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Factors to Look for While Getting Bad Credit or No-Credit-Check Loans

Factors to Look for While Getting Bad Credit or No-Credit-Check Loans

There are still plenty of great no-credit loans out there, but it can be hard to find them when you’re looking for an easy solution. A lot of people with low credit scores get overwhelmed by the process and wind up not realizing that some banks offer better options than others in their search results or even at all.

You can get a loan without a credit check history, but it will be easier for you if your past experience with debt is positive. Here’s how to prepare and what factors may affect the process:

Customer Service Reviews

The problem with previous loans might be that they were not read thoroughly enough. You can find some unsatisfied customers, but this is most likely because you failed to look at all the terms and conditions of their agreement before signing it.

Calculate the Digits Beforehand

Loans are a great way to get the funds you need, but it’s important for borrowers to know how much money they’re requesting. The smallest loan amounts range from $250-500 and most lenders offer at least 1000 dollars up until 2000+.

Repayment Terms

The best way to avoid an interest rate hike is by paying off your loan early. The ideal repayment period begins with 30 days and most lenders offer terms between six months- seven years long, however, it’s smartest for you in the long run if possible try not wait too much later on when rates may change again.

If you want to take out a longer loan, be prepared for the higher interest rates and increased monthly payments.

Interest Rate

If you’re looking for a low-interest rate, then it’s important to know that there are several factors that will influence your interest rates. Some of these include credit score and loan amount; but also repayment term length (in months). For example, an auto purchase with no payments made yet can come at anywhere between 3% – 29%.

Try to maintain a good credit score if you want the lowest possible interest rate and the shortest repayment period.

Time Frame for Repayment

When you need cash quickly, personal loans are a great option. You can choose from various lenders based on your income level and how much they offer in incentives for using autopay or lowering the annual percentage rate (APR).

When paying your loan back, the repayment period depends on whether you prefer smaller monthly payments to make it easier for yourself or larger ones with shorter intervals.

When you have a low monthly payment with an extended repayment period, it’s important to be aware of the higher interest rates that come from such borrowing. You may think your costs won’t increase but in reality, they will when there are smaller payments per month on top of what was originally owed for debt relief-or even just straightforwardly paying off old loans earlier than planned. The ideal range is between 35% and 43%.

There are different ways to get out of debt. One way is by eliminating your mortgage, personal loan payments or car loans and replacing them with a single payment for all three items that will continue throughout the duration on their terms. This can reduce total debts significantly over time if done correctly which makes it worth considering in some situations where there’s an overwhelming amount owed towards any one particular type.

Annual Percentage Rate

The annual percentage rate is the cost to borrow money for a year and includes any fees charged by your lender. Major credit bureaus don’t charge any extra but they do require you to sign up or origination amount before approval can be given.

When you take out a loan, there is an origination fee that will be deducted from your funds. It can range anywhere between 1% and 5%, but some loans have flat rate prices for this component too.

Credit Score

Before applying for a no-credit-check loan, be sure to take an honest look at your credit report. The idea is that you should get the best deal possible and there’s nothing more satisfying than knowing you got something great without having any money upfront.

Additionally, if you have a good history of payments with an existing relationship with a bank, they may approve your loan for a favorable deal.

The speed of loan

The funds from a loan that is not backed by a credit check are available to transfer to your account the day of your application. It could be up to one week in certain instances.

If the lender asks for documentation such as W-2s and pays stubs, you’ll be able to decide the rate of your loan.

Qualification Requirements

Loans that are not based on credit generally require scores of 620 or higher. The highest debt ratio is generally set at 45 percent. The debt ratio is the amount you owe each month in comparison to how much you make.

The majority of lenders require applicants to have a steady income to satisfy their low credit rating, while other lenders prefer those with at least a certain amount of income per year to qualify to receive a loan.

Certain lenders will check your earnings and employment status to determine your capacity to repay the money while others might require additional aspects of your financial life, such as the savings accounts you have.

If you’re deemed suitable in these categories, chances are you’ll be a reliable applicant if you require an unchecked credit check but no history of debt.

In addition, many lenders require a co-signer who can get a lower rate of interest if they have high earnings and credit.

A co-signer is required in case you do default. But, this could result in a negative relationship and a damaged credit score for the co-signer. So, you should be clear about the conditions.

Costs, Penalties, and Fines

The penalties and fees are charged if you don’t repay the loan within the deadline. They can include fees for charges for origination fees, returned checks as well as prepayment fees and late fees, fees for insufficient funds as well as processing charges.

Origination fees are the charges to facilitate the loan process with the lender. However, there are a few lenders that have this charge. The ones that do, however, usually charge an interval of 1% to the range of 6% to 1%.

The penalty for prepayment could be a huge drain on the savings you have made. But, it is contingent upon the lender and is typically an amount equal to the extra interest charges from the previous month.

While some lenders might offer grace periods, however, you’re likely to be assessed late fees by nearly all lenders. The way to address the issue is to get in touch with your lender and discuss the matter before you’re already late.

Not to be forgotten is the fee for returned payments The amount can vary, but it is generally approximately $15.

Impact of Personal Loans to Credit Score

It is crucial to realize the fact that having an installment loan will not directly improve your credit rating of yours. A personal loan that is used to settle the debt you have revolving you make changes visible to your credit rating of yours.

Personal loans are categorized as installment credit while credit cards are considered credit cards that are revolving. By using these two kinds of credit, you’ll be able to increase your credit score overall.

Discussions suggest that an eclectic credit mix may not always compensate for all the losses; however when you include an installment loan it, such as an auto loan or mortgage and so on. It could improve your credit score in general.

A free course helping people in the Thomasville community become small business owners

THOMASVILLE, Ga. (WTXL) – The Trade Town of Thomasville is partnering with the University of Georgia Small Business Development Center to provide resources to help people start a business.

Alyssa Foskey works for UGA.

“We understand that small businesses need help, and they don’t always know where to turn, and we want to be a resource in our community,” said Alyssa Foskey.

Foskey has helped hundreds of small business owners across Georgia.

Ansley Lacey of the Thomasville Chamber of Commerce told ABC that 27 people in this city are creative but need guidance as they embark on the path to entrepreneurship.

“It helps them learn the steps first, know who to talk to, and know exactly what they need to get started,” says Ansley Lacey.

Lacey said “Imagine Start a Business Class” serves as a one-stop-shop with multiple resources from different organizations in Thomasville.

“It helped me grow,” Logan Smith said.

Logan Smith is from Thomasville.

He turned his online business selling dog beds, wooden items and storefront furniture.

He said he received tools on financing, building your team, marketing, and understanding your local target market.

“You can spend days and days and days researching this stuff and they take the importance of this course and cut it down to an hour, hour and a half to hit all the high marks,” Smith said.

Sixty minutes of your day for a lifetime of success.

Imagine Start a Business Class is Wednesday, June 8and.

For more information on registration, go to Imagine starting a business class.

SBG Funding obtains the prestigious Great Place to Work Certification™

NEW YORK, May 17, 2022 /PRNewswire/ — SBG Funding announces that it was recently certified by Great Place to Work® as one of the Nation’s Top Employers in 2022.

A Great Place to Work™ Certified is recognized worldwide by employees and employers and is the global benchmark for identifying and recognizing exceptional employee experience. But becoming a Great Place to Work-Certified™ is no small feat. The prestigious award is entirely based on what current employees report about their experience working at SBG Funding. This year, 87% of employees say SBG is a great place to work, compared to just 57% of employees at a typical US company.

The certification reinforces SBG’s commitment to creating a positive and supportive workplace where all team members not only feel valued as individuals, but also feel heard within a group. In the benchmark employee engagement study, over 96% of employees responded that they are treated as full members at SBG Funding regardless of their position, special events are celebrated and they receive the resources and equipment needed to do their jobs.

The company’s employee-centric culture features happy hours, exciting sales contests with lucrative prizes, office celebrations, catered lunches, training stipends, and numerous events to promote a collaborative work environment and team oriented.

Despite a pandemic and the Great Resignation, SBG Funding has been able to continue to grow its workforce over the past 24 months by cultivating a flexible, fun, inclusive and supportive corporate culture. Jeffrey Sachsfounder and CEO of SBG Funding, explains, “We are proud to have grown our team by 70% over the past year. As small businesses continue to rebound and grow from the pandemic, it is important for We expect to be strengthened to support them in any way possible.With demand for growth capital at an all-time high, we plan to double our team over the next 12 months to better serve our growing customer base.

About SBG Funding

SBG Funding is a leader in alternative financing, providing innovative solutions to small businesses nationwide. Our Solution Match technology and customer-centric approach create the perfect balance between automation and personalization, delivering tailored options and best-in-class service to our customers. Our diverse network of financial service providers enables us to serve businesses of all credit profiles and industries, with a wide range of financing needs. To learn more about SBG financing, visit https://sbgfunding.com/

CONTACT: SBG Financing, [email protected]844-284-2725


Apple will let App Store developers quietly squeeze you for extra cash

Apple has told App Store developers that they will now be able to automatically pass on subscription price increases to consumers.

Previously, when a subscription price was increased, subscribers had to opt-in by tapping the “Accept new price” icon before the price increase was applied, otherwise the subscription would not renew at the next billing period.

The change is sure to alarm some App Store customers. However, Apple has reassured users that the new change to its payment system will only work under certain specific conditions and with notice.

App Store Subscriptions

Apple says the specific terms of this change to its merchant services are that the price increase occur no more than once a year, no more than $5, and 50% of the subscription price, or $50 and 50% for an annual subscription price, and is permitted by local law.

Users will be notified in advance of the increase in these situations via email, push notification or in-app message.

Apple says the current system has resulted in some services being unintentionally terminated for users, meaning they have to take steps to resubscribe in the app.

This isn’t the first App Store update from the consumer tech giant that is unlikely to be welcomed with open arms.

For example, the company recently announced that developers of smartphone apps that have not been updated in the past three years will receive an email telling them that their app has been flagged for removal from the App Store.

This decision has caused the ire of many developers, who claim that many applications can exist in a complete form and do not require repeated updates.

U.S. Revises Cuban Policy, Eases Remittance and Travel Restrictions

A vintage car drives past the U.S. Embassy in Havana, Cuba October 30, 2020. Picture taken October 30, 2020. REUTERS/Alexandre Meneghini/File Photo

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WASHINGTON, May 16 (Reuters) – The United States on Monday announced a series of moves to overhaul its policy toward Cuba, including easing some Trump-era restrictions on family remittances and travel on the island and greatly increasing US visa processing for Cubans. .

The measures, which were rolled out after lengthy review by the US government, mark the most significant shifts in the US approach to Havana since President Joe Biden took office in January 2021.

But the announcement failed to return U.S.-Cuban relations to the historic rapprochement orchestrated by former President Barack Obama, under whom Biden served as vice president. This included a looser flow of remittances, fewer travel restrictions and faster visa services.

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U.S. State Department spokesman Ned Price said in a statement that the measures announced Monday were intended to “further support the Cuban people, providing them with additional tools to lead a life free from oppression of the Cuban government and to seek greater economic opportunities”.

The State Department said the United States would lift the cap on family remittances, previously set at $1,000 per quarter, and allow remittances to non-family members.

But he made it clear that the United States would not remove entities from the Cuba Restricted List, a State Department list of government- and military-aligned Cuban companies with which U.S. businesses and citizens are not not allowed to do business.

“We will ensure that remittances flow more freely to the Cuban people, without enriching those who commit human rights abuses,” an administration official said.

The United States will use “electronic payment processors” for remittances to avoid funds going directly to the Cuban government, an official said, adding that the United States had already engaged with the Cuban government “to establish a civilian processor for this”.

Biden officials have been aware that easing restrictions on the communist-ruled island could lead to political fallout from conservative Cuban Americans, a key voting bloc in South Florida that has primarily supported the government’s hardline policies. former President Donald Trump with regard to Cuba.

Senator Bob Menendez, Democratic Chairman of the Senate Foreign Relations Committee, said in a statement: “Today’s announcement risks sending the wrong message to the wrong people, at the wrong time and for all the wrong reasons. .”

Trump has reduced visa processing, restricted remittances, cut flights and increased barriers for US citizens seeking to travel to Cuba for anything other than family visits.

There were few details on how the new policy would be implemented, but officials said the measures would be implemented over the next few weeks.

Cuban Foreign Minister Bruno Rodriguez, in a post on Twitter, called the US announcement a “limited step in the right direction.”

“The decision does not change the embargo, the fraudulent inclusion (of Cuba) on a list of state sponsors of terrorism or most of Trump’s measures of maximum coercive pressure that still affect the Cuban people,” he said. he declared.


Among the changes is a plan to restore Cuba’s parole program for family reunification, which had provided a legal way for Cuban families to reunite in the United States, and to increase the capacity of consular services.

Washington will aim to issue 20,000 immigrant visas a year, the official said, in accordance with a migration agreement. The Biden administration is looking to increase embassy staff to handle the backlog, but it’s unclear how and when that might happen.

The U.S. Embassy in Havana began issuing a trickle of immigrant visas to Cubans this month, delivering on its earlier promise to restart visa processing on the island after a four-year hiatus.

The Biden administration will also expand authorized travel to Cuba, allowing scheduled and charter flights to use airports other than Havana, according to the State Department.

Washington will also reinstate certain categories of educational group travel, as well as some travel related to business meetings and research.

Individual “person-to-person” travel will not be reinstated, however. The category was eliminated by Trump officials who said it was abused by Americans taking beach vacations.

The United States will also increase support for independent Cuban entrepreneurs, aimed at facilitating Internet access and expanding access to microfinance and training, among other measures.

Biden promised in the 2020 election to re-engage with Cuba. But Havana’s crackdown following widespread protests on the island last July has instead led to sanctions against Cuban officials.

The Cuban government blamed the protests on US interference.

“We continue to call on the Cuban government to immediately release political prisoners, respect the fundamental freedoms of the Cuban people, and allow the Cuban people to determine their own future,” Price said.

The officials said no decision had been made on whether to invite Cuba to the Summit of the Americas hosted by the United States next month. Mexico and others have threatened not to participate unless all countries in the Americas are invited. Read more

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Reporting by Daphne Psaledakis, Matt Spetalnick and Humeyra Pamuk; Additional reporting by Patricia Zengerle in Washington and David Sherwood in Havana; Editing by Mary Milliken and Rosalba O’Brien

Our standards: The Thomson Reuters Trust Principles.

SME Chatroom: Banks may write off import entry in IDPMS due to quality issues

Q. We are export merchants. We source various items from local parties and export under the Duty Drawback (AIR) and RoDTEP programs. Sometimes we get very good prices from buyers for various reasons, including our negotiating skills. But our shipments are often detained by customs on the grounds that the price at which we export is more than 150% of the price at which we purchase goods from domestic parties. What are the relevant legal provisions under drawback or other rules, on the basis of which Customs can raise such objections?

Rule 9 of the Central Customs and Excise Duty Drawback Rules, 2017 states that “the amount or rate of drawback determined under Rule 3 shall not exceed one third of the market price of the product of export”. The first reservation to condition (1)(b) in paragraph 2 of Notification No. 76/2021-Cus(NT) dated September 23, 2021, relating to the RoDTEP regime, states that “the value of the said goods for the calculation of the Duty credit to be granted under the program shall be the declared FOB export value of said goods or up to 1.5 times the market price of said goods, whichever is lower”.

Rule 8(2)(iii)(b) of the Customs Valuation (Determination of Value of Export Goods) Rules 2007 states that “the competent officer shall have the power to raise doubts as to the value declared on the basis of certain reasons which may include the significantly higher value compared to the market value of goods of similar nature and quality at the time of export”.

Q. We had imported a sample product on a trial basis in 2017 from a potential supplier. It has not been successfully tested and failed our QC test. No payment was made to the customer as it was only sent for testing/trials. However, the seller didn’t mention sending sample or trial on the invoice. The entry invoice is pending in the IDPMS. Now our bank is asking us to either get a letter from customs stating that the invoice was a test shipping invoice, or make payment for the value shown on the invoice (approximately $3,000) to the party . How to deal with this situation?

Paragraph C.8 (xi) of RBI Master Directive No. 17/2016-17 dated 1 January 2016 (as amended), states that “Tier 1 AD banks may close the BoE for such transactions of import where delisting is in progress account of quality issues; undershipment or destruction of goods by port/customs/sanitary authorities in terms of existing guidance on the matter subject to the presentation of satisfactory documentation by the importer, regardless of the amount involved. AD Bank will settle and close the ORM/BoE with an appropriate “adjustment indicator” in the IDPMS”.

In your case, the delisting is only due to quality issues. Thus, your bank should not hesitate to agree to cancel and close the entry invoice in the IDPMS on the basis of your letter explaining the situation and the appropriate documents in support of your statements.

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Grid Finance obtains 100 million euros from the British company Fasanara to develop loans to SMEs

Grid Finance, a cash advance lender to micro and small businesses, has secured a €100m line of funding from UK alternative asset manager Fasanara Capital as part of its expansion over the next few years.

The funding, which adds to the existing funding partnership with US hedge fund Thiele Capital Management, has allowed Grid Finance to conclude that it will make no return to its original funding pool, the peer-to-peer lending market. peer-to-peer (P2P).

Derek Butler, a PwC-trained accountant who launched Grid in 2014 as a P2P lender after four years working for aid agency Goal in Uganda and Haiti, had long campaigned for regulation of the P2P sector before than the Central Bank unveiled a scheme earlier this year. under the new European Union rules applicable to the industry.

Grid changed its business model in 2019 and left crowdfunding. It now focuses on providing short-term loans to businesses that make money from credit and debit card sales – an area known as merchant card financing.

Mr Butler told the Irish Times in recent days that the company would not return to the P2P market.

Interest rate

Grid has loaned around €10m in each of the past two years and expects to underwrite €25m of business in 2022. It currently charges interest rates of 7-12% per annum, depending customer risk.

Mr Butler said the flexibility of his product, which allows borrowers to make lower payments in quiet months, means his lending momentum is “very strong”, even if the underlying demand for credit among SMEs remains weak.

“General credit demand is expected to remain subdued as businesses continue to determine what the post-pandemic economy will look like and they monitor inflation and other macro factors, such as the war in Ukraine,” he said. he declares.

“This is a very uncertain environment for small business owner decision-making.”

Francesco Filia, Managing Director of Fasanara, said: “Grid Finance serves a large, addressable and often underserved demographic in the SME sector in Ireland. We are delighted to begin working closely with Grid Finance and its management team, with the aim of becoming their strategic debt financing partner and helping them scale in Ireland and beyond in the future.

Grid, which appointed former Treasury Secretary General John Moran as chairman in January, is expected to be profitable in 2022 for the third consecutive year, according to Mr Butler.

Pareteum will use the voluntary Chapter 11 process to facilitate an effective sales process and position the company for long-term success; The company will maintain operations as usual

Continues to empower enterprises, communication service providers, early career innovators, developers, Internet of Things (IoT) and telecommunications infrastructure providers

Get into the Chapter 11 process with $6 million of DIP funding committed

NEW YORK, May 15, 2022 /PRNewswire/ — Pareum Corporation (OTC: TEUM) and certain affiliates (collectively, “Pareteum” or the “Company”), a global Cloud Communications-Platform-as-a-Service (CPaaS) company, today announced that the Company has filed a filing for voluntary protection under Chapter 11 of the United States Bankruptcy Code (“Chapter 11”) in United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). The Company intends to execute a strategic asset sale under Section 363 of the Bankruptcy Code while addressing legacy issues to best position the business for future success.

Pareteum company logo.

Prior to the filing of the Company’s Chapter 11 cases, the Company’s Board of Directors and management evaluated a wide range of strategic alternatives and implemented a strategic asset sale strategy. After an extensive marketing process to secure a “hot bidder” for a court-supervised sale process and following arm’s length negotiations, Circles MVNE Pte. (“Circles”) has partnered with Channel Ventures Group, LLC (“CVG”) to enter into a stalking horse asset purchase agreement for substantially all of the Company’s assets. Circles has agreed to acquire the company’s Mobile Virtual Network Enabler (MVNE) business and related contracts, and CVG has agreed to acquire the Mobile Virtual Network Operator (MVNO), IDM, iPass and Small and Medium Business Enterprise businesses (SMB) of the company and associated contracts. These agreements are subject to higher and better offers, among other conditions, and bankruptcy court approval.

The company plans to continue business as usual during the Chapter 11 process and complete the process quickly. To help fund and protect its operations, Pareteum has received a pledge from Circles for up to $6 million in debtor-in-possession (“DIP”) financing. Upon bankruptcy court approval, DIP financing, along with normal operating cash flow and the consensual use of cash collateral, will fund post-petition operations and costs on normal terms.

“Pareteum has faced many challenges over the past few years, particularly in light of the rising cost of capital and the COVID-19 pandemic, and has worked hard to address legacy issues from the business while moving forward to lay the foundation for future growth,” Bart said. Weijermars, acting CEO of Pareteum. “Despite our business challenges, our products and services that we provide to customers remain strong and relevant in this competitive industry. We look forward to using this process to position our business for sustainable future success across all of our business segments. activity. By taking the decisive and positive decisions of today’s milestone, we are confident that under new ownership, the business can be better positioned to grow and achieve the necessary scale and full potential. In the meantime, we will continue to put the needs of our customers first, and I am grateful to everyone at Pareteum who works tirelessly to provide top-notch products and services to our global customer base. I would also like to express my deepest gratitude to our valued customers. with whom we are honored to associate ourselves.

The company has filed customary petitions in the bankruptcy court seeking to allow Pareteum to maintain normal course operations, including but not limited to payment of employees and continuation of employee benefit programs. existing ones, meeting commitments to customers and meeting future obligations, including supplier payments. . Such motions are typical of the Chapter 11 process, and Pareteum anticipates that they will be heard in the early days of its Chapter 11 cases.

For more information about the company’s Chapter 11 cases, including claims information, please visit www.kccllc.net/pareteum or contact KCC, the Company’s Notice and Claims Agent, at 888-201-2205 (for the United States and Canada calls) or 310-751-1839 (for chargeable international calls).

King & Spalding LLP is acting as legal advisor, FTI Capital Advisors, LLC as investment banker and FTI Consulting as restructuring advisor for Pareteum.

About Pareteum Corporation

Pareteum is a cloud software communication platform company whose mission is to connect every person and every (thing)MT. As a global communications platform-as-a-service (CPaaS) solutions provider with operations in North America, Latin America, Europe, Middle East and Africaand Asia Pacific regions, Pareteum gives enterprises, communications service providers, early-stage innovators, developers, Internet of Things (IoT) and telecommunications infrastructure providers the freedom and control to create, deliver and scale innovative communication experiences. The Pareteum platform connects people and devices around the world using the secure, ubiquitous and highly scalable solution to deliver data, voice, video, SMS/text messaging, media and content activation. For more information, please visit www.pareteum.com and follow the company on LinkedIn.

Forward-looking statements

Certain statements in this release constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Except for historical matters, the matters discussed in this release are forward-looking statements. We have based these forward-looking statements on our current expectations and projections regarding future events. Forward-looking statements are generally identified by words such as “believe”, “expect”, “anticipate”, “intend”, “estimate”, “plan”, “project”, “should”, “will”, “would” and other similar expressions. In addition, any statement that refers to expectations or other characterizations of future events or circumstances is a forward-looking statement. However, our actual results may differ materially from those contained or implied by these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: risks and uncertainties associated with the integration of assets and operations that we have acquired and that we may acquire in the future; our possible inability to raise additional capital that will be needed to expand our operations; the substantial doubt about our ability to continue our activity expressed in the last report on our audited financial statements; our failure to file required periodic reports on a timely basis; our potential lack of revenue growth; the length of our sales cycle; ongoing SEC investigations and other lawsuits; the outbreak and impact of the novel coronavirus (COVID-19) on the global economy and our business, including the impact on global supply chains; risks related to market disruptions resulting from Russia invasion of Ukraine and the penalties imposed on Russia Therefore; our potential inability to add new products and services that will be necessary to generate increased sales; our potential inability to successfully develop and commercialize platforms or services or our inability to obtain adequate financing to implement or expand our business; our ability to successfully remedy the material weakness in our internal control over financial reporting within the time and in the manner currently anticipated; the effectiveness of our internal control over financial reporting, including the identification of additional control deficiencies; risks relating to restrictions and covenants in our convertible credit facility that could adversely affect our business; risks related to our current non-compliance with certain terms of our senior secured convertible debt; our potential loss of key personnel and our ability to find qualified personnel; international, national, regional and local economic political changes, political risks and risks relating to global tariffs and import/export regulations; fluctuations in foreign currency exchange rates; our potential inability to use and protect our intellectual property; risks related to our ongoing investments in research and development, product defects or software errors, or cybersecurity threats; general economic and market conditions; regulatory risks and the potential consequences of failure to comply with applicable laws and regulations; increases in operating expenses associated with the growth of our business; risks relating to our share capital, including the potentially dilutive effect of the issuance of additional shares and the fact that shares eligible for future sale may adversely affect the market for our common stock; the possibility of changes in telecommunications rates and changes in technology; disruptions to our networks and infrastructure; the potential for increased competition and the risks of competing with major competitors that are larger than us; our positioning in the market as a small supplier; risks resulting from the restatement of certain of our financial statements; and other risks discussed in our Form 10-K for the year ended December 31, 2020. Except to the extent required by applicable law or rule, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Investor & Media Inquiries:
[email protected]



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SOURCEPareteum Corporation

12 things you can buy with bitcoin

In our day-to-day lives, most of us use traditional currencies to pay for products and services, whether by card, cash, or even over the phone. But now you can pay for a wide variety of things using Bitcoin, the world’s first and most valuable cryptocurrency. So what exactly can you buy with your Bitcoin funds?

1. A car

Looking for a new ride? Well, you might be able to use your Bitcoin to buy the one you covet. While not every car manufacturer or dealership accepts cryptocurrency payments, many do, including AutoCoinCars, Post Oak Motor Cars, and BitCars.

One thing to note here is that Tesla does not accept Bitcoin. Many believe you can use Bitcoin to buy a Tesla because company owner Elon Musk has back and forth on the decision to do so. However, at the moment Dogecoin is the only cryptocurrency that Tesla accepts for payment.

2. Your morning coffee

That’s right; now you can even buy a simple cup of coffee using Bitcoin. In 2021, Starbucks, one of the most popular and widespread coffeehouse chains in the world, partnered with the Bakkt digital wallet to enable Bitcoin payments at checkout. Customers simply add their Bakkt digital wallet to their Starbucks app, and they can pay quickly and easily using Bitcoin at any Starbucks location.


3. Gift cards

Although you can’t buy whatever you want directly with Bitcoin, you can get around this problem by buying gift cards using crypto, which you can then use to pay for a number of products or services in the traditional way. .

A particularly popular site used to buy gift cards with crypto is known as Bitrefill. Bitrefill lets you buy gift cards for thousands of brands using your Bitcoin, including Amazon, Xbox, Steam, Nike, and even Uber. But it does not stop there. You can also buy gift cards on Bitrefill with Litecoin, Ethereum, etc.

You can also buy gift cards with your crypto on CoinGate, CryptoRefills, and eGifter.

4. Electronics

Need a new laptop? Looking for a new smartphone? If you have bitcoin funds stored, you can use them to purchase technology products.

One of the biggest tech companies currently accepting bitcoin payments is Newegg. Along with several other altcoins, Newegg enables bitcoin payments through BitPay, a crypto payment processing application. But it is important to note that Newegg does not offer refunds for purchases made through BitPay.

Several other companies also accept Bitcoin payments to purchase technology products, such as Crypto Emporium. You can even sell your technology for crypto on this site.

5. Grocery

Heading out for your weekly groceries? You may be able to use Bitcoin to pay for this. You can either purchase a gift card for your selected grocery store or through a payment processing app.

There are many different grocery gift cards you can buy with your Bitcoin, including those from Whole Foods, Walmart, and Kroger. Wholefoods used to accept crypto payments directly, but unfortunately this is no longer the case.

6. Games

If you love both gambling and crypto, now you can merge the two. There are many ways to buy games using crypto. You can purchase a gift card online for the provider of your choice, such as Steam, PlayStation, or Xbox, or you can use a dedicated website that accepts game payments via crypto.

Joltfun is a great example of a website that accepts Bitcoin for game purchases. Using this site, you can either purchase keys for specific games or add funds to another game provider’s wallet. You will then receive an email with the key code when purchasing a key. You can then use it to activate the game on a supported platform. Other sites, such as Keys4Coins, also offer the same service.

7. Subscriptions

You cannot only buy physical products with Bitcoin. You can also buy subscriptions! Whether you want to sign up for a VPN provider, cloud storage, or even a streaming service, you can use your Bitcoin to do so.

While some subscription services accept bitcoin payments directly, you’ll need to go through a gift card channel for others. For example, you can pay for an ExpressVPN subscription on the company’s site using your Bitcoin, but you’ll need to purchase a gift card to pay for a Netflix subscription with your crypto.

8. Flights

Who would have thought that the day would come when you could travel the world using your crypto? If you’re looking to hop on a plane without using traditional cash, now you can.

There are some websites you can use to pay for flights using your Bitcoin, including Travala, AlternativeAirlines, and AirBaltic. Additionally, you can buy gift cards for hosting using the sites we mentioned in the third part of this list.

9. Fast food and takeaway

If you’re looking to grab a quick bite or book yourself a nice dinner, you might be able to use your Bitcoin funds to do so. Starbucks, Burger King, and select Subway locations all accept Bitcoin as payment, and you can also purchase gift cards with your crypto to pay for takeout through Uber Eats, DoorDash, and Deliveroo.

10. Clothing

Currently, there aren’t a huge number of apparel companies that accept bitcoin payments, but there are still a few that do, including Norstrom Rack, Etsy (for some sellers), and Pacsun.

Many clothing companies that accept Bitcoin use payment processors, like BitPay, to facilitate purchases, so you’ll want to check what you need to do before trying to use Bitcoin to buy clothing from these sellers.

Want to spruce up your interior a bit? You can now use Bitcoin to do this. One of the largest hardware stores in the United States, Home Depot, accepts bitcoin payments through payment processor Flexa. With Flexa checkouts now installed in their stores, Home Depot makes it easy for individuals to pay for home improvement and hardware products using their Bitcoin.

12. Household items

Since Home Depot also carries a line of household items, you can pick up some great additions for your home at your local store. In addition to this, you can also go to Overstock’s online store to buy household items with Bitcoin, as it offers a wide range of different products that you can use to beautify your living space.

As Bitcoin becomes more widely accepted, more businesses are beginning to adopt it as a payment method. One day, cryptocurrency payments may become commonplace, and all your favorite brands will follow. But, for now, you can still buy great products and services using your decentralized money.

Illustration of various cryptocurrencies

Top 10 Companies That Accept Cryptocurrency Payments

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Giants rookie minicamp observations (Day 2): Evan Neal at RT, Kayvon Thibodeaux as class clown, UDFA standing out, more

As the Giants’ draft picks, undrafted free agents, tryouts and a few veterans left the practice field at the end of a mini-training camp on Saturday, they were rounded up by members of the team staff for a group photo with coach Brian Daboll. With each photo, the group diminished.

From the 85 players present, to the 24 players drafted or signed as UDFA, to the draft class of 11 players, alongside Daboll and general manager Joe Schoen.

Sunday is the last day of rookie minicamp, but there will be no fieldwork. Then most of those 85 players will retire and veterans will start arriving for voluntary OTAs on Monday. For rookies, this is where things get serious — where they start to see how they compare to NFL players.

And the Giants, on a roster full of holes, need these young players to learn quickly. Most of them will have to contribute immediately — especially the faces of the draft class, defensive end Kayvon Thibodeaux and offensive tackle Evan Neal, who stood center for all three group photos.

Here are some observations from the second practice of the rookie minicamp, the last on the field before the voluntary OTAs and mandatory veteran minicamp take place next month:

Kayvon Thibodeaux, class clown: At one point, the Giants team photographer yelled at the group of players to disperse. Thibodeaux yelled at her, “But I thought we had to love each other!” In each photo, he had the widest smile and even joked that his mouth hurt from smiling. Thibodeaux has already won over many Giants fans, and it’s easy to see why — he says all the right things (so far) and always seems to be having fun.

Evan Neal at right tackle: It’s no secret that the Giants brought Neal out of Alabama to hook him up at right tackle, so that’s where he’s been training for the past two days. He will be able to train for the first time with left tackle Andrew Thomas in the coming weeks. Neal played left tackle at Alabama in 2021 but was right tackle in 2020 — and his experience there is part of what won him over to the Giants in the NFL Draft.

“It was great to come back out there in the right tackle position,” Neal said on Saturday. “It brought back a good nostalgia.”

Daboll said the biggest transition from Alabama to the NFL for Neal mostly comes from who he’s going to line up with, elite athletes and passers just about every week.

“There are a lot of things he’s going to have to learn and keep developing,” Daboll said. “He’s a mature young man, he’s played in a lot of different places, I think that will help him in terms of his outlook too. But as a rookie you have a long way to go with everything.

Undrafted standout free agent: No one can really stand out at rookie minicamp because it’s such a light practice with mostly drill work and limited attack vs defense activity, but it looks like at least one UDFA is helping themselves up Now: Florida State running back Jashaun Corbin.

“Sporty. I had a quick twitch,” Daboll said. “He had a pretty good day yesterday and stood out a bit.”

Corbin was projected as a late draft pick, but the Giants picked him up in undrafted free agency. He has a legitimate chance to make the team and become a backup behind Saquon Barkley and veteran Matt Breida, as Gary Brightwell and Antonio Williams are currently his only competition on the roster. Corbin rushed for 887 yards and seven touchdowns in 2021, averaging 6.2 yards per carry.

Quarterback Joe? Maybe not. The Giants only brought one quarterback (Brian Lewerke) to rookie minicamp, so they turned to general manager Joe Schoen – who started his college career at DePauw University as a QB before switch to wide receiver – to help them on Friday. The Giants general manager proudly boasted as he left the practice field on Saturday that he only threw one miss, even though his arm was sore.

He threw no passes on Saturday — that task was left to Lewerke, who spent time on the Giants’ practice squad last year. Wide receiver coach Mike Groh — who played quarterback at Virginia in the 1990s — was throwing passes to his positional group during drills.

But how did Schoen fare on Friday?

“A lot of tight wobblers there,” Daboll said with a smile. “They arrived where they were supposed to arrive.”

Apparently, the original plan was for the Giants to have two quarterbacks. Tre Ford was supposed to be there, by Emory Huntbut instead opted to attend training camp with the Edmonton Elks of the Canadian Football League.

So why not bring in someone other than Lewerke?

“I just thought that was the best thing. He’s been here a while,” Daboll said. “He knows what we’re doing. It takes a while to teach these guys some of these things and he has a pretty good understanding of what we did last month.

Various takeaway meals:

Friday’s practice was more focused on short throws, but Lewerke took a few shots downfield during team drills on Saturday. Pass of the day went to wide receiver Daylen Baldwin, a rookie test catcher from Michigan. Lewerke connected with him on a midfield seam route for a big win for 7v7. Fullback/tight end Jeremiah Room – who has a sneaky good chance of making the team – also caught a pass from Lewerke on a wheelie route.

Close end in round four Daniel Bellinger also got a few targets in midfield, although one was thrown poorly and did not result in a catch. Bellinger will have a legitimate chance to push Ricky Seals Jones and Jordan Akin for game time right away.

A few veterans were watching practice: Cornerback Darnay Holmessecurity Julien Love and security Xavier McKinney. Most defensive backs skipped voluntary OTAs last year to train with Logan Ryan in Florida. Don’t expect anything similar this time around.

Daboll on the offensive tackle of the project Roy Mbaeteka, who is incredibly tall (6-foot-9, 320 pounds) and athletic but has never played football in his life: “The rookies here have played a lot. We start from zero with him and he tries to absorb everything. There is a lot to this post. There are a lot of words and a lot of communication going on. He has a great personality…we have a long way to go.

Daboll has also become a Rangers fan – or at least he plays it for the crowd as someone who grew up around the Sabres.

“Did you see that goal last night?” Dabol said.

Then he loved the Rangers showing the courage to overcome a 3-1 deficit to take the series to seven games against the Penguins.

“You’re down 3-1 in the series, 2-0 in Game 5 and 2-0 in Game 6 and everyone is shutting you out, and what are they doing? They just keep competing,” Daboll said. “Put one after another and then the other team comes back, scores right away, loses some momentum and finishes the game strong. They’re a pretty cool team to watch right now.

Will he be in the crowd for Game 7 on Sunday night?

“I hope so,” he said.

Please sign up now and support the local journalism YOU rely on and trust.

Zack Rosenblatt can be reached at [email protected].

PA SBDC Announces Robert Mineo as 2022 State Star

Robert Mineo

Robert Mineo, director of Lehigh University’s SBDC Funding Assistance Program, was announced as the 2022 State Star for the Pennsylvania Small Business Development Centers (PASBDC). Mineo first joined the Pennsylvania SBDC as a graduate student at Lehigh University, then joined the team full-time after graduation. Since then, he has used his tenure with the Pennsylvania SBDC to become a crucial member of the Lehigh SBDC network and PASBDC as a whole.

“I was very excited and surprised to win this award. It is truly an honor. Knowing well the consultants who have won this award in the past, some who have mentored me and been instrumental in my own growth, the makes it all the more special. Our network has helped so many small business owners in so many different ways, and for me, this award is a reminder of that. I’m lucky that the Small Business Development Center of Lehigh University is a great place to work, and I look forward to supporting our local small business owners for years to come,” said Mineo. “Each year, the America’s Small Business Development Center (ASBDC) network recognizes the most performing nationally at its annual conference.A special presentation honoring the ASBDC 2022 State Stars will be held at the national conference in September.

Ahead of this year’s State Star Award, Mineo’s excellence in the financial industry earned him numerous awards during his time at PASBDC. Since 2014, when it won its first PASBDC capital award, it has ranked at or very near the top of the entire network every year in total capital and/or number of loans guaranteed.

“Rob represents our 100+ business consultants across the Commonwealth through his passion for helping entrepreneurs start, grow and thrive. Rob has established himself as one of our outstanding experts and the top producer in helping clients raise capital,” said Pennsylvania SBDC Director Ernie Post.

In addition to awards and accolades, Robert Mineo has had many direct client impacts during his tenure with PASBDC. One client said in a survey that Mineo “was exceptional in their advice, expertise and patience”. He has many duties, including working with clients to help them understand cash flow projections and realize realistic financing needs. Additionally, Mineo has a great relationship with the lending community and knows what type of financing banks offer to small business owners. Mineo’s close relationship with customers and lenders, combined with his exceptional financial knowledge, validated his nomination for the 2022 State Star Award.

Mineo, through extensive experience, has earned immense respect from both internal and external colleagues. Lehigh Center Director Brett Smith said Mineo is “contributing to the Lehigh SBDC’s success as Fundraising Program Director and still operating at the State Star level. Rob is a consummate professional and he loves his job. The success of its customers is its success. Additionally, Shannon DeGiglio of the SBA Eastern PA District Office says, “Rob is the go-to person many lenders and I have referred clients to for help finding financing over the years. . Rob and I have worked together for about 8 years. During this time, we have worked together on many initiatives to help businesses access capital in the Lehigh Valley. »

For more information see Robert Mineo’s LinkedIn.

The Crypto Crisis Has Been Really Bad For White Nationalists

Installation of a cryptocurrency ATM in a convenience store on May 12, 2022 in Miami, Florida.  Cryptocurrency prices have seen some turbulence recently, as many have seen their value plummet.

Installation of a cryptocurrency ATM in a convenience store on May 12, 2022 in Miami, Florida. Cryptocurrency prices have seen some turbulence recently, as many have seen their value plummet. (Photo by Joe Raedle/Getty Images)

American white nationalist Richard Spencer once called Bitcoin “the currency of the alt-right.”

But now Bitcoin and pretty much every cryptocurrency is in crisis mode, after the loss of the crypto market about $1 trillion in value since November. And some people on far-right message boards don’t take it particularly well.

Cryptocurrency has been a magnet for domestic extremists since payment processors like Stripe and PayPal rushed to warp the far right following the violent Unite the Right rally in Charlottesville in August 2017. A recent survey by Southern Poverty Law Center identified more than 600 crypto addresses with known white supremacists and far-right extremists, with an estimated value in the millions of dollars as Bitcoin’s price skyrocketed over the years.

Today, the global cryptocurrency collapse is creating anxiety, desperation, and frantic posts laying blame on online forums that cater particularly to the hard-right.

To take just one example: A poster on 4chan, a traditional white supremacist hangout, claimed crypto was falling because Jews “want you to lose money like idiots” — in a post that put three parentheses around the word “they” in an online message. coded often used by anti-Semites to refer to Jews.

Meanwhile, the Telegram channel associated with the New Jersey chapter of the far-right Proud Boys, who fight on the streets, shared a fake 4chan company image channel that featured a long row of screaming cartoon faces, with “AAAA” in all caps as the only commentary. (Proud Boys and their former president Enrique Tarrio pushed hard on Dogecoin.)

So-called white nationalist “groypers” have also been major beneficiaries of crypto, especially their leader, Nicholas Fuentes. Its followers lamented the crypto’s collapse in live chat during one of its streaming sessions earlier this week. “Anyone else looking at their portfolio instead of working today?” wrote one viewer with the “Chicago Groyper” handle.

It’s no wonder the cryptocurrency mega-collapse is causing consternation on the far right. The value of Bitcoin and other cryptocurrencies has halved since the end of 2021 as investors fled riskier assets amid economic turmoil that also rocked traditional financial markets.

The result is a sharp reversal of fortune for an asset long favored by the right because of its supposed anonymity and resistance to censorship. .

According to a report by Frontline and the Associated Press.

Today, that same amount of Bitcoin would be worth more like $3.4 million.

Understandably, there is a lot of anxiety now circulating on far-right chat groups.

A user on a Telegram channel associated with Chris Cantwell, sometimes known as “weeping Nazi, a user named Raspberry Pirate wrote, “My crypto wallet looks like shit but I’m still hodling”, using an acronym, “hodl”, which in online circles stands for “Hold on for dear life.”

