Shai Stern

Instant Confirmation >= Instant Payment What I love about this article is how utilizing RTP over Wire not only saves customers money but creates a better end user experience. Yes, wires are equally as fast as RTP, but the processes to originate the two are totally different.

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The SBA lender acts as a key VALUATION guardrail: DSCR (Debt Service Coverage Ratio): Must typically be 1.5–2.0 to ensure the business can comfortably handle its debt payments. Here's how to work backwards from the DSCR to determine valuation: Identify Cash Flow: Take the business's annual EBITDA or Seller's Discretionary Earnings (SDE). Account for DSCR: Divide the EBITDA/SDE by the desired DSCR (e.g., 1.5–2.0) to find the max allowable annual debt service (principal + interest). Example: If EBITDA = $500,000 and DSCR = 1.5 → $500,000 ÷ 1.5 = $333,333 available for debt service. Calculate Loan Amount: Use a loan amortization schedule or SBA terms (e.g., 10 years at 10%) to determine the total loan size the debt service supports. Example: $333,333 annual debt service → Approx. $2.5M loan. Valuation Formula: Add: Loan Amount + Buyer Down Payment (usually 10–20%) = Business Value. Example: $2.5M loan + $250K (10% down) = $2.75M valuation. This ensures the valuation aligns with cash flow sustainability and SBA lending criteria.

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AdTech Capital Raises in the U.S. - November 1st-15th, 2024 Several interesting transactions closed in the AdTech sector over the past two weeks. If you would like more info on these deals or would like to discuss the capital raising market for your company, please contact me.   PE Growth/Expansion 1. TVision, provider of TV performance metrics services intended to offer real-time performance metrics for advertising effectiveness and efficiency, received a development capital from Flow Capital. 2. Northern Commerce, operator of a full-service digital agency intended to create an effective digital strategy for businesses, received a development capital from Beringer Capital. Merger/Acquisition 3. Three Summers Creative, provider of marketing service intended to reimagine connections between businesses and consumers, acquired by Adapting Social. Later Stage VC 4. Populus Health Technologies, developer of a media and virtual patient acquisition platform designed for leveraging the telehealth and virtual care industry, raised $5 million of venture funding. 5. Agility, developer of an online marketing platform designed for demographic and spending advertising efficiently, raised $3.70 million of venture funding from investors. Early Stage VC 6. Scrunch AI, developer of an optimization platform designed for digital marketing, raised $4 million of venture funding in a deal led by Mayfield Fund. Seed Round 7. Mundial Media, developer of a media platform designed for brands to reach multicultural audiences across the digital landscape, raised $3.5 million of pre-seed funding in a deal led by New Day Industries. 8. Starfish, developer of an influencer marketing platform designed to offer an automated media buying and selling experience, raised seed funding. Accelerator/Incubator 9. Connected-Stories, operator of creative management and automation platform intended for video advertising using generative artificial intelligence, joined ISV Startup Springboard.   #castleplacement #capitalraising #privateequity #venturecapital #investment #adtech #advancedtechnology

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Join me at The Clearing House Concepts Conference on September 26! I’ll be presenting on two key topics: 1. How to comply with Nacha rules to combat Authorized Push Payment (APP) scams. 2. How to leverage tools like Sonar for enhanced monitoring across ACH, RTP, and Wire, focusing on evaluating recipient risk before authorizing fund transfers. Looking forward to sharing insights on these important aspects of fraud prevention. #FasterPayments #InstantPayments #RealTimePayments

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Rethinking System Selection: Why Lenders Should Choose a Partner   It's hard to think of a time more poorly suited to making decisions to replace a part of your lending technology stack. Still, many companies are contemplating this scenario for a number of reasons.   • The current solutions licensing requirements may be hindering your ability to lower costs; • Many lenders have been putting up with system deficiencies or work-arounds for the last two years and these compromises are becoming more noticeable as business improves; • The current platform is not compatible with changing corporate objectives.  Regardless of the incentive to consider change, many lenders lean towards handling this critical project in-house. But what if outsourcing to a trusted partner could be the game-changer your business needs?    ✔ UNBIASED EXPERTISE  Internal teams, while knowledgeable, can sometimes be too close to the existing systems and processes. An external partner brings a fresh, unbiased perspective and extensive experience from working with diverse clients, ensuring that the best solution is selected without any internal bias.   ✔ RESOURCE OPTIMIZATION: Your team is already juggling multiple priorities. Outsourcing system selection frees up your internal resources to focus on what they do best—serving your customers and driving business growth.   ✔ SPEED AND EFFICIENCY:  A specialized partner can expedite the selection process, leveraging tried-and-true methodologies and a deep understanding of the technology landscape. This means quicker decisions and faster implementation, giving you a competitive edge.   ✔ RISK MITIGATION: Technology selection involves significant risk. A seasoned partner brings a wealth of knowledge about potential pitfalls and industry best practices, reducing the likelihood of costly missteps and ensuring a smoother transition.   ✔ PURPOSEFUL INNOVATION:  By outsourcing, you tap into a wellspring of innovation. Partners often have a broader view of what’s happening across the industry and can introduce innovative solutions and practices that you might not have considered.   Our staff has been helping lenders select the right solutions for nearly 3 decades. Let us show you how we can help your organization make the right choices.   http://www.mead-tech.com   #MortgageLending #FinTech #StrategicConsulting  #CreditUnions #Banking #PurposefulInnovation

