Fundworks Completes $30.0 million Investment Grade Notes Offering
May 17, 2022VAN NUYS, CA. MAY 17, 2022: The Fundworks, LLC, a leading a tech-enabled small business finance company, announced today the closing of $30.0 million of Senior Secured Notes to a group of institutional investors. This transaction refinanced the Company’s existing $20.0 million of Senior Secured Notes and provides substantial excess capital to fund the continued growth of its small business funding platform.
“We are very pleased to announce this financing, which will allow us to continue our growth this year after record-setting funding volumes in 2021,“ said Co-Founder and Chief Executive Officer, Evan Smiedt. “This additional capital positions The Fundworks to continue its mission to provide growth capital to small businesses nationwide.”
“Given current volatile markets, we are particularly pleased with the continued support of holders of our previous Note issuance, as well as the participation of new investors in the transaction,“ said Bradley Smiedt, Co-Founder and Chairman.
Brean Capital, LLC served as the Company’s Exclusive Financial Advisor and Placement Agent on the transaction.
About The Fundworks:
The Fundworks is a tech-enabled finance platform providing working capital solutions to merchants to grow their businesses, take advantage of short-term opportunities and fund seasonal business fluctuations. The Company’s proprietary technology platform makes the opaque, time-consuming process of obtaining capital simple, fast and reliable. Since inception, Fundworks has funded more than $425 million to over 8,100 small businesses throughout the United States. The Company is headquartered in Van Nuys, CA.
For more information, please visit: http://www.thefundworks.com
For more information/ questions/ interview requests / media inquiries, please contact:
Evan Smiedt
Email: info@thefundworks.com | Phone: (844) 644-FUND
NovoPayment, Latina-founded BaaS Plans to Expand
April 21, 2022
Novopayment has raised $19 million in Series A financing, led by Fuel Venture Capital and IDC Ventures. The company, which offers digital banking, payment, and card solutions, is planning to grow and expand within current and further US markets while focusing on countries in Latin America and the Caribbean.
CEO and Co-founder Anabel Perez stated, “We define a digital payment as the simple transfer of value from one payment account to another using a digital service such as a mobile device, POS, or computer.”
With the new funding, NovoPayment plans to continue increasing capabilities, introduce new features and functionalities, heighten security, and capitalize on US market opportunities. To accelerate their expansion of current offices in Mexico, Colombia, Peru, Ecuador, and headquarters in Miami, they are adding over 100 new engineers, business development, and product experts to their team. Austin and San Francisco are the first two spots where the branching out will begin.
“Austin and San Francisco are huge hubs for tech innovation and we want to expand there to ensure we attract the best talent for our operations,” Perez discussed. “As we grow in those markets, we’ll assess if we need more boots on the ground in additional states.”
NovoPayment currently holds a strong placement in the LAC region and works with several US clients and partners. This places the company in the right position to broaden in these markets they already have successful track records in.
“Based on our ongoing discussions with clients, we have special insight into the challenges and technology gaps these markets face, and realize the potential to further connect the Americas with a common banking infrastructure. We will be growing our product offerings to enable new data and money flow solutions to account for the increasingly globalized, cloud-based world of financial services,” Perez explained.
As Miami is the “Latin America capital of the US,” NovoPayment holds an advantage as a native of South Florida with the tech scene gravitating towards this region. Miami has served as a gateway to other markets.
“Unlike other companies that are now playing catch up and rushing to the LatAm market, we have a strong foothold and reputation in 14 markets across the Americas,” said Perez. “Establishing those relationships, and understanding the nuances of each market, requires regional expertise that takes time to build.”
Small Business Finance Industry Mulls What’s in The Rearview, Is Optimistic For Rest of 2022
April 14, 2022
The small business finance industry is looking ahead to anticipated growth for the remainder of the year, despite new challenges ahead. With massive government aid fading in the rearview, some industry players now have had the time to consider what the impact of it was as they move onward into the future.
Bob Squiers of Meridian Leads expressed his view on the topic, “a lot of our customers, mostly the ISO shops, many of them converted and started selling and pitching the government programs. So in that sense it kind of helped keep those guys afloat, helped keep our business going. A lot of what we do in the marketing side, translated for those government programs. But then it did also squash the demand for the cash advance.”
In some cases, government funding has helped merchants pay off pre-existing obligations in a timely manner. Matthew Washington, founder and CEO of Moneywell GRP, noted, “An educated business owner is using the financing options available as they see fit for the timing. Someone that is waiting to get an SBA or an EIDL is more susceptible to take a bridge product to get them through that time gap,” he said. “As long as you’re working with the merchant and pushing out good products and you know what is on the rise, I think it has done nothing but help in some cases.”