Meanwhile, on Patriots.win, a gathering place for former President Donald Trump’s mega-fans, a user infamously pointed out that anyone redeemed Bitcoin when famed actor Matt Damon did a Superbowl commercial for the crypto. -cash, they would have lost half their money.

(Disclosure: Gavin McInnes, who founded the Proud Boys in 2016, was co-founder of VICE in 1994. He left the company in 2008 and has not been involved since.)

As Focus Financial shares languish, Rudy Adolf plans $200m buyout, dismisses questions he’s paying too much for RIAs as he avoids ‘drunk sailor deals’

New York rollup buys at private prices then sells at public valuations, but now the CEO is buying stocks at public prices in some ‘privately negotiated transactions’ in hopes of a rebound

Desperate times call for different measures, and Rudy Adolf is betting $200 million that the cheapest RIAs on the planet right now are the ones his company already owns.

Amid soaring interest rates and falling stock prices, Focus Financial’s CEO convinced his board, which he chairs, to approve a $200 million buyout plan for the Company’s Class A common shares.

Matt Crow: “They put their money where their mouth is.”

“The authorization will give us additional flexibility in our capital allocation strategy to invest in the highest return opportunities,” he said.

In other words, the best buy-low, sell-high arbitrage in the options universe exists internally,

Focused Stocks (FOCS) languish around $35 or lower from their July 23, 2018 IPO closing price of $38. The shares were trading at $61 to start 2022, posting a 52-week range between $33.20 and $69.13. The shares closed today up 1.4%, or 48 cents at $34.66.

Canadian company CI Financial, the other big RIA rollup, saw its stock (CIX.TO) caught in a similar downtrend on Wall Street. It hit a 52-week low at $10.66 intraday, before rising slightly to close the day at $10.99, down from $21.33 on Jan. 3 and a 52-week high at $24.52.

New York and Toronto companies have market capitalizations that are just over $2 billion.

Challenging environment

CI Financial is planning a second IPO of its US-based RIA business in a bid to secure a more robust valuation. But the two companies could pull each other down. See: CI Financial’s IPO could make RIA M&A strength nearly unstoppable if it ‘jumps’, but industry insiders see Focus Financial’s stalled stock price as ‘huge headwind’

Adolf’s plan to support stocks is attractive, but it’s also a gamble, says Matt Crow, president of Mercer Capital in Memphis, Tenn.

“Focus has been saying for a while that their stocks are undervalued, and now they’re putting their money where they say,” he says.

Crow adds that Focus needs to be aware of what he’s doing with his dry powder.

“It’s a balancing act, though, because, one, they’re burning through cash that they could use for acquisitions, and two, they have to watch debt levels in a tough operating environment.”

Adolf addressed those concerns, at least in part, in a statement.

“We reiterate our commitment to investing in leading wealth management companies in the United States and strategically important international markets as we seek to grow our global partnership of 85 companies, while maintaining our net leverage ratio in a range of 3.5x to 4.5x,” he said. See: Focus Financial drops record as debt swells above critical ‘4X’ level, then shares tumble to new after-hours low

“We also reaffirm our targets for revenue and Adjusted EBITDA growth of over 20% for 2022 and our progress towards our 2025 targets; we expect that we will continue to benefit from the substantial growth and consolidation Of the industry.”

And yes…

The problem with Adolf’s view is that he assumes headwinds and market pullbacks won’t persist, Crow warns. See: See: Focus Financial CEO puts a damper on the M&A market, waiting for a return to ‘normal’ – and buyers of Focus shares are raising the price as the debt ratio improves

“In a prolonged bear market, revenues will fall. If that happens in concert with rising debt servicing costs – with higher rates – they might wish they had that money.”

Focus obtains a current Wall Street valuation of around $2.3 billion for 85 companies – with an average value of $2.7 million – generating adjusted cash flow of $135 million.

Wall Street analysts asked Adolf if he was paying too high valuations. His answer was categorical.

“We certainly avoided so many, I think I called them ‘drunk sailor deals’, that we saw in the last year.

“And yes, what we’re seeing is that for some of these heavily overvalued trades, buyers are now hurting.

“And, yes, quite frankly, we see – when I look at our pipeline, we see stable multiples, maybe even slightly improving, yes, in how we deploy our capital.

“So we have a very strong pipeline. I can say with confidence that 2022 will be one of our most successful M&A years, again, yeah, probably not quite on the level of last year. , but we will have – one of a very, very successful year.

“And, yes, the multiples are stable, if not improving. And yes, some of them, yes, very over-leveraged, yes, P/E type models and foreign buyers and others, according to this that we can tell, are suffering from, yeah, some of the deals they made last year.”

Based on its market capitalization of $2.3 billion and adjusted EBITDA of $135 million, Focus Financial currently has a P/E multiple of approximately 17. The average P/E ratio for the services sector financials is around 7.6, according to financial benchmarks.

What every CPA should know about disrupted supply chains

Over the past two years, a series of shocks – including factory closures, skyrocketing shipping costs, material and labor shortages, and war in Ukraine – have created a extreme variability for companies in virtually every industry.

These rapid changes have shown that the supply chain, a notoriously complex and technical field, is not reserved for specialists. According to Kimberly Kirkendall, CPA, this is a topic every finance executive should know about as they prepare for years of prolonged disruption.

“I think we’re going to be in a very disrupted environment for a few years,” said Kirkendall, president of International Resource Development. “And in this disrupted environment, the finance-accounting team’s ability to say what the business can and cannot support financially – that’s going to be a critical part of all of those decisions.”

Kirkendall’s career has included a decade in China managing factories, years at a regional CPA firm in the United States, and today at a consulting firm focused on international operations and supply chain. .

“A lot of what I’ve done over the years is really at the intersection of operations, supply chain, accounting and finance,” Kirkendall said.

And the last few years, she said, revealed that there weren’t enough people working at that intersection.

The pandemic has brought obvious physical disruptions – like cargo ships piling up in ports and store shelves emptying – but has also affected businesses’ ability to balance books and manage tax liabilities, and it has created new demands for the financial profession, she says.

In separate interviews, Kirkendall and another CPA supply chain specialist, Al Paul, head of operating model efficiency for the Americas in EY’s national tax department, explained the crisis. chain and urgently advocated for finance leaders to build their supply chain knowledge and capacity.

How does supply chain disruption affect businesses?

The supply chain crisis has created urgent new demands for finance leaders. Businesses are being forced to change where and how they get their products, which means they are forging new business relationships and even new tax regimes. Meanwhile, uncertainty over logistics and pricing creates new challenges for forecasting.

With the supply chain likely to dominate leadership discussions in many companies, it behooves finance leaders to develop their expertise. It starts by looking at the roots of the problem, which extend far beyond the pandemic.

“COVID exacerbated a problem that already existed,” Paul said. In the early post-World War II period, companies “moved to a simple, linear supply chain with a focus on reducing costs, increasing speed, reducing inventory so that it was just in time”..”

This model resulted in supply chains that maximized profits through efficiency. But these arrangements have often sacrificed redundancies — such as inventory buffers or backup vendors — that can help a business through tough times.

Among the most recent major challenges, Kirkendall said, was the “whiplash effect” of COVID-19 — a sort of imbalance between supply and demand. It started when the early stages of the virus outbreak caused Chinese factories to shut down.

The shutdowns led to inventory shortages, leading to panic buying and pent-up demand in the United States. Then Chinese manufacturers responded by sprinting to higher production again. But by the time the goods hit the market, consumer demand had plummeted in many categories due to shutdowns in the United States.

These types of disruptions affect “businesses’ cash flow and how they manage their profitability targets for the year,” Kirkendall said.

Supply chains have also been impacted by rising tariffs in recent years, ongoing COVID shutdowns, as well as the extreme disruption of Russia’s invasion of Ukraine this year. In response to all the challenges, lead times for goods have doubled or tripled and shipping costs in some cases have quadrupled, Kirkendall said.

Extreme variance means finance managers need to adjust their approach to forecasting revenue and expenses. Businesses must now decide whether to spend more money on keeping larger amounts of inventory to minimize disruption. Many are also looking for savings elsewhere as shipping costs increase.

Beyond the short-term turbulence, Paul and Kirkendall see a long-term shift in how companies approach the supply chain. Instead of employing a hyper-efficient and minimalist chain, companies can increasingly rely on a more complex network of suppliers, appealing to manufacturers in many areas, including domestic and near-shore markets. . Companies that relied on products from a single source needed to quickly find additional sources, preferably in more diverse regions.

“Now you have to have something much more complex and networked,” Paul said.

Kirkendall also described a scenario in which companies move to “regional hubs,” with manufacturing and distribution hubs in multiple regional markets. Materials and finished products will be distributed “around the world” and many companies – especially in the tech space – will be more interested in owning or partnering more closely with their suppliers.

“So what does this mean for the business? More capital investments. More assets on your portfolio. Potentially more loans to support additional capital and more complex financing,” he said. she declared.

What does all this mean for finance?

These changes represent an opportunity and a challenge for finance teams and their members, whether they work in accounting firms or within companies.

For example, complex new trade agreements will raise new tax and remittance issues.

“So many times companies will think their problem is a logistics problem or a shipping problem,” Kirkendall said. “Actually, the issue is more complex: how do you move the money for this transaction? What does that mean for customs? … How do they account for the goods in their books?”

Finance, she said, needs to be involved early and often in supply chain changes. In an era of increasing complexity, Paul said, finance must also understand the legal, tax and global business aspects of the supply chain.

“It’s not just about the books,” Paul said. “It’s about how your books match up with what’s actually going on in the business, to properly reflect those activities?”

Each company’s supply chain will raise unique issues, such as force majeure issues in a particular contract. The goal for finance, he said, is to partner with experts in other areas – including indirect taxation and customs and duties – to examine all aspects of a scenario. before making a decision.

How can finance professionals adapt?

Both Paul and Kirkendall emphasized the need to learn the language of supply chain and bring in experts from other specialties. They suggested several ways to do this:

“It just makes you more of an essential resource,” Kirkendall said of networking. Additionally, she said, CPAs from different countries can help finance managers understand local standards for accounting and finance in various segments of the supply chain.

  • Connect with expert advisors. For accountants, clients or professional associations can provide more in-depth education on the issues, Paul said. Kirkendall also stressed the importance of developing relationships with small- and medium-sized business advisors with relevant expertise — and connecting them with clients.
  • Learn from other parts of the business. Internal finance teams can learn more about the supply chain from sales, production, and other units. “Spend time with them to understand what they do, why they do it, what their goals are, and how you can align with the business initiatives they pursue,” Paul said.
  • Follow the news. More broadly, Kirkendall urged finance professionals to educate themselves on the subject by following industry-specific news and general international news, as well as taking continuing education courses.

“You don’t have to be the ultimate expert advisor in these areas, but part of the value you add is that you’re able to ask the right questions. How does that affect that part of your des business?” said Kirkendall.

For a topic as complex and rapidly changing as the supply chain, the two experts said, finance professionals must learn to navigate the broader business and tap into the wisdom of others.

“You can’t understand what people are saying until you understand their language,” Paul said.

Andrew Kenny is a Colorado-based freelance writer. To comment on this article or suggest an idea for another article, contact Courtney Vien at [email protected].

Tether Breaks Buck as Stablecoin Panic Spreads

The stablecoin panic spread on Thursday, May 12, with stablecoin #1 tether (USDT) busting the ball following TerraUSD’s steep plunge below $1 during that week.

Tether lost its peg to the dollar on Thursday morning, with the price of USDT briefly dropping below $0.95 around 3:30 a.m. before rising to $0.99.

Read more: TerraUSD Price Crash Shows Vulnerability of Dollar-Pegged Cryptos

Tether’s downfall was largely due to two factors, the most important being the lingering questions about the existence and quality of the assets supporting it going head-to-head with the US dollar.

These concerns had been repeated by US and EU officials, with US Treasury Department Undersecretary for Homeland Finance Nellie Liang telling the House Financial Services Committee on February 8 that on the basis of the “public documents they publish”, his understanding is “that their reserve assets include assets which are not free from credit risk.

See more : House Committee Expresses Concerns About Stablecoin’s Effect on the Dollar

Beyond that, tether CTO and unofficial spokesperson Paolo Ardoino revealed that USDT peg broke lower on some exchanges like Kraken than sister tether exchange. , Bitfinex, creating an arbitrage opportunity.

Around 2 a.m., he tweeted that over $300 million had been exchanged for the guaranteed $1 “without a sweat.”

Interestingly, stablecoins #2 and #3, USD Coin (USDC) and Binance USD (BUSD) also lost their pegs, but in the opposite direction, with the former rising above $1.01 for several hours and the latter exceeding $1.02.

Read also: Stablecoins are a better, safer and more innovative payment solution than Bitcoin

Stablecoins are unregulated private currencies that threaten investors, banks and global financial stability

However, the panic spread to the rest of the cryptocurrency market, with bitcoin falling to $26,350, down nearly 17%, before rallying back to $28,000. Altcoins fared much worse, with most of the top 100 cryptocurrencies down 20% to 35%.

This is likely to increase already significant pressure to strictly regulate stablecoins, possibly requiring fiat support.

There were signs that the EU could go further, with documents revealing on Thursday that the European Commission considered what amounts to a ban, requiring a shutdown of the show if transactions exceed 1 million per day, reported CoinDesk. Tether’s 24-hour volume was $171 billion on Thursday.

Terra Unfirma

Tether’s issues are directly linked to the ongoing collapse of TerraUSD, which is going through UST on exchanges. Over the weekend, the stablecoin lost its peg, dropping around 5% until Monday, May 9, when it crashed hard, dropping as much as 30% before rising and falling between 0 $.30 and $0.82. Thursday morning it is $0.61.

UST is a so-called algorithmic stablecoin, which means that its peg – in theory – is maintained by an automated arbitrage mechanism tied to a sister token, the floating Terra coin, known as LUNA on exchanges. UST can still be exchanged for $1 of LUNA by burning the stablecoin and hitting LUNA.

See more : What is an Algorithmic Stablecoin? DAI and the Fiat-Free Dollar Peg

When the UST lost its peg, arbitrageurs surged, sending LUNA’s price to the floor. Two weeks ago, it was one of the top 10 cryptocurrencies, worth over $95 and with a market cap of over $30 billion. It is currently worth just over $0.03, with a market cap of less than $120,000.

Ardoino attempted to deflect some of the blame for Tether’s plunge below $1 by blaming confusion between its exchange symbol, USDT, and TerraUSD’s, which is UST.

“What a difference a ‘D’ makes,” he tweeted.

He also has retweeted a 5:30 a.m. comment from FTX Exchange CEO Sam Bankman-Fried that the link only moved a few percentage points and bought back more than $1 billion.

Tethered to the dollar

It is Tether’s ability to redeem its tokens for $1 in fiat on demand in the event of a panic that regulators are most concerned about.

This is for two reasons. First, if the firm cannot redeem all of its tokens quickly enough – i.e., if it does not have enough cash on hand – USDT holders could panic and start a run, causing a fall in price as TerraUSD did.

Second, selling these non-fiduciary assets in a hurry could lead to sell-off prices, depress assets in broader markets, and spread financial contagion beyond crypto.

These concerns were revealed during a lawsuit filed by the New York Attorney General in 2019 and were exacerbated when it was revealed in May 2021 that only 2.9% of its support assets were in cash, the rest in “cash equivalents”, of which more than 50%. in short-term corporate paper — corporate debt — whose liquidity has been called into question. That figure had fallen to 30% in the fourth quarter of 2021, Ardoino told CNBC.

Read more: What Senate Banking Committee Chairman Sherrod Brown should ask Tether

Tether has settled charges — without admitting guilt — for $18.5 million, which had quietly abandoned its one-dollar peg after lending its sister company, crypto exchange Bitfinex, hundreds of millions of dollars. after being defrauded by the shadow bank he used to sneak money beyond a banking ban to US customers in 2017 and 2018.

See more : Crypto’s Stealthy Past Exposed With Guilty Plea In $750M Shadow Banking Deal

Regulators are concerned

Speaking at the House Financial Services Committee hearing in February on the President’s Task Force on Financial Markets Stablecoin Report – which controversially recommended that only federally insured banks be allowed to issue stablecoins – Liang said corporate papers carry certain credit risks.

When asked specifically if she believed an unsecured attachment had been issued, Liang said, “I think so. They are unregulated…from what I understand they may not be able to deliver a dollar.

Tether strenuously denied issuing unsecured USDT.

More generally, Liang said she was “concerned about the opacity of stablecoin issuers’ reserve assets,” adding that in the report, the “first risk we identified was race risk and potential this could have for other short-term funding markets if investors were to worry about the quality of the assets underlying a stablecoin.

The European Central Bank’s crypto point man, executive committee member Fabio Panetta, gave a speech in late April comparing crypto to the Wild West — a favorite comment of Securities and Exchanges Commissioner Gary Gensler.

Read more: ECB executive says cryptocurrency is the new Wild West

“Tether, one of the most popular stablecoins, promises ‘stability’ by investing in low-risk assets, such as commercial paper, and holds much of the stock of these instruments in circulation,” Panetta said. . “Large-scale sales of these assets in response to a sudden increase in redemptions could generate instability throughout the commercial paper market…eventually finding their way to the banks that hold the liquidity of the coins. stable.”



On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveys 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.

PayPal, Venmo Now In-Store POS Payment Options

PayPal is seeing an increase in the number of people using its services as the world goes digital, a company blog noted.

The release says PayPal knows an omnichannel payment strategy is important if businesses are to compete and track customer preferences.

The company says “millions” of small and large businesses use its point-of-sale (POS) services, in addition to merchants taking PayPal Cash Card Mastercard, PayPal Business Debit Mastercard, Venmo Mastercard Debit Card, and the Venmo Visa Credit Card.

According to the release, even small businesses like Speakcheesy, The Bullpen, and Windybush Hay Farms are getting started using the PayPal Zettle POS solution. The company claims this allows them to accept PayPal and Venmo in-store without having to go through a lot of technical tweaks.

PayPal notes that many people, around 71% of respondents in a Forrester study, are more likely to buy and feel good about a brand if they can use a variety of payment options and digital wallets.

And the people using the services are quite young – Millennials and Gen Z make up a large portion of Venmo users.

Finally, travel merchants like United Airlines have started using PayPal QR codes to reach customers, a change from the days when airlines only accepted physical payment cards to buy food or snacks. drinks on a plane.

PYMNTS quoted Nitin Prabhu, vice president of merchant platforms, integrations and developer experience at PayPal, as saying the pandemic’s digital shift has shown what is possible in terms of changes in commerce.

See also: PayPal combines COVID learning with digital transformation to pursue “commerce 2.0”

A focus on omnichannel is likely to be a must, according to the report, with Prabhu adding that e-commerce has become “essential”, with stores opening but customer behavior being permanently altered.

“A lot of times the journey starts online, on their desktop, on their mobile, but can end in-store,” he said. “It’s a challenge.”

He went on to say that merchants cannot just watch the different channels on their own, as this could lead to a “broken” experience. He said traders have to get used to working with many partners at the same time.



On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveyed 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.

Shopify, Square among companies hoping to ease e-commerce slowdown by lending money to merchants

A sign outside Shopify’s head office in Ottawa on September 28, 2018.CHRIS WATTIE/Reuters

E-commerce companies, facing a sudden downturn, are hoping one of their new lines of business can help pick up the slack: lending money.

Tech companies that provide online sales and transaction services to retailers and small businesses are also increasingly offering loans and cash advances to these customers in an effort to keep them connected to their service platforms.

They do this for a fee and a share of future sales, providing small businesses with an immediate source of cash in the blink of an eye, with these loans now worth billions of dollars.

It’s often a mutually beneficial deal, but like any credit program, it comes with risks, especially if the recent slump in e-commerce spending turns into a prolonged recession.

E-commerce companies such as Shopify Inc. SHOP-T, Amazon.com Inc. AMZN-Q and several others recently reported below-expected financial results, sending their stock prices plummeting amid signs that growth rapid online traffic during the pandemic is no longer sustainable. Soaring inflation is also raising fears that consumers will cut back on discretionary spending.

Shopify, for example, revealed in its earnings report last week that it wrote off $46 million in bad credit in the last quarter alone, with nearly half a billion dollars in advances still outstanding. .

Block Inc. SQ-N, the owner of Square Inc., is the latest to offer credit to Canadian merchants with the launch of Square Loans last month. It follows similar programs launched during the pandemic by competitors Shopify and Lightspeed Commerce LSPD-T.

Luke Voiles, managing director of Square Banking at Block, says offering loans can be a way to see merchants through a tough time.

“If they’re going through a tough time and we’re able to keep them going over time, we’re able to help them survive,” he said. “It feels really good.”

“We try to resolve pain points as much as possible to make sure they stay with us.”

Dan Romanoff, Chicago-based principal e-commerce and software company analyst at Morningstar Inc., says offering credit is becoming increasingly necessary for these businesses — an attractive incentive for merchants to continue working with e-commerce platforms.

“It’s something where once you start using this software and earn capital, it’s very hard to stop,” Romanoff said. “The ability of Shopify or any of its peers, quite honestly, to offer some sort of capital assistance is just that they’re more of a one-stop-shop.”

The programs are structured as cash advances, with the platform providing a certain amount of money in exchange for an upfront fee. The money is refunded by deducting a small amount from the merchant’s daily sales.

In an example provided by Square, a merchant who wants to borrow $10,000 might be charged a fee of $1,300, so a total of $11,300 would be deducted in installments from their sales over 18 months. Square estimates that most fees would be around 10-13% of the cash advance. A cash advance on a credit card would carry a higher interest rate, while most bank loans would have lower rates.

Both Square and Shopify use algorithms to set the terms of their loans, while Lightspeed says its terms are decided by a mix of algorithms and human analysis.

In all cases, however, credit offers are based on the merchant’s sales records and, unlike a traditional bank loan, do not involve a credit check.

Shopify says its automated process helps merchants avoid filling out lengthy loan applications or writing business plans.

Désirée Kretschmar, owner of the Plant Goals store in Peterborough, Ont., took part in a beta test of the Square Loans program in the fall to purchase new inventory. She said she found the experience much easier and faster than applying for a loan from a bank.

“It took about as long as it takes to drink a cup of coffee,” she said.

But not doing a credit check adds an element of risk.

David Lewis, insolvency trustee at BDO Canada, said the choice not to run credit checks means e-commerce platforms have no idea if merchants have other loans they might have. hard to repay. It could also offer struggling companies a way to take on more debt.

“Without any credit checks or any collateral, I might just see someone go out and apply for these little loans to help cover what they need in the short term,” Mr Lewis said. “Kind of like what people do with payday loans.”

He added, however, that e-commerce businesses have the advantage of being able to deduct money directly from a merchant’s earnings, a power that most creditors do not have.

The amount of money provided through these credit programs varies widely by platform.

Shopify says it has provided more than US$3 billion to merchants in the United States, Britain and Canada through Shopify Capital since 2016. In company results released Thursday, it said it had provided US$347 million. US dollars in cash and loans in the first quarter of 2022, up 12% from the first quarter of last year. The company’s latest quarterly filings show it had $487 million in outstanding merchant credit as of March 31 after writing off $46 million in bad loans and advances.

Square says it has made $9 billion in loans in the United States, Australia and Canada. The company did not specify the amount reimbursed. Documents filed by the companies for the 2021 financial year show that, on average, merchants took nine months to repay the loans.

Lightspeed Capital, however, hasn’t been used as often. Documents filed by the companies show the program had $5.3 million in outstanding loans as of December 31, 2021. An analysis by Credit Suisse researchers last month estimated that fewer than 300 merchants would use the program by December 31, 2021. fiscal year 2024.

Still, Mr. Romanoff said he expects other companies to expand their credit offerings. He pointed to Amazon’s efforts to provide advances to third-party sellers on Amazon Marketplace.

“It’s something that is real and benefits users,” Romanoff said. “I think it’s valuable and I don’t think it’s a money loser by any means.”

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Demand for adjustable-rate mortgages hits 14-year high as buyers try to afford expensive spring market

A newly sold home is shown in Houston, Texas.

Brandon Bell | Getty Images

It could be more listings on the market, or maybe just the fear that interest rates will rise even more, but home buyers are showing greater demand for mortgages. However, they are turning even more to adjustable rate mortgages (ARMs), which offer lower rates. This gives them an edge as rates and house prices continue to climb.

Mortgage applications to buy a home rose 5% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Demand was still 8% lower than the same week a year ago, but that annual decline is now diminishing.

The average contractual interest rate for 30-year fixed rate mortgages with conforming loan balances ($647,200 or less) increased from 5.36% to 5.53%, with points rising from 0, 63 to 0.73 (including origination fees) for loans with a 20% decline. Payment. The rate on a 5-year ARM was 4.47%.

“Despite a slow start to the home buying season in the spring of this year, potential buyers are showing some resistance to higher rates. Buying activity has now increased for two straight weeks,” MBA economist Joel Kan said in a statement. “More borrowers continue to use ARMs to fight rising rates. The share of ARMs has grown to 11% of all loans and 19% in dollar volume.”

At the start of this year, when rates were still hovering near record lows, ARM’s share was just 3% of all buy orders. At 11%, this is the highest share since March 2008.

ARMs offer lower rates that can be fixed for terms such as five, seven or 10 years. ARMs are fully underwritten like fixed rate mortgages, and they require a down payment. This was not the case in the early 2000s, when poorly underwritten, interest-only ARMs with short teaser periods were blamed for the epic real estate crash.

While buyers are showing more interest, current owners are less interested in refinancing. These requests were down another 2% week-over-week and were 72% lower than a year ago. There simply remains a very small pool of borrowers who can benefit from refinancing at current interest rates. Refinancing generated record profits for lenders during the early years of the coronavirus pandemic, when rates hit more than a dozen record lows. Now that market has dried up.

Over 10,000 Jobs Created or Maintained in California Small Businesses with COVID-19 Micro-Loan Guarantees – YubaNet

SACRAMENTO (May 10, 2022) – The California Infrastructure and Economic Development Bank (IBank) celebrated another milestone in COVID relief – more than 10,000 jobs have been created or preserved for Californians operating or working in small businesses statewide since April 2020.

Created with a $50 million investment by Governor Newsom, IBank’s COVID-19 Micro Loan Guarantee initiative gives lenders the confidence they need to lend to small and micro businesses that otherwise struggle to Access capital when they need it most.

“Create or maintain ten thousand jobs in the smallest of California small businesses is important,” said Scott Wu, chief executive of IBank. “IBank’s COVID-19 Micro-Loan Guarantee Initiative is not only helping small businesses keep the lights on and the doors open, it is helping owners and employees persevere through dark and difficult times and to emerge on the other side of the pandemic.”

In partnership with California’s nonprofit Financial Development Corporations and statewide lenders, IBank – housed within the Governor’s Office of Business and Economic Development – has enabled California’s smallest businesses to date. to access over $92 million in approved loans.

“These are the times when you feel your work matters; as if you were making a difference. Especially considering that these businesses average five or fewer employees,” said Megan Hodapp, director of IBank’s Small Business Finance Center. “IBank could not do this without our Financial Development Corporation partners and the lenders who use our loan guarantees. They make all our work possible.

A broad, inclusive reach, largely aided by California’s mission-driven Community Development Financial Institutions (CDFIs), has ensured expanded access to the program, including access to underserved populations and underserved communities. About 86% of loan guarantees are for small businesses owned by women or minorities or located in low-to-moderate income areas.

IBank’s loan guarantee programs have been incredibly successful with low default rates, a testament to the program’s effectiveness. As a result, lenders build confidence in the ability of small businesses to repay the loans that help these businesses start, grow and thrive.

IBank was established in 1994 to fund public infrastructure and private development that promotes a healthy employment climate, contributes to a strong economy, and improves the quality of life for Californians and communities across the state. IBank is located within the Governor’s Office for Business and Economic Development and is governed by a five-member Board of Directors. IBank issues tax-exempt and taxable bonds, provides financing to public agencies, provides credit enhancements, acquires and leases facilities, raises state and federal funds, and provides loan guarantees and other credit enhancements to small enterprises. Visit us at www.ibank.ca.gov.

Fundbox, Credible, American Express, Fora Financial, PayPal Rollover Fund, Square Capital – ManufactureLink

2022, update on Global merchant cash advance market which provides an analysis of the Merchant Cash Advance industry comprising important information related to various product definitions, market classifications, market trends, market size, geographical presence and major market players in the industry chain structure. The research clarifies important questions and doubts related to the current market position. It gives market analysis for previous years (2016-2021) and forecast analysis for upcoming years (2022-2030).

The report analyzes the major manufacturers/market players on the basis of their positions, revenue and sales figures in the global market. It includes most of the dominant market players categorized in terms of geography and regions.

The major manufacturers/players profiled in the study are:

  • Box
  • Credible
  • American Express
  • Financial Forum
  • PayPal working capital
  • Square capital
  • National funding
  • Stripes Capital
  • Lendio
  • Cabbage
  • Capital CAN
  • Social finance
  • National Business Capital

Research offering well-researched understandings for the merchant cash advance market. Verified secondary data sources such as official and corporate websites, premium databases, annual reports, CIHI, SEC filings, government filings were used to collect the data and information.

Get a sample report: https://courant.biz/request-sample/?id=90277

The research provides a comprehensive overview of the Merchant Cash Advance industry. The global merchant cash advance market is segmented on the basis of product types, application types, sales channels, and geographical segmentation. Each segment is analyzed based on production, volume, sales figures, market size, market share, and growth rate. Provide a comprehensive overview of the current competitive environment. To analyze the information, several methodologies and research tools were used. Value chain analysis, SWOT analysis and Porters Five Forces analysis model were used to build the supplier landscape.

Product Type Segment Analysis (Consumption Volume, Average Price, Revenue, Market Share and Trend):

  • online cash advance
  • Offline cash advance

Application Segment Analysis (Consumption Volume, Average Price, Revenue, Market Share and Trend):

Sales channels:

  • direct channel
  • Distribution channel

Read the full scope of research:https://courant.biz/report/global-merchant-cash-advance-market-2/90277/

Global Merchant Cash Advance Market: Regional Segment Analysis (Consumption Volume, Average Price, Revenue, Market Share and Trend):

  • North America (United States, Canada and Mexico)
  • Europe (Germany, UK, France, Italy, Russia and Spain etc.)
  • Asia-Pacific (China, Japan, Korea, India, Australia and Southeast Asia, etc.)
  • South America (Brazil, Argentina and Colombia etc.)
  • Middle East and Africa (South Africa, UAE and Saudi Arabia etc.)

The content of the study subjects, includes a total of 10 chapters:

  1. Merchant Cash Advance Market Overview (Market Size Status and Outlook, Market Size Comparison by Region, Product Type and Application, COVID-19 Impact)
  2. Market segment analysis by player (sales, revenue, average price and market share by player)
  3. Market Segment Analysis by Type (Top Players in 2020, Average Price by Type (2016-2020))
  4. Market Segment Analysis by Application (Sales and Market Share by Application (2016-2020))
  5. Analysis of market segments by sales channel (market by sales channel, main distributors/dealers)
  6. Merchant Cash Advance Market Segment Analysis by Region (Market Size and CAGR by Region (2016-2030), Sales and Market Share by Region (2016-2020))
  7. Profile of Key Players (Business Performance (Sales, Price, Revenue, Gross Margin and Market Share))
  8. Upstream and downstream analysis of merchant cash advance (raw materials, labor cost, manufacturing expenses, manufacturing cost structure and manufacturing process)
  9. Merchant Cash Advance Development Trend (2021-2030) (Market Size and CAGR Forecast by Type, Region and Sales and Revenue Forecast)
  10. Appendix (Research Methodology, Data Sources, Analyst Certification)

Check the table of contents: https://courant.biz/report/global-merchant-cash-advance-market-2/90277/

Key questions answered by this report include:

  • Global and Regional Market Size 2016-2021 and Forecast Analysis 2022-2030
  • Identify the major players in the Merchant Cash Advance industry by analyzing their revenue, cost structure and profit
  • Drivers and challenges impacting market growth?
  • Merchant Cash Advance cost and profit statement and marketing status

Search customization:

This research can modify or customize to meet customer requirements. Please contact our sales team ([email protected]), which will ensure that you get a report that suits your needs. You can also get in touch with our executives at +1 (210) 807 3402 to share your research needs.

CoinDCX Could Launch NFT Marketplace, Says COO Mridul Gupta

Cryptocurrency Exchange If CoinDCX chooses to add more assets to the platform, it may set up an NFT trading center.

CoinDCX secured $135 million in Series D funding rounds last month, valuing the company at over $2 billion. The company expects 15 million subscribers by May 2022.

“We would rather be resource providers than resource makers. Then we create our businesses. We are not achieving both goals. So we could build an NFT mall, bringing together NFT makers and buyers, but we couldn’t start our own NFT or Web3 project. » CoinDCX COO Mridul Gupta

CoinDCX, unlike its rivals, does not intend to send shared values ​​or reserves. Gupta understood that there are enough people who like conventional resource courses, so CoinDCX would choose to go deeper into cryptos.

Additionally, the company aims to invest in the broader Web3 ecosystem. “We are looking for the ideal approach to support a large number of web3 startups in India. Assistance can take the form of funds, data or basic necessities. We look at things in different ways. Polygon is undoubtedly a significant Indian success, but there could be another 50 Web3 cases from India overcoming adversity in the future,” Gupta said.

Even though the activity is still unregulated, India has the second highest number of crypto backers in the world. CoinDCX competes in India with companies such as CoinSwitch Kuber, Coinbase, WazirX, and Zebpay.

In any case, Gupta realizes that every athlete has the potential to progress quickly. “As the business grows, a few champions will achieve greater market share. You will be successful in this industry if you stick with the consumer and maintain consistency. These are the pillars of effective growth of the crypto trading,” he said.

The volumes traded are decreasing.

The number of crypto traders in India has recently dropped by around 70%. When India introduced new tariff laws on April 1, volumes declined. NPCI’s announcement that it is not aware of any UPI-based crypto transactions was another setback for the company. Following this statement, several payment processors and banks stopped accepting UPI-enabled cryptocurrency stores.

Payments are a concern for businesses in India and around the world, according to Gupta. This did not prevent the expansion of customers or businesses. He said it’s not as simple as other shopping apps, but it piqued users’ curiosity.

According to Shah, trading volumes are a feature of the market and will continue to vary. It’s a recurring industry with a lot of moving parts. “The company’s goal is to have declining trading volume patterns. Values ​​are much more volatile,” he said. Following the introduction of new cost limits, the organization reported a vertical trend in the size of its funder portfolio and growing support from 25-35 year olds.

What is Bitcoin BIP-119 and why is it so controversial?

Bitcoin Core developer Jeremy Rubin is pushing for a quick trial of his BIP-119 Miner Activated Soft Fork. Rubin’s BIP-119 seeks to use a new opcode.

The new opcode enables the implementation of alliances, which have several useful applications and could help scale Bitcoin.

However, some members of the Bitcoin community are critical of the proposal and fear that BIP-119 will hinder Bitcoin’s fungibility, one of Bitcoin’s key features, while other concerns relate to the speed at which it is pushed.

What is Bitcoin BIP-119?

Bitcoin Improvement Proposal 119 is a Bitcoin improvement proposal, championed by Jeremy Rubin, seeking to implement the OP_CHECKTEMPLATEVERIFY opcode. This new opcode allows the integration of covenants.

What are alliances?

Commitments are restrictions on how bitcoin can be spent beyond ownership of the key. In bitcoin transactions, covenants primarily refer to restrictions on where coins can be transferred after acquisition.

For example, wallet A places a pledge on the bitcoins it holds, adding a whitelist of associated addresses. Wallet A sends bitcoins to wallet B. Wallet B can only send these bitcoins to other whitelisted wallets.

Why BIP-119?

BIP-119’s OP_CHECKTEMPLATEVERIFY (CTV) proposal allows the implementation of restrictive clauses. Alliances are useful for building smart contracts with several useful use cases, such as preventing your funds from being stolen in the event of a hack and scaling the network.


Through the use of CTV, you can create a wallet vault. These can be a useful tool to increase the security of cold storage solutions; they come with default transactional paths that move your funds from your cold room to a hot wallet. That way, if your wallet is hacked, stolen, or lost, they won’t be able to steal your funds.

CTV can also help scale Bitcoin through the implementation of congestion-controlled transactions. When network demand is high, transactions become very expensive. With CTV, large payment processors can include all of their payments in a single transaction commitment for confirmation purposes.

Why is BIP-119 so controversial?

The controversy surrounding BIP-119 primarily revolves around two key concerns within the Bitcoin community.

The first is the negative effect that the introduction of covenants could have on the fungibility of Bitcoin, one of the main characteristics of the crypto. The fungibility of Bitcoin is based on the fact that each bitcoin is identical in functionality and quality.

Introducing pledges that change the properties of specific bitcoin units would effectively create different types of bitcoins in terms of how they can be spent or where they can be sent. Limiting how you can spend your bitcoins also limits Bitcoin’s usefulness, ultimately harming its exchange value.

Second, some members of the community feel they are in a rush to implement a proposal that could have serious implications for bitcoin’s exchangeability.

Quick trials have been used in the past to enable upgrades; Bitcoin’s Taproot upgrade was activated via a. This time, however, some feel that given the serious impact this upgrade could have on Bitcoin, the proposal should be reconsidered further and alternatives considered.

Bitcoin’s exchangeability is at stake

While Rubin’s BIP-119 proposal promises to address some of Bitcoin’s current security and scaling issues, covenants could also impose harmful limits on the crypto’s usefulness. Unintentionally or not, this would certainly hurt the exchange value of Bitcoin in the long run.

The changes proposed in BIP-119 could have such significant consequences for Bitcoin’s exchangeability that even those who do not outright oppose its implementation are cautious about it.

At least to the point of wanting to study more carefully the effects that such an upgrade could have on the cryptocurrency.

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Holy-Moly mortgage rates hit 5.64%, 10-year Treasury yield 3.12%, long-term Treasury bond fund slaughtered

So the Fed is getting ready to pull away from the bond market, and all sorts of things are happening.

By Wolf Richter for WOLF STREET.

The price of the iShares 20+ Year Treasury Bond ETF [TLT], which tracks an index of long-dated Treasury securities, fell another 1.5% on Friday, after falling 2.7% on Thursday. It has plunged 21% since the start of the year and 33.7% from the August 2020 peak. In return for this price drop, investors are getting a return that has risen to 3.0%.

August 2020 marked the peak of the largest bond bubble in US history. It was when the 10-year Treasury yield hit all-time lows as our favorite hype traders predicted it would fall below zero and turn negative. But this bond bubble is bursting. And this is what the “bond massacre” looks like for investors who thought they had invested in a conservative instrument, when in fact they had bought a risky bet on the sustainability of the bond bubble, a long bet – interest rates ultimately negative. And WHOOSH went their money:

Holy Moly Mortgage Rates.

Mortgage rates are rising steadily. The daily measure of the average 30-year fixed mortgage rate by Mortgage News Daily hit 5.64% on Friday, the highest in data dating back to 2009.

Freddy Mac’s weekly measure of the 30-year average weekly fixed mortgage rate, which is a bit of a lag, hit a high of 5.27% since June 2009.

Mortgage payments in Holy-Moly.

House prices have soared and mortgage rates have increased by more than two percentage points and more. What difference does it make in terms of monthly payment?

In 2021, a home purchased at the then national median price of $326,300, with a 10% down payment, and financed at the then average 30-year fixed mortgage rate of 3.09%, would accompanied by a monthly payment of $1,251.

In 2022, a home purchased at the median price of $375,300, with 10% down payment, and financed at 5.27% came with a monthly payment of $1,869.

In other words, the mortgage payment jumped almost 50%, and property tax and insurance expenses also increased. This 50% increase in the cost of property at the current price is going to wipe out demand from large layers of potential buyers.

Most people, when they apply for a mortgage, get a guaranteed rate for a certain period, such as three months. Many current buyers still have rate lock-ins obtained in previous months, and they are not fully feeling the surge in mortgage rates. But people getting their mortgages today are feeling it.

The volume of mortgage purchase applications has already fallen substantially, as has the volume of home sales. And over the next few months, the new reality of the housing market will become more apparent.

The crackdown on interest rates, including through QE, has caused the biggest real estate bubble of all time. Interest rate hikes, including via QT, will untie it. It’s the Fed’s effort to get the housing bubble under control before it tears the financial system apart again.

The Fed is finally thinking about fighting inflation.

The Fed ended QE, and this week raised its short-term policy rates a second time, this time by 50 basis points. He also confirmed what he had implied in the minutes of the previous meeting, namely that he would reduce the assets on his balance sheet as of June 1 by not replacing maturing securities.

This quantitative tightening or QT has been discussed for months, and there were no surprises in the announcement of QT, and the bond market anticipated it and reacted to this anticipation. Yields have soared, which means long-dated bond prices have fallen – and not just a little, as the iShares 20+ Year Treasury Bond ETF demonstrates.

The 10-year Treasury yield rose 7 basis points on Friday to 3.12%, the second consecutive day to close above 3%. This is now just a hair’s breadth from the peak of the previous tightening cycle, when the yield peaked at 3.24% on November 8, 2018. When the 10-year yield breaks above 3.24%, it will be the highest since 2011 :

The two-year Treasury yield, which had peaked in previous months in anticipation of numerous hikes in short-term key rates, remained in the last trading days roughly in the same range and closed Friday at 2.72%, slightly lower. down from the recent high on Tuesday. of 2.78%, which was the highest since January 2019.

For the two-year return, it was a huge move in just seven months. The magic number is 2.83%, beyond which you have to go back to 2007 to find higher returns.

Future Bond Buyers Benefit from Rising Yields.

Current long-term bondholders must endure the bond slaughter, having been pampered for decades by the biggest bond bull market of all time.

But prospective buyers get a much better deal, being able to buy bonds at lower prices with higher yields. These returns may still not be enough to offset inflation, but very little is offsetting inflation as the bubble of everything has started to deflate, certainly not stocks and cryptos, which have already cratered, and the real estate is shaping up to be the next.

