[Sean Cash]

And Sean, to go back to one of our many offline conversations...what has been happening to the credit card industry over the last couple of years? Didn't the Gov't step in and start imposing certain restrictions? You want that to happen to cash advance as well?

This would be a good time to read the American Banker article that came out yesterday. Only paid subscribers have access to it so I don't want to just copy and paste the whole thing.

American Banker: Why Lending Club Relies on a Bank You've Never Heard Of

"Lending Club's ability to make loans to consumers across the country hinges on a well-known 1978 Supreme Court case involving Marquette National Bank of Minneapolis. The Marquette decision allowed banks to export their home-state interest rates across the country, which enabled the creation of the nationwide credit-card industry.

The court ruling also gave rise to contracts between banks and non-bank firms that wanted to take advantage of banks' unique ability to apply their home state's rules elsewhere. One well-established example is the private-label credit card industry, where large retailers such as Walmart and Macy's partner with banks."

The article goes on to make the point that all of alternative lending can be disrupted by taking out WebBank and Cross River Bank.

In short, Lending Club, Prosper, Kabbage, PayPal etc, CAN Capital, Avant Credit, are all dependent on the success and non-interruption of WebBank. I wrote a little bit about WebBank here: http://debanked.com/2014/12/blue-hor...s-holdings-lp/

Surprisingly, it's completely illiquid. Some days it has no volume whatsoever.

Today's alternative lenders are using the same model as credit card issuers.

Merchant Cash Advance companies where future sales are purchased is a completely different model.