Related Headlines
| 06/07/2018 | US Business Funding will keep their name |
| 06/05/2018 | Fora acquires stake in US Business Funding |
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Interview with Peter Ribeiro, US Business Funding - With AltFinanceDaily |
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Peter Ribeiro, CEO of US Business Funding – Talks About Experience and Success in 2020
September 17, 2020I recently caught up with Peter Ribeiro, CEO of US Business Funding, based in Santa Ana, California. US Business Funding is quite well known on social media for their company culture.
I asked Ribeiro about what 2020 has been like as a broker in this wild year of 2020 and you can watch it in full below:
US Business Funding Will Retain Name & Special Sauce in Wake of Fora Deal
June 8, 2018Fora Financial’s announcement yesterday that it acquired a sizable stake in US Business Funding (USBF) will create one of the “largest, broadest reaching direct sales organizations in the small business alternative lending space,” the company said in a statement.
USBF is a direct sales and marketing company of about 40 to 50 people. Fora Financial founder and CEO told AltFinanceDaily that his company started working with USBF to obtain leads two years ago and that this acquisition has been in the works for between 12 to 18 months.
Jared Feldman, CEO, Fora Financial“We were looking for a team that does direct sales and marketing that complements what we do,” Feldman said. “And they’re one of the best at [direct marketing] in the business.”
USBF is based in Santa Ana, CA, and has connected customers to financing since 2008, with an emphasis originally on equipment financing. In 2012, they started facilitating working capital deals and that now makes up 85 percent of the company’s business, according to its CEO Peter Ribeiro.
They provide financing solutions ranging from $10,000 to $10 million. Fora Financial, also established in 2008, is a New York-based funding company that funds MCA deals and provides small business loans up to $500,000.
Consistent with yesterday’s announcement, Feldman said that with Fora Financial and USBF combined, they will likely originate $400 million year. Feldman told AltFinanceDaily today that, of this amount, about $300 million should come from direct sales.
“We’re more heavily weighted towards direct sales,” Feldman said.
Formerly a company of 100, the new entity will now include about 150 employees and will share resources like capital, technology and access to help with compliance, Feldman said. USBF will retain its name, location and all of its employees.
“We wouldn’t have done this deal unless Peter [USBF founder and CEO] and his team agreed to stay on,” Feldman said. “They have a fantastic brand and we want to avoid getting in their way. We just want to help them to continue doing what they do.”
Feldman said that while USBF will retain its name, “we’re now a combined entity with an east and west coast operation.”
Fora Financial acquired USBF because it did something unique, and Feldman said that Fora is looking for opportunities to acquire other companies that do uniques things in the financing space.
$400M A Year: Fora Financial / US Business Funding Deal to Make Fora an Originations Leader
June 5, 2018
Fora Financial’s newly acquired stake (a significant one) in US Business Funding will put them on track to originate $400 million a year, the company said. Those numbers will place them on the list with industry titans like BFS Capital, Strategic Funding and National Funding.
The co-founders of Fora were previously featured on AltFinanceDaily’s Jan/Feb 2016 magazine issue.
US Business Funding (USBF), who is based in Santa Ana, CA facilitates different financing products for small businesses including vendor programs, capital equipment loans, and leasing solutions.
“This is an exciting time for all of us at US Business Funding,” said USBF CEO Peter Ribeiro in a published statement. “We have rapidly built one of the top sales organizations in the industry, and now we have the opportunity to leverage the expertise and resources of Fora Financial to fuel our growth even further. Jared and Dan have established Fora Financial as one of the top lenders in the space, and we are motivated to build on our terrific relationship with them to create even more opportunities for our companies to succeed.”
Fundfi Merchant Funding Expands Credit Facility for Second Time This Year, Supporting Record Numbers of Small Businesses
September 19, 2025Revenue-based financing leader continues aggressive growth trajectory as demand for alternative lending solutions surges
New York, NY – Fundfi Merchant Funding, a leading provider of revenue-based financing solutions, announced today the expansion of its credit facility for the second time in 2025, positioning the company to serve an unprecedented number of small and medium-sized businesses across North America. This latest facility increase reflects the company’s continued growth and commitment to supporting small business owners who are increasingly seeking alternatives to traditional lending channels.
The expansion comes at a time when Fundfi Merchant Funding is helping more businesses than ever before, with loan originations reaching new heights as small business owners turn to flexible financing solutions that align with their cash flow patterns rather than requiring fixed monthly payments.
“This second facility expansion in one year demonstrates our unwavering commitment to being there for entrepreneurs when they need capital most,” said Efraim Kandinov, CEO and co-founder. “We’re seeing incredible momentum in our market, and this expansion allows us to maintain our rapid response times while supporting the diverse financing needs of North American small businesses.”
The revenue-based financing model has gained significant traction among business owners who value the flexibility of repayments tied to their revenue performance. Unlike traditional loans, this approach allows businesses to pay more during strong months and less during slower periods, providing crucial breathing room for companies navigating seasonal fluctuations or market uncertainties.