And these prospective buyers still face higher yields after they buy the bonds, which means lower prices for their bonds after they buy them. But hey, it’s the bad breath of the Everything Bubble the next day.

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Tim Penny: Initiative Foundation Supports Business Growth Here – Post Bulletin

At the Southern Minnesota Initiative Foundation (SMIF), one of the three program areas we focus on is economic development. Since our inception in 1986, we have worked to catalyze entrepreneurial activity in our 20-county region by providing seed investments, traditional loans, microloans, technical assistance and mentorship to entrepreneurs. Each year, SMIF invests approximately $2.1 million in economic development initiatives.

The United States Small Business Administration (SBA) recently celebrated National Small Business Week, which recognizes the critical contributions of American entrepreneurs and small business owners. According to the SBA, more than half of Americans own or work for a small business, and they create nearly two out of three new jobs in the United States each year. This is one of the reasons why the SMIF has been involved in credit for 35 years. SMIF has supported over 560 businesses through 741 loans, investing $33.4 million in the region through loans.

Just in the last few months, SMIF’s lending staff has arranged small business loans, in partnership with the SBA, to the following small businesses: Blair Construction Cleaner in Rochester, CannonBelles Cheese in Cannon Falls, Curly Girlz Candy in Owatonna, Merge food truck in Rochester and Wingham Trucking LLC in Albert Lea. Of course, we also know that big business is essential to our economy, which is why we offer business loans that support manufacturing, technology, healthcare and other key industries. Most recently, we entered into a business loan with Bio-Plastic Solutions in Ellendale. For more information on SMIF business financing opportunities, visit smifoundation.org/loans.

In addition to direct lending, there are other ways to support entrepreneurship and economic development in our region. We also create opportunities for communities and organizations to grow their local economies through grantmaking. SMIF’s Economic Development Grant Program aims to fund projects up to $20,000 that enable communities to create more prosperous local economies. This grant is an excellent opportunity for cities, counties, economic development authorities, other public institutions, and non-profit organizations to expand economic development in their communities. We are currently seeking applications for this grant, which is due October 26. Visit our website at smifoundation.org/economicgrants or contact Jennifer Heien, Grants Coordinator, at 507-214-7040 or [email protected]

SMIF also supports economic growth and prosperity through the AmeriCorps VISTA program. VISTA is one of the oldest national service branches of AmeriCorps. Members serve full-time for one year in non-profit organizations or local government agencies to increase the economic prosperity of various groups. The SMIF recruits and matches VISTA members to Site Service Partner positions in our region.

The SMIF is currently recruiting three VISTA members. A member will support SMIF’s Prosperity Initiative program which supports entrepreneurs who identify as Black, Indigenous, or of Color (BIPOC). Another member, who will also be hosted by SMIF, will support the second year of a regional food project to build the capacity of small farmers. The third member will work with Red Wing Ignite to establish a more inclusive approach to reaching and serving BIPOC entrepreneurs in rural communities. If you would like to apply for one of these service opportunities, apply at smifoundation.org/careers or contact Barbara Gunderson, Director of AmeriCorps, at [email protected] or 507-456-0353 by September 30.

Economic development takes many forms. At SMIF, we are proud to be able to support economic growth in Southern Minnesota through opportunities that support entrepreneurs and the communities in which they live.

As always, I welcome your comments and questions. You can reach me at [email protected] or 507-455-3215.

Tim Penny is the president and CEO of the Southern Minnesota Initiative Foundation. Tim represented Minnesota’s First Congressional District in the United States House of Representatives from 1982 to 1994. The Southern Minnesota Initiative Foundation (SMIF), a donor-supported foundation, invests for economic growth in the 20 counties of south-central and southeastern Minnesota.

Barrio Logan’s VetPowered Owner Wins SBA California’s “Small Business Person of the Year” Award

The first week of May is National Small Business Week, and among the top entrepreneurs recognized by the United States Small Business Administration (SBA) is Hernán Luis y Prado, founder and CEO of San Diego company VetPowered.

Prado, a client of the San Diego & Imperial Small Business Development Center (SBDC) network, was named “Small Business Person of the Year” by SBA California.

“On behalf of my family and the entire VetPowered team, I am honored to be named California’s ‘Small Business of the Year’ in the extremely competitive state of California,” said Prado. “The SBDC and SBA have proven to be our proven partners in our quest to overcome some extremely difficult situations – from securing critical financing to purchasing properties and equipment necessary for our growth; and help us navigate the turbulent seas of the ever-changing pandemic. Gross sales have reached millions, but VetPowered wouldn’t be in business without the SBA and its resource partners like the SBDC. »

A disabled veteran, Prado and his wife Rachel sold everything they owned to start the advanced manufacturing company VetPowered, as well as provide advanced manufacturing training and jobs for veterans.

“Our North San Diego SBDC team and the government contracting specialists who have worked closely with him are proud of Hernán,” said Daniel Fitzgerald, SBDC Regional Network Manager. “Prado has combined expert advice and free support with hard work and purpose – the very ingredients SBDC provides for our community’s business success.”

To ease the difficult transition from military service to seeking a fair-paying career, the Prados launched the nonprofit “Workshops for Warriors,” which prepares veterans and wounded warriors for careers making weapons. point.

VetPowered secured SBA 504 and 7(a) loans to purchase its first manufacturing facility in the Barrio Logan neighborhood of San Diego. Sales and credit increased and they were able to secure a private loan. They then obtained the 8(a) certification, which helped them to increase their sales considerably.

When the pandemic hit, Vetpowered rallied and began to pivot with the help of the SBDC and SBA. The company was able to obtain an EIDL (Economic Injury Disaster Loan), which allowed the purchase of equipment necessary to maintain operations and gain a competitive advantage. They also secured two PPP (Paycheck Protection Program) draws with forgiveness, allowing them to maintain and grow their operations by subsidizing payroll to retain all staff throughout the pandemic without cutting hours or salaries. Prado was also able to refinance the company’s debt and purchase space for a training center, corporate headquarters and other facilities. They now own 145,000 square feet of property spanning five city blocks in Barrio Logan, a HUBZone.

“VetPowered’s investment in the Barrio Logan community will continue to have a positive impact for years to come,” said Congressman Juan Vargas (D-CA 51st District). From creating jobs for local community members and veterans, to providing a much-requested service, I extend my heartfelt congratulations to Hernán and the entire VetPowered team on this exciting achievement. Small businesses are the backbone of our local economy, and I’m proud to celebrate Hernán’s success and entrepreneurial spirit in my district. I thank Hernán for his continued leadership and commitment to our veterans and our community. »

Prado kept all the employees and hired two new ones. He transitioned training events online and redesigned the website to sell products and services. VetPowered has also created a new division to manufacture and sell VetPowered branded parts online. He also bought three properties in 18 months; these included an apartment building to house expelled employees and workshop attendees as well as a restaurant, which he turned into a commissary to feed employees, attendees, and neighborhood residents.

“100 years from now,” Prado said, “I hope Americans will look back and see that VetPowered and San Diego was the birthplace of America’s green manufacturing renaissance, where we ushered in a new era of manufacturing. cutting-edge socially and ecologically responsible and sustainable.

“I sincerely hope that others will see our work as an example of the great things that are possible when a community works together. We are eternally grateful to the SBA and SDBC, and will make this award a testament to our continued work here in Barrio Logan to support rebuilding America’s manufacturing strength with veterans.

To learn more about the company, visit vetpowered.com. SBA’s winning entrepreneurs and companies were also honored at a national event today, May 5 — and were up for national titles — during the week’s virtual summit themed “Building a Better America.” through entrepreneurship.

“Prado is a noble veteran and visionary as well as an award-winning leader, entrepreneur and philanthropist,” said Mike Sovacool, deputy district manager for the SBA District Office in San Diego. “He has set a superb example for others in and out of business to follow. I hope he continues to contribute greatly to the vibrant and growing small business community in San Diego, Imperial and beyond.

“Hernán has fully recognized and utilized the opportunities offered by the Small Business Administration. His strong ties to the SBDC, their knowledgeable and client-focused mentorship – resulting in his 8(a) and HUBZone certifications as well as pursuing government contracting opportunities – navigating through SBA loan programs and the follow-on partnership with the local lending community to access capital, and its search for applicable COVID funding that has enabled VetPowered to weather the storm during the pandemic; all of which is indicative of its shrewd and consistent partnership with the SBA, SBA Resource Partners, Associated Lenders, and related government departments. He greatly deserves this recognition and exemplifies the benefits of the application support systems available to all small businesses. »

The SBDC exists to help small businesses at no cost. Entrepreneurs can contact a business consultant who works with small business owners one-on-one and free of charge. Visit SDIVSBDC.org/advising to access an advisor or call (619) 482-6391 if needed. The SBDC website also offers other information such as free or discounted business resources and tools, as well as live and on-demand training.

Nukkleus rebrands for blockchain and digital payments

Nukkleus, which works to acquire and scale high-potential blockchain, digital and multi-asset businesses for retail and institutional markets, has launched its new website and brand, which will place the company’s subsidiary brands under the same suite of assets, a press release mentioned.

This comes as the company proposed to merge with Brilliant Acquisition Corp., a special purpose acquisition company (SPAC).

The company’s goal is to develop blockchain technology for use in cross-border payments and digital assets.

The brand refresh will showcase Nukkleus’ latest offerings and its ambition to bring together various payment solutions and build on its experience in foreign exchange software.

“We are thrilled to have started a new chapter in Nukkleus’ journey by relaunching the company as a blockchain technology group focused on global cross-border payments and digital asset custody,” said Jamie Khurshid, Director of operation of Nukkleus.

See also: More consumers are buying crypto and want more ways to spend it

PYMNTS wrote that consumers are asking for more ways to use crypto, with BitPay CEO Stephen Pair recently saying they’re seeing “tremendous” interest among merchants, who have reached out to payment processors asking to support cryptography.

“The more crypto you can spend, the more reason people have to spend crypto,” he said.

The report says merchants have found that a quarter of customers prefer to shop with merchants who accept crypto payments, according to the April US Crypto Consumer Study PYMNTS.

And beyond that, the number of consumers keen on crypto is growing in tandem with crypto ownership, with 23% of respondents saying they own or have owned digital coins in the past year.

“I think it’s organic growth,” Pair said. “You know people who are exposed to it, tell their family friends about it. And you see more and more people willing to experiment and try something new. That’s huge growth.



On: Shoppers who have store cards use them for 87% of all eligible purchases – but that doesn’t mean retailers should start buy now, pay later (BNPL) options at checkout. The Truth About BNPL and Store Cards, a collaboration between PYMNTS and PayPal, surveys 2,161 consumers to find out why providing both BNPL and Store Cards is key to helping merchants maximize conversion.

ONESPAN INC. Management’s Report of Financial Condition and Results of Operations (in thousands, except headcount, ratios, periods and percentages) (Form 10-Q)

Unless otherwise indicated, references in this Quarterly Report on Form 10-Q to “OneSpan”, “Company”, “we”, “us” and “our” refer to OneSpan Inc. and its subsidiaries.

Caution Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within
the meaning of applicable U.S. securities laws, including statements regarding
the potential benefits, performance and functionality of our products and
solutions, including future offerings; our expectations, beliefs, plans,
operations and strategies relating to our business and the future of our
business; our strategic plans regarding our portfolio, including acquisitions
and dispositions; and our expectations regarding our financial performance in
the future. Forward-looking statements may be identified by words such as
"seek", "believe", "plan", "estimate", "anticipate", "expect", "intend",
"continue", "outlook", "may", "will", "should", "could", or "might", and other
similar expressions. These forward-looking statements involve risks and
uncertainties, as well as assumptions that, if they do not fully materialize or
prove incorrect, could cause our results to differ materially from those
expressed or implied by such forward-looking statements. Factors that could
materially affect our business and financial results include, but are not
limited to: market acceptance of our products and solutions and competitors'
offerings; the potential effects of technological changes; the impact of the
COVID-19 pandemic and actions taken to contain it; our ability to effectively
manage acquisitions, divestitures, alliances, joint ventures and other portfolio
actions; the execution of our transformative strategy on a global scale; the
increasing frequency and sophistication of hacking attacks; claims that we have
infringed the intellectual property rights of others; changes in customer
requirements; price competitive bidding; changing laws, government regulations
or policies; pressures on price levels; investments in new products or
businesses that may not achieve expected returns; disruption in global
transportation and supply chains; reliance on third parties for certain products
and data center services, impairment of goodwill or amortizable intangible
assets causing a significant charge to earnings; actions of activist
stockholders; and exposure to increased economic and operational uncertainties
from operating a global business, as well as those factors described in the
"Risk Factors" section of our Annual Report on Form 10-K. Our filings with the
Securities and Exchange Commission (the "SEC") and other important information
can be found in the Investor Relations section of our website
at investors.onespan.com. We do not have any intent, and disclaim any
obligation, to update the forward-looking information to reflect events that
occur, circumstances that exist or changes in our expectations after the date of
this Form 10-Q, except as required by law.

Financial outlook and results

We continue to actively address the effects of the COVID-19 pandemic and its
impact globally. During the three months ended March 31, 2022, we experienced
lengthened sales cycles and supply chain constraints in connection with the
COVID-19 pandemic. In prior periods, we also experienced reduced demand for
certain of our hardware products and software solutions. While we hope that the
negative consequences on our business associated with the COVID-19 pandemic will
subside, we cannot predict the impact with certainty.

In the current and future periods, we may experience weaker customer demand,
requests for discounts or extended payment terms, customer bankruptcies, supply
chain disruption, employee staffing constraints and difficulties, government
restrictions or other factors that could negatively impact the Company and its
business, operations and financial results.

We believe that we will emerge from these events well positioned for long-term
growth, though we cannot reasonably estimate the duration and severity of the
pandemic or its ultimate impact on the global economy and our business results.
See Part 1 - Item 1A - Risk Factors in the Company's Annual Report on Form 10-K
for the year ended December 31, 2021 for additional information regarding the
potential impact of COVID-19 on the Company.


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Restructuring Plan
In December 2021, the Board approved a restructuring plan ("Plan") designed to
advance the Company's model, streamline its business, and enhance its capital
resources. The first phase began and was substantially completed during the
three months ended March 31, 2022.

As part of the first phase of the Plan, we reduced headcount by eliminating
positions in certain areas of the Company. The Company incurred severance and
related benefits costs, which are recorded in the sales and marketing, research
and development, and general and administrative expense financial statement line
items in the condensed consolidated income statement for the three months ended
March 31, 2022. See Note 15 - Restructuring Plan for additional detail.

The Company expects to finalize additional details regarding future phases of the multi-year strategic plan within the past three months. June 30, 2022.


We design, develop and market digital solutions for identity, security, and
business productivity that protect and facilitate electronic transactions via
mobile and connected devices. We are a global leader in providing anti-fraud and
digital transaction management solutions to financial institutions and other
businesses. Our solutions secure access to online accounts, data, assets, and
applications for global enterprises; provide tools for application developers to
easily integrate security functions into their web-based and mobile
applications; and facilitate end-to-end financial agreement automation including
digital identity verification, customer due diligence, electronic signature,
secure storage and document management. Our core technologies, multi-factor
authentication, identity verification and transaction signing, strengthen the
process of preventing hacking attacks against online and mobile transactions to
allow companies to transact business safely with remote customers.

We offer cloud based and on premises solutions using both open standards and
proprietary technologies. Some of our proprietary technologies are patented. Our
products and services are used for authentication, fraud mitigation, e-signing
transactions and documents, and identity management in Business-to-Business
("B2B"), Business-to-Employee ("B2E") and Business-to-Consumer ("B2C")
environments. Our target market is business processes using electronic
interface, particularly the Internet, where there is risk of unauthorized
access. Our products can increase security associated with accessing business
processes, reduce losses from unauthorized access and reduce the cost of the
process by automating activities previously performed manually.

Our business model

We offer our products through a product sales and licensing model or through our services platform, which includes our cloud-based service offering.

Our solutions are sold worldwide through our direct sales force, as well as
through distributors, resellers, systems integrators, and original equipment
manufacturers. Our sales force is able to offer customers a choice of an on-site
implementation using our traditional on-premises model or a cloud implementation
for some solutions using our services platform.

Industry growth

We believe the markets for authentication, fraud mitigation, agreement
automation, and electronic signature solutions will continue to grow, albeit at
different rates, driven by new government regulations, growing awareness of the
impact of cyber-crime, increasing focus on the digital experience for mobile and
online users, remote working and workflow automation, and the growth in
electronic commerce. The issues driving growth are global; however, the rate of
adoption in each country is a function of local culture, competitive position,
economic conditions, and the use of technology may vary significantly.


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Economic Conditions
Our revenue may vary significantly with changes in the economic conditions in
the countries in which we currently sell products. With our current
concentration of revenue in Europe and specifically in the banking and finance
vertical market, significant changes in the economic outlook for the European
banking market may have a significant effect on our revenue.

Cybersecurity risks

Our use of technology is increasing and is essential in three main areas of our business:

1. Software and information systems we use to help us better manage our business

efficiently and cost-effectively;

The products we traditionally sell and continue to sell to our customers

2. for integration into their software applications contain technology that

incorporates the use of secret numbers and encryption technology; and

3. The new products and services we introduced to the market are focused on

process information through our servers or in the cloud.

We believe that the risks and consequences of potential incidents in each of the above areas are different.

In the case of the information systems we use to help us run our business, we
believe that an incident could disrupt our ability to take orders or deliver
product to our customers, but such a delay in these activities would not have a
material impact on our overall results. To minimize this risk, we actively use
various forms of security and monitor the use of our systems regularly to detect
potential incidents as soon as possible.

In the case of products that we have traditionally sold, we believe that the
risk of a potential cyber incident is minimal. We offer our customers the
ability to either create the secret numbers themselves or have us create the
numbers on their behalf. When asked to create the numbers, we do so in a secure
environment with limited physical access and store the numbers on a system that
is not connected to any other network, including other OneSpan networks, and
similarly, is not connected to the Internet.

In the case of our cloud-based solutions, which involve the processing of
customer information, we believe a cyber incident could have a material impact
on our business. While our revenue from cloud-based solutions comprises a
minority of our revenue today, we believe that these solutions will provide
substantial future growth. A cyber incident involving these solutions in the
future could substantially impair our ability to grow the business and we could
suffer significant monetary and other losses and significant reputational harm.

To minimize the risk, we review our product security and procedures on a regular
basis. Our reviews include the processes and software code we are currently
using as well as the hosting platforms and procedures that we employ. We
mitigate the risk of cyber incidents through a series of reviews, tests, tools
and training. Certain insurance coverages may apply to certain cyber incidents.
Overall, we expect the cost of securing our networks will increase in future
periods, whether through increased staff, systems or insurance coverage.

While we did not experience any cyber incidents in the first three months of
2022 that had a significant impact on our business, it is possible that we could
experience an incident in 2022 or future years, which could result in
unanticipated costs.

Currency fluctuation

During the three months ended March 31, 2022, approximately 88% of our revenue
was generated outside of the United States. While the majority of our revenues
are generated outside of the United States, a significant amount of



our revenue earned during the three months ended March 31, 2022 was denominated
in U.S. Dollars. During the three months ended March 31, 2022, we estimate that
approximately 57% of our revenue was denominated in U.S. Dollars.

In addition, during the three months ended March 31, 2022, approximately 68% of
our operating expenses were incurred outside of the United States. As a result,
changes in currency exchange rates, especially the Euro exchange rate and the
Canadian Dollar exchange rate, can have a significant impact on revenue and

In general, to minimize the net impact of currency fluctuations on operating
income, we attempt to denominate an amount of billings in a currency such that
it would provide a hedge against the operating expenses incurred in that
currency. We expect that changes in currency rates may also impact our future
results if we are unable to match amounts of revenue with our operating expenses
in the same currency. If the amount of our revenue in Europe denominated in
Euros continues as it is now or declines, we may not be able to balance fully
the exposures of currency exchange rates on revenue and operating expenses.

The financial position and the results of operations of our foreign
subsidiaries, with the exception of our subsidiaries in Switzerland, Singapore
and Canada, are measured using the local currency as the functional currency.
Accordingly, assets and liabilities are translated into U.S. Dollars using
current exchange rates as of the balance sheet date. Revenues and expenses are
translated at average exchange rates prevailing during the period. Translation
adjustments arising from differences in exchange rates generated other
comprehensive loss of $2.0 million for the three months ended March 31, 2022.
Translation adjustments arising from differences in exchange rates generated
other comprehensive loss of $0.9 million for the three months ended March 31,
2021. These amounts are included as a separate component of stockholders'
equity. The functional currency for our subsidiaries in Switzerland, Singapore
and Canada is the U.S. Dollar.

Gains and losses resulting from foreign currency transactions are included in
the condensed consolidated statements of operations in other income (expense),
net. Foreign exchange transaction losses aggregated $0.4 million for the three
months ended March 31, 2022. Foreign exchange transaction losses aggregated $0.7
million for the three months ended March 31, 2021.

Components of operating results


We generate revenue from the sale of our hardware products, software licenses,
subscriptions, maintenance and support, and professional services. We believe
comparison of revenues between periods is heavily influenced by the timing of
orders and shipments reflecting the transactional nature of significant parts of
our business.

Revenue from products and licenses. Revenue from products and licenses includes hardware

? software products and licenses, which can be provided on an indefinite or fixed-term basis


Service and other income. Service and other revenue includes subscription

? solutions (which is our definition of software solutions as a service),

maintenance and support, and professional services.

Cost of Goods Sold

Our total cost of goods sold consists of cost of product and license revenue and
cost of service and other revenue. We expect our cost of goods sold to increase
in absolute dollars as our business grows, although it may fluctuate as a
percentage of total revenue from period to period.

? Product cost and license revenue. Product cost and license revenue

consists primarily of direct product and license costs.

Cost of service and other income. Mainly cost of service and other income

? includes costs related to subscription solutions, including staff and

   equipment costs, and personnel costs of employees providing professional
   services and maintenance and support.


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Gross Profit

Gross profit as a percentage of total revenue, or gross margin, has been and
will continue to be affected by a variety of factors, including our average
selling price, manufacturing costs, the mix of products sold, and the mix of
revenue among products, subscriptions and services. We expect our gross margins
to fluctuate over time depending on these factors.

Functionnary costs

Our operating expenses are generally based on anticipated revenue levels and
fixed over short periods of time. As a result, small variations in revenue may
cause significant variations in the period-to-period comparisons of operating
income or operating income as a percentage of revenue.

Generally, the most significant factor driving our operating expenses is
headcount. Direct compensation and benefit plan expenses generally represent
between 55% and 65% of our operating expenses, respectively. In addition, a
number of other expense categories are directly related to headcount. We attempt
to manage our headcount within the context of the economic environments in which
we operate and the investments we believe we need to make for our infrastructure
to support future growth and for our products to remain competitive.

Historically, operating expenses have been affected by changes in exchange rates. We estimate that the change in exchange rates during the first three months of 2022 compared to the same period in 2021 resulted in a decrease in operating expenses of approximately $1.1 million.

The comparison of operating expenses can also be impacted significantly by costs
related to our stock-based and long-term incentive plans. Operating expenses for
the three months ended March 31, 2022 included $1.4 million and less than $0.1
million, respectively of expenses related to stock-based and long-term incentive
plan costs compared to $1.3 million and $0.2 million of stock-based and
long-term incentive plan cost for the three months ended March 31, 2021,
respectively. Stock-based compensation expense during the three months ended
March 31, 2022 was favorably impacted by the forfeiture of unvested awards by
certain severed sales management and executive management during the periods,
offset by new grants.

Sales and Marketing. Sales and marketing expenses consist mainly of

personnel costs, commissions and bonuses, trade shows, marketing programs and

other marketing activities, travel, outpatient and long-term expenses

? incentive compensation. We expect sales and marketing expenses to increase in

in absolute dollars as we continue to invest in sales resources as a priority

areas, although our sales and marketing spend may fluctuate as a percentage

of total income.

Research and development. Research and development costs mainly consist of

personnel costs and long-term incentive compensation. We expect research and

? development spending will increase in absolute dollars as we continue to invest

in our future solutions, although our research and development expenses may

   fluctuate as a percentage of total revenue.

   General and administrative. General and administrative expenses consist

mainly staff costs, legal and other professional fees, and long-term expenses

? incentive compensation. We expect general and administrative costs

increase in absolute dollars although our general and administrative expenses

may fluctuate as a percentage of total income.

Amortization of intangible assets. Intangible assets acquired are amortized

? over their respective amortization periods, and are periodically assessed for


Interest Income, Net

Interest income, net, includes income earned on our cash, cash equivalents and short-term investments. Our cash equivalents and short-term investments are invested in short-term instruments at current market rates.


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Other Income (Expense), Net

Other income (expense), net primarily includes exchange gains (losses) on
transactions that are denominated in currencies other than our subsidiaries'
functional currencies, subsidies received from foreign governments in support of
our research and development in those countries and other miscellaneous
non-operational expenses.

Income taxes

Our effective tax rate reflects our global structure related to the ownership of
our intellectual property ("IP"). All our IP in our traditional authentication
business is owned by two subsidiaries, one in the U.S. and one in Switzerland.
These two subsidiaries have entered into agreements with most of the other
OneSpan entities under which those other entities provide services to our U.S.
and Swiss subsidiaries on either a percentage of revenue or on a cost plus basis
or both. Under this structure, the earnings of our service provider subsidiaries
are relatively constant. These service provider companies tend to be in
jurisdictions with higher effective tax rates. Fluctuations in earnings tend to
flow to the U.S. company and Swiss company. In 2022, earnings flowing to the
U.S. company are expected to be taxed at a rate of 21% to 25%, while earnings
flowing to the Swiss company are expected to be taxed at a rate ranging from 11%
to 15%, plus Swiss federal withholding tax of an additional 5%. A Canadian and
UK subsidiary currently sell to and service global customers directly. In
addition, many of our OneSpan entities operate as distributors for all of our
OneSpan products.

As the majority of our revenues are generated outside of the U.S., our
consolidated effective tax rate is strongly influenced by the effective tax rate
of our foreign operations. Changes in the effective rate related to foreign
operations reflect changes in the geographic mix of earnings and the tax rates
in each of the countries in which it is earned. The statutory tax rate for the
primary foreign tax jurisdictions ranges from 11% to 35%.

The geographic mix of earnings of our foreign subsidiaries primarily depends on
the level of pretax income of our service provider subsidiaries and the benefit
realized in Switzerland through the sales of product. The level of pretax income
in our service provider subsidiaries is expected to vary based on:

1. the personnel, programs and services offered annually by the various

subsidiaries as determined by management, or

2. variations in exchange rates linked to the currencies of the service

affiliates of the supplier, or

3. the amount of revenue generated by the affiliates of the service provider.

For items 1 and 2 above, there is a direct impact in the opposite direction on
earnings of the U.S. and Swiss entities. Any change from item 3 is generally
expected to result in a larger change in income in the U.S. and Swiss entities
in the direction of the change (increased revenues expected to result in
increased margins/pretax profits and conversely decreased revenues expected to
result in decreased margins/pretax profits).

In addition to the provision of services, the intercompany agreements transfer
the majority of the business risk to our U.S. and Swiss subsidiaries. As a
result, the contracting subsidiaries' pretax income is reasonably assured while
the pretax income of the U.S. and Swiss subsidiaries varies directly with our
overall success in the market.

In November 2015we acquired OneSpan Canada Inc. (formerly eSignLive), a foreign company with significant net intellectual property and operating losses and other tax deferrals. The tax benefit of the deferrals has been fully reserved as realization has not been deemed more likely than not.

In May 2018we acquired Dealflo Limited (“Dealflo”), a foreign company with substantial intellectual property and net operating losses. The tax benefit of existing losses carried forward at the time of acquisition has not been recognized because the Company has determined that it is more likely than not that they will be realized.



Management assesses the need for a valuation allowance on a regular basis,
weighing all positive and negative evidence to determine whether a deferred tax
asset will be fully or partially realized. In evaluating the realizability of
deferred tax assets, significant pieces of negative evidence such as 3-year
cumulative losses are considered.

Operating results


Revenue by Product: We generate revenue from the sale of our hardware products,
software licenses, subscriptions, professional services, and maintenance and
support. Product and license revenue includes hardware products and software
licenses. Service and other revenue includes subscription solutions (which is
our definition of software-as-a-service solutions), maintenance and support, and
professional services.

                                      Three months ended March 31,
                                         2022                2021

Hardware products                   $       15,352      $       17,668
Software licenses                           14,133              10,777
Subscription                                10,117               8,405
Professional services                          900               1,402
Maintenance, support, and other             11,945              12,523
Total Revenue                       $       52,447      $       50,775

Total revenue increased $1.7 million or 3%, during the three months ended March
31, 2022 compared to the three months ended March 31, 2021, driven primarily by
a $6.3 million or 22% increase in recurring revenue, partially offset by a $2.3
million or 13% decrease in hardware revenue and a $1.8 million or 65% decrease
in perpetual software license revenue. Recurring revenue is the portion of our
revenue subject to future renewal and is comprised of subscription, term-based
software licenses, and maintenance, support and other revenue.

Product and license revenue increased by $1.0 million or 4% during the three
months ended March 31, 2022 compared to the three months ended March 31, 2021,
driven by higher software license sales of $3.4 million, partially offset by
lower hardware revenue of $2.3 million or 13%. Lower hardware revenue was
partially driven by shipping delays related to disruptions in global
transportation and supply chains.

Services and other revenue increased by $0.6 million, or 3% during the three
months ended March 31, 2022 compared to the three months ended March 31, 2021,
which was primarily driven by a $1.7 million or 20% increase in subscription
revenue, partially offset by reductions in professional services and
maintenance, support, and other revenue of $0.5 million and $0.6 million,

We believe comparison of revenues between periods is heavily influenced by the
timing of orders and shipments reflecting the transactional nature of
significant parts of our business. As a result of the volatility in our
business, we believe that the overall strength of our business is best evaluated
over a longer term where the impact of transactions in any given period is not
as significant as in a quarter-over-quarter comparison.

Revenue by Geographic Regions: We categorize our sales by customer location into three geographic regions: 1) EMEA, which includes Europe, Middle East and
Africa; 2) the Americaswhich includes sales in the North, Center and



South America; and 3) Asia Pacific (APAC), which also includes Australia, New
Zealand, and India. The breakdown of revenue in each of our major geographic
areas was as follows:

                        Three months ended March 31,
                           2022               2021        $ Change     % Change

                                (in thousands)
EMEA                        $ 24,876           $ 26,989   ($ 2,113)        (8)%
Americas                      17,249             16,528         721          4%
APAC                          10,322              7,258       3,064         42%
Total revenue               $ 52,447           $ 50,775     $ 1,672          3%

% of Total Revenue
EMEA                             47%                53%
Americas                         33%                33%
APAC                             20%                14%

Revenue generated in EMEA during the three months ended March 31, 2022 been $2.1 millioni.e. 8% less than the three months ended March 31, 2021mainly due to lower hardware sales.

The income generated in the Americas in the three months ended March 31, 2022
been $0.7 millioni.e. 4% more than the three months ended March 31, 2021driven primarily by higher software license revenue and subscription revenue

Revenue generated in the Asia Pacific region during the three months ended March
31, 2022 was $3.1 million, or 42% higher than the three months ended March 31,
2021, driven by higher revenue from software licenses and subscription.

Cost of Goods Sold and Gross Margin

                              Three months ended March 31,
                                   2022             2021            $        % Change

                                                  (in thousands)
Cost of goods sold
Product and license                 $ 9,079          $ 10,752   ($ 1,673)       (16)%
Services and other                    6,690             5,781         909         16%
Total cost of goods sold           $ 15,769          $ 16,533     ($ 764)        (5)%

Gross profit                       $ 36,678          $ 34,242       2,436          7%

Gross margin
Product and license                     69%               62%
Services and other                      71%               74%
Total gross margin                      70%               67%

The cost of product and license revenue decreased $1.7 million or 16% during the
three months ended March 31, 2022 compared to the three months ended March 31,
2021 primarily due to a 13% decrease in hardware revenue during the period.

The cost of services and other revenue increased by $0.9 million, or 16% during
the three months ended March 31, 2022 compared to the three months ended March
31, 2021. The increase in cost of services and other revenue is reflective of
higher subscription revenue, which has increased cloud-based infrastructure


  Table of Contents

Gross profit increased $2.4 million, or 7% during the three months ended March
31, 2022 compared to the three months ended March 31, 2021. Gross profit margin
was 70% for the three months ended March 31, 2022, compared to 67% for the three
months ended March 31, 2021. The increase in profit margins for the three months
ended March 31, 2022 reflects a shift in product mix to increased term-based
software and subscription revenue and lower hardware revenue.

The majority of our inventory purchases are denominated in U.S. Dollars. Our
sales are denominated in various currencies including the Euro. The impact of
changes in currency rates are estimated to have decreased revenue by
approximately $1.6 million for the three months ended March 31, 2022. Had
currency rates in 2021 been equal to rates in 2021, the gross profit margin
would have been approximately 3 percentage point higher for the three months
ended March 31, 2022.

Operating Expenses

                                    Three months ended March 31,
                                       2022               2021              $          % Change

                                            (in thousands)
Operating costs
Sales and marketing               $        15,895    $        17,168     ($ 1,273)          (7)%
Research and development                   13,749             12,244         1,505           12%
General and administrative                 14,895             12,551         2,344           19%
Amortization of intangible assets           1,382              1,573       
 (191)         (12)%
Total operating costs             $        45,921    $        43,536       $ 2,385            5%

Sales and Marketing Expenses
Sales and marketing expenses for the three months ended March 31, 2022 were
$15.9 million, a decrease of $1.3 million or 7%, from the three months ended
March 31, 2021. The decrease in expense for the three months ended March 31,
2022 compared to the same period in 2021 was driven by lower headcount in
conjunction with our restructuring plan, partially offset by severance and
related benefits expense recognized during the three months ended March 31,

Average full-time sales, marketing, support, and operating employee headcount
for the three months ended March 31, 2022 was 361, compared to 385 for the three
months ended March 31, 2021. Average headcount was 6% lower for the three months
ended March 31, 2022, compared to the same period in 2021.

Research and development costs

Research and development expenses for the three months ended March 31, 2022,
were $13.8 million, an increase of $1.5 million, or 12%, from the three months
ended March 31, 2021. The increase was driven primarily by $1.7 million of
severance and related expenses incurred as part of our restructuring plan.

Average number of full-time employees in research and development for the three months ended March 31, 2022 was 367, compared to 349 for the quarter ended
March 31, 2021. Average headcount increased by approximately 5% for the three months ended March 31, 2022compared to the same period in 2021.

General and administrative expenses

General and administrative expenses for the three months ended March 31, 2022,
were $14.9 million, an increase of $2.3 million or 19%, from the three months
ended March 31, 2021. The increase in general and administrative expenses for
the three months ended March 31, 2022 was driven by higher consulting fees
related to our strategic action plan and higher bad debt expense, partially
offset by the forfeiture of unvested stock based compensation



and long-term incentive plan benefits by employees who left the company, as well
as outside service costs for our proxy contest incurred during the three months
ended March 31, 2021.

Average full-time general and administrative employee headcount for the three
months ended March 31, 2022 was 138, compared to 134 for the three months ended
March 31, 2021. Average headcount was approximately 3% higher for the three
months ended March 31, 2022, when compared to the same period in 2021.

Amortization of intangible assets

Amortization of intangible assets for the three months ended March 31, 2022 was
$1.4 million, compared to $1.6 million for the three months ended March 31,
2021. Amortization expense decreased 12%, which was driven by certain assets
acquired in the Silanis acquisition becoming fully amortized.

Interest income (expense), net

                                          Three months ended March 31,

2021 $ Change % Change

                                                 (in thousands)
Interest income (expense), net                 ($ 17)                     

$4 ($21) NM

Interest income (expense), net was less than $0.1 million for the three months
ended March 31, 2022, as compared to less than $0.1 million for the same period
in 2021. The fluctuation is reflective of changing interest rates in our cash
accounts held in various countries across the globe.

Other income, net

                                    Three months ended March 31,
                                     2022                       2021    $ Change    % Change

                                           (in thousands)
Other income (expense), net            $ 15,647                ($ 362)  $ 16,009       NM

Other income, net primarily includes subsidies received from foreign governments
in support of our research and development in those countries, exchange gains
(losses) on transactions that are denominated in currencies other than our
subsidiaries' functional currencies, and other miscellaneous non-operational,
non-recurring expenses.

Other income (expense), net for the three months ended March 31, 2022 was $15.6
million, compared to $(0.4) million for the comparable period of 2021. The
fluctuation was primarily driven by $14.8 million gain on sale of our investment
in Promon AS.

Provision for Income Taxes

                                     Three months ended March 31,
                                    2022                          2021           $          % Change

                                             (in thousands)
Provision (benefit) for
income taxes                           $ 1,173                    ($ 501)       $ 1,674            NM

The Company recorded income tax expense for the three months ended March 31,
2022 of $1.2 million, compared to income tax benefit of $0.5 million for the
three months ended March 31, 2021. The expense recorded for the three months
ended March 31, 2022 was primarily attributable to the gain recognized on the
sale of our investment in Promon.



Cash and capital resources

At March 31, 2022, we had cash balances (total cash and cash equivalents) of
$83.6 million and short-term investments of $36.3 million. Short term
investments consist of U.S. treasury notes and bills, corporate notes and bonds,
and high quality commercial paper with maturities at acquisition of more than
three months and less than twelve months.

To December 31, 2021we had cash balances of $63.4 million and short-term investments of $35.1 million.

We are in lease agreements that require letters of credit to secure the
obligations. The restricted cash related to these letters of credit is recorded
in other non-current assets on the Condensed Consolidated Balance Sheet in the
amounts of $0.8 million and $0.8 million at March 31, 2022 and December 31,
2021, respectively.

Our working capital at March 31, 2022 been $108.3 million compared to $98.0 million to December 31, 2021.

From March 31, 2022we held $70.3 million cash and cash equivalents in subsidiaries outside United States. Of this amount, $69.6 million is not subject to repatriation restrictions, but may be subject to taxes upon repatriation.

We estimate that our financial resources are sufficient to meet our operating needs over the next twelve months.

Our cash flows are as follows:

                                                                         Three months ended March 31,
                                                                            2022              2021
                                                                                 (in thousands)
Cash provided by (used in):
Operating activities                                                          $ 3,660            $ 3,583
Investing activities                                                           17,283           (18,440)
Financing activities                                                            (635)            (2,139)
Effect of foreign exchange rate changes on cash and cash equivalents       
     (45)              (558)

Operating Activities

Cash generated by operating activities is primarily comprised of net income, as
adjusted for non-cash items, and changes in operating assets and liabilities.
Non-cash adjustments consist primarily of amortization of intangible assets,
depreciation of property and equipment, deferred tax benefit, and stock-based
compensation. We expect cash inflows from operating activities to be affected by
increases or decreases in sales and timing of collections. Our primary uses of
cash from operating activities have been for personnel costs. We expect cash
outflows from operating activities to be affected by increases in personnel cost
as we grow our business.

For the three months ended March 31, 2022net cash provided by operating activities was $3.7 millioncompared to the net cash generated by operating activities of $3.6 million in the three months ended March 31, 2021.

Investing activities

The changes in cash flows from investing activities primarily relate to timing
of purchases, maturities and sales of investments, purchases of property and
equipment, and activity in connection with acquisitions. We expect to continue
to purchase property and equipment to support the continued growth of our
business as well to continue to invest in our infrastructure and activity in
connection with acquisitions.

For the three months ended March 31, 2022, net cash provided by investing
activities was $17.3 million, compared to net cash used in investing activities
of $18.4 million for the three months ended March 31, 2021. Cash provided by
investing activities during the three months ended March 31, 2022 was primarily
driven by the $18.9 million sale of our investment in Promon AS. Cash used in
investing activities during the three months ended March 31,



2021 was marked by the timing of purchases and maturities of our short-term investments, as well as the purchases of property, plant and equipment.

Fundraising activities

The changes in cash flows from financing activities is primarily related to the
purchases of common stock under our share repurchase program and tax payments
for restricted stock issuances.

For the three months ended March 31, 2022, net cash used in financing activities
was $0.6 million, compared to net cash used in financing activities of $2.1
million for the three months ended March 31, 2021. The decrease is driven by
lower tax payments for restricted stock issuances.

Critical accounting policy

Our accounting policies are fully described in Note 1 - Summary of Significant
Accounting Policies, to our Consolidated Financial Statements in our Annual
Report on Form 10-K for the year ended December 31, 2021 and Note 2 - Summary of
Significant Accounting Policies to our Interim Unaudited Condensed Consolidated
Financial Statements in this Quarterly Report on Form 10-Q for the quarterly
period ended March 31, 2022. We believe our most critical accounting policies
include revenue recognition, credit losses, and accounting for income taxes.

© Edgar Online, source Previews

FDIC: PR-37-2022 5/3/2022

For publication

WASHINGTON — Federal Deposit Insurance Corporation (FDIC) Acting Chairman Martin J. Gruenberg and U.S. Census Bureau (Census) Director Robert L. Santos today formally invited approximately 2,000 U.S. banks to participate in a Nationally representative online survey of their small business lending practices and volumes. .

Sponsored by the FDIC and administered by the census, the 2022 Small Business Lending Survey (SBLS) provides a comprehensive view of small business lending by banks and will significantly expand the FDIC’s and public’s understanding of the impact banks on small businesses in the country.

In a message to select institutions, Acting FDIC Chairman Gruenberg and Census Director Santos said, “Banks are uniquely positioned to meet the credit needs of small businesses, which are a contribution to the U.S. economy Your institution’s participation in the survey will provide valuable information to the FDIC, other policymakers, and the general public about the contribution of U.S. banks to small business lending.

Banks are the most common source of external financing for small businesses, which make up nearly all of America’s businesses. Despite the importance of small businesses to the US economy and the importance of small business bank lending, there is little high quality data on this activity. The last SBLS took place in 2016 and the 2022 survey aims to fill gaps in understanding current bank lending to this vital sector.