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Navigating APRA compliance just got easier! Check out our comprehensive checklist to ensure your financial institution meets regulatory standards effortlessly. #APRA #Compliance #FinancialServices https://lnkd.in/dTYuSTfN

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THE CHICAGO BOARD OPTIONS EXCHANGE HAS CONFIRMED THAT FIVE SPOT ETHEREUM ETF PRODUCTS WILL BEGIN TRADING ON JULY 23. In an effort to gain an early market advantage, virtually all of the ETH ETF issuers have announced plans to temporarily waive or discount fees to compete for market share once the products begin trading. Industry analysts have told Cointelegraph that Ether ETFs could attract billions in net inflows in the months following the launch. #FINANCE #BUSINESS #CRYPTOVOICE #WEALTH #CRYPTO #CRYPTOCURRENCY #BTC #BITCOIN #CRYPTONEWS #TRUMPCRYPTO #bitcoin #cryptocurrency #blockchain #ethereum #btc #forex #trading #money #cryptonews #cryptotrading #bitcoinmining #cryptocurrencies #investing #eth #investment #bitcoinnews #bitcoins #nft #business #invest #entrepreneur #binance #forextrader #bitcointrading #trader #investor #bitcoincash #litecoin #finance https://lnkd.in/gXUQ6f9e

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#TheCryptoRundown 250: "Skew Madness and the Mysteries of $SUI" with Amberdata and Bill Ulivieri from Cenacle Capital Management, LLC is now available. Stream from your favorite #podcast platform or listen at https://lnkd.in/eYaSjZEr #bitcoin #ethereum #solana $MARA

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CFPB is going after originators and investors who originate or buy  contracts for deeds aka land contracts. Historically, there is no oversight for contract for deed lenders and many such lenders were able to charge high interest rates and in many cases max allowable rate by state. Lender or investor would take over the property through eviction if the renter (borrower) is not current on the mortgage payments. CFPB determined that Contract For Deeds fall under Truth in Lending Act (TILA), where the lender has to review the ability to repay, provide state specific and TILA/RESPA disclosures during origination. Finally, balloon payments are banned under #TILA regulations. My recommendation to you, as an investor, if you have any contract for deed loans, review these ASAP for TILA RESPA violations by OneDiligence for any exceptions during origination that will make these loans unenforceable, while the lender black listed as using predatory lending practice. #usa #2024 #economy #depression #realestate #protitleusa #docsolutionusa #onediligence #alexgoldovsky #mortgage #loan

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Did you know that Credit unions are increasingly becoming the new acquisition vehicle for buying banks!! This is due to several key factors: Recent Acquisitions: In 2024, notable deals include Richland, Washington-based Gesa Credit Union's proposal to acquire Security State Bank with 606 million dollars in assets, and Anchorage, Alaska-based Global Federal Credit Union's purchase of First Financial Northwest Bank with 1.5 billion dollars in assets. These deals highlight credit unions' growing ability to target larger institutions, surpassing the previous high of New Mexico’s Western Heritage Bank at 338 million dollars in assets. Tax Advantages: Credit unions benefit from tax subsidies, allowing them to offer competitive bids. Although they can't leverage tax-deductible premiums like banks, their tax-exempt status enables them to pay more for acquisitions, covering the additional legal and tax costs, which appeals to selling shareholders. All-Cash Offers: Credit unions frequently offer all-cash deals, which are particularly attractive because they provide immediate liquidity. This ability to pay cash and absorb a bank’s balance sheet is crucial as traditional bank-to-bank mergers slow down due to economic and regulatory uncertainties. As commented by industry experts, credit unions are the only realistic buyers that could pay cash and absorb the bank’s balance sheet from a purchase accounting standpoint. Regulatory Flexibility: Credit unions are not subject to the Community Reinvestment Act requirements like banks, which gives them an edge in acquisitions. However, they face challenges, such as the dilution of GAAP equity and regulatory capital since they must buy out the bank’s equity, creating goodwill that impacts regulatory net worth. Despite these hurdles, credit unions' willingness to pay more to offset these costs makes them strong contenders. Market Position: With banks closing branches at a rate of 200 per month, reducing their CRA obligations, credit unions are stepping in as key players in the M&A landscape. While bank-to-bank mergers have declined significantly, credit unions have become more prominent, often being the only viable buyers capable of absorbing full balance sheets and offering cash deals, thus becoming the new acquisition vehicle in the financial sector. #CreditUnions #BankAcquisitions #MergersAndAcquisitions #FinancialServices #AllCashDeals #TaxAdvantages #RegulatoryStrategy #MarketTrends #BankingIndustry #FinancialInnovation 📸Credit: Forbes

