use that same email address to schedule time to meet with members of the team at the National Association of Equipment Leasing Brokers (NAELB) conference in Las Vegas from April 26 to 28.
About 6th Avenue Capital, LLC
6th Avenue Capital is changing the small business funding landscape by offering a data-driven underwriting process and fast access to capital with variable payment options. 6th Avenue Capital employs a unique blend of industry experts who are committed to the highest operating standards, including high touch service and a policy of direct merchant access to underwriters. For more information, visit www.6thavenuecapital.com or email bizsuccess@6thAveCap.com.
Media Contact
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Indicate Media
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What’s a Broker To Do? Industry Execs Offer Their Insight
March 12, 2018
Below are excerpts from separate interviews with four industry executives when asked for tips or advice for brokers:
“I would just say to be in it for the long haul. Play the long game. Be the kind of quality partner that you would want in return. There are some brokers and referral sources in this space who see merchants only as a commission check, not as the going concern and business entities that they are. Some brokers are playing the short game, which is unfortunate, because brokers can be in a very powerful position with their clients (merchants) – they need to use that power wisely. If one were to carefully look at a business and its working capital challenges, and then tried to do what was in the best interest of that business in the long run, a broker could be creating a revenue stream for a longer period of time – on a healthier business – and in return creating a more sustainable brokerage platform for themselves. Be open and transparent – sometimes losing a deal due to full transparency can lead to many multiples of that volume with a loyal funding partner.”
– Bill Gallagher, President and Managing Partner, CFG Merchant Solutions | Read full interview
“Choose industries that you excel in—and own them.
Concentrate your marketing efforts on your core customers and target those that meet a lender’s criteria. It’s not the quantity of leads you deliver, it’s the quality—and that will save you time and money. Look for customers in growth stages, not those that are desperate for funds to stay afloat. This will also result in more renewals.
And find a lending partner with a strong brand, as this opens doors to new customers.”
– Michael Marrache, CEO, BFS Capital | Read full interview
“It is not an easy business and not for everyone. It takes quite some time – years – to either build an organization or to become a seasoned pro that truly understands the space. It is also very fast paced and ever changing, so you have to really commit and take the space seriously if you want to be successful.”
– James Webster, CEO, National Business Capital | Read full interview
“Brokering is a tough marketplace right now. I don’t want to say [it’s] saturated, but it’s getting pretty close…Everyone’s getting a million phone calls and mailings and the marketing is going crazy, and the expense is going up. So you really have to find a way to differentiate yourself.
That’s really the biggest thing about being a broker, besides quality service. It’s more: What kind of niche can I get into? How can I break into the market without having to spend like a million dollars a month on marketing? The biggest thing is: What can you do differently?”
– Evan Marmott, CEO, CanaCap | Read full interview
Minority-Owned Businesses Present Opportunities for Online Lenders
February 27, 2018
Research consistently shows that minority-owned businesses have a harder time accessing capital than other businesses. Online financing has the potential to change this.
Most of the online funding process is based on objective factors such as your business type and revenue. When you apply for funds online, it’s harder to discern things like the color of your skin or your ethnicity—factors which research shows can sometimes play into the face-to-face lending process, even though it’s illegal and immoral. What’s more, applying for funds online eliminates the stigma that keeps many minority-owned businesses from walking into a bank to apply for a loan, according to industry participants.
“Many minorities are hesitant to go into a bank,” says Louis Green, interim president of The National Minority Supplier Development Council, which provides business development opportunities for certified minority-owned businesses. He says the growth of online lending platforms will potentially open more doors for minority-owned businesses to get much-needed capital to operate and expand.
“The beauty of things on the Internet is that it has the ability to take away discriminatory issues,” says Green, who is also the chief executive of Supplier Success LLC, a Detroit-based business that offers online business financing solutions.
Certainly, minority-owned small businesses are a large and growing market. There were 8 million minority-owned firms in the U.S. as of 2012, according to U.S. Census Bureau data. Minority-owned firms represented 28.8% of all U.S. firms in 2012.
Historically, however, minority-owned businesses have had trouble getting access to credit for a host of reasons, and recent research suggests the problems persist.