The census selected approximately 2,000 banks of all sizes and from all geographic areas of the United States to participate in the survey, including institutions primarily regulated by the FDIC, the Federal Reserve, and the Office of the Comptroller of the Currency (OCC). The banks selected include all FDIC-insured institutions with assets of $3 billion or more as well as a random sample of banks with assets of less than $3 billion. All survey responses will be confidential and anonymous, and the FDIC will only report aggregated results.

To answer any questions bankers may have about SBLS 2022, the FDIC will host four banker information sessions on May 11.and12and16and and 17and. Bankers may attend multiple sessions and are encouraged to invite other staff to attend. Register Now for the 2022 FDIC Survey Meetings on Small Business Loans for Bankers.

FDIC: PR-37-2022

Passwordless MFA for Customers: How to Increase Security Without Introducing Friction

First Internet Bancorp Announces Termination of First Century Merger Agreement

FISHERMEN, Ind.–(BUSINESS WIRE)–First Internet Bancorp (the “Company”) (Nasdaq: INBK), the parent company of First Internet Bank (the “Bank”), today announced that First Century Bancorp (“First Century”) has terminated the agreement and proposed merger between the two companies. Under the agreement, announced on November 2, 2021, completion of the merger was to occur no later than April 30, 2022. The Federal Reserve Board of Governors approved the merger on April 29, 2022, but the parties have were prevented from closing immediately afterwards due to legal waiting times. The parties could not agree on the terms of the extension; First Century terminated the agreement on May 1, 2022.

David Becker, CEO and President of First Internet Bancorp, said: “Despite negotiating efforts, we were unable to arrive at a mutually acceptable purchase price increase in exchange for an extension. Although the acquisition initially appeared to offer opportunities to diversify our revenue streams, we will not support the excessive deployment of capital without a clear and probable path to an acceptable return on investment. We remain strongly committed to increasing shareholder value.

Becker continued, “Our board and management team are focused on our strategy and execution. As we shared recently, we delivered strong first quarter results and are confident that we will meet expectations for 2022. While we have worked diligently on the integration with First Century, we have continued to research and to evaluate additional strategic opportunities and have built a pipeline of action projects to increase results in future periods.

“I thank the employees of First Century Bank from the bottom of my heart for their openness, hospitality and collaboration throughout the diligence and planning. Finally, I am extremely proud of the team at First Internet Bank who have worked tirelessly on the opportunity and integration plan while continuing to serve our customers and improve our capabilities. It is the unwavering commitment of our team that fuels our confidence in the strength of our franchise and our ability to seize potential growth opportunities ahead.

Conference call and webcast

The Company will host a conference call and webcast at 4:30 p.m. Eastern Time on Monday, May 2, 2022 to discuss the announcement. The appeal can be viewed by phone at (844) 200-6205; access code: 434757. A recorded replay can be accessed through June 1, 2022 by dialing (866) 813-9403; access code: 130420.

Additionally, interested parties may listen to a live webcast of the call on the Company’s website at www.firstinternetbancorp.com. An archived version of the webcast will be available at the same location shortly after the live call ends.

About First Internet Bancorp

First Internet Bancorp is a bank holding company with assets of $4.2 billion as of March 31, 2022. The company’s subsidiary, First Internet Bank, opened in 1999 as a pioneer in the industry in the provision of branchless banking services. The Bank provides consumer and small business deposits, SBA financing, franchise financing, residential mortgages, consumer loans and specialty finance services nationwide, as well as commercial real estate loans, construction loans, commercial and industrial loans and regional cash management services. base. The common shares of First Internet Bancorp trade on the Nasdaq Global Select Market under the symbol “INBK” and are included in the Russell 2000® Index. Additional information about the Company is available at www.firstinternetbancorp.com and additional information about the Bank, including its products and services, is available at www.firstib.com.

Investing in UTRUST (UTK) – Everything you need to know


Utrust (UTK) operates as a decentralized cryptocurrency payment processor. The network focuses on e-commerce businesses through a suite of proprietary features and products. The goal of the project is to enable businesses to easily accept cryptocurrency payments. To that extent, Utrust continues to deliver with more companies joining the protocol every week.

What problems does Utrust (UTK) solve?

One of the main issues that Utrust seeks to address is the slow pace of enterprise adoption. Cryptocurrencies are faster, more efficient, and secure than fiat currency, but many businesses do not accept these digital assets due to volatility issues. Some businesses want to accept cryptocurrencies, but don’t know where to start to make the process a reality. Utrust was designed to provide these users with comprehensive support.

The protocol helps alleviate traders’ concerns with its easy-to-navigate dashboard. New users can find all the features they need to start accepting crypto payments today. The system was designed from the ground up to mitigate volatility and improve returns for traders.

Utrust (UTK) – Twitter

Conversion times

Part of this strategy includes reducing conversion times. The crypto market is volatile, with prices changing every minute. As such, it is vital for a merchant processor to transact in near real-time to ensure no loss of value from point of sale to transaction completion. Utrust provides immediate conversion from crypto to fiat currency to ensure that there is no loss of value to merchants.

Lack of consumer protection

Another major problem in the crypto merchant industry is the lack of consumer protection. Cryptocurrencies bring some benefits, but there are some caveats, such as the inability to redeem on public blockchains. Utrust introduces a variety of buyer protections to improve the scenario.

Utrust focuses on securing transactions between buyers and sellers. Specifically, buyers and sellers benefit from more flexibility, such as the ability to communicate before the transaction to improve verification. This approach streamlines communication between the two parties and improves the overall user experience.


Inflation is another concern that has made headlines recently. Inflation occurs when a currency loses purchasing power. This is one of the worst things that can happen to savers because it robs them of their wealth. Utrust incorporates deflationary protocols to prevent inflation from causing problems for users.

Utrust (UTK) - Home page

Utrust (UTK) – Home page

Specifically, a small percentage of the fee is converted to UTK and burned. Burning tokens means taking them out of circulation permanently. To accomplish this task, the developers will send the tokens to an address that does not have a withdrawal option. The objective of this process is to reduce the overall supply. This, in turn, increases demand, which leads to higher token values.

Advantages of Utrust (UTK)

Utrust users enjoy many benefits. On the one hand, payment processing services have been designed to provide seamless integration into current PoS systems. This easy integration benefits consumers and merchants as the protocol does not require any prior experience to manage. Even better, merchants receive their payments in fiat currency.


The Utrust interface is where users access all network functionality. The developer went to great lengths to ensure the dashboard was efficient and easy to navigate.

Low fees

Those looking for an affordable alternative to PayPal and other centralized online payment processors should consider Utrust. The network has low conversion fees and there are no exchange rate fees when transacting in the network’s native utility token, UTK. The network charges a small commission of 1% and a conversion fee for normal transactions.


Another reason why Utrust has become so popular is its flexibility. The network supports different digital currencies and fiat currencies. As such, it works as a low-cost solution for any business looking for a flexible international online payment processor.

How Utrust (UTK) Works

Utrust works through a combination of systems. The network facilitates the acceptance of digital currencies. It combines the most popular features found on traditional payment gateways with the security of blockchain technology. This structure allows the protocol to perform business-to-consumer transactions in real time.

When a transaction is sent, the network automatically converts the cryptocurrency into fiat currencies in real time. This process is completely self-contained and the network seeks the lowest conversion rate as part of the process. Notably, a retention period is in place for new merchants to prevent fraud. As your reputation builds and you make more trades, the holding period is removed.

UTrust Wallet

The Utrust Wallet simplifies the making of crypto transactions. This versatile digital wallet can store a variety of popular ERC-20 tokens and popular cryptocurrencies. The protocol was designed to work on your favorite mobile device. Anyone can store their UTK tokens and buy products using this wallet.

UTK - CoinGecko

UTK – CoinGecko


The UTK token is an essential component of the Utrust network. It is the main utility token of the Utrust system. Users save when transacting using this token. They can also send UTK across the world in seconds using the peer-to-peer network. Notably, UTK is an ERC-20 standard token that lives on the Ethereum blockchain. As such, it benefits from a high level of interoperability in the market.


Utrust entered the market in October 2017 during the crypto breakout. The network was founded by Artur Goulao, Filipe Castro, Nuno Correia and Roberto Machado. It currently lists Sanja Kon as CEO. Kon has a long history of working as a Marketplace and Large Enterprise Manager at PayPal. Today, Utrust is one of the most successful crypto payment processors in the market.

How to buy UTRUST (UTK)

Currently, UTRUST (UTK) is available for purchase on the following exchanges.

Binance- Ideal for Australia, Canada, Singapore, UK and most of the world. US residents are prohibited to buy UTRUST (UTK). Use the discount code: EE59L0QP for 10% cashback on all trading fees.

KuCoin – This exchange currently offers cryptocurrency trading of over 300 other popular tokens. He is often the first to offer opportunities to buy new tokens. This exchange currently accepting international and US residents.

Huobi Global – Founded in 2013, Huobi Global has since become one of the largest digital asset exchanges in the world, with a cumulative trading volume of US$1 trillion. It should be noted that Huobi Global currently does not accept residents of the United States or Canada.

Utrust – Bridging the Gap

Utrust’s strategy is to help bring more businesses into the crypto sphere. It makes sense because they have the most to gain from such an endeavor. Additionally, this step is critical to driving large-scale crypto adoption in the future. For these reasons, you can expect to see Utrust continue to expand its network of merchants and users over the coming months.

The JOBS Act of 2022 will help diversify American entrepreneurship

On April 4, a group of Republicans on the Senate Banking Committee, led by Sen. Pat Toomey (R-Pa.), released a major legislative discussion draft called the JOBS law of 2022 on the occasion of the 10th anniversary of the JOBS Act of 2012, and further improve access to capital for new and small businesses. The package of nearly 30 individual bills is an attempt to solicit input from Republicans and Democrats on ways to cultivate new business creation and growth, encourage young companies to trade in public markets, protect retail investors and change regulations to support new and small businesses. .

Some bills in the package already enjoy bipartisan support. A provision co-sponsored by the senses. Steve Daines (R-Mont.) and Robert Menendez (DN.J.), for example, would eliminate certain fees and expense items from business development company prospectus aimed at broadening access to capital for small and medium-sized enterprises. Another, co-sponsored by Sens. John Kennedy (R-La.) and Tina Smith (D-Minn.), would demand that the Securities and Exchange Commission study access to private capital in rural areas of the country.

One provision of the package that deserves bipartisan support is the Expansion of US Entrepreneurship Lawco-sponsored by Sens. Jerry Moran (R-Kan.) and Tim Scott (RS.C.). Only 13 lines In length, the bill would broaden the range of entrepreneurs who end up securing capital to include more women founders and entrepreneurs of color by expanding the diversity of investors participating in funds that invest in new businesses.

Starting a new business requires money. Entrepreneurs need money to pay expenses, develop their product or service idea, research the market, develop and implement a strategy to identify and target customers, and hopefully start paying the first employees. . Since these costs typically arrive well before the first dollar of income, capital and credit are the backbone of any new business.

Many new businesses, especially those with the potential to grow very quickly, rely on investors who provide seed capital in exchange for an equity stake in the business. Right now, the overwhelming share of equity goes to white, male entrepreneurs. In recent years, female entrepreneurs have reportedly received only around 2 percent of total social capital while entrepreneurs of color received about 1 percent.

This unbalanced distribution of capital is explained both by explicit biases on the part of certain investors, but also by unintentional biases. Recent to research documented a phenomenon known as “homophilia” – investors tend to invest in entrepreneurs who look like them, have similar backgrounds and life experiences, and who start businesses that investors identify with. Historically, startup investors have been overwhelmingly white and male, with the predictable result that most of the startups they invest in are started and run by white male entrepreneurs. Greater diversity among those who invest in startups would mean more capital directed to women founders and entrepreneurs of color.

the Investment Companies Act 1940establishes the legal framework for the creation, operation and regulation of investment funds. Many private equity funds are organized under section 3(c)(1) of the Act, which requires fund participants to be accredited investors and limits the number of investors to 100. Limiting the number of investors allowed reinforces diversity deficiencies among startup investors – and, therefore, among entrepreneurs who successfully secure funding – because it retains the contribution of every investor, except for very small funds, high. For example, in the case of a $30 million fund – very small by industry standards – the average investment is $300,000, too large for many accredited investors, especially investors of color. .

In 2018, Congress passed and President Trump signed into law the law Economic Growth, Regulatory Relief and Consumer Protection Actwhose main purpose was to alleviate certain aspects of the Dodd-Frank Wall Street Reform and Consumer Protection Actwhich Congress passed in 2010 in the wake of the 2008 financial crisis. The act also amended Section 3(c)(1) of the Investment Company Act to allow funds below $10 million dollars to have up to 250 investors.

The increase in the number of authorized investors has improved the situation for 3(c)(1) funds in two ways: 1) it has helped to obtain more capital for early-stage companies; and, 2) it allowed more accredited investors to allocate smaller amounts of capital to a potentially lucrative asset class.

But the fund’s cap of $10 million remains highly problematic. First, funds under $10 million are too small to have a significant impact on the diversity of entrepreneurs who obtain funding. Additionally, funds over $10 million are still subject to the 100 investor limit.

The Expanding American Entrepreneurship Act would address this issue by expanding the parameters of the 2018 subcategory change to section 3(c)(1). First, the bill would quintuple the authorized fund cap from $10 million to $50 million – still low by modern fund standards, but providing emerging fund managers with significant additional capacity to invest in a more diverse range. of entrepreneurs. Second, the bill would increase the number of authorized investors from 250 to 500, keeping the contribution of individual participants to the fund relatively low, meaning more accredited women investors and investors of color could participate.

Together, the higher fund cap and more authorized investors would promote greater diversity among emerging fund investors and managers — and, therefore, more investment in women founders and entrepreneurs of color.

A thriving entrepreneurial spirit is the critical pathway to the strong economic growth, job creation, and expansion of opportunity the American people need and deserve, especially after the impact of the COVID pandemic. -19. And yet, American entrepreneurship has been in decline over the past decades. Revitalizing American entrepreneurship requires much higher participation rates from women and entrepreneurs of color.

The Expanding American Entrepreneurship Act is a critical public policy step toward this goal.

John Dearie is the president of the Center for American Entrepreneurship

Resellers Continue Success with Total Touch POS Program for Resellers


Total Touch POS, based in Cleveland, OH, is pleased to bring its comprehensive POS reseller program to the Kansas area. As a subsidiary of Electronic Merchant Systems (EMS), Total Touch POS has the ability to revolutionize the way bars, restaurants and similar establishments manage their point of sale systems. The company currently offers this program across the United States, with Kansas being one of their newest locations. Learn more here: https://www.emscorporate.com/pos-reseller-ks.

POS resellers are ideally highly motivated, independent sales agents who are willing to work hard to pursue a rewarding career. Total Touch is a true partner of its team of POS resellers. A company spokesperson explains, “This program provides several significant benefits to the VARs we work with, including uncapped revenue growth and the tools and opportunities to maximize their portfolio, the ability to close deals at a fast pace, and so much more.” According to the company, current members of the reseller program appreciate how much it supports a higher degree of customer loyalty, especially since the program also offers access to integrated catering systems. Merchants who decide to switch to Total Touch won’t have to deal with the hassle of switching payment processors, and as a result, resellers are able to start growing revenue immediately while simultaneously helping their customers grow.

Total Touch is also proud to offer resellers access to an incredible support network, which significantly benefits from the vast experience of their team in all associated areas. The company spokesperson said: “One of the greatest benefits for our dealers is that they will be able to work with channel managers who know how to solve the problems they encounter and help them overcome challenges and problems of which they may not yet be aware. . All members of the reseller program will receive all the training they need through this process, which will make them more independent and confident in their roles over time. »

Total Touch points out that the combination of these two factors will greatly increase a dealer’s chances of maximizing residuals and generating more recurring revenue. Most would agree that these are the ingredients for success in virtually any field, and the POS company knows what it takes to achieve these goals. Interested parties can learn more about the Total Touch POS reseller program by contacting company representatives.

The more competent and equipped a point-of-sale dealer is, the more his clientele can grow. With the help of Total Touch, resellers can give restaurant and bar owners the tools they need to streamline their operations. A POS reseller who partners with Total Touch can offer a range of benefits, including full integration with most payment processors, allowing owners to work with the processor of their choice and access a system based on a cloud-supported server. Another benefit is the ability to integrate both point of sale and payment processing with a single company. Since Total Touch is used by restaurants and similar establishments across the country, the team also understands the importance of having their experts accessible to customers at all times. POS resellers can utilize this 24/7 support system whenever they need to meet any challenges they may face on the road to success.

Total Touch stands out because it can help improve the dining experience. For example, the customer experience of many establishments can greatly affect whether customers choose to keep coming back. Total Touch supports open table management, which allows a customer to manage tables to help reduce long wait times and improve checkout speed, which will allow them to do more business. On the other hand, checks can be split by seat, item or table giving customers much more control over how they charge a group of customers. The company also knows that online and mobile ordering play an important role in the dining experience, so a business can continue to use Total Touch and simultaneously adapt to changing customer habits and preferences. .

To learn more about the Total Touch POS Reseller Program, interested parties can visit the company’s official website and related resources. The company can also be reached via its social media platforms, by phone and by email.


For more information about the Total Touch POS reseller, contact the company here:

Total Touch POS Reseller
Matthew Dye

Points to remember about the Fed’s central bank digital currency proposal

By Nicole DeSantis (April 27, 2022, 5:29 PM EDT) – There was a time when digital technology was the rising tech in television, and now high definition television is a given and widely appreciated by masses of media watchers.

Now, the word “digital” is making its inroads into the financial world, and like it or fear it, it seems here to stay. This article explores the long-awaited discussion paper released by the Federal Reserve Board, or FRB, on the potential application of a central bank digital currency, or CBDC.

The article also includes key considerations from the recent executive order signed by President Joe Biden on March 9, which directs various…

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Lender Outfund launches $627 million investment fund

UK Revenue Based Finance (RBF) Company Outfund plans to invest £500m ($627m) in loans to more than 5,000 businesses over the next 12 months.

According to multiple reports on Wednesday, April 27, this announcement follows Outfund’s recent £115 million ($144 million) Series A completion.

In addition, the company plans to use the funds to lend more capital to borrowers, bringing the maximum loan per small business to £10m. The funding means Outfund is now the largest revenue-based finance company in the UK, Spain and Australia.

“Our ambition is for Outfund to be the place to go to grow your business, without compromising your equity or wasting time fundraising,” said Daniel Lipinski, the company’s founder and CEO.

“That’s why we’ve spent time developing a way to make the process of securing funds for growth easier, fairer and, most importantly, faster. Our approach has been warmly welcomed by founders and directors alike. ‘now, and now we’re looking at how we can open it up to more companies and continue to be part of their journey to success for a long time.

Founded in 2020, Outfund is an alternative investment platform that focuses on venture capital funds and bank loans to invest in businesses such as e-commerce, software as a service (SaaS) and retail. retail.

Outfund can lend between £10,000 ($12,500) and £10 million ($12.5 million) in funding, available to businesses that accept online payments. These companies must have a monthly turnover of at least £10,000 and have been in business for at least six months.

Read more: Revenue-Based Financing Drives E-Commerce and SaaS Growth in MENA

Earlier this month, PYMNTS spoke with Ahmad Coucha, co-founder and CEO of Cairo-based finance firm FlapKap.

While RBF has become popular in the developed world, it remains relatively new in regions like the Middle East and North Africa (MENA), where Coucha says FlapKap is the first company of its kind.

“Our AI solution helps us understand the client’s accounting processes, spending habits and correlation with sales to determine if they have the potential to grow should their advertising spend increase – one of largest expense items for businesses,” he said.



Plastiq - The Future Of Business Payables Innovation: How New B2B Payment Options Can Transform The SMB Back Office - April 2022 - Find out how all-in-one payment solutions can help businesses streamline B2B transactions and eliminate transaction friction. AP and AR management

On: While more than half of SMBs believe an all-in-one payment platform can save them time and improve cash flow visibility, 56% believe the solution could be difficult to integrate with AP systems and existing ARs. The Future Of Business Payables innovation report, a collaboration between PYMNTS and Plastiq, surveyed 500 SMBs with revenues between $500,000 and $100 million to explore how all-in-one solutions can exceed customer expectations. SMEs and help sustain their activities.

Startups should look at debt, not just venture capital funding

Three years ago, I met another venture capitalist in Jakarta to talk about startups in emerging markets. We talked about various sectors and business models. “But when these companies talk about monetization, they’re all lending companies,” he noted. He was right. Roadmap and monetization slips into many starter decks, even if they don’t lend strictly to fintechs, some form of lending has been talked about.

It seems that startups are coming to the same conclusion as GM and other American automakers in the 1930s: there’s more money to be made financing cars than selling them outright.

Do you have data on your customers’ inventory levels and flows? Let’s consolidate inventory financing. Carriers struggling with working capital to fund fuel costs? Try working capital financing.

Bundling loan products to facilitate consumer spending is common in most industries, and technology is no exception. After all, no company would turn down an opportunity to get more of the customer’s wallet and retain them.

The article continues after this announcement

But tech companies are equity-backed, and raising equity is an expensive way to fund loans. This is because most venture capitalists expect explosive growth and returns, not those that can be achieved by lending at a reasonable rate. So, as startups evolve and grow in financing products, they will need to access debt to continue making loans themselves.

What types of debt exist for startups? These are the categories:

Asset based loans

A receivables loan is one of the easiest ways to fund a business with a financial product. The lender assesses the quality of the debt, ie the probability of timely repayment, and advances a facility on which the borrower draws if necessary. Commonly known as a revolver, these facilities offer flexibility to the borrower, but can be more expensive than a standard term loan on an annualized basis.

For fintechs or other startups offering loan products, the primary claim is the collection of loans they have made to customers that will be repaid. A “loan tape” shows all data on the loans they have made and tracks repayments. If the business goes bankrupt, the lenders have the right to recover the borrowed amount by staking their claims on the secured loans.

Corporate debt

More mature companies can often access a wider variety of debt instruments, including term loans, convertible notes, and traditional venture capital debt. These instruments are sometimes less expensive than asset-based revolvers, and lenders typically focus on the company’s ability to repay the loan with cash flow, rather than the valuation of balance sheet assets.

In debt parlance, this reflects a shift from underwriting a specific asset to underwriting the entire company. In some cases, subprime credit facilities also contain warrants – the lender’s right to convert their debt into equity – which can become very valuable if the value of the business appreciates significantly. Therefore, venture debt providers, unlike other debt providers, often focus on the total enterprise value and growth potential of the business.

In fact, many subprime debt providers count on warrants to generate fund returns, especially when lending to very young startups. Young startups sometimes fund themselves through convertible notes, which are effectively equity instruments disguised as debt. So while convertible notes and venture capital debt are available to early stage startups, investors know full well that they are trying to get a share of the future equity value of the business.

Revenue-Based Funding

A new class of digital lenders lends against the future revenues of businesses in the digital economy. Lenders in this category include Clear.co, Pipe, CapChase, and Uncapped, among others, as well as capital provided by Shopify, Square, and Stripe.

This product is not new – the merchant cash advance has been a staple for centuries. What has changed now is that the lender can connect directly to the borrower’s accounting and financial data, allowing for a quick credit assessment and quick loan execution. The disadvantage of such financing is the cost to the borrower. Annualized rates on merchant cash advances exceed 50% in certain circumstances.

Debt for emerging market startups

While venture capital activity in emerging markets has exploded, debt capital, particularly non-corporate debt, remains relatively scarce. Take Pakistan. Although venture capital has boomed over the past three years, startup debt barely exists. Since even non-fintech startups want to provide financial products, the demand for loan capital will explode over the next five years. For now, this is an unmet need.

Will debt disrupt venture capital?

To be fair, startup debt has only recently begun to gain mainstream attention, even in developed markets. Venture capital debt reached $33 billion last year in the United States. That’s still only a tenth of the $330 billion in equity that venture capitalists deployed in the US last year (keep that 10x ratio in mind for later).

Simultaneously, the meteoric rises of revenue-based funding startups (Pipe, Clear.co, etc.) have led many to predict an increase in debt funding for startups this century. Here’s a great summary of available debt options created by a16z, and one that eloquently argues for the incoming wave of debt. The summary: Startups with a good product-market fit, a repeatable sales process, and a growing cohort of users may benefit more from debt financing than traditional venture capital (equity). The cash flows of startups with predictable, recurring revenue are remarkably similar to the cash flows of mortgages: largely predictable and consistent. The analogy has its limits, but there’s no reason tech companies with recurring revenue can’t also access debt.

Who is building this in emerging markets?

Assuming the multiple of 10 from earlier, the $300m in equity funding for Pakistani startups should result in a demand for $30m in risky debt, which is a subset of the entire debt market for startups. It’s not a lot, but I expect the demand for debt to be higher given the lack of debt products of any kind in the market. As the startup ecosystem grows, debt providers will need to step up their efforts.

But Pakistan is only a small part of the emerging markets venture capital ecosystem. The total debt demand for emerging market startups is easily a few billion dollars a year. And that will only accelerate in the next five years.

So who builds this?

NJ Turnpike Authority has $36 million freebie for E-ZPass customers


New Jersey drivers who use E-ZPass and pay with a debit card or credit card are receiving a $36 million giveaway from the Turnpike Authority and other toll agencies.

Commissioners at the toll agency that also operates the Garden State Parkway have approved paying three years of credit card processing fees instead of passing them on to drivers who use plastic to replenish or make E-payments. Unique ZPasses.

“New Jersey E-ZPass has never charged people credit card fees,” said Tom Feeney, a spokesman for the Turnpike Authority. The Authority manages the E-ZPass state consortium. “Money will now be paid directly by NJ E-ZPass agencies, rather than (contractor) Conduent.”

Turnpike commissioners voted Tuesday on the funding arrangement that pays a total of $150 million in fees over three years.

About 90% of E-ZPass customers use debit or credit cards to pay, although there remains a cash option, said Donna Manuelli, chief financial officer.

“Two agreements require us to pay credit card fees,” she said. “The Authority’s share of these costs amounts to approximately $35 million per year.”

The average credit card processing fee across the industry ranges from 1.5% to 3.5%.

Some retailers have tried to force credit card companies and processors to lower fees. Amazon has threatened to drop Visa as a US-based credit card after the company began charging a fee of 1.5% of transaction value in Britain and the European Union, according to Reuters.

“New Jersey’s E-ZPass agencies – like all other entities – pay a percentage of each credit card transaction to the credit card companies,” Feeney said.

What is the rest of the money used for? The New Jersey EZ Pass Group also needs cash to pay other toll agencies when a driver with a Garden State E-ZPass account pays a toll on an out-of-state bridge or highway, said Manuelli.

“Since 1998, agencies have agreed to reimburse each other, so when a New York Thruway (E-ZPass) customer (drives on) the Turnpike, we reimburse them (the Thruway) for that toll usage, or 15 million dollars a year,” she said. “We also receive money when our customers use their route, which is $14 million.”

The transaction comes as officials said Turnpike traffic volume increased 14% and toll revenue increased 17% in the first three months of 2022, compared to the same period in 2021. Toll transactions, which is how the Garden State Parkway measures traffic, are up 9% and revenue is up 12% year-to-date.

Turnpike traffic has recovered to 96% of pre-pandemic levels on the Turnpike and Parkway travel is at 94% of pre-COVID levels, Manuelli said.

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Larry Higgs can be reached at [email protected].

Business loan seekers are likely to consider many options, study finds

NOTNew data published in the annual FinTech Lending Study published by Smarter Loans has revealed that 40% of business loan seekers are comparing more than six options.

Although this study focused on the Canadian market, it may partly explain a finding in the United States that more and more small business owners looking for capital are looking for a cash advance as a potential option. (A Federal Reserve study said 10% of SMEs seeking capital were seeking a merchant cash advance in 2021). This would make sense if business owners were obsessively applying to multiple sources in an effort to make more comparisons.

But even when they shop, they are not always satisfied with what they learn, nor with the result. Smarter Loans reported that only 60% of business loan seekers felt informed about their options, while 40% of business owners who took out a business loan were unhappy with their loan provider.

Looking at both the business loan and consumer loan market, Smarter Loans indicates that loan applicants are more likely to receive their funds the same day they apply than ever before. (53% of respondents received funds within 24 hours of application.)

Click here to view the full 2022 FinTech Loans study published by Smarter Loans.

Last modification : April 25, 2022


Category: Business loans, Canada

    “Where there is a will, there is a way” – CBS Denver

    DENVER (CBS4) – Inflation doesn’t just hurt your wallet, it’s also tough on small businesses in Colorado. Small construction companies are currently among the hardest hit due to rising material, fuel and labor costs.

    On the brink of its busiest time of the year, family-owned Denver-based construction company BRL Group is struggling to make ends meet.

    “We’re entering summer, so it’s getting super busy right now,” said Lilliana Luna, owner of BRL Group. “We used to pay about $1,000 in gas every day to just get the trucks to the field. No, we pay $2,300.

    (credit: CBS)

    Costs have doubled for just about everything, Luna told CBS4’s Kelly Werthmann. His family business is now working overtime to weather the effects of inflation. She said employee retention issues are only making the problem worse.

    “Just as it is difficult for us to achieve our ends, it is difficult for employees to achieve theirs,” she explained. “So they’re asking for a raise.”

    Inflation and its impacts are at the heart of the concerns of small business finance company Kapitus.

    “It’s something we think about every day,” said Ben Johnston, Kapitus COO.

    Even with the many difficulties business owners currently face, Johnston told CBS4 he’s “optimistic.”

    “It’s a bit of a perfect storm, but despite all the headwinds in the economy right now and inflation, we continue to be very optimistic for small businesses in 2022,” he said. “Businesses today are looking to do more with less…and the American consumer is strong…and we expect small businesses to benefit.”

    (credit: CBS)

    Johnston also knows there are challenges ahead. He said that includes the Fed’s likely interest rate hike several times this year. His advice: take advantage of all the possibilities of financial support.

    “While most government support dried up after the PPP money ran out,” he explained, “many businesses still qualify for IRS retention tax credits. could be a welcome boost to your bottom line in a tough time.

    And it offers a glimpse of hope for small family businesses like Luna’s, which hopes to stay open for another 28 years.

    “Where there is a will, there is a way,” she said.

    CONNECTIONS: Kapitus Commercial Loan Funding | Denver Small Business Administration

    The CFPB publishes an annual FDCPA report; FTC Issues Annual Debt Collections Letter to CFPB

    The CFPB released its annual Fair Debt Collection Practices Act report covering the CFPB’s debt collection activities in 2021. The report incorporates information from the FTC’s latest annual letter to the CFPB outlining its 2021 activities in the debt collection market. debts, including information about the FTC’s debt collection activities. enforcement actions involving collection practices aimed at small businesses.

    It should be noted that in his blog post on the CFPB report, Director Chopra highlights the FTC’s “multiple actions to combat illegal collection practices that target small businesses.” He comments that “[i]It is essential that policy makers pay particular attention to wrongdoers targeting small businesses and consider whether there should be additional debt collection rights and protections for small businesses and entrepreneurs to protect them. The CFPB also highlights debt collection involving small businesses in a section of the report titled “Small Business Debt Collection.” In this section, the CFPB comments that the data it has reviewed suggests “a level of resources and expertise for most small businesses comparable to that of consumer borrowers rather than what might be the general perception of commercial businesses having readily available financial resources and expertise”. According to the CFPB,[t]The result is the potential for exploitation compared to what consumers encounter, without any of the consumer protections afforded by the FDCPA. The CFPB indicates that it “monitors the legal actions of [FTC] and state agencies regarding the abusive practices of certain financial institutions towards small businesses. »

    CFPB report. In addition to a description of FDCPA-related findings from the Bureau’s Summer 2021 and Fall 2021 Surveillance Highlights, the report includes the following information:

    • According to the complaints section of the report, the CFPB received approximately 121,700 debt collection complaints in 2021 (39,000 more than in 2020). As with all previous years since the Bureau began accepting debt collection complaints in 2013, the most common complaint in 2021 involved attempts to collect a debt that the consumer claimed was not owed. The second and third most common complaint issues were, respectively, written notices of debt and taking or threatening negative or legal action.
    • In 2021, the CFPB announced a new FDCPA enforcement measure. He resolved two pending lawsuits with FDCPA claims and filed a fraudulent conveyance recovery action to enforce a prior judgment based on FDCPA violations. These actions resulted in judgments for $2,260,000 in consumer relief, which were stayed due to defendants’ demonstrated inability to pay, $882,200 in civil monetary penalties, and permanent collection industry bans. . As of the end of 2021, the CFPB had three FDCPA enforcement actions pending in federal district court. It also conducts a number of nonpublic investigations of companies to determine whether they have engaged in collection practices that violate the FDCPA or the CFPA.
    • In a section of the report that discusses CFPB research projects, the CFPB indicates that in 2021, CFPB economists published an independent research paper that analyzes the effect of changes in state debt collection laws. Based on recent laws and regulations in four states that have instituted debt collection conduct restrictions, they reportedly found that “these restrictions reduce access to credit card accounts and increase interest rates, but that this effect is very weak”.
    • The CFPB concludes the report by stating that in 2022 it will “continue its work to enforce the [FDCPA] using all the tools at his disposal. These include supervision and enforcement, regulatory and legal measures, research and market surveillance activities, and consumer education.

    FTC Annual Update. Enforcement activities highlighted by the FTC in its annual letter (and described in the CFPB report) include the following:

    • The FTC has settled three lawsuits filed under its nationwide “Operation Corrupt Collector” initiative dealing with “phantom debt collection” and abusive and threatening debt collection practices. Phantom debt collection (also known as false debt collection) covers a range of practices, including attempts to collect obligations that consumers never incurred or received, as well as efforts to collect loans without the authorization of the creditor. In all settlements, the defendants were permanently banned from the debt collection industry.
    • The FTC has filed an amended complaint in a lawsuit filed against two companies engaged in financing small businesses and several of their executives and owners. The amended FTC complaint alleges that the defendants misled small businesses by misrepresenting the terms of merchant cash advances, made unauthorized withdrawals from small business bank accounts, violated the Gramm-Leach-Bliley Act by making false statements to induce consumers to provide information about their bank account. , and used unfair collection practices, including judgment admissions that defendants unfairly used to seize personal and business assets in circumstances not intended by clients and not authorized by financing agreements.
    • The FTC, joined by the Commonwealth of Pennsylvania, filed an amended complaint in a lawsuit brought against the operators of a telemarketing system and debt collection operation. Amended FTC Complaint Alleges Telemarketers Charged Small Businesses for Books and Newsletter Subscriptions They Never Ordered and Sent Unpaid Bills to Debt Collection Company Who Illegally Threatened Businesses if they did not pay for the items not ordered.

    The CFPB report and the FTC letter discuss the FTC’s efforts to advance legislation that would amend Section 13(b) of the FTC Act to expressly give the FTC the power to request, and to a court to award equitable monetary relief such as restitution or disgorgement. In 2021, in AMG Capital Managementthe US Supreme Court ruled that Section 13(b) confers no such power on the FTC.

    Overcoming Fraud Challenges in the BNPL Space


    Buy Now, Pay Later (BNPL) has tremendous appeal for online shoppers, allowing consumers to access goods and services now while paying for them at a later date. In particular, Asia-Pacific’s high internet penetration rate and vibrant e-commerce economy make the region an excellent incubator for this service. BNPL is expected to be the fastest growing payment method for Singapore, and BNPL providers Atome, Grab and Hoolah have also recently co-established an industry-led initiative to develop a BNPL framework for the local market.

    However, with opportunities come risks – and new payment trends often reveal new surfaces where fraud and abuse can take place. BNPL is essentially a point-of-sale instant loan application. This means that the BNPL provider must make a credit decision in the time it takes a customer to complete a transaction compared to the minutes, hours or days that traditional lenders have to make the same decision.

    This short time frame and the “softer” controls that BNPL providers have compared to banks and credit card companies offer fraudsters the ability to gain access to tangible goods with a lower likelihood of initial detection.

    When it comes to BNPL transactions, companies face various risks:

    1. “Buy now, never pay”

    This happens when a person uses their own identity data along with stolen or fake data to pass through both frauds and credit checks without intending to make the BNPL refunds after purchase. The fraudster provides as little data as possible and only offers personal details that cannot be traced – such as giving a mobile number from a prepaid phone to pass a one-time password verification or a fake email address. delivery.

    2. Policy Abuse

    Sometimes referred to as “returns abuse”, policy abuse occurs when a fraudster returns an item after they’ve already used it or returns a different item that was purchased. This occurs before full payment is made in BNPL installments, meaning the BNPL supplier is responsible for the full value of the goods. Forter’s research shows that losses from policy abuse could exceed losses from fraud and are estimated at $65 billion annually.

    3. Map testing

    Card test fraud is how a fraudster can confirm that stolen card information is usable. The stolen card is initially tested in small transactions before being used for larger purchases. As BNPL transactions have a shorter timeframe for making credit decisions, card test fraud could perpetuate through these purchases.

    4. Refund Fraud

    Refund fraud occurs when purchases are made using stolen credit card information and then refunds are requested on another credit card. A fraudster can often trick e-commerce companies into issuing such refunds by claiming that their old credit card account is now closed and therefore the refund must be issued to a new card. This simple but effective tactic puts businesses in a difficult position.

    5. Chargebacks

    Chargeback fraud occurs when a customer makes a purchase and later disputes it with their credit card company, resulting in a chargeback. In some cases, the customer legitimately did not recognize the purchase on their credit card, resulting in “friendly fraud”. In other cases, opportunistic fraudsters try to circumvent and abuse company policies to collect money or keep products for free. By 2022, global chargebacks are expected to reach volumes 47% higher than pre-pandemic levels in 2019, emphasizing the urgent need for issuers in Asia to address the issue.

    Naturally, fraud negatively impacts genuine customers and their retail experience. Customers can end up being mistaken for fraudsters and blocked from making purchases. Additionally, fraud prevention is often a barrier to delivering a good customer experience, as it typically involves delays and friction.

    Businesses need to balance good service with revenue risk. This requires effective fraud detection to maximize trustworthy customer conversions and optimize experiences throughout the customer journey. To do this, fraud detection must be automated and data-driven in today’s digital economy. Businesses will do well by opting for a fraud protection solution based on an extensive global network – an ecosystem of retail companies, banks and payment processors. This allows efficient and accurate identification of fraudsters and repeat offenders.

    Ultimately, BNPL has the potential to bring significant benefits to consumers in Asia-Pacific with enough safeguards in place. As BNPL fraud is on the rise globally, Singaporean businesses are also realizing the risks of BNPL and taking steps to mitigate potential issues. In the long term, an effective fraud protection strategy will allow businesses to scale with confidence as they introduce new payment services, complement their product offerings, or even expand their business across borders.

    Diana Barris is Senior Product Marketing Manager at Forter.

    TechNode Global INSIDER publishes relevant contributions to entrepreneurship and innovation. You may submit your own original or published contributions subject to editorial discretion.

    Challenges and Opportunities as Buy Now, Pay Later Gains Ground in Malaysia

    Week ending April 29, 2022

    USD/JPY Technical Analysis:

    The bull continued to gain momentum last week, adding 1.7% and recording its seventh straight week in the green. Since the beginning of the month, the currency pair is higher by 5.6%, after rising 5.8% in March. Year-to-date, we are up nearly 12%, followed only by USD/CHF at 5.2%.

    Weekly support remains evident at ¥125.54 and, interestingly, there is room for further gains up to ¥135.16:28and January (2002) maximum on the weekly scale. However, traders and investors are advised to consider the possibility of a retest of ¥125.54 before recording new highs.

    As the second half of the week approached, however, the daily schedule took a “respite” and formed a pennant formation, which is sometimes referred to as a “mast formation” (¥129.41/¥127.46 ) and is generally considered a continuation pattern. One of the most important identifying characteristics is the upward movement before the model, which we have. In the event that USD/JPY continues to push higher and breaks above the current pennant, the offer of ¥130.65-129.57 is the next hurdle for buyers to overcome.

    In addition to the technical picture for the daily time frame, we can see that the Relative Strength Index (RSI) has peaked around the 87.52 resistance twice (a level with historical significance as far back as 2014). Note that this is technically the early stages of a double top within the RSI with the cleavage stationed around the 66.78 31st March low. Breaking out of the overbought gap is seen as a bearish indication by many technicians. Yet, in bullish markets, like the one we find ourselves in right now, false bearish signals are common. If the RSI value eventually turns lower, the 40.00-50.00 support area can be targeted (serving as a “temporary oversold” base since May 2021).

    As for the H4 chart, there isn’t much to add that hasn’t been covered by the daily and weekly timeframes. Weekly support is a key base on H4, closely overshadowed by H4 support at ¥125.11, while daily supply draws attention to the upside at ¥130.65-129.57.

    However, moving down to the first-half time frame, you will see that the price faced the low of ¥129 in early US trading hours on Friday (joined by a 100% Fibonacci projection at 129 ¥.05 and a Fibonacci extension of 1.272% to ¥129.02). Further down, trendline support can be seen intersecting with the ¥128 figure (taken from the ¥121.28 low) and the 38.2% Fibonacci retracement at ¥127.75 (as well as the 50.0% retracement at ¥127.82).

    Technical outlook:

    Middle term:

    After noting some leeway on the weekly timeframe at ¥135.16 and the daily timeframe in the process of creating a pennant pattern, throws a bullish light on this market. If the currency pair establishes a decisive break above the current pennant formation and price makes its way into the daily supply of ¥130.65-129.57, then it will likely be considered a breakout market. buyers.

    Short term:

    The H1 period support area between ¥127.75 and the ¥128 figure could be of interest to short-term buy strategies if tested this week. Similarly, a break above ¥129, knowing that it is possible to reach at least the lower side of the daily supply at ¥129.57, could be recognized as a short-term breakout theme (bullish ).

    Alter Ego helps downtown Lima develop

    LIMA – Alter Ego comics is more than a comic book store. Much more. Yes, you can buy comics and related items at Alter Ego, but the establishment has opened its doors to other downtown businesses.