Natasha Dillon, CFO and co-founder, emphasized the strategic timing of the expansion: “We are bullish on the growth of the small business footprint in North America and anticipating tighter lending from more traditional financing avenues. Fundfi is committed to being the reliable capital partner these businesses need to thrive. This facility expansion allows us to maintain our commitment to fast approvals and quick funding, ensuring small businesses can access capital when opportunities are presented.”
The credit facility expansion enables Fundfi Merchant Funding to:
- Accelerate funding timelines for approved businesses
- Support larger financing amounts for established companies
- Expand into new industry verticals and geographic markets
- Maintain competitive rates despite rising market interest rates
As traditional lenders face increasing regulatory pressures and risk management concerns, alternative lending providers like Fundfi Merchant Funding are filling a critical gap in the market. Small businesses, which represent the backbone of the North American economy, often struggle with the lengthy approval processes, extensive documentation requirements, and rigid repayment structures of conventional business loans.
With this second facility expansion in 2025, Fundfi Merchant Funding reinforces its position as a leading alternative to traditional small business lending, continuing to provide entrepreneurs with the flexible capital solutions they need to grow and thrive.
About Fundfi Merchant Funding:
Founded by Efraim Kandinov and Natasha Dillon, Fundfi Merchant Funding is a revenue-based financing company dedicated to providing flexible capital solutions to small and medium-sized businesses across United States and Canada. The company’s innovative approach aligns repayment schedules with business cash flow, offering small businesses an alternative to traditional bank loans. For more information, visit fundfimerchantfunding.com.
Media Contact:
Sasha Kandinov
Fundfi Merchant Funding
sasha@fundfimerchantfunding.com
Shopify Continues to Grow its Merchant Funding Business
May 8, 2025“We continue to grow our capital business and have recently introduced several product innovations that give merchants more choice for how they manage their loans, and how they choose among various loan options,” said Jeff Hoffmeister, CFO of Shopify during the Q1 earnings call.
The company had ~$1.4B in business loan & merchant cash advance receivables on its balance sheet as of March 31, 2025. It purchased & originated $805M worth of business loans in Q1, putting it on pace to surpass the $3B total for all of 2024.
“Shopify Capital is a financing program that offers merchant cash advances and loans to eligible businesses based on the store’s location, history, use and interaction with the Shopify platform,” the company states. It is offered in the US, Australia, Canada, and the UK.
Shopify Capital’s Funding Business Grows in Q2
August 14, 2024Shopify Capital originated ~$700M in business loans and merchant cash advances in Q2. During the earnings call, Shopify CFO Jeff Hoffmeister referred to its Capital division as a “growth business” that had increased in volume. Shopify has otherwise seemed to downplay mention of this division since early last year. In terms of origination volume, the company is still not as big as Enova or Square Loans.
Shopify’s rival, Amazon, used to offer funding to its clients directly as well, but switched to referring its clients to third party lenders earlier this year.
Smart Business Funding Prevails in Trademark Lawsuit
July 3, 2024Smart Business Funding, the trademark owned by Collins Cash Inc, has officially survived a trademark infringement challenge brought by BillFloat Inc dba SmartBiz. Both companies began using their respective marks a decade ago and the two even had a partnership referral agreement at one point. However, in 2020, SmartBiz sent Smart Business Funding a Cease & Desist letter on the basis that it was allegedly infringing on its mark and causing confusion in the market. While they are both engaged in small business financing, each offers different products. SmartBiz eventually filed a lawsuit.
After the original trial went in favor of Smart Business Funding, the decision was re-examined on appeal. There, the United States Court of Appeals for the Ninth Circuit affirmed the original ruling. The Smart Business Funding mark does not infringe upon SmartBiz.
Looking at PayPal’s Business Funding Charge-Offs
June 10, 2024
When PayPal announced a sudden and dramatic pullback on its MCA and business loan operations in the third quarter of 2023, it was surprising news. For instance, the company’s net charge-off rate had been trending downward for years, coming in 7.4% at year-end 2019 right before covid and going down to 4.7% in 2021 and down to 4.5% in 2022. By June 2023, however, that number had somehow soared to 13.3% and by September was 20.4%. At the time, PayPal attributed this shift to “the expansion of acceptable risk parameters in 2022, which resulted in a decline in the overall credit quality of loans outstanding.” Because of how they calculate charge-offs, reducing originations at the same time that charge-offs were peaking made that number look a bit worse than it was. But still…
Although many funding and lending companies have complained of an increase in fraudulent applications in the immediate post-covid era, PayPal’s figures can hardly be attributed to fraud. That’s because their charge-off rate doesn’t even include losses from fraud.
PayPal’s products are very short-term so it was able to rapidly scale back its balance sheet exposure. Total merchant advances and loans outstanding, net of participation interest sold, decreased from $2.1B in Q1 2023 down to $1.2B in Q1 2024. Of the active loans, 88.7% were considered current in Q1 and 4.4% were greater than 90 days beyond their projected payment pace. With the exception of 2020 (when the % > 90 days past expected hit 12.5%), 4.4% is among the worst PayPal has experienced since 2017.
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