A report published in November by the Federal Reserve Banks of Cleveland and Atlanta examines the results of an annual survey of small business owners. The report found that while many minority small businesses were profitable, a significant majority faced financial challenges, experienced funding gaps and relied on personal finances.
Some of the trouble obtaining financing may have discriminatory underpinnings. For instance, a recent working paper by researchers at Utah State University, Brigham Young University and Rutgers University, among others, suggests that minorities were more highly scrutinized for loans than other applicants. For instance, African American “mystery shoppers” underwent a higher level of scrutiny and received a lower level of assistance than their less-creditworthy Caucasian counterparts, according to the study.
Also, African American testers were asked significantly more often about their marital status and their spouse’s employment. This “marks another and even illegal differential experience for these minority entrepreneurial consumers compared with the Caucasian shoppers,” the study finds.
To be sure, other factors are also likely to blame. For instance, the average credit score of a minority small-business owner is 707, which is 15 points lower than the overall average for small-business owners in the U.S., according to a 2016 study by credit bureau Experian.
Even so, the bias issue remains a stark possibility in at least some cases. A 2010 report by the Minority Business Development Agency (MBDA) offers data to show that minority-owned firms are less likely to receive bank loans than non-minority-owned firms. Among all minority firms, 7.2 percent received a business loan from a bank compared with 12.0 percent of non-minority firms, according to the report. High sales minority-owned firms were more likely to receive bank loans with 23.3 percent receiving this source of startup capital. By contrast, 29.2 percent of high sales non-minority firms received bank loans, the data shows.
To be sure, it’s very difficult to prove discrimination when a bank loan is denied. A few years ago, a mortgage banker who asked not to be named, says he suspected discrimination when an Asian couple he worked with was denied a small bank loan. While he didn’t have rock solid proof, he felt the bank’s stated reasoning for turning down the loan was unjustified and he tried going to bat for the couple. His efforts were rebuffed, however, and the loan was denied.
Based on the size of the loan and the couple’s finances, the banker says the loan would have easily been approved by an online provider that was looking only at objective factors. “They see the numbers they’ve been given and calculate risk and make decisions based purely on numbers,” he says.
Indeed, this is where online lending has already shown significant potential. Alicia Robb, a research fellow at the Atlanta Federal Reserve who co-authored the November report by the Cleveland and Atlanta Federal Reserves, says when controlling for credit score and other business-related factors, the data shows that minority businesses have a better shot at getting loans approved online than they do at a large or small bank.
Industry participants say the online funding process can be a boon for minority business owners because it strips subjective reasoning out of the decision-making process. Instead of presenting themselves, applicants are presenting what their business looks like financially, and funders are making highly automated decisions based on the information provided.
“Humans make terrible decisions. The more you can eliminate human bias in the process the better,” says Kathryn Petralia, co-founder and president of Kabbage. She says 95 percent of the online lender’s customers have an entirely automated experience, which includes validating their identity using digital processes. “We never see a picture of them or know anything about their ethnicity or demography,” she says.
Even funders who do ask for photo identification say that doesn’t happen until after applicants have been approved. And even then, it’s just to “make sure that the person you are funding is actually the person you are funding and no one is trying to defraud you,” says Isaac D. Stern, chief executive of Yellowstone Capital LLC, a MCA funder in Jersey City, N.J. “Online financing is colorblind. It doesn’t matter if [you’re] white or Hispanic or black,” he says.
Dean Sioukas, chief executive of Magilla Loans, an online search engine that matches prospective borrowers and lenders, has hope that the anonymity of the online funding process could eventually make the off-line process more equitable for all applicants. After accepting a number of solid proposals from viable lending opportunities—without knowing any personal information about the applicant—his hope is that whatever biases a loan officer may previously have had will dissipate, he says. Funding decisions should only be made on objective criteria, he says. “The rest has no place in the process.”
While in theory online lending should improve access to funds for minority-owned businesses, several industry observers say barriers remain.
