Texas Commercial Sales-Based Financing Bill Gets Last Minute ACH Ban Amendment
May 27, 2025The Commercial Sales-Based Financing bill that passed through the Texas House of Representatives two weeks ago has now also passed through the Senate, but with a rather controversial amendment. In the Senate version, passed yesterday, and viewable on the right hand side of this document, sales-based financing providers would not be allowed to automatically debit a merchant’s account unless they have a “validly perfected security interest in the recipient’s account under Chapter 9, Business & Commerce Code, with a first priority against the claims of all other persons.” That means any sales-based funding (like an MCA or revenue-based financing loan) would be prohibited from debiting merchants automatically unless they were in true first position. And not just a first position MCA, but first position on all arrangements the merchant has altogether. AND it would have to be perfected in accordance with this statute.
The Senate Amendment:
CERTAIN AUTOMATIC DEBITS PROHIBITED.
A provider or commercial sales-based financing broker may not establish a mechanism for automatically debiting a recipient’s deposit account unless the provider or broker holds a validly perfected security interest in the recipient’s account under Chapter 9, Business & Commerce Code, with a first priority against the claims of all other persons.
Since the main difference between what the Senate and House passed is that one sentence prohibiting automatic debits, they have until June 2nd to decide which version of the passed bill is final.
Sales-based financing is broad. While the term encompasses sales-based purchase transactions (MCAs), firms like Walmart and PayPal engage in loan-based sales-based financing. Both firms, for example, are registered sales-based financing providers in the state of Virginia.
The Texas Senate amendment language is new. It does not resemble anything passed in a state commercial financing disclosure law to date.
An estimated 10% of all sales-based financing in the US takes place with Texas-based businesses.
BriteCap Financial Ramps Up Team, Ready For Growth
December 20, 2024
The stream of announcements coming out of BriteCap Financial garnered notice. It started with news of a $150M credit facility back in August, followed by announcements of a new CEO, CFO, CCO, VPs, and more. The new CEO, Richard Henderson, whose CV includes previous roles at CAN Capital, Marlin Capital Solutions, and Direct Capital, told AltFinanceDaily that the company wanted to have the right team in place to carefully grow the business. BriteCap, which is part of the North Mill family of companies, offers attractive term loans to small businesses.
As part of the plan, the company is looking to add not just new brokers but the right brokers, especially given the upstream programs they offer to merchants. “We’re being very selective on who we onboard,” said Henderson. “We’re trying to make sure that we’ll use that to get to scale, but also to build powerful relationships with those brokers where it’s a true partnership.”
BriteCap has developed an online checkout system to streamline the funding process. It can be configured to work with however the broker is used to working. They’ve focused a lot on the mobile experience so that a merchant need not even be in front of a computer to go through it.
One notable advantage to BriteCap is precisely that affiliation with the North Mill family because it opens up the possibility of not just working capital as a solution but also equipment finance. According to Henderson, the potential crossover between the products works well especially when the deals have been originated in the right context. That context includes the best practices and professionalism that equipment finance brokers typically operate within.
Among the C-suite executives to recently join BriteCap are Pushkar Choudhuri as Chief Financial Officer and David Lafferty as Chief Credit Officer. The timing of everything aligns with the firm’s economic sentiments. Henderson said that he believes optimism is higher now and growing.
“…generally speaking, we’ve seen demand picking up and we have a pretty bullish view on the economy moving forward,” he said. “I think we’re entering into a very good time in our space.”
Rapital Launched to Support SMEs With Challenging Credit Situations
October 14, 2024A new Australia online lender has today been launched in response to evolving SME funding needs.
Rapital is set to transform the financial landscape to support both brokers and SME businesses facing difficulty in securing funding from existing lenders and banks.
Rapital will focus on offering a direct route for clients with challenging credit situations, such as low credit scores, with loans ranging between $5,000 and $250,000. With a focus on offering fast funding, Rapital aims to make decisions in as little as three hours so SMEs can access the cash boost they need quickly.
Access to funding remains an evergreen challenge for Australia’s SME community. According to a survey by Small Business Loans Australia, 90% of businesses indicated they would exercise caution in borrowing more money in 2024. Despite this caution, business loan demand has spiked, as reported by the Australian Financial Review. Rapital has been launched to help bridge the financing gap, providing SMEs that have been denied funding from traditional lenders with the essential cash boost they need to thrive.
Rapital’s ambition is to help turn a “no” into a “yes” for SMEs needing rapid and flexible financing solutions. The service promises an easy, transparent process with quick funding, empowering businesses to thrive and grow. In these challenging operating conditions, it is vital that smaller businesses have access to rapid and flexible capital. Rapital will offer a much-needed financial lifeline to the business profiles and industries that are often rejected by banks and other SME lenders.
About Rapital
Rapital’s mission is to empower businesses of all sizes, credit backgrounds and industries by providing brokers and SMEs with funding solutions tailored to meet the real-world challenges they encounter.