    Alter Ego owner Marc Bowker sees his role expanded to help others become successful small business owners. Alter Ego has evolved and evolved to serve downtown Lima and continues to do so. “I am now in a position where next year will be my 20th year leading Alter Ego. We started as a home-based business. Opening our first location on Elizabeth. Buying this building now with multiple tenants who are who are also business owners and who work together.We are here to foster community to encourage entrepreneurs to pursue their passions and pursue them here in this community.

    As a successful entrepreneur, Bowker has certain knowledge to help people who want to start a business. “I have no problem sharing my secrets. They’re not really secrets, but being a small business owner is scary. Sometimes you have no idea.

    Bowker continues to have a vision for his building going forward. “We have plans that are drawn up with five commercial spaces, but we are financing this ourselves. No one dropped a bucket of cash and no grants were dropped on my doorstep. So we were looking for options, but we do everything ourselves, which can be a slow process. We believe in the potential of this building. Retail on the second floor may provide an opportunity for small businesses. »

    Bowker sums up downtown renewal succinctly: “If you look at other cities, they have a great balance of retail, restaurants, art and public spaces.”

    In addition to Alter Ego Comics, NOW Marketing, Purple Feet Wine Boutique, and Rustgaze Records currently occupy the Legacy Arts Building at 230 North Main Street in downtown Lima.

    Purple Feet Wine Boutique is hosting a dinner at 6:30 p.m. on Thursday, April 28, featuring bourbon from Rabbit Hole Distillery in Louisville, Kentucky.

    Rustgaze Records has two performances in the near future with Josh Melton at 8:30 p.m. on May 13 and with Jon Snodgrass and others at 7:00 p.m. on May 14.

    Alter Ego Comics has two events scheduled for May. The hugely popular Free Comic Day is at 10am on May 7 and Geek Trivia is from 7-9pm on May 19.

    Live music from Rustgraze Records at the Legacy Arts Building in downtown Lima.

    Mark Bower

    The outdoor room of the Legacy Arts Building.

    Contact Dean Brown at 567-242-0409

    Black Caucus Foundation of Michigan and Partners Launch $40 Million Capital Lending Program

    Michigan’s Black Caucus Foundation in Detroit has formed a collaboration with DRI Fund, ProFinCo, and Crowdz to empower black businesses with low-cost access to capital. // Image bank

    The Black Caucus Foundation of Michigan in Detroit has formed a collaboration with DRI Fund, ProFinCo, and Crowdz to launch the Capital and Cash Flow Program, a $40 million initiative to empower Black businesses with low-cost access to capital, $10 million of which is immediately available to entrepreneurs in the city of Detroit.

    Black businesses have historically been prevented from accessing low-cost capital, but this partnership aims to address what has traditionally been the biggest barrier to growing sustainable Black businesses in public works and construction projects. infrastructure.

    “There have been hundreds of announcements regarding access to capital for black businesses since the murder of George Floyd,” says Sen. Marshall Bullock (D-Detroit), chair of the Michigan Legislative Black Caucus and chair of the Black Caucus Foundation of Michigan.

    “Yet the needle has not moved on the number of black entrepreneurs in infrastructure or the availability of capital to create their access. There’s no better place to change that than Detroit, and there’s no better opportunity for success than Michigan.

    The program is designed to build the capacity of small, minority, and disadvantaged businesses to compete and successfully execute major public works projects for the State of Michigan and beyond.

    It is designed to eliminate cash flow disruptions or growing debt accumulated from acquired loans to offset receivables. Specifically, this program advances up to 80% of all invoices associated with City of Detroit contracts, helping businesses that are sometimes forced to wait up to 120 days or more for payment.

    It also targets additional technical support to potential contractors who have skills that make them viable candidates for larger public works and infrastructure opportunities with the state. The program will quickly transition to Detroit Community School District service providers and other organizations that have the potential to stimulate a broader base of infrastructure entrepreneurs in Michigan.

    With contracts estimated at $2 billion from the City of Detroit and the Detroit Community School District about to begin, the collaboration also aims to use the Capital and Cash Flow program to advance certified disadvantaged and minority businesses into larger contract opportunities with the Michigan Department of Transportation.

    “MDOT applauds the creators of this new Capital & Cash Flow program, which we believe will enable more minority-owned businesses to enter the public sector infrastructure market and grow their businesses,” said Tony. Kratofil, COO of MDOT. “The bipartisan Infrastructure Act has created unprecedented levels of investment that represent opportunities for minority-owned entrepreneurs to participate in building our communities and the infrastructure they rely on.”

    Those leading the effort say the need for such an initiative is greater than ever, with 93% of all supply chain participants being small and medium-sized enterprises (SMEs), and half of them suffering. cash shortages, often waiting long periods of time to be paid. . Those leading the effort also point to the operating costs charged by hard money and merchant lenders that destroy a company’s profits.

    The Capital and Cash Flow program is a component of the Bridges to Capital African American Business Initiatives. Early registration for the program is ongoing and entrepreneurs can apply for funding immediately.

    The Capital and Cash Flow program can be viewed here, or through the Black Caucus Foundation of Michigan at 313-285-9234.

    Russian central bank governor teases digital ruble


    Russia’s economy is heading towards a breaking point after sanctions were imposed following its invasion of Ukraine. However, the ruble rebounded and the country’s central bank governor recently announced that the country will have a digital ruble available for use at some point in 2023 or earlier. The Governor described the country’s transition to digital currency as a high priority.

    If all goes according to plan, Russia will gradually switch from paper money to its own form of crypto in the digital ruble. It is also hoped that more countries will start accepting MIR bank cards. However, cryptocurrency investors should be aware that the vast majority of cryptocurrency platforms no longer do business with Russia due to the country’s initial government crackdown on crypto and also due to its imperialist aggression. against Ukraine.

    Why is Russia switching to a digital currency?

    A big part of why Russia is now embracing crypto is because it needs a way to escape the impact of Western sanctions. The Kremlin was strongly opposed to crypto before its invasion of Ukraine, but the authoritarian regime is now taking a different stance in an attempt to fortify its economy.

    Elvira Nabiullina, Governor of the Bank of Russia, recently announced that the country will launch a digital central bank ruble. The announcement was made in front of the lower house of the Russian parliament. The digital ruble will be advanced to the point that it can be used for settlements around the world, ultimately providing utility, flexibility, and efficiency unavailable with traditional paper currency.

    Nabiullina said the country has generated a prototype and is now testing it with banks. If the Kremlin’s timetable for the transition to a digital currency is confirmed, pilot transactions will begin in 2023. However, it should be noted that some Russian bank chiefs have indicated that they fear that the Kremlin has rushed the project of digital currency and the transition to cryptography. should be slowed down.

    Can a digital ruble save the Russian economy?

    Russia’s main motivation for switching to the digital ruble is to circumvent sanctions. The United States and other countries have sanctioned Russia. In fact, international payment processors such as Mastercard, Visa and PayPal have also halted transactions in the totalitarian nation.

    However, switching to crypto isn’t just about evading sanctions. The transition to crypto will also modernize the country’s economic system and also speed up payment processing. The question is whether the transition to a digital ruble will allow Russia to resume its participation in global economic transactions.

    Russia hopes more countries will accept MIR cards for banking provided by the country’s central bank. Besides MIR cards, UnionPay, available through China, also provides a way to process payments outside of Russia.

    Crypto has DeFi appeal

    Russia’s pivot to crypto is rooted in the lawless nature of the industry. Crypto does not have the same level of oversight as traditional currencies. The question is whether the move to crypto will make international payments easier, as more and more top crypto exchanges refuse to accept Russian customers.

    As an example, Binance, the largest crypto exchange in the world, recently announced restrictions on Russian accounts. Although Russian nationals can withdraw funds from Binance, they cannot trade or make deposits. Stay tuned as additional details about the Russian digital ruble will likely be released in the coming months.

    Fort Worth gets $3 million plan to support small businesses

    April 22, 2022

    “People feel like it’s good to dream again,” said Christina Brooks, chief equity officer for the city of Fort Worth, Texas. Fort Worth Star Telegram in January. “They’re starting to see that there’s a new avenue they could take that they didn’t even know was available to them.”

    Brooks was referring to comments she heard from community members, small business owners and nonprofits about the launch of Friendly CDFI Fort Worth, a new initiative to help underrepresented groups in the city access financing for businesses, home ownership, rental housing, commercial real estate and more. The city has committed $3 million to the program.

    The program is a project of CDFI Friendly America, which helps bring CDFI funding to underserved cities across the country. Fort Worth is the third city to join.

    CDFI Friendly Fort Worth will help connect residents, entrepreneurs and nonprofits with CDFIs across the country to fill funding gaps. The group hopes to raise $250 million in funding over the next five years.

    “Clearly there is real potential in Fort Worth,” says Mark Pinsky, founding partner of CDFI Friendly America. “There are some incredibly enterprising people who just haven’t had access to capital or felt they didn’t have access to capital.”

    CDFI funding has also been lacking in the city. Over the past 15 years, Fort Worth has received less than $40 million in CDFI funding, which Pinsky says amounts to about $40 per capita, compared to $235 per person nationally.

    City of Fort Worth leaders and CDFI Friendly America met with local nonprofits, small businesses, real estate developers and economic developers to get a sense of community needs.

    “There is every indication that there is a very significant problem with access to capital, especially among black and Latino borrowers, and that they would be very interested in financing CDFI,” Pinsky said.

    By the end of February, about a month after the Fort Worth-based program launched, the organization had received about 175 loan applications totaling about $110 million. So far, 18 CDFIs have registered to offer financing.

    Although the bulk of interest in funding is coming from small businesses and entrepreneurs, small loan amounts will also be offered. “These are real needs in these people’s lives,” he says. “So, we’ll try to meet them all.”

    “The demand is for all possible financing – for mortgage financing, for consumer credit, for non-profit, commercial, residential financing – it’s all there,” he adds. “We have an incredibly active network that is starting to engage now. We’ve referred all of these requests to CDFIs, in most cases multiple CDFIs, and they’re all working on it.”

    The first loan was approved in February — a $10,000 micro-loan. By the end of 2022, Pinsky hopes to attract at least $25 million in CDFI funding to Fort Worth through CDFI Friendly Fort Worth. The organization plans to have a board and CEO in place by the fall, and that it will be a fully functioning nonprofit by 2023.

    CDFI Friendly America will continue to provide mentorship, advice and technical assistance.

    “The Fort Worth organization is going to be controlled by community voices who will have the majority of seats on the board,” Pinsky said. “Their job is to make sure it stays relevant, productive and useful. To do that, they need to learn how to work with CDFIs and that’s part of our job.”

    Fort Worth joins CDFI Friendly Bloomington and CDFI Friendly South Bend, both in Indiana. Pinsky says his team is working with a dozen other cities that want to launch a program in 2022. The organization is also working with the National League of Cities to educate other communities about CDFIs.

    “There’s a lot of demand there,” he says, adding that the organization is analyzing which communities would benefit the most from their program. “We believe this will transform the way communities access CDFI funding and the way CDFIs provide funding on top of what they already do so well.”

    This story is part of our series, CDFI Futures, which explores the community development finance industry through the lens of equity, public policy and inclusive community development. The series is generously supported by Partners for the Common Good. Sign up for PCG’s CapNexus newsletter at capnexus.org.

    Next cityJournalism centers marginalized voices while amplifying solutions to problems that oppress people in cities. At a time when city dwellers face endemic inequalities and pressing challenges, Next City’s work as a nonprofit is critical: spreading real stories and actionable ideas from a city to each other, we connect the people, places and solutions that move our society towards justice and equity. Subscribe to the Next City email newsletter at https://nextcity.org/newsletter.

    Pete’s of Erie Inc. Adopts Passport® Express Lane™ Self-Checkout at All 50 Pete’s Stores | News


    Greensboro, North Carolina, April 21, 2022 (GLOBE NEWSWIRE) — Pete’s of Erie Inc., a convenience retailer with 50 stores across Kansas, Oklahoma and Missouri, has chosen the self-checkout system- Passport® Express Lane™ service from Gilbarco Veeder-Root to enhance the overall customer experience and in-store efficiency of the “Pete’s” brand.

    The brand will install Express Lane in all 50 stores with CPI Paypod ticket recyclers to ensure all forms of payment, including cash, cards and contactless options, are available to customers.

    “Busy stores create new challenges in the shopping experience and we’re no different,” said Doug Mercer, chief information officer. “Self-checkout allows us to maintain the standards our customers expect. We chose Express Lane for its intuitive design and convenience store-specific features, including fuel purchasing.

    Express Lane offers a range of features designed for unique convenience store experience scenarios, including prepaid and postpaid fuel sales. This allows customers to pump gas, scan items, and even order food in one transaction. This reduces queues at the counter and streamlines staff responsibilities towards other important tasks such as stocking shelves and maintaining cleanliness standards.

    According to CPI, four in 10 consumers will abandon a purchase because of long lines, and Forbes research shows that 85% of shoppers believe self-checkout is faster than cashier-guided transactions. Pete’s of Erie is experiencing rapid customer adoption of the first express lanes installed. By positioning Express Lane near existing checkout stations and deploying employee ambassadors, the impact was immediate.

    “Self-checkout is not a new concept for shoppers, but it’s new to the convenience store environment,” said Mike Brenner, director of product marketing, Gilbarco Veeder-Root. “A successful launch of a self-checkout system requires teamwork and, of course, the right tools for the job. Pete’s of Erie is a great example of how retailers should implement and execute self-checkout strategies within a convenience store setting. »

    Along with forecourt integration, Express Lane easily handles complex transactions, including the sale of age-restricted items. The smart design and employee user interface make it easy to verify IDs and scan items. Express Lane also supports all payment networks, which is especially important for retailers using multiple payment processors.

    Learn more about Passport Express Lane and CPI’s Paypod here. Contact your local Gilbarco Veeder-Root distributor to get started today.

    About Gilbarco Veeder-Root

    Gilbarco Veeder-Root is the global leader in technology for retail and commercial refueling operations, offering the widest range of integrated solutions from forecourt to convenience store and head office. For more than 150 years, Gilbarco has earned the trust of its customers by providing long-term partnership, uncompromising support and proven reliability. Major product lines include fuel dispensers, pump stands, point of sale systems, payment systems, tank gauges and fleet management systems.

    About Pete’s of Erie Inc.

    Petes of Erie operates 50 convenience stores in the Midwest. Petes of Erie’s corporate headquarters is located in Parsons, KS. Its stores offer fast and friendly service across KS, MO and OK.


    Passport Express LanePassport Express Lane

    Mike Brenner Product Marketing Manager, Gilbarco Veeder-Root [email protected]

    Copyright 2022 GlobeNewswire, Inc.

    Esker invests in LSQ to expand supply chain finance

    Supply chain finance (SCF) and technology company Esker has taken an equity stake in its partner LSQ, a capital finance and payments company.

    The first phase of the investment consists of a $5 million promissory note, an announcement from Esker announced on Wednesday (April 20).

    The announcement adds that Esker issued the memo “to strengthen the partnership between LSQ and Esker and accelerate the development and commercial expansion of their joint supply chain finance solutions.”

    Additionally, the statement continued, “the partners have agreed to potentially increase Esker’s financial involvement in LSQ based on the development of their joint business.”

    Supply chain finance is increasingly important, according to the announcement, and “the ability to optimize cash flow and working capital management across business ecosystems will become a truly strategic objective. “.

    See also: Esker’s new B2B payments platform aims to improve cash flow management

    Esker and LSQ officially started working together in December 2021. A first benefit for Esker customers, according to the company, will be the possibility of benefiting from LSQ Fastrack, a financing and discounting platform.

    “The equity investment will be used to expand the team’s operations and our commitment to Esker Pay in the area of ​​supply chain finance,” said Steve Smith, US chief operating officer at Esker, in a statement. press release prepared. “Esker Pay is central to our growth initiatives for 2022 and beyond.

    Esker said it processes transactions valued at more than $400 billion each year.

    “We believe in the opportunity in the SCF space and want to take advantage of it from an operational and capitalistic point of view,” said Jean-Michel Bérard, chief executive of Esker, in a prepared statement.

    Esker is headquartered in Lyon, France, and LSQ in Orlando, Florida.



    Plastiq - The Future Of Business Payables Innovation: How New B2B Payment Options Can Transform The SMB Back Office - April 2022 - Find out how all-in-one payment solutions can help businesses streamline B2B transactions and eliminate transaction friction. AP and AR management

    On: While more than half of SMBs believe an all-in-one payment platform can save them time and improve cash flow visibility, 56% believe the solution could be difficult to integrate with AP systems and existing ARs. The Future Of Business Payables innovation report, a collaboration between PYMNTS and Plastiq, surveyed 500 SMBs with revenues between $500,000 and $100 million to explore how all-in-one solutions can exceed customer expectations. SMEs and help sustain their activities.

    Minister Fortier Highlights Budget 2022 Investments in Guelph and Cambridge

    GUELPH, ON, April 20, 2022 /CNW/ – Budget 2022: A plan to grow our economy and make life more affordable, is the government’s plan to help Canadians move forward, and an essential part of that plan includes smart investments to strengthen and diversify the economy.

    Today, the President of the Treasury Board, the Honorable Mona Fortier, was in Guelph and Cambridge with Lloyd Longfield and Brian Maydeputies of Guelph and Cambridge respectively, to meet Guelph City Hall, the Guelph Business Center and the Guelph Chamber of Commerce to discuss government measures to help businesses succeed and grow. She also met Grand Innovations and Drayton Entertainment in Cambridge, Ont.where she visited their facilities and took the opportunity to highlight the measures taken by the government to support the performing arts sector and innovation throughout the pandemic.

    Budget 2022 proposes to create the Canada Growth Fund to attract significant private sector investment to help achieve important national economic policy objectives. The President also hosted a roundtable with the Guelph Business Center to discuss the Canada Small Business Financing Program and Canada’s Digital Adoption Program, which are designed to advance online business, boost e-commerce and digitize businesses.

    With the greatest mobilization of global capital since the industrial revolution already underway, Canada has the chance to become a leader in the clean energy of the future. Budget 2022 will help Canada leading global efforts to fight climate change, protect our nature, and build a clean economy that will help Canadians find meaningful, well-paying jobs today and tomorrow. During a round table with the Guelph Chamber of Commerce, the President also had the opportunity to discuss how improvements to our regulatory framework would help create jobs and growth in sectors such as agribusiness, biosciences and transportation, further stimulating innovation.

    The President also joined the Prime Minister and other local MPs at the Islamic Center of Cambridge and opening of the International School of Cambridge to celebrate the completion of the school expansion and join the community for Ramadan.


    “Now is the time for us to focus on a strong and inclusive economy. With smart and targeted investments, we will meet the challenges facing our small and medium-sized businesses. We know that our economy depends on digital. That’s why our government will continue to make sure our businesses have the tools they need to succeed and implement the workforce strategies to help them grow. »

    The Honorable Mona Fortier, President of the Treasury Board

    Fast facts

    • Budget 2022 initiatives that promote innovation and economic growth include:
      • $4 billion for Canada’s Digital Adoption Program, designed to help businesses move online, build their e-commerce presence and digitize their operations; and
      • improve the Canada Small Business Financing Program, increasing annual financing to small businesses by approximately $560 million.
    • Budget 2022 measures to address climate change include:
      • more … than $3 billion in funding to make zero-emission vehicles more affordable and build a nationwide network of charging stations;
      • the creation of the Canada Growth Fund to help attract tens of billions of dollars of private capital to build a net zero economy by 2050; this fund would initially be capitalized at $15 billion over the next five years and would target three bucks private capital for every dollar invested;
      • $43.5 million over five years and $8.7 million underway to create a new Canada Water Agency; millions more are proposed to support the Freshwater Action Plan, the Experimental Lakes Area and the Great Lakes Fishery Commission;
      • expanding the Low Carbon Economy Fund and supporting clean energy in yukon;
      • strengthen financial incentives to accelerate the adoption of carbon capture, utilization and storage technologies by industry; and
      • a new tax credit for clean technology investments, focusing on net zero technologies, battery storage solutions and clean hydrogen; besides, $30 million over two years would be used to return the proceeds of the fuel levy to small and medium-sized enterprises.

    Related products

    Stay connected

    Twitter: @TBS_Canada
    Facebook: www.facebook.com/YourGovernmentatWork/
    LinkedIn: https://www.linkedin.com/company/tbs-sct/

    SOURCE Treasury Board of Canada Secretariat

    For further information: Media may contact: Isabella Brisson, Acting Director of Communications and Press Secretary, Office of the President of the Treasury Board, 579-337-5723; Media Relations, Treasury Board of Canada Secretariat, Telephone: 613-369-9400, Toll Free: 1-855-TBS-9-SCT (1-855-827-9728), Teleprinter (TTY): 613- 369-9371 , Email: [email protected]

    5 Best Easy Business Loans

    Financing your business is necessary, but can be tricky. That’s why we’ve compiled this list of our favorite business loans that make it easier to qualify for traditional bank loans. If you’re a new business, entrepreneur, or startup struggling to secure funding, we’ve got you covered. The right easy loan has quick applications, quick funding, and enough working capital for your business needs.

    In this article, we go over all the details of the best easy business loans, how to choose the right loan for you, and what you need to know before applying for this type of loan.

    The Best Easy Business Loans

    Knowing who to trust is the hardest part of the battle in finding fast small business loans. This is where we come in. Here are the top easy business loans we recommend on our Loan Marketplace. Each loan will examine your personal credit score to see if you qualify.

    1. Best for Brand Recognition: Kabbage Line of Credit

    Kabbage is a registered trademark of American Express, and this loan might be suitable for some borrowers who want to familiarize themselves with a lender and gain exposure. The company offers lines of credit with flexible terms and simple application.

    how much can you borrow $1,000 to $150,000
    What it costs 9% to 36% APR
    Minimum credit score 675

    2. Best for One-Day Funding: OnDeck Line of Credit

    OnDeck offers commercial lines of credit that can be funded in just one day. Its online application is quick and easy, and its credit score requirements are lower than some other lenders.

    how much can you borrow $6,000 to $100,000
    What it costs As low as 13.99% APR. The average is 30% APR.
    Minimum credit score 620

    3. Best for pre-qualification: Credible short-term loan

    Credibly is an online lender that lets you pre-qualify before you apply, so you don’t have to worry about your credit score to find out your eligibility. You can receive funding in as little as two days.

    how much can you borrow $10,000 – $400,000
    What it costs 9.99% to 36% APR
    Minimum credit score 625

    4. Best for Low Interest Rates: SmartBiz SBA Loan

    If you can qualify for an SBA loan, this quick option through SmartBiz is best for low interest rates. It’s an SBA loan without as much headache, so applying is easier and the speed of funding is faster – although it can still take up to a month and requires a personal guarantee.

    how much can you borrow $30,000 to $350,000
    What it costs 8.27% to 9.57% APR
    Minimum credit score 680

    5. Best for bad credit: Rapid Finance Business Cash Advance

    Rapid Finance offers business cash advances, also known as merchant cash advances, to small businesses that have had difficulty qualifying for other business financing due to their credit score. No collateral is needed, but you’ll likely pay more in the long run for this type of loan.

    how much can you borrow $5,000 to $600,000
    What it costs Comes with an average factor rate of 1.20 (read more about factor rates here). The overall costs depend on how risky your business is.
    Minimum credit score 501

    What makes a business loan easy to get?

    Easy business loans have lower requirements than other lenders for things like:

    • Annual revenue
    • Credit score
    • Time spent in business

    They can provide financing to small businesses quickly, often within days of applying. Traditional banks can take several months to approve and fund your business. Plus, the application process is simple and doesn’t require an excessive amount of paperwork like some traditional small business lenders.

    However, you are paying for the convenience: interest rates will be much higher with an easy business loan than with a bank loan.

    How to choose the right easy business loan for you

    1. Decide you really need the money. First, make sure your business really needs the financing, and if not, consider waiting before going into debt. Then exhaust your other options. If you don’t need to borrow with an easy business loan, it may be best not to. You may be able to save some money by going through a more traditional lender.
    2. Choose the right amount to borrow. Since borrowing money will cost your business money, don’t borrow more than you need. However, each lender has a cap on the total amount they are willing to lend. So you’ll want to make sure the funder can offer you enough to meet your business needs.
    3. Make sure monthly payments work for you. Review the repayment terms of any loan to make sure you can afford it. Review the Annual Percentage Rate (APR) and all fees to ensure you will be able to repay the full cost of financing.
    4. See if you qualify. Read the loan FAQ and find out details like minimum credit score and number of years in business. Make sure you have reached the goal before submitting an application.
    5. Apply. All of our best small business loans should have simple online loan applications that you can complete from the comfort of your home in minutes. If you’re approved for one of these options, it should only take a few business days – or less – for the funding to arrive in your business bank account.

    When should you look for other options?

    While it can be quick and easy to get one of these loans, it’s best not to rush into business debt. Always start your search with the lowest APR you can find, which will reduce the total cost of borrowing and your financial burden. This usually means going to more traditional lenders, like banks or credit unions. Review your credit report to see how you can improve your score.

    But if you’ve been turned down by other lenders and need the cash, an alternative lender that offers easy business financing options might be great. Also, if you have an emergency in your business or come across an opportunity with a limited window of time, an easy business loan could help.

    How Nav makes it easier to find the best business loan options for you

    Nav is here to help you find the right financing. It’s our job. We offer options first to small business owners – our Loan Marketplace offers over 70 financing options from over 50 different lenders.

    If that seems like an overwhelming number of choices, we can choose the right option for you. When you create a free Nav account, we take your goals and business data to connect your small business with the right loan. Plus, your business is 3.5 times more likely to be approved for funding when you’re connected through Nav.

    How easy is it to get an SBA loan?

    Yes and no. Small Business Administration (SBA) loans are an extremely common financing option because they are cheaper to borrow. They’re government backed, so they offer lower interest rates and are less dependent on your creditworthiness than many other options. And the SBA loan program aims to make it easier for small businesses to qualify than traditional bank loans.

    However, the loan process can be more complicated than getting an easy business loan. For example, you will need to provide more documentation than many easy business loans, such as a business plan, bank statements, and business forecasts, and you will need to increase your business credit score. Read this article to learn how to establish business credit.

    What is the easiest SBA loan to get?

    If you’re looking for an SBA loan but don’t quite qualify, look into SBA microloans. These are best for small business borrowers who need a smaller loan amount – you can borrow a lump sum between $500 and $50,000 to improve cash flow. These SBA loans can provide financing for things like working capital, inventory, supplies, and more.

    This loan may be the best option for business owners who do not meet the lending criteria of traditional financial institutions or who do not have a credit history. Interest rates are usually between 8% and 13%, which is much lower than other easy business loans. The maximum loan repayment period is six years. To apply, you will need to search the SBA website for a participating organization in your community that acts as an intermediary lender for these loans.

    Our final thoughts

    Easy business loans are painless for a reason. Like credit cards, they can carry a higher interest rate than traditional lenders. More interest means you pay more to borrow money. That said, if you’ve exhausted all your other options and are sure you need financing, an easy business loan can provide you with the right amount of cash in no time.

    Easy business loans are fantastic vehicles for small business owners who have tried every other avenue but aren’t getting the money they need to run or grow their business.

    This article was originally written on April 14, 2022 and updated on April 20, 2022.

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    ‘The Dumbest Thing They Could Do’ – ‘SPAC King’ Issues Stark Visa and Mastercard Crypto Warning as Price of Bitcoin, Ethereum, BNB, XRP, Solana and Cardano Surge



    and Mastercard

    two of the world’s largest payment processors, have come under pressure from bitcoin, ethereum and decentralized finance (DeFi) projects over the past year – with billionaire Tesla Elon Musk and others speculating that dogecoin could “truly be the future currency of the internet”.

    Subscribe Now to Forbes CryptoAsset & Blockchain Advisor and successfully navigate the crypto price rollercoaster

    The surge in bitcoin, ethereum and crypto prices – pushing the combined crypto market to around $2 trillion from less than $500 billion in just 18 months – sparked a wave of development based on the blockchain, including among high-tech ethereum rivals such as solana and cardano.

    Today, Chamath Palihapitiya, a former Facebook executive who runs venture capital fund Social Capital, warned that there was “a swarm of activity [coming] dismantle” Visa and Mastercard.

    Want to stay ahead of the market and understand the latest crypto news? sign up now for free CryptoCodexA daily newsletter for crypto investors and the crypto-curious

    MORE FORBESRace to $1 Trillion: Crypto Price Data Reveals When Bitcoin, Ethereum, BNB, XRP, Cardano and More Could Hit the Milestone

    “I think Visa and Mastercard are doing the dumbest thing they can do, being a duopoly – raising prices, especially in an inflationary moment, just lacking complete knowledge and momentary sensitivity,” he said. said Palihapitiya, speaking on the latest episode of the All-In podcast. Visa and Mastercard are preparing to raise merchant fees, it has been reported by the the wall street journal last month.

    “This week I got to see a little under the hood of Solana Pay, and that’s really exciting,” said Palihapitiya, who has built a reputation over the past two years as the “SPAC king”. for his successful sponsorship of blank-cheque funds, or special purpose acquisition companies (SPACs), which raise money in public markets to buy private companies. “So everything happens, I think. It’s like a swarm of activity to dismantle these payment companies.”

    Solana Pay, a digital payment platform that runs on top of the solana blockchain network and can support a range of digital assets such as NFTs, claims to be able to compete with Visa and Mastercard in terms of transactions per second. While bitcoin, without additions such as the Lightning Network, averages only seven transactions per second and ethereum only has thirteen, solana has 65,000 transactions per second without the need for a third party such than a bank or payment processor.

    Late last year, Palihapitiya, who abruptly resigned as chairman of Virgin Galactic’s board in February, predicted that Visa and MasterCard would be the “biggest business loser”.[s] in 2022″ calling the pair a “completely artificial duopoly that doesn’t need to exist”.

    “Short these companies and whoever essentially lives off this 2% or 3% tax (on transactions), and long be well thought out, web3 crypto projects that rebuild the payment infrastructure in a completely decentralized way,” a- he declared.

    Although solana is a decentralized network, it has sacrificed a high degree of decentralization for increased transaction speeds and low fees. Solana has suffered several outages and periods of transaction congestion in recent months, casting some doubt on the blockchain’s ability to scale on par with bitcoin and ethereum.

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    However, earlier this year, analysts at Bank of America predicted that Solana could gain significant market share from Ethereum and become the “Visa of the digital asset ecosystem”.

    “[Solana’s] ability to deliver high throughput, low cost and ease of use, creates a blockchain optimized for consumer use cases such as micropayments, DeFi, NFT, decentralized networks (web3) and gaming,” said writes Bank of America analyst Alkesh Shah in the note to clients.

    The crypto market rebounded this week after a sudden sell-off over the weekend, with the price of bitcoin rallying above the closely watched level of $40,000 per bitcoin.

    Solana led the crypto price rally, climbing 5% in the past 24 hours. The price of ethereum has meanwhile fallen by more than $3,000 per ether.

    Ten percent of small businesses that sought funding in 2021 requested a merchant cash advance

    A According to the latest study released by the Federal Reserve, 10% of small businesses that sought financing last year requested a cash advance from merchants. This figure was up from 8% in 2020 and 9% in 2019. For previous years, this figure had remained fairly constant at 7%. [See 2015, See 2017]. Market penetration has therefore arguably increased by around 40% since 2015.

    Above: 2021 Fed study results

    Meanwhile, the percentage of applicants who have sought out leasing has declined over the past seven years: from 11% in 2015 to 8% in 2021. Factoring has consistently hovered around 3-4%.

    Seeking loans and lines of credit has dropped significantly from 89% in 2020 to 72% in 2021. And approvals have dropped across the board. Approvals for business loans, lines of credit and MCAs peaked at 83% in 2019 and plunged to 76% in 2020, the first year of Covid. The figure has fallen further in 2021, to 68%. Online lenders and big banks had the lowest approval rates overall, at 51% and 48% respectively.

    The most recent full study from the Fed can be viewed here.

    Last modification : April 18, 2022

    Sean Murray

    Category: Business Lending, merchant cash advance

      El Dorado Hills man charged with fraud against merchant cash advance companies | USAO-EDCA

      SACRAMENTO, Calif. — A 10-count indictment was released today against Suneet Singal, 43, of El Dorado Hills, charging him with wire fraud and mail fraud, the attorney said. American Phillip A. Talbert.

      According to court documents, between March 2017 and July 2017, Singal engaged in a scheme to make false statements in order to induce finance companies to provide funds to certain companies in the form of cash advances to merchants, who are advances of money in exchange for promises. to repay larger sums of money on future receivables. To get the cash advances, Singal claimed he owned a business that operated a chain of fast food franchises, but he didn’t actually own that business.

      This case is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Miriam R. Hinman and Nicholas M. Fogg are prosecuting the case.

      If convicted, Singal faces a maximum legal sentence on each count of 20 years in prison and a fine of $250,000 or double the gross gain or gross loss, whichever is greater. Any sentence, however, would be determined at the discretion of the court after considering all applicable statutory factors and the Federal Sentencing Guidelines, which consider a number of variables. Accusations are only allegations; the accused is presumed innocent until proven guilty and unless proven beyond a reasonable doubt.

      White Oak Global Advisors Adopts Global Impact’s Impact Measurement System

      NEW YORK–(BUSINESS WIRE)–White Oak Global Advisors (“White Oak”), a global alternative asset manager providing flexible and secure funding to assist businesses, is pleased to announce its adoption of the Impact Rate of Return®a comprehensive impact analysis system provided by Global Impact LLC (“Global Impact”).

      Global Impact, led by its chairman Howard W. Buffett, will guide the effort as White Oak’s new advisor. As an award-winning author and professor, Mr. Buffett is an expert in impact measurement, management and analysis, and will collaborate with White Oak’s Head of ESG and Impact, Terésa Cutter, to develop relevant impact measures for sustainable development. Financial Disclosure Regulation (SFDR).

      Global Impact is an advisory firm serving public, private and philanthropic sector organizations for over a decade.

      “We are delighted to welcome Global Impact as an advisor, given Howard’s proven expertise in the field,” said Roksana Ciurysek-Gedir, chair of White Oak’s Impact Advisory Board and consultant to White. Oak. “Global Impact and White Oak are both long-time players and active participants in the ESG and impact market, and I’m sure this will be a successful partnership.”

      The SFDR is designed to help institutional asset owners and retail clients understand, compare and monitor the sustainability characteristics of investment funds by standardizing sustainability information. Under the SFDR, companies must disclose at both the corporate and product level the integration of sustainability risks, the consideration of adverse sustainability impacts, the promotion of environmental or social factors and sustainable investing goals.

      Ms. Cutter added, “Thanks to Howard’s innovative and multifaceted approach to performance measurement and management, we are now even better positioned to deliver SFDR-aligned reporting solutions, as well as greater transparency. and measurability around the impact of White Oak. investments. »

      White Oak (with and through its financing subsidiaries) has invested $4.2 billion in ESG-aligned investments since 2013. The firm is distinguished by its long-term commitment to ESG and sustainability. impact investing at a time when public equities and fixed income dominate finance. industry advancements in ESG investing. The company’s impact strategy focuses on secured lending to small and medium-sized enterprises (SMEs) and is committed to providing products and services that create positive environmental and social impact while building economically sustainable businesses.

      “White Oak is ahead of the curve when it comes to creating ESG solutions in private debt markets,” Mr. Buffett said. “I look forward to working with such an established team of advisors and helping to guide the company’s ESG and impact efforts.”

      Mr. Buffett is a professor at Columbia University’s School of International and Public Affairs and sits on the socially responsible investing advisory committee for the university’s $14 billion endowment. In 2018 he co-wrote the award-winning book Investing in Social Value: A Management Framework for Effective Partnershipsin which it describes the impact rate of return® methodology that offers new ways to measure, analyze and report on social and environmental impact. He is also a member of several boards where he has led efforts on ESG and sustainability strategies.

      About White Oak Global Advisors

      White Oak Global Advisors, LLC (“WOGA”) is a leading alternative debt manager specializing in creating and delivering financing solutions to facilitate the growth, refinancing and recapitalization of small and medium-sized businesses. Together with its financing subsidiaries, WOGA offers more than twenty market loan products, including term, asset and equipment loans, to all sectors of the economy. Since its inception in 2007, WOGA and its affiliates have deployed over $10 billion across their product lines, using a disciplined investment process that focuses on delivering risk-adjusted returns on investment. to investors while building long-term partnerships with our borrowers. More information can be found at www.whiteoaksf.com.

      Tax advantages of real estate investment

      Top 6 tax advantages of real estate investment

      The major tax benefits to be gained from real estate investing include, but are not limited to, the following.

      1. Deductible expenses

      Many common expenses incurred by real estate investors are considered deductible expenses that can be claimed on your taxes. This means that you won’t have to worry about paying government-imposed taxes on these expenses.

      In fact, some aspiring real estate investors are even using the home hacking process to compound deductible benefits, as homeowners can gain access to additional tax deductions when investing in their primary residence. Here are some of the many common tax-deductible expenses you can potentially leverage in real estate investing depending on your ownership and business relationships:

      If you have questions about expenses that may be tax deductible, consult a qualified tax professional. You may be surprised at the amount of money you may be able to deduct.

      2. Amortization

      The practice of depreciation helps account for the wear and tear that occurs on a property over time. In effect, it provides a way to help real estate investors benefit from tax deductions on rental properties, which inevitably suffer the negative effects of use over a long period of years.

      Depreciation is determined by calculating the useful period (i.e. useful life) of the property and applying a formula to calculate the value lost each year. Once done, you can claim the annual deduction on your taxes, which can help reduce your taxable income.

      To calculate property depreciation, start by determining your cost base in the property, dividing it by the useful life of the property, and calculating a depreciation schedule. Once this scale has been calculated, you can use it to calculate and secure the annual tax deductions.

      When selling your property, be aware of a practice known as recaptured depreciation. Essentially, when you apply depreciation to a property, it lowers your cost base in the investment portfolio. At the time you sell the property, the IRS will calculate the capital gains tax based on a profit margin that reflects this new cost basis – an example of recapturing depreciation at work.

      Say you buy a new property for $250,000 and then apply depreciation of $50,000, which would reduce your cost base to $200,000. If you were to then sell the property for $300,000 at a later date, the IRS would calculate your capital gains tax using a profit margin of $100,000 instead of $50,000.

      3. Passive income and transfer deduction

      Under the terms of the Tax Cuts and Jobs Act 2017, a helpful tax deduction has been created for property investors, small business owners and self-employed professionals. This deduction is known as the qualified business income (QBI) deduction, or transfer tax deduction in common parlance.

      According to the QBI, eligible parties may receive up to 20% deduction on income received from pass-through business entities such as partnerships, sole proprietorships, S corporations and limited liability companies (LLCs), such as qualified rental income. Real estate income received in this way is often classified by the Internal Revenue Service (IRS) as passive income, although it may take considerable work to bring in tenants and rents on a recurring basis.

      As such, you may qualify for other tax savings benefits and deductions depending on the type of property you own and how it operates.

      4. Capital gains tax

      If you’re currently involved in, or thinking about diving into, the world of real estate investing, you’ve no doubt heard of capital gains tax. Essentially, every time you sell an asset that appreciates in value, you may have to pay taxes on the profits made on that investment – single family homes, multi-family residences, apartment/condo buildings and other included properties.

      Capital gains tax generally applies to the appreciation of your investments, but can also vary depending on your income, how long you own the asset and your tax status.

      For example, if your taxable income is below certain current thresholds, capital gains tax may vary from 0% to 15%, or increase to 20% if your taxable income exceeds these thresholds. It also depends on how long you have held the assets. Here is a breakdown of the difference between short and long term capital gains.

      Short term capital gains

      Short-term capital gains are profits you have made on assets you have held in your investment portfolio for 12 months or less. These capital gains can have a negative impact on your taxes because they are treated as general income and taxed at your marginal tax rate (ie your current tax bracket). If a year passes before you sell the asset and recognize those gains, any profit would instead be considered a long-term capital gain.

      Long-term capital gains

      Long-term capital gains are earnings seen on assets you’ve owned for at least a year. Income earned in the form of long-term capital gains is taxed at a lower tax rate than income earned from short-term capital gains, typically being charged at a rate of 15-20% over marginal tax rates. If you can, it’s usually beneficial to hold on to your investments a little longer with these savings opportunities.

      5. Incentive programs

      Real estate investors, depending on how they structure their property and property portfolio, may also be eligible to take advantage of various tax incentive programs. These incentive programs allow you to recognize additional tax savings on qualifying investments and income, while limiting eligibility accordingly.

      1031 Exchange

      The 1031 exchange allows you to sell one business or investment property and buy another without incurring capital gains tax. However, the exchange must be properly made and done according to IRS rules. Your new property must be of the same nature as the original, and of equal or greater value to the property sold.

      A 1031 exchange effectively allows you to exchange one real estate investment in place of another and defer taxes on capital gains. Note that using a 1031 exchange only allows you to defer payment to a later date – not reduce your tax bill or avoid paying taxes entirely.

      Opportunity areas

      Created through the Tax Cuts and Jobs Act 2017, Opportunity Zones are a way for the government to encourage individuals and businesses to invest in certain communities to promote economic growth.

      These geographic regions have been identified as low-income census areas and targeted for job growth and economic stimulation. Real estate investors can capitalize on opportunity zones by transferring qualified capital gains into an opportunity zone fund within 180 days of selling an asset.

      Tax-free or tax-deferred retirement accounts

      Some tax-exempt and tax-deferred retirement accounts (for example, some 401(k) plans and Roth IRAs) may offer you opportunities to invest in alternative assets beyond stocks and bonds. These opportunities may include private or commercial real estate, real estate investment trusts (REITs) and other real estate holdings.

      However, tax-deferred and tax-free retirement accounts often come with savings contribution limits and requirements that vary by account. Before you apply, you’ll want to consult with a qualified financial professional to determine how much, if any, these accounts can help you reduce your tax burden.

      6. FICA self-employment tax

      Under the Federal Insurance Contributions Act (FICA), the self-employed are responsible for 15.3% of Social Security and Medicare income taxes. However, while rental income is taxable to some extent under standard income guidelines, it is not subject to FICA taxes.