One major challenge is getting the news out to minority business owners, many of whom don’t know about the online funding opportunities that exist, says Lyneir Richardson, executive director of The Center for Urban Entrepreneurship and Economic Development, a research and practitioner-oriented center at Rutgers Business School in Newark, N.J.
He suggests online lenders and funders need to do a better job of connecting with minority-owned businesses and explaining what they have to offer. He works with about 300 entrepreneurs, 70 percent of whom are minority-owned businesses. He’s held this position for 10 years, but says he’s never been approached by an online lending company to market its services, speak at one of his events, provide funding advice to business owners or in any other capacity.
“There is an opportunity for online small business lenders to market and make known, particularly to minority business owners, that they have viable, market rate lending products that can help them grow,” he says.
One caveat is that rates online are often higher than traditional bank loans, so there is a trade-off for minority-owned businesses, says Brett Barkley, a senior research analyst in the community development department at the Federal Reserve Bank of Cleveland, who co-authored the November report.
Other research from the Federal Reserve shows that satisfaction levels were lowest at nonbank online lenders for both minority- and nonminority-owned firms compared with borrower satisfaction levels at small banks and large banks, he says. The satisfaction levels seem to be related to higher interest rates and “lack of transparency,” he adds. While the study doesn’t define the latter term, the findings could “point to confusion regarding the actual terms of the loan,” Barkley says.
Some online firms have taken steps to make pricing more transparent by using the SMART Box disclosure agreement, a comparison tool developed by the online lending industry to help small businesses more fully understand their financing options. There are currently three different versions of the SMART Box disclosure –for term loans, lines of credit, and merchant cash advances.
This “is a really important metric,” says Petralia of Kabbage, which offers the tool to customers.
Green, the interim president of NMSDC, says that helping its 12,000 minority-owned business members gain access to capital is a major goal for the organization. While online financing is still a largely “untapped resource” for minority businesses, it makes borrowing money easier and more appealing. “It holds great promise for minority-owned businesses, but I think the reality hasn’t met that promise yet,” he says.
BFS Capital’s Marrache on Canadian Small Business Landscape
January 28, 2018
It’s been about five months since Michael Marrache took the reins as CEO of BFS Capital. He spoke with us then about the company’s algorithmic solutions, ISO relationships and product pipeline. He recently took some time to talk with AltFinanceDaily about the key themes in the Canadian market in 2018 – from minimum wage, to the impact of US tax reform on the Canadian economy, to ISO opportunities — and BFS Capital’s role there.
AltFinanceDaily: When did BFS Capital begin operating in Canada?
Marrache: BFS Capital funded its first loan in Canada in 2012. Traditionally, we have approached Canada’s market via our partner channel, both US and Canada based. We plan on increasing that effort in 2018.
AltFinanceDaily: Is Canada a market that BFS Capital recognizes as growing?
Marrache: Canada is a growing market for BFS Capital, though our non-US markets, including Canada and the UK, currently represent less than 20% of our global $300 million in financings. We see significant upside in both Canada and the UK in the next 12 months.
AltFinanceDaily: What are the themes as you see them for Canadian small businesses and BFS Capital in 2018?
Marrache: There might be more insecurity among Canadian small businesses this year. The 2018 minimum wage increase to $14 an hour in Ontario, expected to rise again in 2019, for example, might cause some small businesses to have to cut hours or reduce staff to make up for the expense. They may have to raise their prices, which could impact demand.
Additionally, recent policy and legislative changes in the US could also impact Canada. For example, tax reform in the US, specifically a reduction in the US corporate rate, will put the US on par with Canada in terms of tax rates and similar burdens. At the same time, US regulations are being reduced while Canada’s appear to be increasing. All of this is part of the current US government’s initiative to drive domestic business growth and we are not sure how it will affect Canada’s economy, business confidence and consumer spending.
The Canadian dollar is also forecast to remain weak and might continue to fall for a while longer. With US tax reform potentially boosting the economy here, the US Fed is likely to raise interest rates, which might reduce demand for the Canadian dollar. The CAN$ could further slide if Bank of Canada cuts rates again. [Scotiabank]
At the core, however, Canada has 1.1 million small businesses. Not a small number. There were more than 350,000 small businesses created in Canada in 2016 and 42% of job creation in the country in the past decade stemmed from firms with fewer than 100 employees (CIBC Capital Markets). These businesses need working capital for a variety of needs related to their everyday business and, importantly for where we fit in, it has traditionally been difficult for small businesses to obtain financing from banks.