For media inquiries, please contact:
Rapital Media Team
Email: info@rapital.com.au
Website: http://www.rapital.com.au
How Cesar Valero Won The Tournament And Gets Deals Done
October 2, 2024
When Cesar Valero, Business Development Executive at Spartan Capital, sat down at one of the starting poker tables late last month to participate in the kick-off tournament for B2B Finance Expo, it had been almost exactly a year since he last played. His colleague Ryan Capella had finished second that time, which coincidentally had also been for a business event in Las Vegas. But here at B2B in 2024, the Spartan team was competing against a mix of players eager to show off their skills, some of whom play semi-professionally on the side.
According to Valero, they didn’t do any kind of practice ahead of time. “Frank [the CEO] just said ‘make sure you represent,'” he said. And after two and a half hours of impressive play that’s exactly what he did. The dealer and a hired pit boss keeping an eye on all the cards declared Valero the winner where he took home the grand prize gold bracelet and other goodies.
“We were actually really happy because we noticed that–obviously we celebrated a little bit–and then noticed after we’re like, ‘of the top four positions of the last two years, we [Spartan] have two’ that’s pretty good,” Valero said.
But more importantly, at the industry’s largest conference of the year, everyone suddenly knew who Valero was if they didn’t before.
“You can flat out tell them the best marketing at B2B was to win the poker tournament,” Valero said. People came up to him throughout the next two days calling him out by name. “Hey, Cesar!” they shouted, after having heard about his win.
And being the guy everybody wants to talk to is pretty much his job anyway. Spartan Capital provides revenue based financing and works with a large number of referral partners. Valero’s day-to-day is typically spent communicating with ISOs, whether it be phone calls or Zoom calls or in-office meetings, he is catering to what they need and trying to get deals funded. When asked if having a relationship with an ISO is an important part of the job, he said it’s the whole job.
“We’re a fair funder,” he said of Spartan. “We really don’t snub anybody out. Whether you’re the biggest guy in the space or the smallest guy in the space, we’re going to do our best to give you the best customer service we can. Our reps, pretty much nobody is a brand new rep. Everybody’s got experience. They know what they’re talking about.”
“Most deals are pretty straightforward,” he said, “but you always have that 10,15,20% that need a little more love…so it’s a fast paced environment and just try to keep up with it, make sure we’re doing the right service to our customers whether it be an ISO or a [merchant].”
Overall, Valero feels like the industry is on a strong trajectory, especially with tech and e-commerce platforms having rushed in to offer similar funding products to their customers.
“If they’re in it, they see the demand right?” he exclaimed, “and if they’re putting out billions of dollars like I see every quarter in press releases from Amazon or from PayPal or from one of the big players, they’re out there and they’re creating buzz… so better quality borrowers will be flowing in because the need is there across the board.”
Valero isn’t exaggerating about the fast pace. After having gone from the flow of deals to Vegas to even more deals, he couldn’t afford to let our interview about his big win go over the allotted time.
“I got about an hour and 15 minutes to the wire cut-off,” he said emphatically while thanking me for the call. “Let me see if I can do a couple more deals!”
North Mill Sets New Monthly Origination Records in July
August 5, 2024August 5, 2024, NORWALK, CT – North Mill Equipment Finance LLC (“NMEF”), a leading independent commercial equipment lessor headquartered in Norwalk, Connecticut, announced today that the company had a record-breaking month in July as funded volume surged to more than $56 million, an increase in loan and lease originations of 33% from the same period last year.
“We are firing on all cylinders and well poised to continue our growth trajectory,” said David C. Lee, Chairman and CEO, North Mill. “We have a strong capital base, a loyal and ever-expanding group of referral partners who consider NMEF their primary lender, and a diversified portfolio that helps us mitigate the economic woes that plague specific industries like the trucking sector.”
According to Lee, NMEF has been steadily rebalancing its book of business, providing its referral partners with more opportunities to finance a variety of equipment. “Historically, trucking related collateral, both local and long-haul, represented an average of 40% of our originations whereas today it embodies just 15% of what we finance,” he said. “Medical, franchise, and construction collectively now represent almost 60% of our funding volume.” In another pivotal move to diversify, NMEF has grown its vendor program in partnership with referral partners, including banks, captives and other funding sources. In addition to the high watermark in originations, the company’s weighted average FICO reached 735, weighted average yields are north of 13%, and submission approval rates are approaching 60%.
While many equipment lenders have reduced or even ceased funding operations over the past year, NMEF has been selectively adding to its team. Joining the company as an Assistant Vice President, Relationship Manager, is Mary E. Armstrong, CLFP who brings over twenty years of referral partner relationships while holding similar roles at Financial Pacific, Marlin, and Canon. “We are very excited to welcome Mary to the NMEF family of companies,” said Paul Cheslock, VP of Customer Relations, NMEF. “Her reputation is stellar. Brokers, customers, and colleagues alike have commented on her talent, innate sales ability, and professionalism.” Ms. Armstrong reported “making the decision to join NMEF was not difficult. For quite some time, I’ve been aware of NMEF’s reputation as a progressive leader and trailblazer.”
