Fintech Provider and Alternative Lender eProdigy Closes a $100 Million Commitment from a Single Private Equity Firm

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New York, NY — May 19, 2015

Fintech Provider and Alternative Lender eProdigy Closes a $100 Million Commitment from a Single Private Equity Firm

Funding Enables eProdigy To Expand Product Offerings, Broaden Client Base, and Scale Rapidly

eProdigy, a fintech holding company with several subsidiaries serving the alternative finance space, announced today that a private equity firm has made an agreement to provide $100 million to eProdigy through a term loan, a convertible note feature and participation rights.

eProdigy CEO David Rubin says, “This deal changes our entire playbook. Previously, we were only able to focus on making merchant cash advances to higher risk merchants. Thanks to this new facility and our lower cost of capital, we”ll be able to target A and B credit borrowers, offer a broader range of products, and provide more competitive terms and rates.”

The convertible note portion of this agreement is a $20 million facility with the noteholder”s right to convert the full amount to equity at a $100 million valuation. Observes Stephen Brown, CFO of eProdigy, “This agreement evidences that eProdigy has achieved significant intrinsic value by building state-of-the-art technology combined with a top-line operational team that can enable us to continue reinventing the alternative financing industry and point the way forward for it.”

As viewed by Dan Avnir, Managing Director of Bryant Park Capital, a leading middle market investment bank with a focus on specialty lending and financial services industries, “Institutional investor appetite exists for alternative lenders with technology savvy platforms capable of scale and compliance. It”s those alternative lenders that will be best positioned to further reach into banks” traditional territory.”

eProdigy plays a unique role as an enabling technology, serving the industry broadly — for the last three to four years, the fintech company was heavily focused on developing a leading edge technology platform on which it currently hosts many other funders and “white label” originators. Going forward, it will scale its origination activities and continue building out its infrastructure so as to handle the anticipated growth. It will also keep innovating so as to strengthen the enterprise value of the company and broaden its role as a source for other funders in the alternative space.

About eProdigy

eProdigy services the alternative finance industry through proprietary online platforms. We work with funders, ISOs, syndicates and brokers to provide comprehensive tools that allow our partners to manage their deals seamlessly. eProdigy is redefining the way small and midsized businesses access working capital with technology that offers merchants a five minute decision and same day funding. Our companies include: Capital Stack, 1Workforce, ACH Capital, eProdigyACH DBA ACHBanking, eProdigy Loans, and Daily Funder.

For more information, please visit http://www.e-prodigy.com.

 

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eProdigy Integrates Quickbooks, PayPal and Authorize.net Into Its Direct Funding Platform

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New York, NY — April 14, 2015

eProdigy Integrates Quickbooks, PayPal and Authorize.net Into Its Direct Funding Platform

NEW YORK, April 14, 2015 — eProdigy, a fintech holding company of several subsidiaries in the alternative finance industry, announced today that it has successfully integrated QuickBooks, PayPal and Authorize.Net feeds into its approval process, making way for unprecedented speed and ease of decisions and delivery of funds to small and mid-sized businesses applying for working capital.

While conventional lenders’ approval processes rely heavily on credit scores to make decisions, companies like eProdigy have harnessed technology to determine a business’s ability to repay an advance through its ongoing electronic transactions. A company’s QuickBooks account, for example, can show incoming and outgoing funds in a business account — income, payments, merchandise-in-stock or other assets, etc. Payment products like Authorize.Net and PayPal can help both the merchant and the funding in sending and receiving seamless payments.

eProdigy CEO David Rubin notes, “Technology can play a huge role in determining whether or not to extend credit to a given company. The most innovative systems in the industry are tapping into data sources that weren’t available previously, yet provide critical insight into the creditworthiness of a given business entity. Federal data, shipping volumes, and even social media feeds; combined with feeds from QuickBooks and systems like PayPal and help us get a deeper picture to quickly make the determination between good and bad risks. The ideal is to provide a 5-minute paperless decision, and our technology’s role is to rapidly crunch the data points in a way that goes beyond the stringency of a paper application.”

eProdigy has been providing alternative finance products to businesses since 2010. Noted for its speedy and technologically advanced approval and delivery processes, the company can help merchants assess the best product for their needs, and get them the capital they need to grow their businesses.

About eProdigy

eProdigy services to the alternative finance industry through proprietary online platforms. We work with funders, ISOs, syndicates and brokers to provide comprehensive tools that allow our partners to manage their deals seamlessly. eProdigy is redefining the way small and midsized businesses access working capital with technology that offers merchants a five minute decision and same day funding. Our companies include: Capital Stack, 1Workforce, ACH Capital, eProdigyACH DBA ACHBanking, eProdigy Loans, and Daily Funder.

For more information, please visit http://www.e-prodigy.com.

 

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Brian Stulman Joins eProdigy as Executive VP

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New York, NY — April 9, 2015

Brian Stulman Joins eProdigy as Executive VP

New York, NY — eProdigy LLC, a fintech holding company specializing in alternative lending, has appointed Brian Stulman as Executive Vice President. Brian will be overseeing all aspects of eProdigy from operations to underwriting, but will be focused mainly on operations. Mr. Stulman, now 47, has been in the alternative lending business almost since its inception 14 years ago, most recently as National Director of Business Development at Next Wave Funding, where he oversaw all business relationships and sales with Independent Service Providers (ISOs) and merchants. At eProdigy, he will manage all distribution channels, internal systems, internal and external sales, with the goal of managing and optimizing deal flow.
Notes Stulman: “I was attracted to the long-term growth potential, being able to take eProdigy all the way to becoming a major player in this industry. eProdigy has the technology, knowledge and relationships—and with the proper nurturing, will become a leader in this space.”