BFS Capital financing has come into the mainstream because it’s more accessible than a bank loan, less expensive than equity, and less risky than bootstrapping. Our financing solutions also require less commitment than taking on a partner or getting venture capital. Moreover, the few big banks in the market have tended to shy away from small businesses, so we have seen an opportunity with our ISO partner-base and directly, for our lending solutions.
Today small businesses in Canada can get the money in their account in just a day or two and there are a variety of products with different rates and payment options. As the market in Canada gets more competitive the rates will continue to go down.
AltFinanceDaily: The last time I spoke with you, you talked about automated solutions, transparency tied to ISOs and company culture. Are these at the forefront of the Canadian business as well? Explain.
Marrache: Yes. These initiatives are embedded in the company strategy at the top. We believe speed is required but not sufficient; the company must lead with a culture of service and transparency. We are also investing in data science to improve risk profiling and process efficiencies for every partnership and every financing, including in Canada. These initiatives have been instrumental to our strengthened partnerships in the US and we expect these to benefit our Canadian partners as well.
AltFinanceDaily: Can you provide any illustration of the number of Canadian merchants on the BFS Capital platform or the amount in loans or MCAs you’ve deployed in the country?
Marrache: Although at a more modest volume than our business in the US, since entering the Canadian market in 2012, BFS Capital has achieved originations growth of approximately 100 percent on a compounded annual growth basis.
Sorodo’s Co-Founder: Alternative Financing Options ‘Unknown’ Amongst the U.K.’s Small Business Community
January 25, 2018Are small businesses across the pond aware of their alternative financing options? Manchester’s Sorodo Limited, a merchant cash advance company, feels that the word has far from spread.
“We still have some way to go, as the product is still fairly unknown to the wider business community,” co-founder Rich Wilcock said via release earlier this month while discussing merchant cash advance alongside other non-traditional avenues. “We spoke to a lot of business owners in 2012 and 2013, and they were understandably frustrated by their situation. Many who were declined for traditional forms of finance by their banks didn’t look any further, which is why it’s so important we get the message out about alternative funding options, such as peer-to-peer lending, cash advances, crowdfunding, unsecured borrowing and so on.”
Wilcock labeled awareness of the merchant cash advance option and other alternatives at the dawn of 2018 as “disappointingly low.”
Typical Sorodo Limited customers include owners of hotels, restaurants, cafes, pubs, clubs, bars, independent shops (including e-commerce stores), convenience stores, beauty salons and garages.
“In 2014, the average independent retailer was struggling to stay open, let alone turn a profit,” said Wilcock. “Many shops, hotels, restaurants and leisure outlets closed down, but we knew this product had the ability to not only keep businesses trading but also to help them grow.”
After promoting the lending alternative and seeing growth in Sorodo’s business, Wilcock believes that there is still significant amount of campaigning left to do. Thus, Sorodo Limited is expanding it’s offerings with a new platform called Capalona.
The newcomer is designed to help U.K. business owners find alternative solutions besides merchant cash advance that may serve their individual needs better.
“The term ‘alternative business finance’ covers a variety of new funding models that allow businesses to access funds that are not readily offered by traditional lenders,” said Wilcock. “These include products such as asset-based lending, invoice finance, venture capital, pension-led funding and many more.”
Capalona, which is currently up and running, is also based in Manchester.
Finn & Co, Inc. To Manage Two New Equity/Debt Funds
December 14, 2017Below is a letter that was circulated by Finn & Co, Inc.
