Non-bank lenders like OnDeck, CAN Capital and Kabbage have originated billions in small business loans, but some fear they might be repeating the mistakes made by banks with subprime mortgages; recent overdue payments on securitizations are raising questions about predatory lending and marketing tactics; the small business market is significantly smaller than the mortgage market, and so the risk of another global financial crisis is small. Source
Marketplace lender Argon Credit has filed for Chapter 11 bankruptcy; its loan underwriting was centered around machine learning algorithms which it marketed as decisioning as a service; offered subprime loans from $2,000 to $35,000 with APRs ranging from 4.99% to 149%; in May 2015 it secured a $75 million debt funding investment from credit hedge fund, Princeton Alternative Funding; prior to that it had raised $5.05 million. Source
Lending Times has reported numerous improprieties at Argon Credit causing further investigation; the firm filed for bankruptcy on December 16; an article from Lending Times says Argon Credit used proceeds from lending capital for personal interests; also says investments were not accurately disclosed and directed; firm is involved in bankruptcy proceeding with investor; former founder also had a criminal record. Source
Aspire Financial Technologies has announced a new asset-level disclosure data and analytics module; the module is targeted for securitization professionals; it provides free access to market participants seeking to analyze loan-level characteristics and performance data of US public securitizations; data is from SEC Edgar filings and is provided as a result of Reg AB II from the Dodd Frank Wall Street Reform and Consumer Protection Act which requires certain public securitization issuers to post monthly asset level disclosures on public securitization trusts. Source
Aspire Financial Technologies has released new analytics and forecasting features on its Aspire Gateway Platform; the new tools will provide enhanced analytical capabilities for the originators, investors and banks utilizing the platform; clients will now be able to develop complex loan model portfolios with data from Aspire's data partners: Lending Club, Marlette Funding, Prosper and Progressa. Source
A report from Crowdfund Insider says AssetAvenue has stopped originating loans; the California-based marketplace lender was providing property loans through its digital platform; firm raised $11 million in a Series A funding round in 2015; the firm's loans were primarily averaging approximately $2 million and the platform was open to all types of investors. Source
Assetz Capital has originated over 200 million British pounds ($247.02 million) in loans since its inception with 108 million British pounds ($133.39 million) originated in 2016; firm is primarily focused on secured lending for small businesses and property developers; monthly originations have been reaching 26 million British pounds ($32.11 million) and in the fourth quarter total lending for the platform was 45 million British pounds ($55.58 million). Source
Assetz Capital is a large P2P lender in the UK and now has authorization from the FCA; the company has lent more than GBP316 million ($410 million) to businesses and is now working on the final stages of its Innovative Finance ISA which it expects will be available in Q4 2017; Stuart Law, CEO of Assetz Capital, stated: "Our cautious approach of employing a world-class credit underwriting team and taking realisable security on loans is essential for our investors' peace of mind. Our focus remains to ensure the growth and security of our lenders' investments, as well as the success of our borrowers' businesses. Our team has done fantastically well to deliver such success to all of our stakeholders over the last few years and yet there is also so much more to achieve ahead of this milestone and we are all excited about the continuing journey." Source
Assetz Capital-as-a-Service (ACaaS) allows for full integration of the Assetz Capital API into websites and apps; the integration allows users to integrate the Assetz Capital peer-to-peer lending platform into other financial services businesses; UK financial account aggregator Bud is the first to integrate the solution with enhancements planned for the partnership; Assetz Capital is the the UK's second largest peer-to-peer finance platform for business and property and the firm says the solution will help increase visibility of the platform to a broader target market. Source
