Online franchise business lender ApplePie Capital has announced the acquisition of Funding Solutions, LLC and the appointment of Ronald Feldman as chief development officer; Funding Solutions is a six-person franchise loan consulting firm based in Michigan and will help business and product development for the firm; supporting ApplePie Capital's brand portfolio and product strategy, Ronald Feldman will also bring significant franchise market experience from roles at FranData, Franchise America Finance and The Siegel Financial Group. Source
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Institutional investors and small banks increased their small business lending in March, according to the Biz2Credit Small Business Lending Index report; institutional lending approvals increased to 63.6% and small bank approvals increased to 48.9%; the approval rate at big banks was unchanged at 24.1%; the approval rate at credit unions decreased to 40.7%; the approval rate at alternative lenders decreased to 58.2%. Source
It has been reported that Kabbage is interested in acquiring OnDeck Capital. S&P Global recently published an analysis of a potential deal. This week Kabbage announced a new originations milestone of $3 billion since inception. We take a closer look at the originations and pro forma estimates of the two companies provided by S&P Global.
OnDeck's annual originations have increased from approximately $15.9 million in 2008 to $2.40 billion in 2016. Estimates from S&P Global show combined loan originations for the two firms of $3.82 billion for 2016. In addition to synergies from similar balance sheet and securitization funding sources, S&P Global also notes the increased value Kabbage could likely bring to OnDeck's line of credit product. Pro forma estimates put line of credit originations at approximately 50% for the combined entities. Kabbage has considerable expertise in small business line of credit lending and it's a product OnDeck launched in 2013 and has recently been focused on. Source