Finn & Co, Inc. is pleased to report the formation of two new equity/debt private equity funds to be managed by our firm. The first of these two funds is a US$100M equity fund which will seek investments in the MLM Industry (multi-level-marketing). This fund will be seeking and entertaining opportunities in North and South America as well as Europe. It is the intention of the fund to have heavy concentrations of ownership in relatively few investments and in addition to the contribution of the invest cash, it is the intention of the fund to offer geographical business partnerships with Asian ‘like-type’ MLM entities. The second fund is a US$200M debt/equity fund engaged in lending to the MCA Industry (merchant cash advance). This fund will offer senior debt, sub-debt and equity investments to the MCA industry here in America and in specific areas of Asia. The management of these funds will embrace additional industry experienced individuals and hopes to ‘fill a void’ of available capital for these traditionally difficult ‘to bank’ business endeavors.
Finn & Co. Merchant Banking Activities at this time.
Please review the following activities of our firm in the areas of consulting, merger and acquisition assignments and current capital fundraising activities. Finn & Co. has recently completed valuations for operating companies engaged within the Direct Sales/MLM industries and that of aerospace and defense. In addition, we are currently engaged with multiple capital raising assignments for companies within the following industries: Nutrition Products, Merchant Credit Advance (MCA), Medical services, Tobacco, Fish Farming, Oil Refinery, Lodging, Technology, Consumer Water Bottlers and the financing of Credit Card Receivables. Finn & Co., Inc. has active M&A assignments detailed later in this communication. We welcome your inquiries for valuation assignments, merger and acquisition advisory services, and capital fundraising needs.
Merger and Acquisition Assignments:
(1) Binocular Manufacturers: The Purchaser is a manufacturer of ‘high end’ binoculars, ground, airborne and maritime Electro-Optic/Infrared cameras sold primarily to the military and law enforcement communities. This acquirer is engaged in the design, development and sale of advanced optical devices to expand its domestic and international sales and is seeking manufacturers of related devices targeting the commercial, law enforcement and military markets. Asian and European-based manufacturers of binoculars and vehicle cameras are of a particular interest to this acquirer. In addition, the buyer is interested in the purchase of optics companies with strong R&D personnel — specializing in the development of binoculars, rifle scopes, and any and all related advanced EO/IR technology. This acquirer will entertain joint-ventures in place or in lieu of outright purchase or merger.
(2) Fish Processing Companies: The acquirer is an international integrated fishing enterprise engaged in catching, processing, and value-added functions in the worldwide fishing industry. This company desires to acquire a value-added fish processing company located in the USA. The desired company will be profitable at the time of purchase, selling into the retail market, restaurants, and the cruise ship sector of the marketplace.
(3) Health Care:
- (A) Seeking Acquisition Targets operating in business process outsourcing, employment, staffing, billing, surgery centers, and ancillary services to health care industry. The target platform company should have an EBITDA of between US$5M and US$20M.
- (B) Home Health & Hospice: Seeking a home health and hospice platform acquisition in any Geographical area, if the acquisition target enjoys US$3.0M in EBITDA or more AND Management team is willing to remain with the company post the acquisition is completed.
- (C) Large, publicly traded NYSE ‘for profit’ hospital ownership and management company seeking additional ‘hospital’ acquisitions and/or management contracts. While any ‘locale’ will be entertained, the States west of the Mississippi River are preferred.
(4) Multi-Level-Marketing Industry/Direct Sales: We continue to seek North American, Latin American and Asian-based operating MLM/direct selling companies for various buyers and investors. We have multiple buyers of nutritional products, cosmetics, personal and health care companies, lingerie sellers, fashion jewelry and other consumable products. The targeted acquisition or investment opportunity can range in annual sales size from US$25M to as large as multi-hundred million dollar sales companies located in the USA. We have interest in direct sales/MLM companies with annual revenues of US$10M or greater located outside the continental boundaries of the USA. These American and non-American buyers are either currently operating MLM entities or are the investment arm of non-USA based MLM operating companies, all of which have a long and “in-depth” operating knowledge of the industry and are anxious to expand their businesses into the USA, Canada, Latin America and/or Asia. The buyers or investors are prepared to purchase 100% of any entity or are prepared to partner with a seller that wishes to maintain some equity ownership and a management role. Our buyers will require at least 51% equity ownership.