      Filing a Schedule E tax form lets the IRS know how much rental income you earned and how taxes should be applied here. Although Schedule E income is generally not subject to self-employment tax, certain types of rental activities may trigger self-employment taxes, making it important to be aware of this as as a real estate investor.

      Downtown Springfield Association offers grants to business owners to bring diversity to the area

      SPRINGFIELD, Mo. (KY3/Edited Press Release) – The Downtown Springfield Association (DSA) is partnering with US Bank to support the development of diverse small businesses through a new initiative called ASCEND – Advancing Springfield’s Commitment to Entrepreneurship, Networking and Diversity with specifically targeted resources for recruiting and empowering BIPOC business owners.

      Thanks to a new $25,000 grant made possible by US Bank, up to five BIPOC business owners will receive a grant to start their business in Center City Springfield.

      Executive Director Rusty Worley says these five $5,000 grants will provide resources for BIPOC business owners in central Springfield, whether downtown or on Commercial Street.

      “Our business community isn’t represented enough for that, so it’s something that’s been a priority for us for some time,” Worley says.

      The grants will go to five different businesses that are helping fill the gaps in these communities.

      “We want to have a good mix of retail and restaurant businesses and see how what they offer fits into the fabric,” Worley says.

      The West Central district, which includes Springfield Downtown Community Improvement District (CID) and the residential neighborhood west and south of downtown, is one of the most diverse areas in southwest Missouri with a Black, Native, and of Color (BIPOC) population of 21%. However, that number drops to 10% when looking across the Springfield city limits.

      NAACP Springfield Chapter President Kai Sutton said she was excited about the grant because of the business opportunities it will bring to people of color.

      “I think it’s really important for businesses, organizations, advocates and members of the community at large to seek out opportunities and seek out the people who need to be connected to those opportunities so that we can fill more of the gaps. “, says Sutton.

      According to the Downtown Springfield Association, the number of BIPOC-owned businesses downtown is even smaller, at less than 5%. The DSA is working to fill these historic gaps with this new program.

      “Diversity, equity and inclusion are so important,” says Sutton. “To increase awareness of Black-owned businesses, especially bringing them into an area where it’s not common for Black-owned businesses to be right now and thriving.”

      Grants will be awarded by working with the identified needs of the new business and in conjunction with the existing resources of the Springfield Finance and Development Corporation, City of Springfield and other community organizations. This grant program is limited to new and expanding businesses located in downtown Springfield.

      “Maybe go into product lines that they haven’t been able to do before,” Worley says. “Some of these businesses have probably operated from home or online and now want to move to a storefront.”

      Recipients must commit to the following engagement steps:

      • Meet with representatives from US Bank and the City of Springfield Loan Officer to explore financing options.
      • Complete a training program through the Missouri Small Business Development Center (SBDC) at MSU and factory to strengthen the professional development of the owner (offered free of charge to the winner).
      • Engage in one-on-one assistance provided free of charge with the Missouri SBDC at MSU.
      • Attend a Minority in Business meeting to interact with minority business owners and advocates.
      • Meet with the DSA Director of Communications to learn more about using downtown communications.
      • Attend a DSA Mixer to connect with other downtown business owners and stakeholders.

      Additional optional business owner support provided by efactory and Missouri SBDC to MSU:

      • Dedicated business consultant to support all business guidance needs (e.g. business planning, financial projections and assistance, strategic planning).
      • Office Hours – Access to professionals who want to help you and your business succeed (egaccountantslawyer, bankers, technology, public markets).
      • Mentoring – Designed to provide honest, practical feedback based on personal experience, not just business theory.
      • 50% off other Missouri SBDC training programs at MSU and efactory.
      • Three 10 days Coworking pass at the factory.
      • 50% discount on conference room and meeting space reservations.
      • One year Springfield Downtown Association (DSA) Membership.
      • One-year membership in Minorities in Business (MIB).

      The deadline to apply is April 29, 2022. All interested candidates can APPLY HERE.

      To report a correction or typo, please email [email protected]

      Copyright 2022 KY3. All rights reserved.

      Virginia Enacts Merchant Cash Advance Registration and Disclosure Act Finance & Banking

      To print this article, all you need to do is be registered or log in to Mondaq.com.

      On April 11, 2022, Virginia became the second U.S. state to require providers of Merchant Cash Advance (“MCA”) products to obtain a state regulatory license or registration, on the heels of the Utah. With Governor Glenn Youngkin’s signing of House Bill 1027, companies providing “sales-based financing” in Virginia will now be required to provide advance information on financing terms, follow certain dispute resolution procedures and register with the Virginia State Corporation Commission (“Commission”) by November 1, 2022.

      Unlike small business financing disclosure laws enacted by California, New York, and Utah, which broadly apply to many forms of non-mortgage small business financing, Virginia’s new law focuses narrowly on providers of “sales-based financing”. The bill’s sponsor, Delegate Kathy Tran, noted that the bill is specifically aimed at regulating ACM providers. The law defines “sales-based financing” as a “transaction that is repaid by the recipient to the provider, over time, as a percentage of sales or revenue, in which the amount of the payment may increase or decrease depending on the volume of sales achieved. or income received by the beneficiary. The term “sales-based financing” also includes transactions with “an accrual mechanism in which the financing is repaid as a fixed payment, but provides a reconciliation process that adjusts the payment to an amount that is a percentage of the sales or revenue.

      Virginia is now the second state to enact a specific licensing or registration regime for ACM providers. The new law requires ACM providers to register with the Virginia State Corporation Commission by November 1, 2022, and then on an annual basis thereafter. Since MCA providers often source from brokers or independent sales organizations, the law also extends the registration requirement to “sales-oriented financing brokers”, which the law defines as “a a person who, for payment or in the expectation of payment, obtains or offers to obtain financing based on sales from a supplier for a beneficiary. » Suppliers and brokers must also be licensed to transact in Virginia, unless they are already organized under Virginia law or are otherwise not required to obtain license. authorization to transact in Virginia as a foreign entity.

      The new Virginia law also follows in the footsteps of California, New York and Utah in imposing disclosure obligations on ACM providers. MCA providers will be required to disclose funding terms at the time the provider offers an MCA to a merchant. These disclosures are similar to disclosures required for “sales-based financing” providers under other recent state laws and include:

      • The total sales-based financing amount and disbursement amount, if different from the financing amount, after deducting or withholding fees at the time of disbursement

      • The financial burden

      • The total reimbursement amount, which is the disbursement amount plus finance charges

      • The estimated number of payments, which is the number of payments expected, based on the merchant’s projected sales volume, to equal the total refund amount

      • Payment amounts, based on the merchant’s projected sales volume, (i) for fixed payment amounts, payment amounts, payment frequency and method, or (ii) for variable payment amounts, a schedule of payment or a description of the method used to calculate the amounts and frequency of payments and method of payment

      • A description of any other potential fees and charges not included in finance charges, including drawdown fees, late payment fees, returned payment fees, and prepayment fees or penalties

      • If the recipient elects to prepay or refinance the sales-based financing prior to full repayment: (i) an updated disclosure of the six prior disclosures required above, as of the date of the prepayment or refinancing; and (ii) a description of prepayment policies indicating whether the recipient will be required to pay additional fees, penalties, or other amounts not already included in the finance charge, or whether the recipient will receive a fee discount financial.

      • A description of collateral requirements or collateral, if any

      • A statement of whether the supplier will pay compensation directly to a broker under the specific sales-based financing offer and the amount of compensation

      Unlike California and New York law, Virginia law does not require the disclosure of an annual percentage rate or “APR”. Since House Bill 1027 does not define many of the terms used in the disclosure requirements, including “finance charges,” and gives MCA providers no instructions on how to calculate finance charges, the volume expected sales or payment schedule, regulators may need to issue guidelines or regulations to implement disclosure obligations. Regulators will likely need to act quickly, as disclosure obligations come into effect on July 1, 2022, and it’s hard to imagine how the law could be enforced without rules providing necessary guidance to ACM providers. The law authorizes the Commission to promulgate regulations, but the short period between the promulgation of the law and its effective date may not be sufficient for the Commission to make a proper development of notice and comment rules. . It would not be surprising if MCA suppliers were granted a grace period extending beyond July 1, similar to the many delays in the effective date of California and New York disclosure requirements. resulting from the need for regulators to finalize rules implementing disclosure requirements.

      Finally, the law imposes several conditions for the settlement of disputes. First, the law prohibits providers from using the confession of judgment provisions. Second, the law also requires that any legal action related to a sales-based financing agreement be brought in Virginia; forum selection clauses requiring that legal actions be brought outside of Virginia are unenforceable. Third, the law includes two restrictions on arbitration clauses in sales-based financing agreements. Specifically, the arbitration clause cannot require face-to-face arbitration to take place outside of the jurisdiction where the merchant’s principal place of business is located, and vendors must pay all arbitration costs. Although Virginia law declares violation of the terms of a sales-based financing agreement unenforceable, vendors may be able to argue that federal arbitration law prevails over state law regulation. Statement on Arbitration Clauses.

      Virginia law exempts financial institutions such as banks and credit unions. Merchant cash advances over $500,000 are also exempt. Finally, the law contains a de minimis exemption for a person who completes no more than five “sales-based financing” transactions in a 12-month period.

      Visit us at mayerbrown.com

      Mayer Brown is a global provider of legal services comprised of law firms that are separate entities (the “Mayer Brown Firms”). The Mayer Brown firms are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, two limited liability companies established in Illinois in the United States; Mayer Brown International LLP, a limited liability company incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales under number OC 303359); Mayer Brown, a SELAS based in France; Mayer Brown JSM, a partnership of Hong Kong and its associated entities in Asia; and Tauil & Checker Advogados, a Brazilian legal partnership with which Mayer Brown is associated. “Mayer Brown” and the Mayer Brown logo are registered trademarks of Mayer Brown law firms in their respective jurisdictions.

      © Copyright 2020. Mayer Brown Practices. All rights reserved.

      This article by Mayer Brown provides information and commentary on interesting legal issues and developments. The foregoing is not a complete treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action regarding the matters discussed here.

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      Small business finance sector reflects on what’s in the rear view mirror and is optimistic for the rest of 2022

      Jhe small business finance industry is looking at expected growth for the rest of the year, despite new challenges ahead. With the massive government aid fading in the rearview mirror, some industry players have now had time to reflect on its impact as they move forward into the future.

      Bob Squiers of Meridian Leads expressed his views on the subject: “A lot of our customers, mainly ISO stores, a lot of them have converted and started selling and showcasing the government programs. So in that sense, it kind of helped keep these guys afloat, helped keep our business going. A lot of what we do on the marketing side is translated for these government programs. But it also crushed cash advance demand.

      In some cases, government funding has helped merchants repay their pre-existing obligations in a timely manner. Matthew Washington, Founder and CEO of Moneywell GRP, said, “An educated business owner uses the available financing options as they see fit at the time. Someone waiting to get an SBA or EIDL is more likely to take a bridging product to get through that time frame,” he said. “As long as you work with the trader and have good products and know what’s up, I think that’s only helped in some cases.”

      Trucking has become one of the number one areas that has accounted for a large percentage of submissions during the pandemic, according to industry insiders. However, with rising gasoline prices, trucking activity may decline. Other businesses such as restaurants, where only a third received government funding last year, are in desperate need of funding.

      “There are still tons of restaurants that haven’t received their funding yet. So we could see a lot of exposure in this industry,” said Michael Yunatan of Specialty Capital. “But overall I really think we’ll see an upward trend in our numbers across the board.”

      “We really think the industry is growing as a whole,” Yunatan said. “Even though we’re a new player in the space, we’ve grown.”

      Chad Otar, Founder and CEO of Lending Valley, said: “We have to continue to watch the Federal Reserve’s rising interest rates, we have to make sure we’re not heading into a recession, we have to make sure that we are able to have the capital fully ready, so that we can deploy at a reasonable pace.

      Otar hailed the indirect benefits of big tech companies operating in the space with a competing product, saying the presence of PayPal and Amazon helps raise awareness of the industry as a whole.

      “And now that Kabbage is also back, since they’ve partnered with American Express, that’s going to help us push the product further to the mainstream,” Otar said. “So I think there will be growth in the industry.”

      Last modification : April 19, 2022

      Gemini Crypto Rewards credit card is now available in the US

      First Instant Crypto Rewards Credit Card* Gives Consumers a Seamless Way to Earn Up to 3%+ return of more than 60 cryptocurrencies supported on Gemini

      NEW YORK, April 14, 2022 /PRNewswire/ — Geminia cryptocurrency platform for buying, selling, earning and storing crypto, announced today the Gemini credit card™ is now available in all 50 US states. Cardholders can earn up to 3% crypto on meals+, 2% crypto back on groceries, and 1% crypto back on all other purchases, with rewards automatically deposited into their Gemini account. The Gemini credit card is issued by WebBank and features Mastercard as its exclusive card network.

      Since the waitlist was launched, the Gemini credit card has amassed over 500,000 registrations. Cardholders will be able to use the Gemini Credit Card anywhere Mastercard is accepted and will be able to choose from over 60 types of cryptocurrencies currently supported for rewards on the Gemini exchange platform, including bitcoin, crypto ether, dogecoin and other tokens.

      When a cardholder makes a purchase, Gemini automatically converts the USD value of the reward into the selected cryptocurrency and deposits it into the cardholder’s Gemini account. This process occurs as soon as the transaction is approved for most merchant categories*. Cardholders can change their selected crypto reward as often as they like, allowing them to earn a wide variety of cryptocurrencies during each month.

      Additional features of the Gemini credit card include:

      • No annual fees: The Gemini credit card has no annual fees or foreign transaction fees.1 There are no exchange fees for receiving crypto rewards.2
      • Instant access: After approval, customers can instantly access a digital version of their Gemini credit card on the Gemini mobile or web app. Plus, consumers can add the card to their mobile wallet and start shopping online, in-app and at point-of-sale.
      • Safety-centric design: Sensitive information, such as the 16-digit card number, is stripped from the physical card and only accessible to cardholders through the Gemini mobile or web app.
      • Stainless steel: The Gemini Credit Card’s sleek stainless steel card is made from 75% recycled materials and is available in three colors: silver, rose gold and black.
      • World Mastercard® Benefits: Customers can access exclusive offers at certain merchants such as DoorDash, HelloFresh, Lyft and ShopRunneras well as MasterCard Priceless Experiences®. The Gemini credit card will include advanced security features, including MasterCard ID Theft Protection™, zero liability and price protection.
      • 24/7 live customer support

      “Mastercard and Gemini share the belief that providing relevant and innovative crypto rewards experiences will not only empower consumers, but also unlock access to the digital currency ecosystem,” said Sherri HaymondExecutive Vice President, Digital Partnerships at Mastercard. “We are honored to work hand-in-hand with Gemini to deliver this one-of-a-kind rewards offering and make the crypto experience even easier for consumers.”

      “WebBank is thrilled to leverage its expertise in financial product innovation through its partnership with Gemini and Mastercard to launch the cutting-edge Gemini credit card that offers consumers the opportunity to earn real-time crypto rewards that reside on Gemini’s trusted crypto platform,” mentioned Jason LloydPresident and CEO of WebBank.

      “Last year the crypto industry had its breakout moment with 44% of crypto owners in the United States.3 said he first bought crypto last year. Gemini is committed to helping increase education and delivering innovations that remove barriers to entry for consumers looking to access crypto such as bitcoin,” said Pravjit Tiwana, Technical Director of Gemini. “In partnership with Mastercard and WebBank, we developed the Gemini Credit Card to provide a simplified way to invest in crypto without requiring consumers to change their daily behavior. With the Gemini Credit Card, users also have access to a single trusted platform to buy, sell, store and earn real interest in crypto, and we couldn’t be more excited to make it widely available across United States.”

      For customers based in United States and interested in applying for a Gemini credit card, visit: https://www.gemini.com/credit-card.

      Additional Resources:

      About Gemini
      Gemini is a platform that allows customers to buy, sell, store, and earn cryptocurrencies like bitcoin, ether, and DeFi tokens. Gemini’s simple, innovative and secure products are designed to empower the individual. Gemini was founded in 2014 by twin brothers Cameron and Tyler Winklevoss.

      Raquel Prieto
      [email protected]

      *Some exclusions apply where rewards are deposited when the transaction is posted.
      +3% discount on meals (up to $6,000 in annual expenses, then 1%)
      1 Variable APRs: purchase 13.24% – 24.24%, cash advance 26.24%, penalty 30.24%. Cash advance fees $10 or 3%, whichever is greater. (From April 142022)
      2 Fees may be incurred for the sale or conversion of your crypto rewards.
      3Gemini State of Crypto Report 2022

      SOURCE Gemini

      CIT provides $37.2 million in financing for distribution facility in Pittsburgh, Pennsylvania

      NEW YORK, April 13, 2022 /PRNewswire/ — CIT, a division of First Citizens Bank, today announced that its Real estate financing the company provided a $37.2 million loan to Amimin Group to finance the acquisition of a bulk distribution center in Pittsburgh, Pennsylvania.

      The industrial distribution facility comprises over 510,000 square feet and is located near Downtown Pittsburgh and several major interstate highways. The facility is fully leased to two tenants, Amazon.com and Nogin, and is one of two Amazon sorting facilities in the market.

      “Given its optimal location, the facility is well positioned to provide logistics connectivity to more than 800,000 consumers within a 30-minute drive and to major population centers in the mid-Atlantic,” said Nir Kriel. , CEO of Amimin Group and discretionary Apexus Logistics. funds. “We have already partnered with CIT and are again delighted with the expertise and agility they have shown in arranging the financing for this acquisition.”

      Amimin Group is a private commercial real estate investment company based in Houston, TX and Jerusalem, Israel. Since its inception in 1996, the company has purchased more than two million square feet of logistics, industrial and commercial space in the United States, Canada and Europe.

      “Aminim Group is well known for its successful property investments across the country,” said Chris Niederpruem, Managing Director and Group Head for CIT. Real estate financing Business. “We were delighted to work again with Amimin Group to arrange the financing for the acquisition of this facility and look forward to other opportunities to support their future investments.”

      TIC Real estate financing company, part of Commercial financing group, originates and underwrites first-class secure real estate transactions. With deep market expertise, underwriting experience and industry relationships, the group offers financing for individual properties and real estate portfolios.

      About CIT
      CIT is a division of First Citizens Bank, the largest family-owned bank in United States, carrying on a unique legacy of strength, stability and long-term thinking that has spanned generations. Parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA) is one of the top 20 U.S. financial institutions with more than $100 billion in assets. The Company’s Commercial Banking segment provides a wide range of premier lending, leasing and banking services to medium and small businesses from coast to coast. First Citizens also operates a nationwide direct bank and a network of more than 600 branches in 22 states, many in high-growth markets. Industry specialists bring deep expertise that helps businesses and individuals achieve their specific goals at every stage of their financial journey. Find out more about cit.com/firstcitizens.

      Lexa Tutela
      [email protected]

      SOURCE CIT, a division of First Citizens Bank

      Crypto Wealth and NFT Further Boost Growing Art Market


      It’s no secret that cryptocurrency, especially Bitcoin, is changing the way society pays for things. More traditional US businesses are starting to accept bitcoin payments. Internationally, Australia-based energy company On The Run has started allowing customers to pay for gas with Bitcoin, and Russia has indicated it may accept Bitcoin as payment for oil.

      Cryptocurrency has also had an impact on an often overlooked investment class: art. It has pushed galleries online, created a new kind of art investment in the form of non-fungible tokens (NFTs), and is helping to level the playing field in this industry. Sotheby’s has even started accepting cryptocurrency payments for some art auctions.

      Galleries move online

      Advances in technology and the COVID-19 pandemic have pushed art galleries to move online. Art buyers and sellers were able to use Zoom Video Communications Inc. ZM to see live art and payment processors like PayPal Holdings Inc. PYPL to carry out transactions. These new technologies have made it easier to buy and sell artwork anytime, anywhere.

      Buying and selling art online has become more common even as the pandemic wanes. According to a 2021 art market report published by UBS Group UBS and Art Baselmore than a third of sales had taken place on dealer websites or through art fair online viewing rooms.

      Another main benefit of this move is being able to list prices on these sites. Increased transparency and access are some of the reasons why younger generations are more interested in investing in this unique asset class.

      NFT: another type of asset class

      Online art galleries and advanced encryption technology transact NFT art using smart contracts that automatically trigger buy and sell orders without an intermediary such as a bank. NFTs are powered by popular cryptocurrencies that use smart contracts, including Ethereum and Solana.

      NFTs are unique because they are non-fungible, which means they hold a distinct value separate from other tokens. One bitcoin can be replaced by another bitcoin, making it fungible. An NFT cannot be replaced by another because its value is influenced by unique factors such as rarity and desirability. Besides art, real estate, collectibles and vintage cars are examples of non-fungible assets.

      A fairer playing field

      Online art galleries, NFTs and other technologies have allowed different types of buyers and sellers to enter this space. Traditionally, the buying and selling of rare art was aimed at an affluent and elderly clientele.

      Online art marketplaces like MasterWorks have made this asset class more mainstream. Buyers can invest in folk art stocks and diversify their portfolios, as it can often be inversely correlated to the stock market. Art can appreciate while stocks depreciate.

      See also: Benzinga’s Best Art Offerings

      OpenSea is another online marketplace that specifically focuses on NFTs. Users can buy and sell NFTs for as little as 0.0001 ETH ($0.32) or up to 5,000 ETH ($116,037,900).


      Every day, cryptocurrency technology is becoming more advanced and increasing its impact on society. Cryptocurrency has also strongly influenced the art industry by making this asset class once reserved for the wealthy more accessible to everyone.

      Photo: Christopher Wool “Untitled” 1995 – Courtesy of Masterworks

      Grover CFO: Rent-a-Tech platforms reduce e-waste

      120 million tons per year.

      This is the amount of global electronic and electrical waste (eWaste) that will be produced per year by 2050 if current trends continue, according to a United Nations report report.

      As if that figure wasn’t alarming enough, UN data further reveals that less than 20% of the 50 million tonnes of e-waste currently produced globally each year is officially recycled, leading to increased risks to health and the environment as well as a significant loss of value. raw materials like gold and platinum that end up in the millions of tons of electronic waste thrown away each year.

      To meet the challenge, there have been growing calls for a circular economy in which resources are refurbished and reused, capitalizing on growing consumer demand for durable and reusable products that reduce waste. waste and are less harmful to the environment.

      And it is in this space that the Berlin-based tech startup Grover seeks to make a difference with its rent-a-tech platform, aiming to create a circular economy for consumer electronics as customers move from ownership to access and become more aware of sustainable and affordable forms of tech consumption .

      Following this sustainability-focused shift from ownership to access, Grover’s solution to renting technology flexibly — without having to pay for products up front — has caught on quickly in recent years.

      “Instead of buying a new phone every 18 months and then leaving it in a drawer, consumers increasingly believe that they can use a device for as long as they need to, but that’s enough. then very transparently send it back to Grover and get a new one,” Thomas Antonioli, Grover’s chief financial officer, told PYMNTS in an interview. “The old device is refurbished and reused, allowing them to actively contribute to the reduction of electronic waste.”

      Today, the German tech unicorn, founded in 2015, offers subscribers access to more than 3,000 tech products – primarily smartphones and laptops, but also smart home appliances, virtual reality (VR) equipment, games and portable devices – which they can change, return or keep. on a flexible monthly rental basis.

      Following the surge in demand for products such as laptops in its markets – Germany, Austria, the Netherlands and Spain – due to more and more workers shifting to remote work, Antonioli said the upward trend has continued since.

      Flexible offers, affordable rates

      On average, subscribers pay about 45% of the retail price within a year of the lease, which includes free insurance coverage that would have cost them a monthly fee of between $10 and $20 on a purchased device, as well than free shipping.

      “[The insurance] is something you get for free in the subscription price, so you’re going to pay less than half the price if you bought it with insurance,” Antonioli said.

      For users who decide to continue renting for longer, they have the option of purchasing the device for $1 when they reach 120% of the original sale price in accrued rents. This deal, he says, is like paying “almost exactly” the same price to buy an iPhone with insurance coverage, for example.

      The difference here is the flexibility Grover offers users to terminate or upgrade a lease at their convenience.

      “If you don’t [terminate or upgrade]the worst that can happen is that you pay as much as if you had financed the device and got damage coverage included,” he noted.

      Plus, unlike traditional credit, subscribers who are on contract but experiencing personal issues like job loss can return the device and not be held responsible for paying the rest of the contract fee – “this also allows people not to default,” he added.

      Due to the subscription nature of Grover’s business, ensuring the company has a strong credit rating engine is key to minimizing risk, he continued.

      That’s why the business-to-consumer (B2C) company is enriching traditional data like a FICO score with new alternative data sources, as well as its own machine learning technology that can analyze behavioral data based on the how people move around the website, providing “credit metrics [that] are much better than credit card information in Germany, for example. »

      Awareness of Rent-a-Tech

      The German company focused on the circular economy recently ventured into the integrated finance space with the launch of a Grover card, allowing users to earn credits for their subscriptions. This led to an increase in annual recurring revenue (ARR) that more than doubled from what the company recorded in 2020, opening up opportunities to expand its suite of financial services.

      Read more: Grover, a $1 billion subscription-based consumer tech company

      Further proof of the industry’s meteoric growth, the company recently raised $330 million in equity and debt financing at a valuation of over $1 billion, with plans to grow subscribers in the markets. existing ones and extend the circular economy to more countries.

      The United States is one such market that the European company has targeted to accelerate its growth, launching there late last year.

      See also: After explosive European growth, Grover brings technology rental service to the United States

      “We always knew it was going to be a very big and important market for us at some point. [and] we were positively surprised by the way we were received there,” he said.

      Spreading the word and awareness of the consumer electronics rental service and its benefits is a key area Antonioli said Grover will focus on moving forward, especially in markets where the concept remains relatively new.

      “We will use the funds we have raised to raise awareness because most people don’t even know that [the rental] option even exists,” he said.

      Register here for daily updates on all of PYMNTS’ Europe, Middle East and Africa (EMEA) coverage.



      On: Patient portals have become a must-have for providers, so much so that 61% of patients interested in using the tools say they would choose a provider that offers one. For Accessing Healthcare: Easing Digital Frictions In The Patient Journey, a collaboration between PYMNTS and Experian Health, PYMNTS surveyed 2,333 consumers to learn how healthcare providers can ease digital pain points to improve care and satisfaction. patients.

      Unemployment is falling rapidly, so why are so many still struggling?

      The Australian labor market is tightening.

      The unemployment rate is falling and heading towards 1970s levels.

      Job vacancies are at record highs and the number of officially “unemployed” people per vacancy fell to 1.6, the lowest on record.

      So why are so many people still struggling to find work?

      It has to do with the labor market itself.

      An increase in precariousness

      The Australian labor market has been radically restructured over the past decades.

      In the 1970s, policymakers abandoned the old post-World War II full-employment model.

      They replaced it with a new model that allowed much higher levels of unemployment to suppress wages and inflation.

      Since then, there haven’t been enough jobs to go around by design.

      It coincided with the casualization of the workforce, the rise in underemployment and the decline in wage growth.

      And according to economics professor Ross Garnaut, ordinary Australians have experienced a period of income stagnation between 2013 and 2020 not seen since the Great Depression of the 1930s.

      He says 2013 to 2020 have been Australia’s “Dog Days”.

      There has been virtually no increase in average household disposable income between 2013 and 2020.(ABC: Alistair Kroie.)

      He included the graphic above in his 2021 book Reset: Restoring Australia after the Great Crash of 2020.

      In this book he said Australians could be forgiven for being angry.

      “In the best-case scenario, by 2025 Australians will have experienced the longest period of real income stagnation in our national history,” he warned.

      The labor market is tightening, but…

      This is an important context for our current situation.

      Over the past six months, the Australian labor market has tightened so rapidly that it has taken policymakers by surprise.

      Due to a unique combination of massive fiscal stimulus, ultra-loose monetary policy, closed international borders and a largely vaccinated population, the unemployment rate quickly dropped to 4%.

      That’s where it is now: at a 13-year low.

      This pushed the employment-to-population ratio and the participation rate to record highs.

      Underemployment has fallen back to 2008 levels.

      And a senior ANZ economist thinks the jobless rate could even fall to 3.3% by the end of this year.

      So how come more people rely on unemployment benefits today than before the pandemic?

      See graph below.

      Experts say it’s a puzzling phenomenon they’re trying to understand.

      And why are so many people still struggling to find work?

      Well, remember what kind of labor market Australia had before the pandemic, where there weren’t enough jobs for everyone.

      Currently, the Bureau of Statistics indicates that there are 423,500 vacancies, which is a record.

      There remain 607,900 officially unemployed (original data, without trend or seasonal adjustment).

      And those official numbers don’t include the hundreds of thousands of people who aren’t in the labor force but who may also want to work.

      There is still a lot of competition for jobs.

      And for every entry-level job advertised right now, there are 23 people who have been on unemployment benefits for more than 12 months and who have to compete with candidates who have only experienced short-term unemployment or who are already employed but want to change jobs.

      The labor market is therefore tightening, but we are far from a situation where everything is rosy for everyone.

      And some personal experiences are worth listening to.

      Long-term unemployment

      Ashlie Stevenson has been unemployed for eight years.

      In her last job, she worked as a pathology collector in hospitals for almost a decade.

      But since becoming unemployed, she has applied for hundreds of positions but has rarely heard from her employers.

      Ashlie Stevenson case study #4
      Unemployed Ashlie Stevenson says when she becomes eligible for old-age pension the extra money will be a relief.(ABC News: John Gunn)

      “You have to make choices between medicine and food, rent and food,” she told the ABC this week.

      “Choices that, in Australia, you shouldn’t have to make.”

      Ms Stevenson has been on the waiting list for social housing for seven years and has spent the last two without a permanent place to sleep.

      “I think I’ve been to five different places in the past two years, but I’m running out of places to go and hang out,” she said.

      “When I was a tenant, I couldn’t afford a haircut. I had to skip seven meals to get a haircut so I could go to an interview.”

      Later this year, she will be entitled to an old-age pension.

      She will receive an additional $150 per week.

      According to the Department of Social Services, 249,886 people on JobSeeker (26.3%) are over the age of 55.


      A change of fortune, and everything changes

      Jerry Andrews, a single father of three, says he has been laid off twice in the last three years and has been out of work for a few months.

      He is grateful that he was able to find a job, but it comes with a financial shock.

      “My salary has dropped significantly, in terms of annual income, up to 40%,” he told the ABC.

      “So that had a major impact on my life choices and how I survived financially.”

      jerry andrews
      Single dad Jerry Andrews says he fears he won’t be able to buy property for his retirement.(ABC News: Michael Barnett)

      Mr Andrews said he owned a house but had to sell his property when his marriage broke up.

      He desperately wants to buy his own property before it’s “too late” but he’s afraid he can’t.

      He said he was paying his rent with no problem but there was no way he could save enough for a deposit now to buy a property for his retirement.

      He hoped there would be something in last month’s federal budget for people like him, but there wasn’t.

      “Why can’t the government look at the history of rent payments and provide an option to buy or invest in a property so that at least when I retire I have something to move into, or can to be moving in now?” He asked.

      This is another dynamic plaguing the economy.

      Property prices have jumped 25% in the past 18 months.

      Have salaries increased to match?


      Real wages continue to decline.

      Number of people working multiple jobs hits record high

      Dr Elise Klein, senior lecturer in public policy at ANU, says there are other signs people are struggling.

      She said there was a record number of people now working two jobs, and that was concerning.

      “It’s about 867,000 people who are working two jobs, and they’re mostly young people and women,” she told the ABC.

      Elise Klein, ANU
      Dr Elise Klein, senior lecturer in public policy at ANU, says many people working two or more jobs are still not earning enough.(ABC News: Luke Stephenson)

      “And even though people have two jobs, they are paid on average less than the average salary of everyone.

      “It’s really worrying to see this upward trend.

      “It signals that the quality of jobs there is not there. [line] with what people need to meet the cost of living, but also in terms of the wages they receive [for their work],” she says.

      What about the “cost of living” measures of the budget?

      Which brings us to the final point.

      The Morrison government told voters its pre-election budget was designed to bring down the cost of living.

      The budget included a one-time cash payment of $250 for 6 million Australians who receive various government payments, such as old age pension, disability pension and JobSeeker.

      But Jay Coonan of the Antipoverty Center says one-time payments will do nothing to lift people out of poverty.

      “The budget was a joke for people living in poverty,” he told the ABC.

      “The $250 payment was a joke. People can’t use it to pay their rent, they can’t use it to pay their food bill.”

      Jay Coonan, Anti-Poverty Center
      Jay Coonan, spokesman for the Anti-Poverty Center, says JobSeeker’s weekly payment is nearly $300 below the poverty line.(ABC News: Michael Barnett)

      He said JobSeeker’s weekly payment, at $321.35 for a single person with no children, was well below the poverty line.

      Henderson’s poverty line is just over $610 a week.

      He said if the JobSeeker unemployment benefit was lifted to match the poverty benefit, it would help more people reintegrate work.

      “Right now people are being punished for being unemployed,” he said.

      “People are being punished for every step they take to try to improve their lives.”

      Positive job titles still mask a lot of misery.

      It’s time for big business to stop googling and buy from local businesses – GCCI, GTT – Demerara Waves Online News – Guyana

      Updated on Saturday, April 9, 2022, 9:00 a.m. by Denis Chabrol

      Georgetown Chamber of Commerce and Industry (GCCI) President Timothy Tucker on Friday evening underscored the need not only for major lobbying efforts for funding small businesses, but also for large corporations to buy to their smaller counterparts to allow them to grow.

      He made the call at the launch of the city business organization’s National Small Business Week. “”Access to finance, access to land…The issues facing small businesses, and are not unique to Guyana alone, and it is important that we grow and fight for the development of things and services to support small businesses so we can grow them,” he said at the official launch held at Herdmanston Lodge.

      Tucker praised Guyana Telephone and Telegraph’s (GTT) support for the National Small Business Week initiative and urged it and other large companies to buy from local small businesses such as manufacturers. and suppliers. “This is really how you can support small businesses by looking inside… The first thing is to go to Google and see who’s doing this. How about you call the Chamber and we direct you to members who can support you,” said.

      The event is held under the theme “Buy small for a big impact”.

      GTT Chief Operating Officer (Business Solutions), Orson Ferguson, said his company recognizes the economic importance of small businesses. “We understand that no economy thrives without a vibrant small business segment or sector. It is clear that our collective success is tied to the success of small businesses and we must do everything we can to support these small businesses,” he said.

      He said GTT’s partnership with GCCI to achieve National Small Business Week has become a strategic priority for his company in a “leadership role” rather than just “writing a check.” Mr. Ferguson said the idea was to create a Friday night networking opportunity and the Trade Expo scheduled for Saturday at Rayne Park, East Bank Demerara.

      Shamane Headley, Marketing and Research Manager, Office of Small Business, Guyana Government, said the Marketing and Research Manager said that during this year, the Office of Small Business will facilitate the program of small business procurement that facilitates access to 20% of all government procurement by approved small businesses. . “This program supports Guyanese SMEs (small and medium-sized enterprises) for a greater share of government procurement through capacity building and direct access to government procurement opportunities from Guyanese government departments and agencies,” he said. he declares.

      She said that in 2021, for the first time since its inception, 746 small business grants were paid out. By the end of 2021, 768 small businesses had accessed small business support worth GY$377 million in grants, loans and sponsorships.

      Ms. Headley said the Office’s assistance has helped create 1,323 jobs across Guyana.

      Official figures show that in 2022, the Guyanese government has $300 million in the Small Business Fund to support an additional 800 small businesses. “This is the largest amount allocated in the Bureau’s history,” she said.

      The Managing Director of the Guyana Office for Investment (GO-Invest), Dr. Peter Ramsaroop, noted, for example, that there are opportunities for small businesses for 2,000 hotel rooms by 2025 with international brands. . Opportunities, he said, could include fresh fruits and vegetables, laundry and other types of work.

      He urged Guyanese to stop viewing themselves as victims but to develop a plan to seize the opportunities of big business as well as the incentives offered by GO-Invest. “There’s no limit to where a small business can go. There are no restrictions. The government and our president are very committed to our private sector,” he said.

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      PYMNTS Crypto Basics Series: What is a satoshi?

      Bitcoin, blockchain, and cryptocurrency are words most people have at least heard of since the industry exploded into public consciousness in 2021.

      In this series of articles, we’ll dive into the basics of the industry, providing an introduction to cryptography that will give you a solid grounding in the technology and a lexicon for its terminology – cryptographers should never be allowed to name everything that the public will possibly need to know. In short, it will be enough to understand what people are talking about and decide if you want to know more.

      Learn more about the PYMNTS Crypto Basics series:

      What is a Blockchain and how does it work?

      What is a crypto wallet and how to avoid losing a quarter of a billion dollars?

      How to lose your crypto without getting hacked

      Is Bitcoin really anonymous and how can law enforcement track it?

      What is a consensus mechanism and why is it destroying the planet?

      What is mining and why is bitcoin activity not working

      The Tokenomics of Crypto

      What is a permissioned blockchain and how does centralized decentralization work?

      So what is a satoshi?

      The answer depends on whether the word has a capital “S” or a lowercase “s” at the beginning.

      We are going to talk about the small-s satoshi, which can roughly be considered the penny of bitcoin. And then we’ll talk about why you should care.

      With a capital “S” you mean Satoshi Nakamoto, the pseudonym of the unknown creator(s) of bitcoin and blockchain, author of the Bitcoin white paper that started the crypto revolution. But enough about her or him or them.

      A satoshi, on the other hand, represents 1 to 100 millionths of bitcoin, the smallest fraction the cryptocurrency can be divided into.

      Why so many? Because, its creators imagined, when bitcoin cut all financial intermediaries like banks, credit card issuers, and payment processors out of the economy, creating an idyllic world of direct, peer-to-peer money (P2P) untouched by any central bank, the value of a bitcoin would soar to huge heights – as in $1 million.

      This is a number that you will hear daily from very serious people in the cryptocurrency industry if you dig a little bit into its heart. Keep in mind bitcoin will replace multi-trillion dollar savings…

      …And, if you do the math, you’ll find that with a $1 million bitcoin, a satoshi is worth a penny.

      This is where Bitcoin’s non-inflationary design comes into play.

      Not a fan of central bank-issued fiat currency – very first bitcoin transaction entered headline the day it was minted referencing a January 2009 bank bailout as the timestamp – Satoshi Nakamoto built a limit of 21 million of bitcoins in the cryptocurrency code.

      Once they are all mined, no more will ever be created. The reason? This makes bitcoin, or BTC, a non-inflationary currency because there is no central bank that can simply print more money when it needs it. That’s pretty much what the US Federal Reserve did at the start of the pandemic to support the economy and financial institutions (FIs). And that’s what Venezuela did to create the hyperinflation that drained its economy.

      why you care

      To explain why such a small account cryptocurrency shard, let’s buy a Coke for $1, except we’ll pay in bitcoins — which became much more likely on Friday, April 8, when crypto payments processor Strike concluded an agreement for access to NRC point-of-sale (POS) terminals.

      Read more: Integrate Bitcoin firmly into payments, enter into partnerships with NCR, Shopify, Blackhawk

      This deal will also circumvent the issue of Bitcoin blockchain transaction fees. Specifically, these fees charged in sats are in the $2-$3 range at best and can increase. The Strike deal circumvents this for a fee of a penny or less, which Satoshi Nakamoto assumed they would run — and run on many competing blockchains.

      The key word here is “less”.

      A single bitcoin as of Friday afternoon is $42,777.72. So this $1 soda will cost you 0.0000237 BTC. That’s 2,370 sats. Let’s reduce it to 2,300 sats to attract customers with a (very) small discount or up to 2,500 for nice round numbers (and a small profit). If you had a convenience store and wanted to sell this Coke, which one would you rather put on the price tag?

      The same applies to transaction fees for buying or selling bitcoins on an exchange.

      And, by the way, when you calculate transaction fees when you sell pants for $100 (0.00237 sats). Or a $1,000 computer (0.0237 sats). And bitcoin’s usefulness as a payment method increases with these last two purchases when you factor in the 1.5% to 3% credit card processing fee.

      Many other blockchains do something similar. In Ethereum, for example, each ether (ETH) can be divided into a quintillion wei.

      The key to selling in sats over bitcoin, however, is to make sure you’re not using the wrong one.

      Like the guy who listed a $1.2 million non-fungible token (NFT) for 444 wei last month when he wanted to peg it at 444 ETH and then sell it for $2,279 each.

      See more : 5 Classic Examples of How Not to Buy, Sell, or Store Crypto



      On: Patient portals have become a must-have for providers, so much so that 61% of patients interested in using the tools say they would choose a provider that offers one. For Accessing Healthcare: Easing Digital Frictions In The Patient Journey, a collaboration between PYMNTS and Experian Health, PYMNTS surveyed 2,333 consumers to learn how healthcare providers can ease digital pain points to improve care and satisfaction. patients.

      Arkansas Supreme Court Overturned Class Action Ruling in Northwest Arkansas Pastry Chef v. Lender Case

      LITTLE ROCK — The Arkansas Supreme Court on Thursday overturned and dismissed class action certification in a lawsuit between a local baker and an out-of-state lender, saying a class action waiver between the parties was binding.

      The court did not address the underlying merits of the case, Leitha’s Pies, LLC v. Funding Metrics. The case alleges securities fraud by Funding Metrics.

      Washington County Circuit Judge John Threet granted class certification in the case on June 23, 2021.

      Leitha’s Pies sells frozen pies to restaurants. Funding Metrics, under the Lendini and Quickfix Capital brands, is a cash advance company.

      In 2017, Leitha’s Pies entered into a written agreement to sell Funding Metrics $21,900 of Leitha’s Pies future receivables in exchange for an immediate payment of $15,000 by Funding Metrics. Under the agreement, Funding Metrics was authorized to withdraw from Leitha’s Pies deposit accounts a daily amount equal to 11.38% of Leitha’s Pies daily revenue. Leitha’s Pies also agreed to pay a one-time assembly fee of 8%.

      The agreement contained a class action waiver.