Also joining NMEF is Zacchary Lee, Sr. Analyst, Corporate Development, who will assist the finance team with budgeting, portfolio analytics, and the execution of strategic initiatives. An honors graduate of The Wharton School at the University of Pennsylvania, Mr. Lee brings 5 years of experience in financial services.
About North Mill Equipment Finance
NMEF originates and services small to mid-ticket equipment leases and loans, ranging from $15,000 to $2,500,000 in value. A broker-centric private lender, the company accepts A – C credit qualities and finances transactions for many asset categories including construction, transportation, vocational, medical, manufacturing, technology, franchise, renovation, janitorial and material handling equipment. NMEF is majority owned by an affiliate of InterVest Capital Partners. The company’s headquarters are in Norwalk, CT, with regional offices in Irvine, CA, and Voorhees NJ. For more information, visit www.nmef.com. One of NMEF’s controlled affiliates, BriteCap Financial LLC, is a leading non-bank lender providing small businesses with fast, convenient financing alternatives such as working capital loans since 2003 from its main office in Las Vegas, NV. For more information, visit www.britecap.com.
New Lender Designed to Support Underserved SMEs
July 23, 2024A new specialist lender has today been launched in response to evolving SME funding needs.
Rapital is set to transform the financial landscape to support both brokers and SME businesses facing difficulty in securing funding from existing lenders and banks.
Rapital will focus on offering a direct route for clients with challenging credit situations, such as poor credit, existing loans, CCJs and defaults with loans ranging between £5,000 and £250,000. With a focus on offering fast funding, Rapital aims to make decisions in as little as three hours so SMEs can access the cash boost they need quickly.
Access to funding is an evergreen issue for the UK’s vital SME community, with many struggling to get approval from traditional lenders. Indeed, according to the National Association of Commercial Finance Brokers’ (NACFB) annual lender and broker survey, 32% of new clients successfully funded by its members last year had been previously denied funding elsewhere – a 3% increase from 2022. Rapital has been launched to help close the gap and enable SMEs who might have been denied financing from traditional lenders to get the cash boost they need to succeed.
Rapital’s ambition is to help turn a “no” into a “yes” for SMEs needing rapid and flexible financing solutions. The service promises an easy, transparent process and same-day funding, empowering businesses to thrive and grow. In these challenging operating conditions, it is vital that smaller businesses have access to rapid and flexible capital. Rapital will offer a much-needed financial lifeline to the business profiles and industries that are often rejected by banks and other SME lenders.
About Rapital
Rapital’s mission is to empower businesses of all sizes, credit backgrounds and industries by providing brokers and SMEs with funding solutions tailored to meet the real-world challenges they encounter.
For media inquiries, please contact:
Rapital Media Team
Email: info@rapital.co.uk
Phone: 0161 884 0767
Website: rapital.co.uk
Law Firm Sued Over “Debt Relief” Practices
July 9, 2024Another alleged “debt relief” law firm is under fire by a small business lender. This time the lender is National Funding and their latest lawsuit names not only a borrower that breached a loan agreement as a defendant but also a New York based law firm named J.S. Fritzon Law Firm, P.C.
According to the Complaint filed in San Diego County of California’s Superior Court, after the defendant law firm identifies National Funding’s customers, they contact them, offer to provide debt relief services, and attempt to persuade them to breach their obligations.
“As part of this effort, Non-Borrower Defendants routinely make misleading representations to National Funding’s customers, including by promising to save them money by settling their obligations to National Funding for a discounted amount when Non-Borrower Defendants have no legitimate basis for making such a promise and no reasonable expectation of being able to fulfill such a promise,” it says.
Among the causes of action against that defendant in particular are Intentional Interference with Contractual Relations, Unfair Competition, Conducting Business as a Prorater Without a License, Unauthorized Practice of Law, and Violation of Uniform Voidable Transfer Act.
The case number is 37-2024-00021246-CU-BC-CTL.
Payoneer Funds $80M in MCAs in Q1
June 17, 2024
Payoneer, the digital payments provider that also offers working capital on e-commerce platforms like Walmart Marketplace, originated $80M in merchant cash advances in Q1, according to the company’s recent quarterly earnings report. While the company did not draw attention to this stat, it appears in its Statement of Cash Flows. Payoneer originated $299M in funding to merchants throughout all of 2023, which would put the company below Funding Circle in terms of annual funding volume.
When it comes to Walmart, Payoneer offers up to 140% of a marketplace merchant’s average monthly Walmart volume and factor rates that range from 1.015 to 1.10.
“Payoneer will collect a pre-determined portion of each Walmart payout you receive via ACH bank debit from your bank account,” the website states. “Debits typically take place within 1 business day of each payment received from Walmart.”
The program is not new. The two first announced this relationship in December 2021. At the time, a senior director at Walmart said “Affordable working capital is more important than ever to help our sellers grow their business.”