(5) Nutritional Products
- (A) Manufacturers (third party): We are seeking third party nutritional products manufacturers of tablets, capsules, powders, gels, and liquids. There is a particular interest to acquire a liquids manufacturer at this time. The targeted companies should possess the appropriate industry certifications and conform to recent government-imposed manufacturing processing requirements. The targeted companies will have annual sales of US$15M or larger.
- (B) Branded Nutritional Products: Sold via retail chains, direct through mail order or online. The more ‘direct’ the sale method of delivery, the stronger the interest from our buyer.
(6) Food
- (A) Hispanic Food Suppliers: Our client is an acquirer of North American-based manufacturing and distribution companies offering Hispanic foods and related items to the wholesale or retail marketplace. The candidate will have a known brand name and an obvious presence in the Hispanic community and a recognized name or product to the Hispanic food buyer.
- (B) Restaurant Chains: A currently operating restaurant team is seeking restaurant chains with annual sales of US$50M or more and EBITDA of US$5M or more. The target chain could be an independent restaurant concept, a franchisor, or a franchisee. Minority Recaps/and or Growth Equity will also be considered.
- (C) Branded Food companies: We represent a financial buyer of ‘branded’ food companies. The targeted candidate will have annual sales sufficient to generate an EBIT of US$10M or greater. The food offering can be across a wide spectrum of food offerings and will be considered a national brand.
(7) Aerospace/Defense:
- (A) We have multiple buyers seeking aerospace and defense operating companies that will range in annual sales size from US$20M to US$250M. The ideal candidate will currently be a supplier of materials and/or parts to the aerospace after-market, manufacturer of such parts and supplies, a provider to the aerospace/defense industry and/or engaged in a business relationship within the industry that allows it to participate in any of the ongoing support and/or replacement vendor positions in this after-market sector.
- (B) In addition to our above targets, we represent a US$200M sales company, privately-owned, seeking an aerospace manufacturer. Tight tolerance machining and/ or the manufacturing of aerospace/defense parts are the two areas of interest. Turnarounds and under-performing companies will be considered. The preferred size target is an entity generating revenue of US$25M to US$250M.
- (C) We represent a buyer of “Type Certificates” of established aircraft. These airplane types are currently in operation but not in production and range from piston propeller, turbo propeller and/or jet engine type aircraft.
- (D) Security Companies: We are seeking businesses that offer services to the military or law enforcement markets associated with intelligence gathering, manufacturers of security equipment, service companies that are engaged in the guarding and maintaining of premises, sea-going security in the area of anti-piracy and other related services.
- (E) Hand Gun, Rifle and Shotgun Manufacturers: We are seeking USA and/or Western European hand-held weapons manufacturers. There is a particular interest on the part of the buyer in a manufacturer that is currently supplying its weapons to the military and/or law enforcement communities.
The financing of ‘gun’ or related companies in today’s banking marketplace is most challenging. Finn & Co. is in a position to offer short and long term credits as well as growth capital to gun industry-related operating, profitable companies. If you or your clients are in need of working capital or acquisition capital, we would be most pleased to work with you.
- (F) A&D, Medical Products or Photonics Industries: Our Client is seeking a USA-based manufacturing operation in the highly regulated aforementioned industries. Acquisition opportunities with annual sales/revenues of up to US$100M and EBIT of US$10M are the size range of our client’s investment interest.
(8) Oil and Gas
- (A) Service and Support Companies: We are seeking North American-based oil and gas industry service and support companies. The targeted prospect might offer a service for ‘on-shore’ or ‘off-shore’ drillers, maintenance of wells, work-over and stimulation of wells, transportation and security management. The targeted company could be solely domestic or international in its operations. Our clients have a decided interest in targeted acquisitions that represent what would be defined as the larger participants in the industry, in short ‘the bigger the better’.
- (B) Large Oil and Gas proven properties seeking a sale or requiring large capital investment. These properties will be domestic locales with proven oil and/or gas reserves that can be currently producing or not. The buyer/investor will entertain the outright purchase of the property or a joint venture with the current owners.
