Quote Originally Posted by Chambo View Post
you are really daydreaming, aren't you? Commercial banks cannot legally get involved directly in cash advance.

God, you sound like Sharif three years ago...."Bank of America is going to buy us for a BILLION DOLLARS!"

Chambo, couple of things:

1. On Deck does not do cash advances. They do business loans.

2. If On Deck sold their platform to a bank, they could limit the APR to a specified percentage that would be legal (although many states do not have usury laws for business loans), or they could even just utilize the technology and data to automate their underwriting.

3. Why wouldn't a bank purchase On Deck? It would automate the processes of a huge, untapped market for bank space. The reason they don't do small business loans anymore is because the cost of underwriting does not make sense for the minimal profits. An automated system using the On Deck scoring mechanism would alleviate their manpower costs, and the higher rates would increase yield.

No reason for a personal attack here buddy, just expressing what I think their strategy is. Do you think they are doing poorly? If so, why?