      In July 2019, Leitha’s Pies filed a class action lawsuit against Funding Metrics, claiming it promoted and sold securities in violation of Arkansas securities law. Funding Metrics decided to reject in part based on a forum selection provision and class action waiver in the agreement and also asserted that the agreement was not a warranty.

      On June 23, 2021, the circuit court granted Leitha’s Pies’ motion for class certification. Threet concluded that the waiver provision was unenforceable.

      Funding Metrics appealed arguing, among other things, that the circuit court abused its discretion by refusing to enforce the class action waiver in the settlement. According to Funding Metrics, under precedents from the Arkansas Supreme Court, the class action waiver provision is enforceable.

      “We find merit in Funding Metrics’ argument and rescind the class certification order because the waiver is enforceable. Accordingly, we do not reach the remaining points on appeal,” according to the opinion. “We rescind the circuit court order granting class certification and remand the case for an order pursuant to this notice.”

      The majority opinion was written by Judge Karen Baker.

      63% of US small business owners raised salaries to fight big quit says Guidant

      Guidant releases the latest results from its annual Small Business Trends Report.

      Boise, Idaho, April 7, 2022 /PRNewswire-PRWeb/ — The top two big quit strategies of U.S. small business owners were increasing compensation (63%) and employee retention (33%), according to results from the latest Trends Report. small business published by the small business finance company Financière Guidant. Other prominent strategies included expanded advertising (23%), increased benefits (18%) and hiring bonuses (16%).

      The report’s findings are based on Guidant Financial’s annual Small Business Trends Survey.

      “Starting a small business has always been hard work, but the past few years have been exceptionally tough. We owe a lot to the small business owners who persevered through it all – they are on the front lines of defending the American economy,” mentioned Jeremy AmesChairman of Guidant Financière.

      More key results:
      The big resignation

      • 47% of companies report an insufficient number of job seekers and 30% report experiencing headhunting competition from competitors.

      • According to respondents, communication and critical thinking are the skills most often lacking in current small business candidates.

      • Business owners who increased wages were slightly more likely to be profitable (70%) than those who did not (65%).

      • Despite the challenges, 75% of business owners report being somewhat or very satisfied. 15% were somewhat or very unhappy. The remaining 10% were neutral.

      business owners

      • The majority of businesses were evenly split between Baby Boomers (45%) and Generation X (46%). Millennials made up 7% of those polled, while Gen Z — also known as Zoomers — and post-war business owners both made up less than 1%.

      • Women small business owners made up just 22% of survey respondents this year.

      • 32% of small business owners do not belong to any political party or do not feel represented by any political party. 41% identified as Republicans and 22% identified as Democrats. Less than 6% identified with another party.

      state of affairs

      • The top three priorities were increasing staff (51%), expanding or remodeling their business (41%) and investing in digital marketing (40%).

      • 69% of franchisees have establishments less than 5 years old (or in the process of opening).

      • Behind recruiting (70%), the most common issues for small business owners were changing operations in response to COVID-19 (32%), lack of capital/cash (32%) and administrative work (23%).

      COVID-related results

      • 54% of all business owners believe the effects of the pandemic are not over, yet 84% of business owners expect their business to survive the pandemic.

      • Most respondents said they felt somewhat or very confident (46.74%) about the future. Just over 27% of business owners said they felt somewhat unconfident, and a minority of 7.56% of business owners said they felt very unconfident.

      The report’s findings are based on Guidant’s annual survey of resilient, hard-working small business owners in America. He learns who they are, what their life is like as small business owners, what their plans are for the future, and how their business has held up to current affairs. Guidant Financial conducted the survey by email to January 24 and February 13 with over 600 current and future small business owners nationwide.

      About Guidant
      Guidant helps business owners obtain financing to start, buy or expand a business. An industry leader in corporate and franchise financing, Guidant works with new and existing entrepreneurs to identify, evaluate and deploy customized financing solutions. Their services include but are not limited to 401(k) business financing, SBA loans, unsecured credit, portfolio loans. In total, Guidant has helped more than 25,000 entrepreneurs in all 50 states invest more than $4 billion in funds to start small businesses, resulting in the creation of more than 85,000 jobs in the United States. Visit Guidant at guidingfinancial.com.

      About the Small Business Trends Series
      The Small Business Trends series was launched by Guidant in 2014 and is designed to support small businesses with trends and data insights. This data-driven insight is intended to help small business owners make key decisions with confidence and bring transparency to small businesses so potential entrepreneurs can learn more about their options.

      Media Contact

      Stacia KirbyKirby Communications, 206-478-5841, [email protected]

      SOURCE Guiding Financial

      The taxman comes for your virtual garage sale | News

      Click to enlarge

      Death and taxes remain certainties, and in Illinois the latter has become more certain than ever.

      This tax season marks the second year the Land of Lincoln has targeted the gig economy by requiring companies that process digital — think PayPal or Venmo — to report payments at lower thresholds than Internal Revenue specifies. Service. Under federal law, electronic payment processors don’t have to report money changing hands until someone receives at least $20,000 in at least 200 transactions. Starting in 2020, Illinois lowered the threshold to $1,000 with at least four transactions. In recent years, a dozen other states, concerned about non-payment of taxes, have also instituted stricter requirements than the federal government, which will lower the threshold to $600 for the next tax season on money transfers. 2022.

      “It’s a great thing,” says Tom O’Saben, a tax preparer who is associate director for professional tax education and outreach at the University of Illinois at Urbana School of Taxation. . “Now people are going to get 1099-Ks just because they might have a yard sale and they decided to accept payment from PayPal or Venmo or some other third-party electronic payment processor.”

      Maura Kownacki, spokeswoman for the Illinois Department of Revenue, could not say by how much, if any, tax collections have increased since the state standard changed last year, but the department used reports from payment processors to identify potential issues. “Through obtaining 1099-K information, IDOR was able to identify many taxpayers underreporting their sales and taxes,” she wrote in an email. “Their filing inaccuracies are being corrected and the forms will continue to work to generate significant audit dollars as well as increase compliance.”

      Amy Jasmon, a Springfield tax preparer, says she has clients who didn’t know the extent of electronic trails until they received 1099-Ks. “Most come up to me and say, ‘I have this weird thing, I don’t know what it is,'” she says. “The main people stuck there are people trying to clean their houses and put things on Amazon or eBay. These internet currencies are now tracked and people now have to pay taxes on them.”

      Taxes have always been due when digital profit is made, but until last year in Illinois it was often an honor system for small timers: given that, under the rules federally, no reporting is required from processors until $20,000 changes hands, it’s up to taxpayers who received less to disclose how much on their tax returns. “Some taxpayers may not report income if they do not believe the IRS has received an information return,” the tax office’s treasury inspector observed in a 2019 report that revealed billions of dollars. dollars at stake. Ninety-three percent of taxpayers report income when they receive funds from sources that report directly to the IRS, according to the report; only 37% report income when no documents are independently sent to the tax collector. Nearly 8% of Americans in 2016 said they were paid digitally for their work, according to the Treasury Inspector, with almost 18% selling goods online in the same year.

      With new federal rules taking effect, the threshold for filing a 1099-K will increase from $1,000 to $600 next year in Illinois, where until last year the threshold was $20,000, like the IRS. The bite may depend on the situation.

      Illinois workers who once stole or drove under the tax collector’s radar also receive 1099-K for services rendered, Jasmon said, but things are simpler for Lyft and Uber drivers because their driving accounts Automatically track mileage and other costs that can be deducted from payments so it’s relatively easy to only pay taxes on profits, as opposed to gross amounts. It can get stickier for someone selling things they’ve owned for years.

      The best way, tax experts advise, is to keep receipts to prove you didn’t make any money from a $100 widget you sold for $50. What about the $20 tennis racket you bought in high school and sold for $10? Without the original receipt, Jasmon says you might be liable for taxes on $10, assuming you sold enough other stuff to trigger a 1099-K. O’Saben says there is wiggle room, but to some degree. A price in a catalog may be enough to convince tax collectors that you didn’t make any money selling an exercise bike and therefore don’t owe taxes, he said. “If you don’t have anything to back it up, it’s going to have to be income,” O’Saben said. “I could put zero (income), but what I can’t do is ignore it.”

      Those who sell things as part of a business rather than a closet cleaning business should keep records documenting all expenses, experts say. Another option, O’Saben says, is to treat the merchandise as a collectible, which carries a maximum levy of 28% on earnings from the sale of items such as sports memorabilia. In addition, there are transactions involving no sale of goods or payment for labor, such as money sent to children in college via Venmo, with no tax due despite the fact that the 1099-Ks state that the money is paid to someone. Keep business transactions as far away from personal payments as possible, advises O’Saben. Payment processors are developing separate business platforms for payments made for non-taxable reasons, he says, but the industry is inclined to act conservatively.

      “Most companies are afraid of being fined for violating reporting requirements,” O’Saben said. “The intent is good: They’re trying to capture the undercurrent of cash transactions. It’s going to create a reporting nightmare or complexity, at least in the short term. … Congress will address it, at some time when there is enough alarm.”

      Bruce Rushton is a freelance writer. Contact him at [email protected]

      Lending Yay is giving small businesses a helping hand and helping them thrive with easy lending solutions

      Lending Yay helps small business owners’ dreams come to life with their one-of-a-kind business loan options

      Access to financing remains one of the biggest challenges for small businesses, among many others, cited by many entrepreneurs. Bureaucracy, stringent requirements, often skewed perceptions of banks, and recent marketing trends have made securing loans for entrepreneurs an Augean task. However, with Lending Yay, the disappointment of being shut down by banks and other lending institutions is now a thing of the past. Lending Yay is a company that provides small business loans through a quick and easy application on their online platform. When the bank says “no”, Yay says “yes”.

      With the support of a network of approved and reputable lenders, Lending Yay helps small businesses survive in an economically challenged economy while giving them the boost they deserve. Lending Yay is well positioned to serve the lending needs of a range of industries and sectors, including food service, restaurants, healthcare, retail, automotive, textiles, manufacturing, construction, technology, trucking companies, buying and flipping real estate, merchant cash advance. to only cite a few.

      Yay’s lending services include long and short term loans, SBA loans, line of credit, real estate financing, equipment financing and working capital. The US-based company also educates clients on their best options through one-on-one consultation with a dedicated finance specialist. Funding can be approved, processed and received within 48-72 hours with no hassle, upfront fees, brokerage fees and certainly no nonsense.

      For more information, please visit lendingyay.com

      About Loan Yay!!

      Lending Yay is a leading business financing solution that offers the best and most affordable options to help businesses grow. The company acts as an intermediary between several lending partners and growing businesses in the United States and Canada, offering lending services at the most affordable rates and terms available.

      Media Contact
      Company Name: Yay ready!!
      Contact: Media Relations
      E-mail: Send an email
      The country: United States
      Website: https://www.lendingyay.com/

      409A INSIGHTS: INVOLUNTARY TERMINATION – The second circuit highlights key aspects of the definition in Soto v. Disney Severance Plan | Williams Mullen

      A recent decision from the Court of Appeals for the Second Circuit protects the discretionary decisions of plan administrators and illustrates the application of the definition of “involuntary separation” under Section 409A of the Internal Revenue Code (Section 409A). Beyond the context of this case, this definition is an important part of two useful exemptions to certain Section 409A restrictions.

      Disability Termination. In 2016 and 2017, Nancy Soto suffered a serious stroke and other health issues. In December 2016, she was furloughed and received short-term and then long-term disability benefits. Soto remained in this status until January 2018, when Disney officially terminated her employment due to her inability to return to work. At that time, Soto was not considered eligible for Disney’s severance pay plan (the “Plan”) because she did not experience a qualifying “layoff.” Soto maintained that she suffered a “layoff”. She argued that (i) the plan term was not ambiguous or, alternatively, (ii) the plan administrator was arbitrary and capricious in its interpretation of an ambiguous term.

      Key definitions. Under the Plan, a “layoff” was defined as an “involuntary termination” of an eligible employee, except for poor performance or misconduct. The Plan also clarified that a “layoff” would not include an involuntary termination of employment that was not a “separation from service” within the meaning of Section 409A.

      Treasury regulations applicable under Section 409A define involuntary separation from service as separation “…due to the independent exercise of the unilateral authority of the [employer] end the [employee’s] services … where the [employee] has been willing and able to continue to provide services. (Emphasis added.) Note that the opinion cited the “willing and able” aspect of the definition in Section 409A. This aspect is material for various purposes under Section 409A, as discussed below. However, this may be less important when drafting, due to other intricacies of Section 409A and the language required for the plan and agreement.

      The tribunal found that under the Plan, the term “layoff” was ambiguous. Thus, the plan administrator’s discretion to interpret the term was relevant.

      Effect of Termination on Disability Under Disney Severance Plan. Although the Plan does not specify that a “layoff” must be a involuntary termination of service under Section 409A, it provided that the layoff must be an involuntary termination and a service separation under Section 409A. The Plan further stated that “…[i]The Plan is intended to conform to the provisions of Section 409A of the Code and the Plan shall be interpreted and enforced by the Plan Administrator in a manner consistent with that intent. Any disposition that would result in the inclusion of an amount payable in the gross income of a[n] Employee under Section 409A(a)(1) of the Code shall have no force or effect. Through the lens of the Plan’s Section 409A language, the Plan Administrator interpreted the Plan as providing benefits only upon involuntary termination of service within the meaning of Section 409A. Disney explained that the plan was designed to comply with the “short-term deferral” exemption under Section 409A. Satisfying this exemption excludes the Plan from most of the Section 409A rules and is a method to avoid penalty tax under Section 409A. Under applicable Treasury regulations, if severance pay was only available if a plan participant suffered an involuntary separation and the possibility of forfeiture was material, the short-term deferral exemption would apply. .

      The court, citing the interpretative language of section 409A of the plan, concluded that “…the plan administrator is required to interpret the terms of the plan in accordance with section 409A and its tax exemptions” . As such, the court held that the plan administrator was not capricious or capricious in determining that Soto (i) was not subject to a qualifying layoff since she was not not “willing and able” to return to work because of his disability and (ii) had not experienced a termination of employment entitling him to benefits from the Plan.

      Case status. The Second Circuit Committee found that the plan administrator did not err in its interpretation of the term “layoff.” In March 2022, Soto requested a rehearing by the entire Second Circuit to review the decision. If the Second Circuit agrees to rehear the case, any subsequent analysis by the court will be instructive with respect to both the drafting of interpretative language of Section 409A and the refinement of definitions in individual plans and agreements providing benefits due to termination of employment.

      Other circumstances where involuntary termination is relevant under Section 409A. To assess whether a particular amount of compensation is “deferred compensation” under Section 409A (and therefore certain payment timing restrictions), the Involuntary Severance Compensation Exemption may be available as an alternative (or in plus) to the short-term deferral exemption noted above. The involuntary separation benefit shall be payable upon an involuntary separation, subject to certain dollar limits and time restrictions on the period of payment. Both of these exemptions can be useful in structuring employment and change of control agreements. Where disability provisions are included in such agreements, careful drafting can preserve the availability of an applicable exemption and ensure compliance with Section 409A to the extent an exemption does not apply.

      Utah Enacts Commercial Financial Disclosure and Recording Act – Finance & Banking

      To print this article, all you need to do is be registered or log in to Mondaq.com.

      Merchant cash advance providers, commercial dispute funders, SME online lending platforms and other non-bank small business lenders, take note: follow the lead of California and new YorkUtah is now the third state to enact disclosure requirements for commercial lending transactions. Unlike otherwise similar California and New York laws, Utah law does not require the disclosure of an annual percentage rate and requires commercial lenders to register as commercial loan providers with the Department Utah financial institutions. Factoring operations are excluded. Several similar laws are pending in various other states.

      The law will apply to “providers” of “commercial loans” made on or after January 1, 2023. A “provider” includes anyone who “conducts more than five commercial finance transactions in the state in a calendar year ” and a “commercial loan”. loan” is expressly defined to include transactions for the purchase of accounts receivable. Notably, the definition of “provider” also includes any person who “under a written agreement with a deposit-taking institution, offers one or more commercial financing products provided by the deposit-taking institution via an online platform that it administers”.

      However, the new law does not apply to transactions over $1 million, depository institutions and their subsidiaries, entities regulated by a federal banking agency, licensed funds service companies, commercial financing secured by real estate, purchase obligations, terminated commercial loans of $50,000 or more to a motor vehicle dealership or car rental company, or commercial loans related to the sale of a product or service that that person, or that person’s affiliate, manufactures, licenses or distributes.

      Commercial lenders will be required to disclose the following:

      • The total amount of funds provided.

      • The total amount of funds disbursed to the borrower, if less than the amount provided.

      • The total amount to be paid to the commercial lender.

      • The total dollar cost of the transaction.

      • The manner, frequency and amount of each payment or, if the amount of each payment may vary, “the manner, frequency and estimated amount of the initial payment”.

      • A statement of whether there are any costs or discounts associated with prepaying the commercial loan, including a reference to the section of the agreement that creates those costs or discounts.

      • If a portion of the borrower’s loan was paid to a broker rather than to the borrower, the amount paid to the broker must be disclosed.

      • A description of the methodology that will be used to calculate any variable payment amount and the circumstances that may cause the payment amount to vary.

      For open-ended commercial loan transactions, these disclosures must be made prior to consummation of the open-ended loan, and again within 15 days of the end of each month in which funds are disbursed under the open-ended loan. indefinite period.

      Commercial loan providers will be required to register through the National Multistate Licensing System and Registry beginning January 1, 2023.

      The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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      Payment processors, shopping carts and website builders

      The e-commerce industry has experienced tremendous growth in recent years, particularly due to the change in purchasing behavior caused by the Covid pandemic. The US Census Bureau said total e-commerce sales for 2021 were estimated at $870.8 billion. This is an increase of 14.2% over the previous year. Tapping into the market is incredibly lucrative and requires far less upfront investment than attempting to break into the retail space. This makes it a very attractive market for entrepreneurs. There are a wide variety of tools available to help entrepreneurs enter the e-commerce industry. The latest hot tools in this space are payment processors, shopping carts, and website builders.

      Payment Processors Payment processing is the process by which an online store accepts electronic payment for its goods or services. A payment processor is the company that handles the transaction. They transfer customers’ money to your company’s bank account. They perform an intermediary function between your online store and your bank account. The payment processor performs three main functions: transferring payment data from the customer’s bank account to the e-commerce store’s bank account, giving merchants the physical equipment needed to perform card transactions, and assisting in the payment process. create a merchant account for your business.

      A payment processor differs from a payment gateway. A payment gateway is the most common type of interface between a company’s website and a payment processor. Payment gateways provide two main functions: send payment data from your website customers to the payment processor and accept payment information directly from the payment processor without involving your website.

      The e-commerce payment process works as follows. An e-commerce transaction begins when a customer enters their payment information at checkout. The payment gateway sends the encrypted customer information to the payment processor. The payment processor alerts the customer’s bank, and then the bank either accepts the payment or rejects it for insufficient funds. If the payment is rejected, the customer and the payment processor will be notified. If the payment is successful, the payment processor will notify the payment gateway. The gateway will then send a notification to the merchant’s website. The funds are then deducted from the customer’s account and credited to the merchant’s account.


      A shopping cart in the e-commerce sense is the software that facilitates the customer’s ability to purchase goods and services. It accepts the payment made by the customer and then communicates this information to the merchant and the payment processor. It may seem trivial but it is the bridge that connects shopping and buying. It is an extremely important factor in the online shopping experience and is essential for any e-commerce business to have.

      A shopping cart in the e-commerce sense has three main functions: storing product information, managing an order, customer and store catalog and rendering store information such as product data to display to the customer. .

      There are two basic types of shopping cart services: hosted shopping carts and licensed shopping carts. A hosted shopping cart is a shopping cart that is hosted by a third party that takes care of server capacity and maintenance. This is beneficial for businesses that are just starting out or don’t have the resources for a licensed shopping cart. The main disadvantage of hosted shopping carts is that the customer will be redirected to another website for payment processing. A licensed shopping cart is a shopping cart that can be customized to meet the needs of the business using it. This allows for greater flexibility and functionality. However, it also requires higher initial outlay in terms of cost and labor. This is rewarded with superior service which also requires more maintenance and technical know-how.

      Website Builders

      Website builders are websites that make it easy to create a website for your business or e-commerce store. These services vary greatly in complexity and scope, but there are many general themes that they all embrace. They allow their customers to build a website without any technical expertise in the matter and also facilitate the hosting of this website. These services usually come with some sort of subscription fee, especially for registering and hosting a unique domain name.

      The main strength of these services is that you are able to create and host a professional e-commerce website without any large outlay for server infrastructure or web design. This can allow you to focus on other aspects of building your e-commerce business, such as marketing and product development. A potential downside of these services is that they don’t allow for the highest degree of customization and flexibility in your website building process. This is of course mitigated by the huge convenience factor and customization options they offer. Website builders also put you in the driver’s seat when it comes to design, allowing you greater freedom of creative expression and vision for your website. This is something you won’t receive in the same way when using a web design agency.

      If you want to use a website builder and aren’t sure which option to try, consider this Shopify review for more information.

      Photo: TRUIC

      Final Thoughts

      The e-commerce industry is growing fantastically and will continue to do so in the future. It is a space for innovation and entrepreneurship and the barriers to entry are significantly lower than the retail space. Payment processors, shopping carts, and website builders are three trends anyone looking to break into this market should be aware of. Each performing a vital function for the success of your e-commerce business.

      Independent journalism costs money. Support Times of Malta for the price of a coffee.

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      In anticipation of credit market correction, Controlled offers convertible debt or equity as an alternative to MCAs

      CONTROLLED is a New York-based private equity and debt advisory firm that invests in or advises oil and gas exploration and production, oil services, construction, real estate, media and technology companies.

      In the second quarter of 2022, in an unstable global economic and political environment, Josh Cohen, President of Controlled, forecasts a substantial increase in lower middle market activity, as many small businesses begin to suffer from the credit crunch that has resulted from economic servitude in the United States. States over the past 2 years.

      “We recognize the difficulty of predicting what will happen tomorrow, especially as we emerge from a global pandemic, amid a change of administration within our nation and conflict among world leaders.” , says Cohen. “The unfortunate reality of the SBA bondage programs that took place in 2020 and 2021 is now surfacing, as many companies have supported or grown with the support of the United States government as a source of capital.”

      “We are already seeing the early stages of an economic correction unfolding. In smaller businesses and lower middle markets, this means businesses that are over-leveraged by daily or weekly MCA (“Merchant Cash Advance”) payments are now looking for alternative capital in the form of the sale of shares or the issuance of convertible debt.

      Cohen sees this as a positive and believes that if a business can overcome the hurdle of expensive financing solutions like MCAs, while building a scalable and efficient operating model, the business will ultimately thrive in the long run, especially if it can attract the right investors.

      “It’s not so much about staying afloat, as many companies have gotten stronger or grown in the last 24 months. As businesses continue to operate and grow, their access to strategically aligned, longer-term financing partners is distracted by a myriad of extremely expensive and often unavoidable financing solutions. With the right advisor, however, they can break into this market quickly and reach the right debt and equity investors,” says Cohen.

      “As one of the leading private equity advisory firms in the market, we pride ourselves on providing our clients with the most extensive networks of institutional and private lenders and investors, providing the most comprehensive capital solutions. fastest and most efficient on the market.” Cohen added, “We’re here to help, and while not every scenario suits us, we’re at least here to point you in the right direction.”

      For more information, visit www.controlcap.com. For media inquiries, please contact Public & Investor Relations, Controlled Development Partners: (412) 559-1559 or [email protected]


      Controlled, established in 2017, is a global private equity advisory firm headquartered in New York, NY. To date, Controlled Development Partners has advised over $550.0 million in executed debt and private equity transactions.

      Media Contact
      Company Name: Controlled development partners
      Contact: Public relations and investors
      E-mail: Send an email
      The country: United States
      Website: controlcap.com

      Recent Stock Valuation Decisions Reign ‘Supreme’ | Farrell Fritz, PC

      Fair value and fair market value valuation standards for contested buyouts and dissenting shareholder valuations cross state lines, which is one of the main reasons I sometimes point to decisions significant court cases in valuation cases outside of New York.

      As in other areas of law relating to the internal affairs of business entities, Delaware courts play an outsized role in setting standards for the assessment of competing valuations in contested valuation proceedings involving private and public companies. In this article, I set Delaware aside in favor of four recent cases that have reached the Supreme Courts of four different states – Nebraska, Iowa, Indiana and North Carolina – involving a number of frequently contentious issues in evaluation, including discounts.

      Nebraska Supreme Court strikes down application of rebates in fair value buyout

      Bohac v Benes Service Co., 310 Neb. 722 [Neb. Sup. Ct. 2022]. The Supreme Court of Nebraska Bohac The opinion concerns a family farming business in which a sibling schism followed the death of the parents, leading to a petition for dissolution, leading to the election of the other siblings to buy the petitioners’ 14.84% stake under of the legal standard of fair value. The trial court valued the actions at approximately $2.9 million after applying rebates for lack of control (DLOC) and merchantability (DLOM). On appeal, the applicants mainly challenged the discounts, the non-granting by the court of first instance of their legal costs and fees, and the conditions for payment of the compensation. The respondents’ cross-appeal challenged the trial court’s application of the asset-based approach to the income-based approach.

      The Supreme Court’s opinion offers a detailed analysis of the legislative history of the Nebraska Model Business Corporation Act (NMBCA) and commentary in support of its interpretation of the undefined term “fair value” in the elective buyout law as excluding both DLOC and DLOM, in sync with the explicit exclusion of such rebates in Nebraska’s Dissenting Shareholder Assessment Act. The Court also takes issue with the trial court’s justification for imposing discounts based on the lack of evidence of oppression by majority shareholders, noting that once the majority has chosen to buy the shares of petitioners, the issue of oppression was dropped.

      On some of the other fundamental valuation issues, the Court concluded:

      • The trial court correctly applied the asset-based approach rather than the income-based approach.
      • The trial court correctly valued the business using the premise of going concern value and not, as argued by the majority expert, as if it were in liquidation.
      • The trial court correctly adopted the claimant’s expert’s 10-year deferred gains tax on the sale of Company C’s fixed assets in relation to the majority’s expert’s 100% discount for the integrated gains.

      The Court also affirmed the trial court’s dismissal of the plaintiffs’ request to recover their legal costs, finding that the NMBCA had not authorized their recovery and, on remand for recalculation of the award without remission, ordering the court of first instance to reconsider and possibly modify the sentence. terms and conditions – an interest-free payment over 5 years – “based on the needs and abilities of both parties”.

      Iowa Supreme Court Upholds Non-Deduction for Tax on Embedded Gains, But Rejects Net Asset Valuation Excluding Liquidation Expenses

      Guge vs. Kassel Enterprises, Inc.., 962 NW2d 764 [Iowa Sup. Ct. 2021]. The contrast between the Nebraska Supreme Court decision Bohac decision, affirming a deduction for capital gains tax, and the decision of the Supreme Court of Iowa Guge The ruling, upholding the non-deduction of capital gains tax, underscores the lack of nationwide consensus in fair value proceedings involving Subchapter C corporations. The lack of consistency exists even among the courts of New York, as I wrote here, here, here and here.

      Gugeto like Bohac, involves an appraisal contest between siblings who have inherited the family farm from their deceased parents. Two sisters with a minority stake filed for judicial dissolution alleging oppressive conduct by their majority shareholder brother who, in turn, chose to buy his sisters’ 47.5% stake at fair value. At trial, the two experts agreed, and the trial judge adopted, a prime net asset valuation of approximately $5.8 million. The court dismissed the brother’s expert deduction of approximately $1.45 million for tax on embedded gains, finding no evidence that the brother planned to sell the farm. He also rejected any deduction for the transaction costs of a hypothetical sale of assets, even though the two experts, while disagreeing on the amount, included a cost deduction in their assessments.

      On appeal, the Supreme Court upheld the trial court’s decision to disregard the tax on incorporated gains, citing the absence of evidence of an “envisaged liquidation of assets associated with [the brother’s] purchase choice [the sisters’] shares instead of dissolution which would create tax consequences affecting the value of the company as a going concern. Otherwise, the court found, “the oppressive shareholder [could] take advantage of the redemption with a 30% discount while to hold onto all social assets and never pay the tax itself [italics in original] which “would create a perverse incentive for the majority shareholder and provide a payment well below ‘fair value’ for the shares of the oppressed shareholder”.

      The Supreme Court, however, disagreed with the trial court’s failure to deduct transaction costs and remanded the case to the lower court to determine and apply the appropriate deduction of transaction costs. fair value allocation transaction. The court said it was “[p]persuaded. . . by the parties’ experts, both of whom included transaction costs in their valuations under a net asset approach”, and that the lower court “refrained from making any conclusion on the deduction we have now determined to apply”.

      Indiana Supreme Court upholds DLOC and DLOM for contractual buyout at “estimated market value”

      Hartman vs. BigInch Fabricators & Construction Holding Co.., 161 NE3d 1218 [Ind. Sup. Ct. 2021]. Unlike the other cases presented in this article, hartmann is not a legal case of fair value measurement. Rather, it is a contested takeover under an agreement requiring the defendant company to purchase the plaintiff’s shares at their “estimated market value” at the time of his termination as an officer and director. The trial court agreed with the company that “estimated market value” means fair market value, thus justifying the application of discounts for lack of control and marketability. The Intermediate Court of Appeal overturned the judgment of the Court of First Instance (read here), holding that the precedent of the Indiana case prohibits DLOC and DLOM in compelled buyouts by the controlling party.

      The company appealed to the Indiana Supreme Court which overturned the intermediate appeals court’s decision, agreeing with the lower court that “the clear and unambiguous language of the shareholders’ agreement requires BigInch to pay Hartman the fair market value of his shares” and that “[t]There is no general rule prohibiting agreements that provide that open market concepts apply to binding transactions in a closed market. The Court also observed that the agreement explicitly sets the “price per share” at its “estimated market value” and “[t]thus, the valuation standard refers to the “market value” of the terminated member’s individual interest in the company – not the value of the company as a whole. »

      The North Carolina Supreme Court holds Dissidents want to negotiate price in Big Tobacco merger

      Reynolds American Inc. v Third Motion Equities Master Fund Ltd., 2021-NCSC-162 [N. Car. Sup. Ct. 2021]. At the top of this article, I said that this roundup intentionally excludes recent Delaware valuation cases. Certainly, but the opinion of the Supreme Court of North Carolina in the Reynolds upholding the Business Court’s valuation of the case in a dissenting shareholder valuation case following British American Tobacco’s acquisition of a $49 billion majority stake in Reynolds American, might as well be a Delaware case, at least based on the prodigious number of Delaware case authorities cited in the advisory. Which is not surprising given that the case not only involves the valuation of a publicly traded company – routine fodder for the Delaware Chancery Court – but Reynolds is also the first-ever appeal by the North Carolina Supreme Court against a judgment of the business court determining the fair value of a dissenting shareholder’s shares under the Dissenting Shareholder Assessment Act of the United States. ‘State.

      The law requires North Carolina courts to determine fair value “using customary and current valuation concepts and techniques generally used for similar activities.”[es] within the framework of the operation to be appraised. The main contention of the dissenting shareholders on appeal was that the trial court ignored the law and simply referred to the price of the deal negotiated by Reynolds and BAT (which, prior to the merger, held a large minority stake in Reynolds ). The dissidents also argued that while consideration of the trade price is permitted, the trade was executed without solid market verification. The Dissenters valuation expert arrived at a valuation of $92.17 per share using a DCF approach which effectively doubled the transaction price by $49 billion.

      The court’s lengthy opinion offers a thorough analysis of the competing valuations at trial, ultimately concluding that the Business Court did not abuse its discretion in rejecting the dissenters’ expert’s DCF valuation primarily for its use of an “unreasonable and unreliable” infinite growth rate resulting in what the Business Court described as “the biggest pricing error ever identified in a valuation case in North Carolina, Delaware or anywhere else, from afar”. The Court ultimately concluded that the Commercial Court did not err in choosing to credit the results of the adjusted unaffected share price analysis of Reynolds’ expert which generated a price range in which the transaction price landed.

      I encourage those interested to read the opinion cover to cover to take in the full flavor of the Court’s evaluative analysis which, among other interesting features, endorses in principle the consideration by the Court of the transaction price “as evidence of fair value where the circumstances of a particular case so warrant”. transaction” even in the absence of market control, and, while not calling into question the commercial court’s rejection of a control premium, refuses to impose a “universal legal presumption according to which any methodology Whether or not the market-based valuation reflects an implicit minority discount.”

      [View source.]

      Cover your budget gaps with merchant cash advances

      Many companies have budget deficits. These can be even worse for new businesses. Businesses that don’t have a lot of customers can offer better terms to attract more business. Just like an entry-level provider, a startup can offer Net 30 terms.

      Offering these terms is a great strategy for developing business relationships, but there is a long time lag between the provision of goods or services and payment. And in the meantime, your business bills need to be paid.

      What are merchant cash advances?

      Technically, an MCA is not a loan. Rather, it is a cash advance, based on a company’s credit card sales. A business can apply for an MCA and get funds deposited into their account quickly. The company can offer net terms of 30, without having to wait a month for payment.

      Businesses Merchant Cash Advances Are Good For

      A merchant financing program is ideal for businesses that accept credit cards that need quick and easy commercial financing. An MCA program is designed to help them obtain financing, based strictly on cash flow, verifiable by merchant bank statements. As a result, lenders will generally not ask for any tedious document requests.

      This is different from what most conventional lenders require. Their document requests may include financial statements, business plans and resumes. With MCA, there is no need for a guarantee. Credit card receipts and company bank statements are the talk of the town.

      Merchant cash advance providers assess risk and credit criteria differently than bankers do. An MCA provider reviews a company’s daily credit card receipts to see if a company can repay funds in a timely manner. Essentially, a business “sells” a portion of future credit card sales, in exchange for immediate payment.

      With a hold, an agreed percentage of daily credit card receipts is withheld, to reimburse MCA each day. This continues until the advance is paid in full.

      The contractor and the MCA supplier agree on the advance and reimbursement amounts, the holdback and the duration of the advance. Once the agreement is concluded, the advance is transferred to the company’s bank account. This is in exchange for a future portion of credit card receipts.

      A business that uses a merchant cash advance typically repays 20-40% or more of the amount borrowed (the factor rate). The amount of holdback a small business pays each day (a percentage of sales revenue) is different from the amount of repayment of the entire advance.

      The holdback percentage is based on the amount of funds a business receives, the time it will take to repay the money, and the amount of monthly credit card sales.

      Access to a business owner‘s merchant account eliminates a collateral requirement. Since repayment is based on a percentage of the daily merchant account balance, the more credit card transactions a business makes, the faster it can repay the advance.

      Rates on a merchant cash advance can be much higher than other financing choices. The rates can end up being prohibitive. Therefore, it is crucial to understand all the terms offered.

      Russia suspends cooperation with ISS until sanctions are lifted

      The Russian Roscosmos has announced that it is suspending its cooperation relating to the International Space Station (ISS). This was done in response to sanctions imposed on Russia by the international community that were triggered by the Kremlin-led war against Ukraine.

      Dmitry Rogozin, head of the space agency, tweeted that the purpose of the sanctions is “to kill the Russian economy and to plunge our people into despair and hunger, to bring our country to its knees”. He added: “They won’t get there, but the intentions are clear.”

      Russian orbital segment of the ISS [Photo: NASA/Wikimedia]

      Rogozin went on to say that the restoration of normal relations between partners in the ISS and other projects is possible only with the lifting of “illegal” sanctions. In general, the ISS itself involves the participation of five different space agencies, namely NASA (USA), Roscosmos (Russia), JAXA (Japan), ESA (Europe) and CSA (Canada ) with the Russian Orbital Segment (ROS) provide guidance and navigation for the entire station.


      Last month, Roscosmos canceled a planned satellite launch for OneWeb in retaliation for UK sanctions against Russia. The country is also increasingly isolated from digital and financial platforms as major payment processors leave the country and Google suspends app store payments.

      (Source: Reuters)

      There may be reason for hope in the disappointing results of WAG payment solutions (LON: WPS)

      Low income doesn’t seem to be a concern Payment Solutions WAG plc (LON:WPS) shareholders over the past week. We dug in and we think the earnings are stronger than they look.

      Check out our latest analysis of WAG payment solutions

      LSE: WPS Revenue and Earnings History April 3, 2022

      Focus on WAG payment solutions revenues

      Many investors have not heard of the cash flow equalization ratio, but it’s actually a useful measure of how well a company’s earnings are supported by free cash flow (FCF) over a given period. Put simply, this ratio subtracts FCF from net income and divides that number by the company’s average operating assets over that period. The ratio shows us how much a company’s profit exceeds its FCF.

      Therefore, it is actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it’s fine to have a positive accrual ratio, indicating some level of non-monetary benefits, a high accrual ratio is arguably a bad thing, as it indicates that the earnings on paper do not match the cash flow. Indeed, some academic studies have suggested that high accrual ratios tend to lead to lower earnings or less earnings growth.

      WAG Payments Solutions has an accrual ratio of 0.29 for the year to December 2021. We can therefore infer that its free cash flow was well below covering its statutory profit, suggesting that we might want to think twice before putting much weight on the latter. . In the past twelve months, he had actually negative free cash flow, with a disbursement of €41 million despite its profit of €9.15 million mentioned above. We saw that FCF was 63 million a year ago, so WAG payment solutions have at least been able to generate positive FCF in the past. However, that’s not all there is to consider. It can be seen that unusual elements have impacted its statutory profit, and therefore the growth ratio. A positive for WAG Payments Solutions shareholders is that its accrual ratio was significantly better last year, giving reason to believe it may return to stronger cash conversion in the future. Shareholders should look for an improvement in cash flow over current year earnings, if that is indeed the case.

      This might make you wonder what analysts predict in terms of future profitability. Luckily, you can click here to see an interactive chart outlining future profitability, based on their estimates.

      The impact of unusual items on earnings

      Earnings from WAG Payment Solutions suffered from unusual items, which reduced earnings by EUR 13 million in the last twelve months. If it was a non-cash charge, it would have been easier to have a high cash conversion, so it’s surprising that the accrual ratio tells a different story. While deductions due to unusual items are disappointing at first, there is a silver lining. When we analyzed the vast majority of listed companies around the world, we found that material unusual items are often not repeated. And that’s no surprise given that these line items are considered unusual. If WAG Payments Solutions does not see these unusual expenses repeat, all else being equal, we expect its earnings to grow in the coming year.

      Earnings performance of our Take On WAG payment solutions

      In conclusion, WAG Payment Solutions’ accrual rate suggests that its statutory revenue is not supported by cash flow, although unusual items weighed on earnings. Given the contrasting considerations, we have no definite opinion as to whether the earnings of WAG Payment Solutions accurately reflect its underlying profit potential. If you want to learn more about WAG payment solutions as a business, it is important to be aware of the risks it faces. To do this, you need to find out about the 2 warning signs we have spotted payment solutions with WAG (including 1 which is a bit unpleasant).

      In this article, we’ve looked at a number of factors that can affect the usefulness of profit numbers as a guide for a business. But there are many other ways to inform your opinion about a company. Some people consider a high return on equity to be a good sign of a quality company. So you might want to see this free collection of companies offering a high return on equity, or this list of stocks that insiders buy.

      This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

      Dan The Tire Man launches Marketplace to compete with eBay

      Can a new market for automotive tires, wheels and accessories really challenge eBay?

      DanTheTireMan.com has announced that it has expanded its online tire and wheel store into a marketplace trying to do just that.

      “People wondering what to do with that old set of tires and wheels gathering dust in the garage can now turn it into cash online without paying an upfront signup fee,” the company said in its release. hurry.

      Dan The Tire Man’s business model includes offering financing options for people with credit issues through two partnerships the company has with Snap Finance and Progressive Leasing.

      These finance programs allow the company to offer flexible payment programs to customers from $0 to $49 out of pocket with no credit check at the time of purchase.

      “A lot of people live paycheck to paycheck and they just don’t have the money to buy new tires when they need them. This program is great for people who have a bad credit or who are short on money and need the tires now rather than waiting until they can afford them.And since there is no rigorous credit check, their credit score will not will not be affected.”

      Katie Marsh, co-owner of Dan The Tire Man

      Buyers can also make purchases with a credit card, just like in any other marketplace. But the company’s website clearly emphasizes the subprime market.

      Dan The Tire Man targets eBay sellers

      Dan The Tire Man does not hesitate to know who he wants to register on his market. They are looking for disgruntled eBay sellers and looking for an alternative platform to sell their products.

      “eBay charges sellers listing fees whether the items sell or not. You can imagine how expensive it is for sellers who do bulk downloads. Dan The Tire Man only charges the customer a nominal commission only when the item sells,” said Dan Marsh, co-owner of Dan The Tire Man.

      “This marketplace allows large sellers and individuals to list items, new or used, and match their offerings to rent-to-own programs with no credit required. No other market offers this.

      “We have tens of thousands of visitors to our website every month who are specifically looking to buy automotive tires, wheels and accessories, but most don’t have the money to do so, so they use our funding,” Marsh added.

      Promising idea

      Dan The Tire Man’s main customer seems to be one with credit issues and therefore cannot easily participate in the Digital Economy.

      This type of buyer (subprime buyer) pays a much higher final price than many people after adding the financial costs. In many cases, these buyers repay the loan through automatic payments deducted from their checking account on scheduled paydays.

      These are not traditional loans, they are technically known as lease-to-own or lease-to-own financing programs. Some people may be familiar with this concept through national furniture retailer Aaron’s, which offers branded items through leasing and rental programs.

      But this business concept is not new to tires and wheels. National retailer Wheel rental (RAW) pioneered this idea in 1996 and now has over 136 locations in 15 states.

      Dan The Tire Man takes the tire and wheel rental business concept one step further by bringing it online via a marketplace. Targeting what appears to be an underserved community of online shoppers is a niche and smart idea.

      However, what is missing from Dan The Tire Man’s press announcement is funding information that could help bring it to market and expand the market faster.

      It appears the company has simply expanded its e-commerce website to allow third-party sellers to list products and will continue to rely on its “tens of thousands of visitors” to grow the market.