(9) Trailer Manufacturers and Distributors: We are seeking manufacturers and/or distributors of ‘open and closed’ commercial trailers that would traditionally be pulled by a pickup or SUV and used in a wide variety of activities, both for commercial and private family purposes. Our client has a present interest in acquiring additional closed box trailer manufacturers or large distributors.
(10) Water Treatment Companies: Manufacturers of water treatment equipment, new technologies for the purification of water, and companies offering deliveries of commercial water supplies. All water related opportunities entertained.
(11) Consumer Products, Consumer Durables, Retail or Retail Services: We have a buyer of companies in the aforementioned sectors (logistics, e-commerce, etc.). The minimum required EBITDA is US$3M.
(12) Risk-based Consulting Services: Our client is a platform entity engaged as a provider of risk-based consulting services including – Internal Audit, IT Audit, Information Security, Corporate Governance and Regulatory Compliance. Our client would like to grow their business with the acquisition of similar type functioning companies both domestic and international.
Family Related Operating Companies:
Tethys Corporation: a holding company that has as its investment criteria the acquisition and/or investment in the aerospace/defense/medical or medical service industries. Tethys will also entertain ‘control’ investments in security companies and/or service companies servicing the military, diplomatic or international work-place.
Blue Steel Ventures, www.bluesteelventures.com. This ‘alternative’ wholesale funder of the Merchant Cash Advance (MCA) industry is a provider of senior debt, sub-debt and equity investments to established operators of merchant cash advance providers. Blue Steel Ventures will entertain loans and investments of US$2M to US$30M or more subject to the specifics of the MCA applicant.
Board Assignments:
Members of the Finn & Co organization currently sit on Boards of Directors or finance committees of various commercial and non-profit companies and/or organizations. We particularly wish to expand our assignments of Directors and Members of the Board of commercial companies here in the USA. We are prepared to entertain appointments to private or public corporations, located anywhere in the USA. Any inquiries or suggestions that you might wish to offer would be warmly received.
We would be most pleased to hear from you concerning your interest and needs for any of our consulting services, capital raising or M&A activities listed in this communication. We look forward to hearing from you.
Sincerely yours,
Kenneth R. Finn
Chairman
Finn & Company, Inc.
Kenneth R. Finn
Finn & Co., Inc.
Merchant Bankers
5776-D Lindero Canyon Road, #382
Westlake Village, CA 91362
(818) 219-3097(818) 219-3097
krfinn2001@yahoo.com
Wyoming Location
4350 Fallen Leaf Lane
Jackson, WY 83001
(307) 203-2556(307) 203-2556
krfinn2001@yahoo.com
Kabbage Crosses $4 Billion in Loans, Taps C-Suite Exec for Intl Expansion
December 6, 2017
Alternative lender Kabbage is exiting 2017 with a bang, having just crossed the $4 billion threshold for loans deployed across more than 130,000 small businesses so far. The latest milestone represents a 30% spike in both total funding and the number of merchants on its platform since April 2017, which is when they celebrated their previous new threshold. Victoria Treyger, chief revenue officer for Kabbage, took some time to talk with AltFinanceDaily about the latest milestone, international expansion and mobile strategy.
“Our lines of credit and amounts taken continue to increase as we begin serving more and larger small businesses. We see great momentum across all industries in all 50 U.S. states,” Treyger said, adding that the momentum is particularly evident among the restaurant, construction, professional services and automotive industries for funding strategic investments such as new locations, specialty equipment, business expansion, etc. The $4 billion milestone is the result of the company’s direct business in America only.
According to recently released data by Kabbage cited in CrowdFund Insider, nearly three-quarters of 400 small business owners polled are forecasting higher revenues by year-end. More than 50% of those merchants are targeting a jump of at least 10%. Kabbage certainly appears to be benefiting from this optimism and an economy that is functioning on all cylinders. Treyger points to the lender’s “fully automated lending process and unique, live data connections with our customers.”
Fintechs & Banks
The relationship between alternative lenders and banks has been at the forefront, and Kabbage has been involved in some of the most high-profile pairings, evidenced by SoftBank’s famous investment. And while there’s no crystal ball, fintech and bank partnerships are one of the trends that will likely persist in 2018.