Trucking became one of the number one fields that made up a large percentage of submissions during the pandemic, industry insiders say. However, with gas prices increasing, business with trucking could go down. Other businesses such as restaurants, where only a third received funding last year from the government, are desperate for funding.
“There’s tons of restaurants left that haven’t yet received their funding. So we could be seeing a lot of exposure in that industry,” stated Michael Yunatan of Specialty Capital. “But overall, I definitely do feel that we’ll be seeing an uptrend in our numbers across the board.”
“We definitely do think the industry is growing as a whole,” said Yunatan. “Even though we are a new player in the space we have been growing.”
Chad Otar, founder and CEO of Lending Valley, said, “We need to keep monitoring the interest rates that are coming up from the Federal Reserve, we need to make sure we’re not heading towards a recession, we need to make sure that we’re able to fully have the capital ready, in order to be able to deploy at a reasonable rate.”
Otar acclaimed the indirect benefit of large tech companies operating in the space with a competing product, arguing that the presence of PayPal and Amazon are helping to bring exposure to the industry overall.
“And now that Kabbage is back as well, since they partnered up with American Express, it’s gonna help us out to be able to push the product more into the mainstream,” said Otar. “So I believe there will be a growth in the industry.”
Maxim Commercial Capital Reports Strong Performance During Q1 2022
April 13, 2022Hard-asset based lender funded better credits, real estate secured cash-out financings
LOS ANGELES, CALIF. (Apr. 13, 2022) – Maxim Commercial Capital (“Maxim”) reported strong results for the first quarter of 2022. The company kicked off the year with record low delinquencies, increased fundings to better credits, and strong demand for cash-out financings secured by real estate and equipment.
“As a closely-held company, we have the luxury of pivoting our business strategy real-time based on market conditions,” said Michael Kianmahd, Executive Vice President. “This benefitted us during the pandemic and continues to serve us and our borrowers during today’s volatile global economic conditions. We continue to invest in our operating infrastructure and are seeking to fill a few key positions.”
Maxim onboarded 40 new finance broker relationships during the first quarter. The lender’s team educated finance brokers on ways to expand their businesses through webinars and the byline article recently published by the AACFB, “Equipment Finance Brokers – Don’t Limit Opportunity! Ask about Real Estate Assets.”
Cash out financings funded during the first quarter include a $340,000 loan to a growing environmental consulting business in New Jersey secured by first liens on the business owners’ primary residence, a rental property purchased with the financing, and business FF&E. An established general contractor and real estate investor in Chicago experiencing customer collections problems borrowed $218,000 from Maxim secured by a first lien on an investment property and second lines on two residential income properties. He used the funds to refinance an expensive MCA loan, complete renovations of an investment property, improve rental properties, and bring a mortgage current.
With continuing record high class 8 truck prices, Maxim loosened credit standards for certain customer categories during the first quarter. Representative truck purchase transactions included a 2019 Peterbilt 579 purchased for $115,692 by a non-CDL owner of two trucks and two years’ time-in-business; a low mileage 2016 Kenworth T800 purchased for $107,283 by a start-up owner-operator homeowner with a 628 FICO and strong bank statements; and a $108,000 2018 Peterbilt 579 replacement truck for an owner-operator with a 766 FICO who appreciated Maxim’s early payoff option.
“Thanks to our diligent team, we exceeded our expectations during the pandemic and are experiencing strong profitability and record low losses,” said Behzad Kianmahd, Chairman and CEO. “We are well-prepared to withstand the continuing global economic crises but hoping for a return to peace in Europe and beyond.”
About Maxim Commercial Capital
Maxim Commercial Capital helps small and mid-sized business owners seize opportunity by providing financing in amounts from $10,000 to $3,000,000 secured by heavy equipment and real estate. Maxim facilitates equipment purchases, provides working capital, and refinances debt for companies across all industries located nationwide. As a leading provider of transportation equipment finance, Maxim funds up to 75% of the acquisition cost of class 8 and class 6 trucks, trailers and reefers for owner-operators and small businesses. Learn more at www.maximcc.com or by calling 877-776-2946.
Contact:
Michael Kianmahd
Maxim Commercial Capital
michael@maximcc.com
(213) 984-2727
Brokers, Funders Find Their Footing and It’s Back to Business
April 12, 2022
For Mike Brooks, CEO of Best Connect Capital, the deal making never stops. A former boxing trainer turned funder said that there are no days off. “I’m always funding, I am always, always funding,” he said.
Recently, Brooks has taken an interest in text message marketing. “I’ve had trouble finding somebody in text marketing,” he said. I was going on the internet and using word of mouth, and I wasn’t really able to connect with anybody. I hooked up with this company [in Miami], and it worked out really well. I already funded a couple of deals.”
