[SuperFunds]

Received several funding notifications last week from CAN only to discover that as of this morning the merchants had still not received their wires. Friends in the industry at other companies have told me they've experienced something similar. CAN is claiming some type of system glitch, but I don't see how that would take almost a week to be fixed. Is anyone else seeing this/any ideas on why this could be happening?

[lvfunder]

I heard the same from two sources. Scary

[FundingCzar]

Mine have all gone through as far as I know in the past week.

Side note- twice I have funded deals with CAN and they accidentally deposited into a random person's account rather than the business owner, and made the client wait 2-3 days to resend.

[ADiamond]

maybe they're broke

[SuperFunds]

Looks like we are still having an issue with wires to merchants taking 4-5 business days, almost every deal funded through CAN is having this problem. Is no one else having this come up? It is very strange, and I'm just hoping it's not a sign of bigger issues to come

[Fund_It]

Looks like we are still having an issue with wires to merchants taking 4-5 business days, almost every deal funded through CAN is having this problem. Is no one else having this come up? It is very strange, and I'm just hoping it's not a sign of bigger issues to come

They're starting to sound like Knight. Taking a week to fund a deal that is ready to go out. How do you operate like that?

[Jonathon]

My rep said they are slammed with some newer larger accounts and its taking 5 days to fund..as long as I know ahead of time not a big deal.

[Zach]

They are probably cannibalizing On Deck's normal clientele. I'm assuming, per the most recent earnings report, that On Deck must be slowing their originations.

[Jonathon]

I believe OnDeck's originations went up last report, but I could be wrong.

[mcaguru]

[Zach]

I believe OnDeck's originations went up last report, but I could be wrong.

That's true, but I'd wager that it is down right now from where it was. They need to start being pickier with their approvals and they can have a nice operation. Shorter terms, higher rates, etc. Their ~40 APR product doesn't seem to be viable.

[soscap]

Received several funding notifications last week from CAN only to discover that as of this morning the merchants had still not received their wires. Friends in the industry at other companies have told me they've experienced something similar. CAN is claiming some type of system glitch, but I don't see how that would take almost a week to be fixed. Is anyone else seeing this/any ideas on why this could be happening?

Any update on this?

[Fund_It]

word on the street is can is having money issues with their lines and that is why everything is being delayed over a week. They get a certain amount in and they are taking care of their important iso's first. So if you are not a consistent funder with them then good luck

[Zach]

word on the street is can is having money issues with their lines and that is why everything is being delayed over a week. They get a certain amount in and they are taking care of their important iso's first. So if you are not a consistent funder with them then good luck

They are getting the overflow from On Deck tightening their credit window this past month. We will see this continue in the coming months and trickle downwards into the riskier funds as well.

Their ABL with Wells Fargo is likely being maxed. If On Deck has tightened their guidelines say 20%, that is another ~$35MM of potential volume per month that is heading to CAN/BFS/BizFi. It will stretch their LOC's to capacity and likely result in a lack of liquidity. To meet the demand they will need to supplement their existing ABL's with more expensive funds that they can secure quickly, which can result in shrinking margins on already tight portfolios.

I'd tread cautiously here.

[MCAVeteran]

Zach, the companies you mentioned already have tight uw to handle an overflow of 20 perc declinations at odc. The list will need to be much larger than that to convert that type of fallout