“Data will be at the heart of everything, how it’s shared, accessed, applied, protected and given back. Expect to hear more about the personalization of lending and to see stronger partnerships between fintechs and banks,” said Treyger. Consumer data, of course, is the Holy Grail for lenders, with banks having a tendency to keep that information close to the vest. And with the Equifax breach so recent in the rearview mirror, the importance of data security is certainly paramount.
“The CFPB recently published data-sharing guidelines between banks, their customers and financial services they choose to permission their data. Kabbage applauds the CFPB guidelines, small business owners should control how, where and with whom their data is shared to best serve their needs. Security is the primary concern, as it should when handling customers’ data. All entities, from fintechs to data aggregators should be held accountable to the same security standards as banks,” Treyger said.
She also pointed to a mobile push in yet another sign that the industry has turned a corner. “Anticipate greater adoption in mobile lending. Today, approximately 20% of Kabbage’s originations come from mobile. We’re the only provider that allows its customers to apply, qualify and draw funding from a mobile app; we have seen growth and expect to see more in 2018,” she said.
Kabbage’s Global Ambitions
Meanwhile, as Kabbage sets its sights on global expansion, they’ve tapped a C-Suite executive from the consumer goods industry who has held leadership roles across North America, Europe and Asia. Robert Sharpe was tapped for the newly created position of COO at Kabbage. Most recently, Sharpe served as president and COO at National DCP, LLC, a supply chain management company. He has also led CSM Bakery Solutions and Spain’s Campofrio Food Group, serving as chief executive at both companies.
According to the press release: “Sharpe will be responsible for Kabbage’s continued growth and operational oversight as the company expands internationally and scales its services to serve more and larger small businesses.”
As Kabbage readies its 2018 roadmap, notwithstanding its $200 million revolving credit facility with Credit Suisse in November, don’t be surprised to see them revisit the capital markets.
“Continuing to diversify our funding options for small business lending is certainly of interest,” noted Treyger.
DataMerch.com Surges Past 10,000 Records
November 28, 2017
Tampa, FL, November 28, 2017 – Today, DataMerch.com, an online underwriting database for the alternative financing industry, announced that they have surpassed over 10,000 records in their database. After creating the online database only 2 years ago, DataMerch has experienced rapid growth in users and records to reach this milestone.
Director of Credit Risk Management at 1 st Merchant Funding LLC Dylan Edwards commented, “DataMerch has been an excellent resource for 1 st Merchant. We’ve been able to get additional information on potential clients that we wouldn’t have had otherwise. This really helps our underwriting decisions and adds another layer of safeguard. It’s something our industry needed for a long time.”
“DataMerch has been an excellent resource for 1st Merchant. We’ve been able to get additional information on potential clients that we wouldn’t have had otherwise.”
– Dylan Edwards, Director of Credit Risk Management at 1st Merchant Funding
“We make it easy for our members to search and enter records on our platform,” said Co-Founder Scott Williams. “Members can easily enter records manually, send us an excel spreadsheet for mass uploads, or they can integrate their underwriting software using our API to automate the process.” Scott added, “We are thrilled to see the enthusiasm and positive feedback we have received. Funders see the value DataMerch brings by revealing if a future client has a bad track record in the alternative funding industry. DataMerch can literally save a funder hundreds of thousands of dollars; that’s why we have been able to grow so much in the first few years. We expect the growth of members and records to continue to grow at a rapid pace.”
DataMerch’s leadership said they plan to continue to add new features and improvements to their platform. DataMerch currently offers members fraud alerts, API access, unlimited searches and uploads, personal support, and more. They plan to offer data reporting and analytics for trends within different categories soon.
About DataMerch
DataMerch LLC was founded in 2015 and is designed to help Funders determine if a future client of theirs has a bad track record in the alternative finance industry. DataMerch members can scrub their files using DataMerch’s specifically designed FEIN search and enter unsatisfactory businesses into the database. DataMerch currently has over 40 industry-leading subscribed members working together as a community. DataMerch continues to grow subscriber base and record count daily. DataMerch can be accessed at https://www.datamerch.com and contacted at support@datamerch.com
Source: DataMerch LLC