Around the industry, brokers and funders have found their footing after Covid. A recent mass gathering in Miami definitely helped push things along. “The second I got off the plane in Miami this year, I saw an old friend, a business associate,” said Brooks. “That was a great connect right there.”
Nicholas Saccone, Senior Funding Advisor at Proto Financial had a similar experience. “Having the opportunity to meet up with some of our partners face-to-face [is] a really cool experience,” said Saccone. “Sometimes it is hard to find time to build relationships with all of our schedules. [Through networking] I’m able to get different perspectives on where the industry is headed and where we are now.”
“Small business lending is on the up and up,” said Frankie DiAntonio, CEO of Lexington Capital, who also ventured down to Miami with his team from Long Island. “With inflation going up, we’re finding that small businesses are outsourcing their need of funding outside the government, and there are companies like us that can come in and take care of them.”
DiAntonio spoke about how important it is to sell legitimacy to both his lenders and staff. “We’re the new kids on the block, we’re a newer company,” he said. Despite the head start his competitors may have, DiAntonio said that old school sales mentalities combined with modern marketing strategies have recently helped his company consistently fund deals and build a book of business.
“We bring in a lot of Google click ads which brings us a lot of leads, but obviously our guys just make phone calls throughout the day, as much as humanly possible,” DiAntonio said. “My guys know what they’re doing, they know the industry, they’re really good on the phones, and they know how to take care of customers.”
AltFinanceDaily is Holding Auditions for First Musical
April 1, 2022April Fools 22
deBanked is thrilled to announce that we will be producing our first musical this summer, A Broker’s Life, a fun and witty twist on the life of a broker while still focusing on everyday reality.
Calling all brokers with dance and/or singing experience! Seeking strong male and female dancers with a ballet/modern dance background. At least 2 years of ballet training is a requirement. Training in tap is a plus! Please wear form fitting clothing appropriate for dancing. Ballet, jazz shoes or bare feet is acceptable for the choreography portion of the audition. Tap shoes must be worn when necessary.
For the singing section please prepare your best 16 bars (approximately 30 seconds with sheet music) accompanied by a jazz or contemporary song about funding small businesses that showcases your vocal range.
We are looking to cast roles of brokers, lenders and extras. The lead broker role must be able to dance and sing. The lead will need to perform multiple solo variations along with vocal pieces. Looking for big personalities, with a large stage presence. Lead casting director John Remming, producer Dean Louis and choreographer Larissa Brulato will be viewing and judging all audition tapes.
Please send us an email with a link to your video to info@debanked.com containing the following:
- Video of yourself performing six eight counts of ballet/modern improvisation, incorporate technique in your variation such as grand jeté battement, pirouette and pirouette a la seconde.
- For the tap portion, improvisation for three counts of eight is acceptable.
- Utilize spacial variety, do not remain stationary.
- If you are auditioning for a singing role, audio in video must be clear.
- Facial expressions for the stage are encouraged.
- Your current headshot and resume as PDF attachments.
Email submissions are due by April 25th.
Second call auditions will be held in person with a dress rehearsal. Costumes and makeup artists will be provided upon call time.
Performer at heart? Think this is the role for you? Apply now to become the musical face of AltFinanceDaily!
April Fools!
AltFinanceDaily Sets Record With Miami Event
March 26, 2022deBanked welcomed nearly 700 attendees in Miami this past Thursday, easily making it the largest AltFinanceDaily CONNECT event in the company’s history. The record registrations put it on par with Broker Fair, the annual conference that takes place in New York City.
More than half of all attendees to AltFinanceDaily CONNECT MIAMI were small business finance brokers.
The mantra heard around the show was that the industry is BACK!
AltFinanceDaily conducted dozens of live interviews on the red carpet, including several with cast members of Equipping The Dream, the industry’s first reality TV show. All interviews will be made available on AltFinanceDaily TV over the course of the week.
We’ll have the full photos and more available as soon as possible! Thank you to everyone who attended, spoke, and sponsored. And stay tuned for more news from AltFinanceDaily. 😎
IOU Financial Originated $161.5M in Loans in 2021
March 22, 2022
IOU Financial is coming off of its biggest year ever. The company has revealed total loan originations of $161.5M for 2021, up nearly 100% year-over-year. The figure puts it ahead of rival Funding Circle USA in 2021, according to origination data compiled by AltFinanceDaily.
In a public statement, IOU President and CEO Robert Gloer said, “The success of IOU’s marketplace strategy announced in 2021 is allowing us to scale up faster than previously possible. We’re proud of the team for breaking new origination records and giving us the extra latitude to further reduce corporate debt.” The latter comment was in reference to the company’s intention to repurchase approximately $1.2 million of its convertible debentures at par.
IOU’s full year 2021 financials are expected to be released next month.
