[staten]

I have seen evidence of a merchant that just recently got funded by Lending Club. This merchant had taken out merchant cash advances previously. There is no doubt in my mind now that Lending Club will be competition to this industry.

Some background:

• merchant had really good credit
• merchant had negative days on the banks (overdrafts and NSFs)

it begins

Interesting-watched Renaud's testimony and he mentioned alliances with Quickbooks (yes we all know how accurate merchants books are), yelp/facebook/fedex/ups - nothing new here. Only going up to 35k . Head to head with on-deck (who currently gets their declines). They are not offering business loans on a p to p basis-using a separate investment fund to test out the strategy. Unsure about rates. They hired a former capital one small business guy and Can Capital hired former Capital One folks as well. Thinking that the high credit quality might make this somewhat of a zero sum game with Capital One business credit-but will do damage to on-deck to a small degree.