[jcoop]

American Banker just posted an article that CAN laid off 136 people.

http://www.americanbanker.com/news/m...1092920-1.html

Any thoughts, any inside info on if they are going under?

[WestCoastFunding]

It's one thing to reorganize to position yourself better, but CAN seems to be in crisis and will do anything for cash and to reduce risk exposure. My client offered them a 20% reduction in what he owed to them to payoff early, and they accepted.

[CreditGuy]

CAN's shift in their renewal eligibility policy from 50% to 75% paid down laid bare the fact that a very large chunk of their portfolio was only still in business because they kept renewing them. Renewals/double dipping/payoffs are arguably a greater threat to this lending market than stacking. CAN is policing their own book and if/when they open their doors again, their credit policy will likely look a lot different. The other big lenders will likely take a page from CAN's playbook and tighten up on renewals and payoffs too. Also, with the announcement of the OCC offering limited charters to fintech companies, a move to more conservative underwriting is heading this way for any company going that route. The OCC isn't going to charter any lender that doesn't actually UW capacity to repay their loan. Lending into top line revenues is going the way of the dinosaur or will only be done at rates seen in the stacking space.

The days of riding the gravy train with biscuit wheels are over, folks.

[jcoop]

CAN's shift in their renewal eligibility policy from 50% to 75% paid down laid bare the fact that a very large chunk of their portfolio was only still in business because they kept renewing them. Renewals/double dipping/payoffs are arguably a greater threat to this lending market than stacking. CAN is policing their own book and if/when they open their doors again, their credit policy will likely look a lot different. The other big lenders will likely take a page from CAN's playbook and tighten up on renewals and payoffs too. Also, with the announcement of the OCC offering limited charters to fintech companies, a move to more conservative underwriting is heading this way for any company going that route. The OCC isn't going to charter any lender that doesn't actually UW capacity to repay their loan. Lending into top line revenues is going the way of the dinosaur or will only be done at rates seen in the stacking space.

The days of riding the gravy train with biscuit wheels are over, folks.

I apologize but I had not heard of the Treasury department requiring charters for lenders. Can you please go into a little more detail about this?

[CreditGuy]

http://debanked.com/2016/12/the-occ-...purpose-banks/

[jcoop]

http://debanked.com/2016/12/the-occ-...purpose-banks/

Thank you

[CreditGuy]

Also, American Banker is reporting the wrong figure. CAN laid off 250. They shuttered their entire operation in Costa Rica and the rest were in the GA office.

[jcoop]

Also, American Banker is reporting the wrong figure. CAN laid off 250. They shuttered their entire operation in Costa Rica and the rest were in the GA office.

Do you know how many employees they had? 250 seems like it would be their entire workforce!

[MCNetwork]

CAN's shift in their renewal eligibility policy from 50% to 75% paid down laid bare the fact that a very large chunk of their portfolio was only still in business because they kept renewing them. Renewals/double dipping/payoffs are arguably a greater threat to this lending market than stacking.

So true. If funders were to pull the plug on renewals, most of their clients would go out of business. The cash advance ecosystem is the only thing keeping bad businesses afloat.

[Sean Cash]

I apologize but I had not heard of the Treasury department requiring charters for lenders. Can you please go into a little more detail about this?

This would not be required, just an option.

[Sean Cash]

Do you know how many employees they had? 250 seems like it would be their entire workforce!

I think 400+?

[Sean Cash]

Also, American Banker is reporting the wrong figure. CAN laid off 250. They shuttered their entire operation in Costa Rica and the rest were in the GA office.

The American Banker story I think only made reference to the Kennesaw office.

[Transactionsolutions]

Also, American Banker is reporting the wrong figure. CAN laid off 250. They shuttered their entire operation in Costa Rica and the rest were in the GA office.

The Costa Rica lay offs were included in the American Banker number. The actual team down there wasnt all that big, but horrible situation for everyone involved around the holidays

[Sean Cash]

The question I have, given CAN's high profile partnership with Entrepreneur Magazine, where are all the leads generated by that going in the interim?

[HDF]

The question I have, given CAN's high profile partnership with Entrepreneur Magazine, where are all the leads generated by that going in the interim?

I'd imagine that many of those were ISO'd out and placed with higher risk funders anyway if they were being smart.

[mcaguru]

The question I have, given CAN's high profile partnership with Entrepreneur Magazine, where are all the leads generated by that going in the interim?

I am not so certain that Entrepreneur Venture produces enough to even justify the cost. I had back in the day at 2nd source half page ads in 50 Publications (at the height of 2nd source) and first few issues i caught the low hanging fruit seekers and then it would dribble off to a loss ROI wise.

[Sean Cash]

I am not so certain that Entrepreneur Venture produces enough to even justify the cost. I had back in the day at 2nd source half page ads in 50 Publications (at the height of 2nd source) and first few issues i caught the low hanging fruit seekers and then it would dribble off to a loss ROI wise.

I'm talking about this, which appears all over their online posts, getting millions and millions of views -->

screenshotcan.jpg

[jotucker1983]

The days of riding the gravy train with biscuit wheels are over, folks.

I agree 100%.

[mcaguru]

I'm talking about this, which appears all over their online posts, getting millions and millions of views -->

screenshotcan.jpg

you can call the lead and find out !

[isaacdstern]

I am hearing that the portfolio is being auctioned off, anyone else hear the same?

[WestCoastFunding]

I'm talking about this, which appears all over their online posts, getting millions and millions of views -->

screenshotcan.jpg

I'm not so sure that's a lead generator as much as just an expensive (but high quality) backlink to boost SEO.

[Transactionsolutions]

I am hearing that the portfolio is being auctioned off, anyone else hear the same?

I just had a long conversation with an executive at CAN, and they will be back to funding renewals in the next week or so. This person expects them to start accepting new applications again in early Jan. That said, they are making (and have already made) major changes to how they will be operating.

[ridextreme]

That said, they are making (and have already made) major changes to how they will be operating.

Should we assume it's R.I.P. to the retention calculator?

[Transactionsolutions]

Should we assume it's R.I.P. to the retention calculator?

Baby steps, ha. Lets see them get back to funding deals and then worry about what rates they'll be offering.

I think, and hope, they're going to be A LOT more careful of what they fund.

[jcoop]

I am hearing that the portfolio is being auctioned off, anyone else hear the same?

Where did you hear this?