      Nothing wrong with prime. But building something today that can eventually compete with bigger marketplaces like eBay without funding is a daunting task.

      If Tire Rack were to announce that it would embark on creating an online marketplace for wheels, tires and parts, it might worry the folks in San Jose (eBay headquarters).

      But the market for Dan The Tire Man is unlikely to cause eBay executives to lose sleep today and have bigger competitors to worry about just yet.

      eBay said parts and accessories (P&A) would be a priority category for them this year. In fact, it looks more like a refocus, as the market at one point was effectively THE dominant online player in this category.

      The company always ranks among the top online destinations for P&A. However, Amazon and other e-commerce companies have eaten away at eBay’s P&A business over the past decade. This is where eBay places its focus to avoid losing more P&A than them.

      So where does Dan The Tire Man fit into all of this? It really is a very small company trying to carve out a place for buyers who need help financing their purchases through non-traditional means.

      While Buy Now, Pay Later companies like Afterpay and Klarna also serve this group of buyers somewhat, it’s usually on much shorter terms.

      Dan The Tire Man’s seller terms and conditions page is very simplistic and empty of many areas normally covered by marketplaces, such as fees and how they will handle buyer/seller disputes.

      Regarding fees, there is vague language saying “from administrative fees to the final list price for the buyer”. What is the price ?

      While they can technically be “added” to the final price displayed to a buyer, it would be beneficial for sellers to know what these charges are so they can price their products accordingly.

      On Facebook announcing the market early, the company reminds sellers to include the shipping price. This is also not mentioned in the terms of the site or in the press announcement.

      Dan The Tire Man mentions that payments will take place within 24 hours via PayPal or ACH bank transfer, Monday through Friday. So, fast payment is a big plus here and something that can attract eBay sellers who still feel frustrated with eBay Managed Payments.

      However, there are a few user experience (UX) features typical of an online marketplace that seem to be missing.

      For example, there is no way to find items by seller usernames, no indication of who is selling an item, the business itself or a marketplace seller, no contact a buyer button for questions, no shipping or delivery estimates on listings, and no “Year, Make, Model” (YYM) filtering to help buyers find the right parts for their vehicle.

      Maybe some of the missing UX elements are hidden by the software that powers the marketplace section because there aren’t any vendor listings yet?

      My first thoughts

      I like the category, the niche of targeting buyers with credit issues that aren’t typically served by other online marketplaces, and the promise of fast payouts.

      Dan The Tire Man seems to be initiating this launch. It’s very different from what we see in our inbox today. Too many companies sent us press releases about how much money they raised, and then we never see them again or hear from them again.

      But ultimately, funding will be needed to take the idea to the next level. I don’t see how existing traffic alone can grow the market to momentum (to steal a term from Etsy CTO Rachel Glaser discussing what it takes to grow a market).

      On the one hand, I like the simplicity of Dan The Tire Man’s sales policies. Have you read eBay’s terms lately…?

      But again, a little more detail should be included to give potential sellers more information on how disputes are handled such as non-delivery claims, missing items, lost or damaged items, items refused/returned, etc. inevitably face disputes between buyers and sellers.

      Many years ago I sold parts in the P&A category, but mostly performance parts. We sold springs and shocks that might fit a market that was primarily wheel and tire oriented, such as Dan The Tire Man.

      If I was in this industry today, I would give it a serious try with a few popular items to see if the market could deliver results.

      But I would also consider that I am in a retail market.

      Like Amazon, if you have something that sells well, you reveal your success to the company which is still primarily an online retailer, not a pure marketplace.

      Interested sellers can visit Dan The Tire Man website to learn more about selling in the marketplace.

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      Immersive experiences become big business

      Immersive experiences are taking the entertainment and leisure industry by storm, with their steady rise in popularity continuing post-pandemic – as consumers have a growing desire to connect.

      From escape rooms to theater experiences in London, where you can be part of The Great Gatsby, to sensory offerings in Tokyo such as teamLab Borderless, the trend for immersive entertainment is becoming contagious. It is also a new approach to creativity, places and spaces. It’s an approach that redefines the way we interact: The rise of the immersive entertainment industry.

      However, the entertainment business is not all glitz and glamour. Hard work and financial constraints define the industry, especially following the impact of lockdowns imposed in the UK in recent years. How an organization approaches finance can ultimately decide the success of the SME, and much like an immersive experience is an alternative to traditional entertainment, business owners should consider alternative finance.

      There has been a stunning 375% increase in funding from London-based lender 365 Business Finance to the entertainment and leisure sector in 2021, compared to 2020.

      Compared to pre-pandemic levels, the average amount advanced for this sector has increased by 51%*, with SMEs now able to access finance from £10,000 to £300,000 from 365 Business Finance, which specializes in revenue-based financing.

      Mandy Warren, Head of Digital Marketing at 365 Business Finance, analyzes the company’s lending trends, commenting: “The immersive experiences have captured the imagination of many around the world, with the UK now seeming to be experiencing its biggest number of such entertainment offerings, as a growing number of people – myself included – are looking for leisure activities that fully engage us. At 365 Business Finance, it is therefore no coincidence that we have seen a sharp increase in the number of SMEs in the entertainment and leisure sector coming to us over the last year for financing to support the growing demand. .

      Find out more about revenue-based finance, in the form of a merchant cash advance, by contacting the 365 Business Finance team on 0207 1000 365 for more information on how to apply for fast and flexible finance. .

      GoTab, the Mastercard team for easier payments

      In today’s connected economy, restaurant commerce platform GoTab is working with Mastercard on a tool that eliminates the need to manually enter card details at hospitality venues. Additionally, BlackBerry is seeing a boom in new business through its in-vehicle automotive software operations, while non-fungible token (NFT) marketplace OpenSea is working with MoonPay to enable direct credit card payments to customers who wish to purchase NFTs. .

      GoTab, Mastercard partner to improve digital payment

      Dining commerce platform GoTab has partnered with Mastercard to eliminate the need to manually enter card details at US hospitality locations. Called Click to Pay, the new feature is designed to provide consumers with a more convenient and secure payment experience across all devices and channels. Created using secure remote commerce industry standards, the tool simplifies checkout and makes paying online more secure without having to remember passwords or enter card details.

      Automakers are enabling new use cases with embedded software

      Reporting its earnings this week, BlackBerry said a large and growing portion of its QNX business — which includes in-car software for automotive applications — comes from uses such as advanced driver assistance systems ( ADAS), digital cockpits and autonomous driving. BlackBerry won 17 new automotive design contracts in the last quarter, including ADAS, digital cockpit and instrument cluster applications created for automakers and Tier 1 suppliers. include professional services used by customers to build BlackBerry’s QNX software into vehicles and other Internet of Things (IoT) endpoints.

      OpenSea teams up with MoonPay for NFT credit card payments

      NFT marketplace OpenSea is working with MoonPay to enable direct credit card payments for people who want to buy NFTs, a move that paves the way for investors who don’t own cryptocurrency. The partnership means people wanting to buy, sell, trade and collect NFTs can pay directly with Visa, MasterCard, American Express, Apple Pay, Google Pay and other methods, without having to convert specific cryptocurrencies first. Although debit cards are accepted as payment, users will still need to log into a digital wallet.



      On: Patient portals have become a must-have for providers, so much so that 61% of patients interested in using the tools say they would choose a provider that offers one. For Accessing Healthcare: Easing Digital Frictions In The Patient Journey, a collaboration between PYMNTS and Experian Health, PYMNTS surveyed 2,333 consumers to learn how healthcare providers can ease digital pain points to improve care and satisfaction. patients.

      Utah Passes Commercial Funding Disclosure Law | Hudson Cook, LLP

      On March 24, Utah Governor Spencer Cox signed SB 183, the Commercial Finance Registration and Disclosure Act (“CFRDA”). This makes Utah the third state to pass a commercial finance disclosure law, after California and New York. However, Utah’s disclosure law does not include an “APR” disclosure requirement. The APR’s disclosure requirements have proven difficult to implement and have delayed the effective dates of disclosure laws in California and New York.

      Effective January 1, 2023, the CFRDA requires a commercial finance provider in Utah to register with the Nationwide Multistate Licensing System and Registry (“NMLS”) and with the Department of Utah Financial Institutions (“DFI”). Additionally, in a trade finance transaction that occurs on or after January 1, 2023, the provider must disclose certain information to a company that will receive financing before a trade finance transaction is completed. This information includes:

      • The total amount of financing given to the company.
      • The total amount of funding provided to the business, if different from the amount provided.
      • The total amount that the company must pay to the supplier.
      • The total dollar cost of the trade finance transaction, which is the difference between the amount the company must pay the supplier and the total amount of financing provided to the company.
      • The manner, frequency and amount of each payment, or whether payment amounts may vary, the manner and frequency of payments and an estimate of the amount of the first payment.
      • A statement as to whether prepayment may increase or decrease the cost of the trade finance transaction, including references to all relevant provisions of the trade finance transaction agreement.
      • Any part of the financing that the supplier pays to a broker.

      In addition, if payment amounts may vary, the funding agreement should describe the method of calculating a variable payment amount and the circumstances that may cause a payment to vary. The IFD may prescribe the form of the required disclosures.

      The CFRDA applies to open and closed loans and accounts receivable purchase transactions (i.e. merchant cash advance transactions) for business purposes. It does not apply to a transaction of more than $1,000,000 or to a transaction of at least $50,000 when the beneficiary of the financing is a motor vehicle dealer. Deposit-taking institutions, approved funds transfer companies and occasional service providers are exempt. Each violation of the CFRDA disclosure requirements is subject to a civil penalty of $500 ($1,000 for a violation after notification of a prior violation), up to $20,000 for all violations resulting from use of the same documents or transaction elements (up to $50,000 after notice of a prior violation). Each violation of the CFRDA registration requirement is subject to an administrative penalty of $500 per Utah office of the violator, or $500 if the violator does not offer commercial financing from a Utah office.

      California passed its Business Financial Disclosure Act in 2018. However, this law is still not in effect and awaits final regulation. New York passed its Commercial Financial Disclosure Act in 2020. However, the New York Department of Financial Services has yet to pass regulations, citing the complexity of disclosure requirements. Since Utah’s CFRDA does not include APR disclosure, it is unlikely that Utah’s law will face similar delays in its implementation.

      Apple will allow Dutch dating apps to use other payment options in existing apps


      To help end the wrangling with Dutch regulators that has escalated over the past few months, Apple today released a new version of its App Store rules that allow local dating apps to accept payments through processors. third. So far, its proposals to comply with a December decision mandating the change have not satisfied the Dutch Authority for Consumers and Markets (ACM) and landed Apple 50 million euros in fines.

      Apple previously announced that it would allow dating apps to use alternative payment systems, but it imposed various conditions on how they could do so. Developers would have to submit a separate app binary for the Dutch App Store and would have to choose between using its in-app payment system or a third-party version, rather than being able to offer both in the same app. And most notably, he said he intended to earn a 27% commission on payments made using alternative payment systems.

      Now Apple is backing away from its insistence on a separate binary for apps that see outside payment systems. According to Apple, “This change means that developers can include either right in their existing dating app, but must still limit its use to the app in the Netherlands storefront and on devices running iOS. or iPadOS.” He also presented more details on how to evaluate non-Apple payment system providers and examples of pages that applications should present to customers to inform them that they are about to interact with a payment service. non-Apple payment.

      Image: Apple

      The company has always maintained its opposition to the ACM order, which Apple says will lead to threats to user privacy and data security. As Apple’s message to developers further states, “We disagree with ACM’s original order and are appealing it.” In the meantime, Apple will still insist on collecting this 27% commission on transactions for applications linked or using a third-party payment system.

      Per the ACM order, dating apps that have the right to connect or use a third-party integrated payment provider will pay Apple a commission on transactions. Apple will take a 27% commission on the price paid by the user, excluding value added taxes. This is a discounted rate that excludes value related to payment processing and related activities. Developers will be responsible for collecting and remitting all applicable taxes, such as Netherlands Value Added Tax (VAT), for sales processed through a third-party payment provider.

      Developers using these rights will be required to provide a report to Apple recording each sale of digital goods and content that has been facilitated through the App Store. This report must be provided monthly within 15 calendar days of the end of Apple’s fiscal month. To learn more about the details that will need to be included in the report, see a sample report. Qualified Developers will receive an invoice based on the reports and must pay Apple the invoiced amount within 45 days of the end of Apple’s fiscal month. In the future, if Apple develops technical solutions to facilitate reporting, developers will be required to adopt such technologies.

      The ACM said on Monday its next step is to present the policy to “market participants for consultation”. If they agree to the terms, Apple can avoid escalating fines.

      The dispute with the Dutch competition regulator is limited in scope and concerns only one type of software on the App Store. But it’s part of a wave of antitrust scrutiny Apple is facing around the world. The EU’s Digital Markets Act could require support for external payment processors in all apps after it comes into force this fall, while South Korea recently passed a similar law. Apple’s in-app payment system was the subject of a recent high-profile court battle with Epic Games, which ultimately resulted in a US judge ordering Apple to allow developers to connect to other payment options. The order was then stayed pending appeal.

      Updated March 30, 6:15 p.m. ET: Added additional context.

      Time is money: Getting a business loan doesn’t have to take months

      BRENTWOOD, Calif./ACCESSWIRE/March 29, 2022/ Getting a business loan can be a long and complex process. SBA loans, in particular, have been known to take a few months, which can be a big deal for a business owner who needs the money ASAP.

      For borrowers, the most frustrating part of the process is a mix of anxiety about qualifying for a loan and actually disbursing the capital requested.

      In the opinion of Anthony Segovia, CEO of Brentwood lending company LendOne, the biggest challenges facing business owners are related to time rather than money, which makes the process of getting of a business loan all the more frustrating.

      “The future of finance is changing every day – you have to be able to adapt,” says Segovia. For LendOne, this means anticipating borrowers’ needs and streamlining the borrowing process, allowing borrowers to access money much sooner through an automated process.

      The typical SBA loan process involves a lot of paperwork, with the borrower submitting a large amount of documents that often take lenders weeks or months to even review to determine if they are eligible to receive the loan or not.

      LendOne’s process is simple: potential borrowers submit the necessary documents, and the LendOne system automatically scans them, assigning a score from 0 to 100. The higher the score, the more likely they are to receive the requested loan. This automated service completes the process in seconds rather than months, and it means borrowers can receive funding in as little as 24 hours after application.

      This is all part of LendOne’s business plan; the company strives to stay ahead of the competition to keep business owners happy and able to focus on business operations rather than tedious paperwork and worrying about where to go they will be able to access the capital they need to get things done.

      “You have to adapt to the markets and stay on top of what your competitors are doing or not doing,” explains Anthony Segovia. Just as any business must stand out from the crowd to be successful, LendOne must stand out in a sea of ​​other lenders and consultants.

      According to Segovia, the main advantage of LendOne is the speed and efficiency with which they handle every customer interaction, in addition to excellent customer service. Although the loan eligibility process is automated, customer service inquiries are not, which means that every customer who has questions about the loan process can speak to an agent who knows the process, which gives him peace of mind about the terms of the loan and anything else he may have questions about.

      LendOne doesn’t just offer SBA loans – they’re approved by a host of lenders and handle cash advance loans, lines of credit, invoice financing, start-up loans and more.

      For business owners who are hesitant to take the plunge into taking out a loan, Anthony Segovia would like you to know that working with an experienced loan consultant can help you secure a loan that works with you and your business – with interest rates and fees that make the most sense for your specific situation.

      LendOne advises that before beginning the loan underwriting process, borrowers have a good idea of ​​their current personal credit rating and their business credit status. You’ll have a much harder time finding a willing lender if you have a bad personal credit score or if your business has a lot of unpaid debts or unpaid bills, but don’t panic.

      Working with a consultant can mean the difference between getting a loan and having to go without, since loan consultants have established relationships with lenders that can allow them to offer some leniency. They will also most likely be able to connect you with a loan that focuses on factors other than your credit score.

      Whatever your business needs, credit score and personal circumstances, there are lenders who will be willing to work with you. It’s just a matter of finding the right consultant – services like LendOne can connect you with the right lender in seconds, eliminating the months of guesswork typical of most business loans.

      For more information, to visit lendone.netfollow the rest Facebook and instagramor contact Anthony Segovia at [email protected].

      THE SOURCE: Lend One

      See the source version on accesswire.com:

      Indigenous and Women-Owned Small Businesses Thrive with Support from EDA and MBDA

      At the U.S. Department of Commerce, Women’s History Month is an opportunity to highlight the strength, tenacity, and determination of women in American society. It is also a time to honor women entrepreneurs and their contributions to the American economy and to encourage the next generation of women leaders to participate fully in the economic opportunities available to build a more equitable, inclusive and diverse economy. that works for all Americans.

      According to Census BureauWomen-owned businesses made up just 19.9% ​​of all businesses that employed people in the United States in 2018, and only 6.5% of those businesses were in the manufacturing sector.

      The COVID-19 pandemic has caused massive disruption to the US economy and many small business employers have been hit hard in all parts of the country.

      Through programs available through Commerce’s Economic Development Administration (EDA) and the Minority Business Development Agency (MBDA) businesses have been able to access the working capital and surge financing they need to keep operating and keep their employees on board.

      The United States Department of Commerce Minority Business Development Agency (MBDA) is the only federal agency exclusively dedicated to the growth and global competitiveness of minority-owned businesses. MBDA’s programs, services and initiatives aim to help minority-owned businesses grow and prepare to meet the industry needs of tomorrow.

      MBDA Native American, Alaska Native, Hawaiian Native (AIANNH) supports the growth of tribal and indigenous businesses. The project is proud to support and work in partnership with Tamarah Begay, founder and principal responsible for Indigenous Design Studio + Architecture (IDS+A).

      Tamarah Begay founded IDS+A in 2012 as the first Navajo woman-owned architecture firm in Albuquerque, New Mexico. She was inspired to focus on serving Native American and Indigenous communities to provide culturally unique, sustainable and innovative designs. His designs are attractive and embrace the natural environment while preserving history and culture. IDS+A uses a collaborative process to create designs with clients. The process brings a unique assimilation of ideas and creativity. The individual identity of each community determines the plan of the project, its physical form and its contextual response to the environment.

      Four Winds Diversified Project (FWD) MBDA Business Center located in New Mexico worked with Ms. Begay to obtain Small Business Administration 8(a) certification and Women Owned Program certification. Ms. Begay and the FWD MBDA Business Center continue to work together to seek business opportunities. Federal, state, local and tribal partnerships through referrals.

      IDS+A has expanded its footprint to encompass successful projects throughout Albuquerque and the Southwest to include state and federally funded projects. Ms. Begay is a member of the Navajo Nation and has over 15 years of experience working with Native American tribes on public safety, justice, education, housing projects and gaming. Recent work with the Navajo Nation has focused on feasibility studies and general planning. She brings her extensive expertise in cultural sensitivity to strengthen the design of projects with Native American and Indigenous communities.

      “This month, we pause to remember and celebrate the courage, ingenuity and perseverance of the women who are helping to make our world and our country a better place,” said MBDA Acting Country Director Miguel Estién. . “The Minority Business Development Agency’s mission, programs and services demonstrate our commitment to supporting the needs and dreams of women entrepreneurs of color today and for generations to come. »

      Trade US Economic Development Administration (EDA) is the only federal government agency focused exclusively on economic development, the U.S. Department of Commerce’s Economic Development Administration (EDA) plays a critical role in facilitating regional economic development efforts in communities across the country.

      The EDA provides Economic Adjustment Assistance (EAA) grants to establish Revolving Loan Fund (RLF) which provide loans to businesses that cannot otherwise obtain traditional bank financing. These loans provide access to capital in the form of start-up financing to enable small businesses to grow and create new job opportunities with competitive wages and benefits.

      Karen Primak, CEO of IPAK, Inc. a full-service packaging and fulfillment company providing inventory management, warehousing and supply chain services to Fortune 1000 companies and state and federal governments. IPAK, Inc. operates two facilities in Camden, New Jersey that ship products worldwide.

      Ever since she had a small lemonade stand when she was little, Ms. Primak has always had an entrepreneurial spirit and a dream of starting her own business. The launch of IPAK allowed him to build a company that shares the same spirit and to give its employees the opportunity to develop their potential. Of its 100 employees, 68% are women, 73% identify as people of color and 55% reside in economically disadvantaged Camden.

      “As a HUBZone certified company, we are committed to hiring in underserved communities. Leading an organization that understands you need to meet people where they are and encourage learning and achievement has been incredibly rewarding and wouldn’t have been possible if I hadn’t started IPAK,” said Ms. Primak.

      Throughout the pandemic, Ms. Primak has managed to keep all her staff on board, institute new protocols to keep them safe and keep her doors open for business.

      However, due to the pandemic, the company saw its income decrease and so it decided to contact the Cooperative Business Aid Society (CBAC), an administrator of the Revolving Loan Fund (RLF) funded by the EDA to apply for a loan.

      “I was introduced to CBAC by one of their other clients and knew they were legit because they were certified CDFI and a member of an organization that I respect, the South Jersey Chamber of Commerce. We had an amazing experience working with them. They went through the loan process quickly, even though they were very busy, and it was in the middle of the pandemic,” she recalls.

      EDA’s RFL program helps businesses by capitalizing on local investment programs that provide complementary financing to small businesses. In September 2020 EDA received a $2.7 million grant from the CARES Act to the CBDC to capitalize and administer an RLF that will provide loans to businesses affected by the coronavirus in the town of Camden; Atlantic, Cape May, New Jersey.

      “Their investment came at a critical time for IPAK, given declining revenues due to the pandemic and our priority on retaining our workforce. The funds were used for working capital,” Ms. Primak said.

      Thanks to the CBDC loan, IPAK, Inc. has continued to persevere through the pandemic, keep its business running, and not let go of a single employee.

      “I am honored to be part of an organization that is playing a vital role in helping Americans recover from the economic impacts of the coronavirus pandemic,” said U.S. Commerce Undersecretary for Economic Development Alejandra Castillo. “Women’s History Month is an opportunity to shine a light on women’s contributions to the American economy and to support women entrepreneurs who are on a mission to uplift underserved communities, so that their dreams also come true.”

      FTC enters into consent agreement with payment processor to open merchant accounts for fictitious companies


      On March 15, the Federal Trade Commission (FTC or Commission) released a consent agreement with Electronic Payment Systems and its owners John Dorsey and Thomas McCann (collectively, EPS) for allegedly opening credit card processing merchant accounts for shell companies in the name of Money Now. Funding (MNF).

      The lawsuit filed against EPS alleges that it opened 43 different merchant accounts for fictitious companies in MNF’s name, which helped that company launder millions of dollars in credit card payments from consumers. Additionally, the complaint alleges that EPS knew these merchant accounts were fake and aided MNF in its illicit activities.

      In 2015, MNF settled allegations with the FTC that it telesold worthless business opportunities to consumers and falsely promised consumers would earn thousands of dollars in revenue. Thus, according to the FTC complaint, MNF engaged in credit card laundering by creating shell companies which, through a sales agent, submitted merchant account applications to EPS, which then opened merchant accounts in the name of these shell companies. The alleged victims’ credit card charges were processed through these accounts, rather than through a merchant account in MNF’s name.

      “Companies involved in payment processing cannot ignore the red flags that fraudsters are using the system to steal people’s money,” said Samuel Levine, director of the FTC’s Consumer Protection Bureau. “It is urgent that our authority to get money to consumers is restored, but in the meantime we will do everything we can to stop the scammers and those who help them.”

      The consent agreement will be subject to public comment, after which the Commission will determine whether to make the proposed consent order final. The FTC is unable to seek monetary relief due to the Supreme Court’s decision in AMG Capital Management v FTC, discussed in our blog post here. However, under the consent agreement, EPS would be (1) prohibited from laundering credit cards and any other actions to evade fraud and risk monitoring programs, (2) prohibited from providing services payment processor to any merchant who is, or is likely to be, engaging in misleading or deceptive conduct, as well as to any merchant that credit card industry monitoring programs have flagged as exhibiting a high risk for certain reasons, and (3) required to carry out a detailed screening of potential merchants who engage in outbound telemarketing or who are engaged in certain activities that could harm consumers.

      Troutman Pepper Take: Although most payment processors do not engage in acts to aid in unlawful behavior, this case is significant because the FTC was unable to obtain monetary relief as it did in the passed due to the Supreme Court’s AMG Capital Management decision. The FTC lobbied Congress to codify a statutory structure that would authorize such damages, but Congress failed to do so. We expect the FTC to continue to lobby Congress on this issue. We will continue to inform you of these efforts.

      Eagle Point Income Stock: A Unique Value in Our Current Environment (NYSE: EIC)

      RichVintage/E+ via Getty Images

      (This article was first shared with our Inside the Income Factory members and trial subscribers several weeks ago.)

      I want to share this idea with our readers quickly because, while many funds are in price down right now and their distributions are higher than normal, I think Eagle Point Income (NYSE:EIC) may represent an unusual value.

      As readers of my last EIC article will know, the fund is Eagle Point Credit’s (ECC) safer and higher balance sheet sibling. ECC buys equity from Secured Loan Obligations (or “CLOs”), the “virtual banks” that buy senior secured floating rate loans issued by large corporations and syndicated by banks like JPMorgan Chase, Bank of America, Citibank, Credit Suisse, etc. (For an introduction to CLOs, see my article “CLOs for Dummies”.)

      Just like real banks, CLOs leverage their equity by about 9 or 10 to 1. In the case of banks, the top tranche is made up of customer deposits (checking and savings accounts, CDs, etc.). ). Below, many banks and/or their corporate holding companies issue more “junior” debt, which is lower than deposits in payment rank, but higher than equity. CLOs also have junior debt, which is usually rated triple-B and double-B.

      EIC, the subject of this article, primarily participates in double-B rated debt, which is the sweet spot in the CLO liability structure. Below is “D” which applies to debt that has not paid interest and/or principal.

      For double-B rated CLO debt to suffer even a partial loss, the equity of the CLO below it must be completely wiped out; i.e. go to zero value. This has happened very rarely in the three or four decades of CLO issuance, especially in the category of CLOs issued since the crash of 2008/2009. As a result, there have only been a relative handful of double-B rated CLO paper defects in the history of CLO issuance.

      With EIC’s price falling recently (along with most other funds) and its distribution just increased, it is paying a 9.3% yield at market close on Friday (March 25). I urge readers to refresh their memory on EIC by reading my article from late last year. At the time (October 2021) I was somewhat excited that EIC had just increased its distribution and was returning just over 8% which seemed like a lot given the then prevailing market conditions and what the other high yield funds were paying. Now, EIC looks even more attractive at 9.3%, and everything I wrote about it back then still applies:

      • Powerful institutional ownership (67% by insurance companies and other heavyweights).
      • Credit history of CLO “BB” debt which is actually safer (i.e. has lower default rates) than conventional BB corporate debt, but pays higher coupons than corporate debt of equivalent rating.
      • Yes, that’s true, strange as it may seem when we expect our corporate debt markets to be relatively efficient.
      • Personally, I think this is a supply/demand aberration, where many traditional institutional investors (pension plans, university endowments, mutual funds) and their external boards, investment committees or shareholders either (1) don’t really understand “securitized” vehicles like CLOs, and/or (2) still confuse them with the asset class of debt-backed bonds (“CDOs”), which contained loans wrongly or fraudulently underwritten mortgages and home loans and helped precipitate the great crash of 2008/2009.
      • CLOs, by the way, are a totally different asset class, despite their somewhat similar initials. Unlike CDOs, which caused so much trouble in 2008, CLOs are highly transparent, contain large syndicated loans to large corporations that are fully rated for default and loss expectations, and as an asset class has came through the crash of 2008/2009 in good shape.

      Here is a chart comparing a number of well-known and highly regarded high yield bond funds to EIC in terms of credit profile and current distribution yield. As a proxy for the credit profile, I took the percentage of each fund’s portfolio that included debt (i.e. bonds, loans, etc.) rated double B or better. Double-B, if you look at default statistics over several decades, has a demonstrably lower level of default per year than single-B or triple-C rated debt issuers. In fact, single B-rated issuers tend to default at rates several times higher than double Bs, and triple C-rated issuers at a rate several times higher than single Bs, so there are serious “cliffs”. as financial data specialists would call them. , when you move from one ranking category to another. It really makes a difference in credit quality and default/loss expectations when you compare one fund to another in terms of the composition of their portfolios. As you can see in this chart, Eagle Point Income has a better credit profile than all of these other high-yield bond funds, with 67% of its portfolio in double-B rated credits. many that we hold in our Inside the Income Factory model portfolios and/or in my personal portfolio, all have riskier portfolios than EIC’s, given that they all have a lower percentage of assets rated double-B or more.

      High Yield Bond Fund Comparisons

      CEF Connect

      Yet even though EIC has the lowest risk portfolio, with its current distribution yield of 9.3%, it pays a higher yield than all but Allspring Income Opportunities (XEADX) and PGIM Global High Yield (GHY) which pay slightly higher at 9.4% and 9.6% respectively (which may reflect the fact that the market is making them both pay a little because their coverage ratios have been somewhat fragile recently and we expect numbers to day to see if they have improved).

      But more interesting and relevant to our discussion here is the comparison of EIC with highly rated funds like BlackRock Corporate High Yield (HYT), KKR Income Opportunities (KIO) or Ares Dynamic Credit Allocation (ARDC), which, although they may have excellent records and reputations, clearly seem to have demonstrably riskier portfolios than EIC, when measured by their credit rating profiles. Yet the market has priced the EIC at a level where it pays even more than they do. (I own and am totally happy with HYT, KIO and ARDC, in my personal portfolio and some of our Inside the Income Factory models, and nothing here is meant to denigrate them. It’s just that EIC probably represents value still best in the current market environment.)

      As explained above, I don’t think the market has rational (i.e. risk-based) reasons to charge EIC more, and the excess return simply reflects supply/demand aberrations. In short, there is a potential boon here for Income Factory and other investors looking to achieve what is essentially “equity return without equity risk.” This is how we often describe our high yield strategy of collecting our total return through a “river of cash” that we can reinvest and accumulate to create our own income and portfolio growth, without depending on “wish, wait and hope” for unstable flight. market to do it for us.

      Watch and see what you think.

      How Inflation and Rising Interest Rates Hurt Small Businesses

      The Federal Reserve, in its Federal Open Market Committee (FOMC) statement earlier this month said inflation remained ‘high, reflecting pandemic-related supply and demand imbalances, rising energy prices and broader price pressures’ .

      Russia’s invasion of Ukraine is causing enormous human and economic hardship there, but domestically the implications for the US economy are uncertain. The FOMC statement indicates that in the short term, the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity.

      Inflation is the number one concern for small business owners, according to a recent survey conducted by the American Chamber of Commerce. To cope with inflation, 67% of small businesses raised their prices, according to the study. Another four in ten (41%) say they have downsized or taken out a loan in the past year (39%) in response to mounting inflationary pressures.

      “Having survived the pandemic, small business owners are now being hit by runaway inflation. This limits their purchasing power and forces small businesses to raise their own prices and absorb higher costs with already thin margins,” said Neil Bradley, director of policy at the U.S. Chamber of Commerce.

      Costs for materials, inventory, labor and fuel continue to rise, straining even profitable businesses.

      “There are many more vacancies today than before the pandemic, despite the current higher unemployment rate,” Fed Chairman Pro Tempore said. Jerome H. Powell. “A record number of people are quitting their jobs every month, usually to take up other better paying jobs. Nominal wages are rising at the fastest rate in decades, with the gains being greatest for those at the bottom of the wage scale.

      Often those at the bottom of the pay scale are the workers in the smaller mom-and-pop shops. Thus, wage inflation significantly hits the smallest of small businesses.

      Additionally, Powell explained that inflation rose sharply in the fall, and since the December FOMC meeting, the median projection for year-end 2022 has risen from 2.6% to 4.3%. .

      “In my view…forecasters have grossly underestimated the severity and persistence of supply-side frictions, which, combined with strong demand, especially for durable goods, have produced surprisingly high inflation,” he said. said Powell in his post FOMC-statement.

      The Fed seeks to achieve maximum employment and a 2% inflation rate over the long term. As a result, the FOMC has decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent and expects continued increases to be appropriate. The Committee will continue to monitor the implications of the continued impact of COVID on public health, labor market conditions, inflationary pressures, and financial and international developments.

      The need for stable and ongoing funding is something that business owners will face for the foreseeable future. The environment of inflation and higher interest rates we find ourselves in today is a challenge for small business owners. Costs continue to rise due to ongoing supply chain issues and labor shortages.

      Fed rate hikes will in turn increase the cost of borrowing for small businesses. These rates are already well above the benchmark rate for mortgages, for example. This could drive the minimum funding cost to around 9% APR. The new rates don’t just apply to new loans originated this year; these higher rates will apply to existing loans, as most business lenders have floating or variable rate financing products.

      SBA products will increase in rate as these interest rates increase. Even business owners who don’t plan to expand soon should get a head start and get approved for a financing option now rather than later.

      Women business owners, in particular, should pay close attention to these economic trends. Earlier this month, Biz2Credit released its annual report Women’s Small Business Study. It found that revenues for women-owned businesses fell 26% in 2021 compared to 2020, and credit scores also declined. Having lower credit scores can prevent you from getting the lowest interest rates.

      Looking ahead, given that the Fed has signaled its willingness to continue raising rates, business owners should keep in mind that most small business loans and SBA products are issued at variable rates. They need to take the rising cost of capital into account in their decision-making.

      While the interest rate spread can be anywhere between the mid and high digits all the way up to the double digits, but the rates may not be the deciding factor. Instead, for some businesses, the most important factor is very often immediate need, including the opportunity cost of losing property or obtaining inventory at a reasonable price through prepayment. This has become increasingly important at a time when supply chain issues are driving up the costs of raw materials and finished goods.

      We know how the interest rate environment has evolved since the middle of last year. Borrowing rates have been close to zero for many years and low-cost money has flowed into businesses for a long time. We haven’t seen a significant rate hike pattern since 2018, a pre-pandemic period that seems a very long time ago. If small businesses can get fixed-rate financing today, they should take advantage of the opportunity, as rates will likely continue to climb as the Fed establishes policies aimed at slowing inflation.

      How Negative Option Marketing Can Risk Involving Third-Party Banks and Payment Processors | Venable LLP


      We frequently post about negative option marketing in this blog, but focus on the FTC’s enforcement actions against companies that use this marketing strategy. We haven’t written much about a different risk: payment processors and financial institutions caught in the crosshairs of a court-appointed receiver for their dealings with companies engaged in allegedly illegal “negative option” marketing. Recently, two FTC enforcement actions in the central and southern districts of California highlighted these risks.

      In Federal Trade Commission v. Triangle Media Corporation et al. (the “Triangle Action”), the FTC sued Triangle for engaging in an alleged scheme to offer bogus “free trials” of personal care products and dietary supplements to obtain credit card information and consumer throughput.

      According to the FTC, Triangle then applied recurring charges to consumers’ cards without authorization. In a subsequent, unrelated action, the FTC filed charges against Apex Capital Group, LLC for substantially the same activity (the “Apex Action”). In both cases, the courts granted the FTC’s request and recommendation that a receiver be appointed to oversee, manage and safeguard the assets of both sets of defendants. In an interesting twist, the same receiver, Thomas McNamara of McNamara LLP (the “Receiver”), was recommended by the FTC, and accepted by the courts, as receiver for the assets of Triangle and Apex.

      Subsequently, the FTC filed an amended complaint in the Apex action accusing Apex’s credit card payment processor, Transact Pro, of credit card laundering and chargeback manipulation in violation of the Section 5 of the FTC Act. Apex and Transact Pro have both reached a settlement with the FTC requiring a stipulated judgment ordering the parties to pay monetary relief.

      The Apex defendants were ordered to pay $60,300,000, which was imposed jointly and severally on the corporate defendants and an individual defendant, Phillip Peikos, who was an officer of Apex. David Barnett, another officer, was also ordered to pay $47,300,000 individually. Both judgments require full payment and transfer of the specified assets of the defendants, after which the remainder of the judgment would be stayed. The Transact Pro defendants were ordered to pay $3,500,000, which was imposed jointly and severally on the corporate defendants and an individual defendant, Mark Moskvins, who was the owner of Transact Pro.

      Then, in a surprising turn of events, the court-appointed receiver sued Wells Fargo – the bank used by the defendants in the Triangle and Apex actions – alleging that Wells Fargo engaged in illicit activities, including, but not s limiting, aiding and abetting fraud, conspiracy to commit fraud, breach of fiduciary duty, negligent supervision and violation of California unfair competition law.

      Specifically, the complaint alleged that Wells Fargo’s alleged “high-pressure sales culture” caused Wells Fargo bankers to use “atypical banking procedures,” including:

      • Ignore red flags that Apex and Triangle deposit accounts were being set up for shell companies for a high-risk internet business (i.e. accounts funded with minimum deposits and companies found in states that do not require beneficial ownership identification).
      • Ignore high chargeback rates.
      • Accept fraudulently obtained funds.
      • Failing to follow Wells Fargo policies and US banking regulations that could reveal the fraud. The filing of a single complaint arising from two different receiverships is new.

      On July 8, 2021, Wells Fargo requested that the complaint be dismissed on several grounds, including that the receiver cannot plausibly allege facts showing that Wells Fargo actually knew of the Apex or Triangle schemes or contributed substantially to it. Wells Fargo’s motion to dismiss is pending.

      More recently, the court in the Apex action denied Well Fargo’s motion to intervene, in which Wells Fargo argued that, in light of the Supreme Court’s decision in AMG Capital Management, LLC v. Federal Trade Commission, the stipulated judgment against Apex was no longer in accordance with the law. Because the Receiver’s lawsuit against Wells Fargo was based on this judgment, Wells Fargo argued that the Receiver’s lawsuit should be limited or excluded altogether, and Wells Fargo had the right to intervene in the FTC’s action. The receiver submitted Wells Fargo’s refusal in the Apex action as additional authority in its attempt to stop Wells Fargo’s motion to also intervene in the Triangle action.

      Regardless of how these cases are resolved, this situation highlights the risk of liability that financial intermediaries face for the alleged conduct of their clients and the need for sufficient client onboarding programs and ongoing monitoring.

      Purple Banana owner kicks off his business with intense focus

      Photo credit: Purple Banana

      Marc Pitonzo
      Marc Pitonzo

      SYRACUSE, NY — When Luke Nicolette — owner of The Purple Banana, a start-up in Syracuse — approached Onondaga Community College’s Small Business Development Center (SBDC) nearly two years ago, one thing was obvious.

      He is a young man with a singular, laser-like focus on the task at hand, a trait found in many successful people.

      Nicolette had a concept for a new business and our job at SBDC was to remove the “speed bumps” and help her get her business from point A to point B. With the focus and work ethic of Luke and with the help of the SBDC, he was able to open the first and only Açai store in Syracuse, featuring healthy bowls, smoothies, juices and salads.

      American virologist Jonas Salk once said: “Hope lies in dreams, in the imagination and in the courage of those who dare to turn dreams into reality”. As an advisor for SBDC Onondaga whose goal is to help our clients realize their business dreams, I am always curious to know what motivates the various entrepreneurs I meet who want to start or buy an existing business. For Nicolette, motivation comes from a variety of personal difficulties and challenges in his life that he has been able to overcome and use as motivation. Positively, these challenges helped him achieve several things that were important to him from a business perspective. Luke realized he wanted to identify and pursue his passion, to help others as a business owner, to enjoy the creative freedom that comes with owning his own business, and most importantly, he realized that he could achieve anything he set out to achieve.

      Nicolette credits her communications and psychology degree from SUNY Oswego with helping her understand what she does well and how to better serve her clients.

      Photo credit: Purple Banana

      I asked Luke how he got in touch with the Onondaga SBDC following his decision to start a business. He told me that he searched the internet for “profitable” resources in CNY that could help him implement his business concept. He came across several resources but decided to “click” on Onondaga’s SBDC website. Luke said: “I am very grateful for the speed with which my advisor, Mark Pitonzo, responded to my request and his willingness to help me with all aspects of the implementation. If I wanted to bring this concept to fruition, my challenge was that I needed help with everything from company formation and business planning to financial projections including cash flow analysis and income statements, because I needed to finance the project. Mark helped me with every aspect, including introducing me to some of the financial and legal consultants they work with at SBDC. »

      Luke and I spoke weekly as there were many moving parts that needed to be resolved before serving his first client. Funding and permits were required before going ahead with construction, and the actual “construction” required a great deal of patient collaboration. Luke confided in me that there were many times when he thought he should give up on the project – but that was not an option for a man who has faced challenges in his life.

      After overcoming all the challenges of opening a business, Luke’s incredible attention to detail has paid off. In late January, the Purple Banana opened to the public at 754 South Crouse Ave., adjacent to the Syracuse University campus. Nicolette and the staff were pleasantly surprised by the number of students and other customers who enjoyed the variety of healthy options offered by Purple Banana.

      Photo credit: Purple Banana

      Purple Banana serves a variety of all-natural acai bowls made with healthy, natural, and quality ingredients. All products are carefully formulated with the help of a certified nutritionist. It uses 100% real fruit with no refined sugar, dairy or juice. Plus, Purple Banana offers healthy smoothies and salads.

      What makes Purple Banana unique is the acai berry in its products. The acai berry is native to South America and is packed with antioxidants and vitamins. Luke is certain that Purple Banana’s products will become more popular as consumers learn how wonderful it tastes while boosting their immune system. The shop also offers green, coconut, and pitaya (dragon fruit) bowls, all of which offer numerous health benefits.

      Advice from the sales advisor: Bill Gates, co-founder of Microsoft Corporation once said, “Your most dissatisfied customers are your greatest source of learning.” To translate, don’t underestimate the power of customer feedback. There’s not as much to learn from the glowing reviews. Pay attention to your most unhappy customers. It will give you the opportunity to acquire a completely new point of view and will provide you with the tools necessary to improve your products or services.

      Mark Pitonzo is a state certified business consultant at Onondaga SBDC satellite office located at Onondaga Community College @Liverpool. Contact him at [email protected]