Yesterday, the Innovative Lending Platform Association (ILPA), made up of small business online lending leaders OnDeck, Kabbage and CAN Capital,...
According to American Banker, CAN Capital has laid off employees; this is following the news earlier this month of the company putting the chief executive officer and other executives on leave; according to an email from the company, "While this is a difficult decision, we believe it is necessary to position ourselves for long-term success."; documents from state officials in Georgia showed 136 layoffs in the Kennesaw, Georgia office while a source stated layoffs totaled 250 people, including all staff in Costa Rica; according to the source, layoffs were at least half of the company's total workforce. Source
CAN Capital has deep roots in the credit industry, evolving from one of the industry's leading merchant cash advance services in the 90s; as AdvanceMe, its direct competition with AmeriMerchant was influential in the merchant cash advance industry with AmeriMerchant winning a patent case that invalidated AdvanceMe's patent on merchant cash advance technology, also opening the market to increased entrants in the merchant cash advance business; both companies have now simultaneously reached new junctures; CAN Capital suspended funding in November 2016 and AmeriMerchant, now Capify, has been partially acquired by Strategic Funding Source; Strategic Funding Source has acquired the US operations of Capify in one of 2017's first acquisitions; international businesses of Capify were not acquired and will continue to be led by Capify executives. Source
The board of directors at CAN Capital, an online lender for small businesses, has named Parris Sanz as the company's chief executive officer and promoted Ritesh Gupta to chief operating officer; the new executives will be focusing on process improvements and market positioning as the company seeks to grow its lending business for small companies; CAN Capital has been an industry leader in small business marketplace lending with more than $6 billion funded since 1998; the firm is primarily focused on providing merchant cash advances. Source
CAN Capital Inc. has hired an advisor to help the business after halting loan originations and releasing senior executives; Realization Services Inc. has been hired to help the firm negotiate with creditors and strategy investment banking advisor Jefferies; CAN Capital has been lending to small businesses since 1998 with $6.5 billion in loans and cash advances; near the end of 2016 the firm reported data irregularities and issues with loan performance and collections. Source