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BREAKING: Evolve Bank & Trust has paused processing certain wires over $3,000, multiple sources tell me: For payments above $3,000, originating institutions typically must collect and retain the name and address of the originator, the identity of the beneficiary's institution, and the name, address, account number, and specific identifier of the beneficiary, if available, per 31 CFR 1010.410. At $3,000 the so-called "Travel Rule" also kicks in, requiring originating institutions to include certain information about the transmitter and recipient in funds transmittal orders. (The Travel Rule does not apply funds governed by the EFTA/Reg E, like ACH or card payments.) That Evolve has paused processing wires over $3,000 suggests the bank may lack the ability to collect, retain, and transmit as necessary certain data points on customers originating wire transfers. Representatives for Evolve did not immediately respond to a request for comment.

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Struggling to fund your high-risk merchants? At FundNow, we know the challenges ISOs face when other funders turn down tough deals. That’s why we step up with aggressive offers to help you close where others can’t. We take 2nd position and up, all states & industries. High-risk merchants don’t have to mean missed opportunities. Partner with us and let’s get those merchants funded! PM me for Guidelines & ISO Agreement Email: [email protected] #HighRiskFunding #FundNow #ISODeals #MerchantCashAdvance #CloseMoreDeals

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New Article: How to Start a Cannabis Business in Vermont? There are seven license types in Vermont – cultivators, manufacturers, retailers, wholesalers, testing laboratories, nurseries and integrated licenses. Get Vermont Cannabis Market news and legislation updates, cannabis business plan templates and samples at cannabusinessplans.com. #cannabisvermont #cannabisbusinessplan https://lnkd.in/gRBBUF2K

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There is some debate about the supposed bad experience of paying with QR codes versus tap-to-pay using a phone. Of course, the current payment experience with QR codes is much worse than with NFC devices. However, the number of steps the merchant has to select on the POS screen, and that the payer has to follow on their phone, has nothing to do with the QR Code itself. QR codes are a much more versatile, secure, efficient, and cost-effective technology than NFC. QR codes can also support features like double-clicking the side of the phone to open the camera, scan the code, and instantly approve the payment without the need for a confirmation screen. This can even be accomplished with a QR code several meters away from the payer, which is not possible with NFC. By eliminating the extra steps we currently face when paying with QR codes, tapping an NFC antenna to make a payment will soon become obsolete and cringe. 😀

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If your merchant account is like a "Dodo bird"—outdated and only offering basic credit card processing without banking and treasury solutions—it may be missing out on providing essential financial services for your business. Here’s why this matters: Banking Solutions: Modern merchant services should integrate with your business’s banking needs, offering services like cash management, payroll, and account reconciliation. Treasury Solutions: Efficient treasury management services—such as fraud detection, payment automation, and working capital management—help optimize cash flow and financial operations. Comprehensive Services: A robust provider offers more than just credit card processing, including solutions that streamline your entire financial workflow. If your provider isn’t keeping up with these needs, they might be outdated, like the Dodo bird, in today's fast-paced business environment. Mx Merchant will make your business more Efficient, more Effective and more Profitable I offer a complimentary 30-minute discussion to walk through what that looks like for you. www.calendly.com/jsaluk #strategy #business #creativity #innovation #40000hoursofmerchantservicesexperience

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In Lending, all #channels have costs and risks but thats only one part of the problem. Optimising channel mix for effectiveness and efficiency requires multiple factors to be balanced. Sharing some thoughts on what factors a SME Lender should necessarily evaluate and action. #LendingChannels #Branches #DSA #DigitalLending #CoLending

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At one point in the past, Moov was incorrectly listed as a BaaS platform. To set the record straight, we don’t do BaaS. Legally we are a payment processor. Solution wise, we allow Vertical SaaS Platforms to integrate every US payments rail with one API. The problem we solve: Many vertical SaaS softwares, for example, the ones used to run gyms, healthcare companies, or service businesses, may track billions of dollars on payments being reconciled into their business management software via open banking integrations. Yet that payment revenue is going to other companies like Square, Stripe, BILL, etc… We make it simple for that platform to offer payments natively within their platform and monetize them. No payment expertise or infrastructure build is required.

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Cannabis businesses facing cash flow challenges leading to lender delinquency can find a solution with Capital Biz. We offer unrestricted and renewable cash flow solutions tailored to the cannabis industry's revenue cycle. Services include revolving credit facilities, inventory and vendor financing, bridge capital, equipment financing, and custom financing programs spanning the entire supply chain. #CannabisLending #CashFlowSolutions #FinanceOptions

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