David Rubin, CEO of eProdigy, adds: “We wanted to add Brian’s organizational skills into the mix—particularly his proven skill at strategic planning. This latest addition is the last piece of the puzzle for eProdigy from a management perspective – Brian fits the bill perfectly. He’s the right person to oversee operations, whether retail or wholesale, help with product launches and develop loan programs.”

The key differentiator for eProdigy, Stulman believes, is its cutting edge technology. “The technology is a game changer. It’s a multiplier for how we can write business – essentially it transforms eProdigy from being competitively price-driven to being able to drive technology for the industry, and get us into places we couldn’t go strictly on price point—notably, the ability to provide a level of service that expedites deals and makes it as easy as possible for the customer,” he notes.

Technology removes a giant hurdle to underwriting and servicing—it adds speed, transparency, and allows scaling without a commensurate increase in staff. Notes Rubin, “It allows us to put a level of control in the broker’s hands. It gives them speed, which allows them to make their deals right at the point of sale, rather than having to come back or reach the merchant later on the phone. It’s powerful.”

Specifically, Stulman wants to build out both distribution channels, internal and external sales divisions, “in a major way. We want to control as much deal flow as we physically can.” He sees the business building to five times its current capacity in the next year. He has watched the industry go “from zero to a billion dollar industry just in the last 3 years. It went from one player to hundreds of players. There are new funders popping up every single day.”

“This industry needs the technology we’re putting out there,” agrees Rubin. “From the merchant’s perspective, they need good, fair time frames, they need to be funded fast, and they need to be treated fairly, with better customer service.”

About eProdigy

eProdigy provides a suite of services to the alternative finance industry through a proprietary online platform. We work with funders, ISOs, syndicates and brokers to provide a comprehensive servicing tool that allows our partners to manage their deals seamlessly. eProdigy is redefining the way small and midsized businesses access working capital with technology that offers merchants a five minute decision and same day funding. Our companies include: Capital Stack, 1Workforce, ACH Capital, eProdigyACH DBA ACHBanking, eProdigy Loans, and Daily Funder.

For more information, please visit http://www.e-prodigy.com.

 

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eProdigy Launches 3rd Party Processing Gateway, ACHBanking, Providing Payments Rails and Next Day Funds Availability To Alternative Lenders

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New York, NY — March 31, 2015

eProdigy Launches 3rd Party Processing Gateway, ACHBanking, Providing Payments Rails and Next Day Funds Availability To Alternative Lenders

Serving the Broader Alternative Finance Industry, New Payments Platform Answers a Key Industry Need

New York, NY and San Francisco, CA — eProdigy, a fintech holding company and alternative lender, announced the launch of its own Processing Gateway, ACHBanking which the company will make available to other merchant funders, as well as ISOs (Independent Service Organizations).This platform will give merchants and ISOs an easy to split platform to process ACH payments and eChecks.

Notes eProdigy CEO David Rubin, “ACHBanking fills a gaping hole in the alternative finance industry. Most processors and banks don’t understand how our business works, and are simply not equipped to manage multiple transactions or provide next day availability of funds. It can take up to a week for funds to clear, even while the processor has assumed the risk of insufficient funds. We’re the first in the industry to provide such a gateway to other funders, and we think this will help bring down the cost and risk inherent to each transaction.”

Integration of ACHBanking into 1Workforce

ACHBanking will allow real time settlements and next day availability of funds to qualified applicants, and will be integrated into eProdigy’s proprietary 1Workforce platform. ACHBanking will be offered industry wide to ISOs, as well as funders regardless of whether they use 1Workforce.

Adds Paul Miller of CapAssist, an early ACHBanking adopter, “With the ACH processing options currently available, a funder doesn’t know if a transaction is good for several days later. ACHBanking has a clear understanding of the needs of the alternative finance community, and meets them to a tee. When you’re trying to ensure next day settlement, you don’t want to learn a week later that some of those transactions were returned.”

About eProdigy

eProdigy provides a suite of services to the alternative finance industry through its proprietary online platforms. We work with funders, ISOs, syndicates and brokers to provide a comprehensive servicing tool that allows our partners to manage their deals seamlessly. eProdigy is redefining the way small and midsized businesses access working capital with technology that offers merchants a five minute decision and same day funding. Our companies include: Capital Stack, 1Workforce, ACH Capital, eProdigyACH DBA ACHBanking, eProdigy Loans, and DailyFunder.
For more information, please visit http://www.e-prodigy.com.

 

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David Rubin, CEO of Fintech Alternative Financer eProdigy to Attend 4 Industry Conferences in April: ETA, Lendit, Payments 2015 and Southeast Acquirers Association

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New York, NY — March 30, 2015

David Rubin, CEO of Fintech Alternative Financer eProdigy to Attend 4 Industry Conferences in April: ETA, Lendit, Payments 2015 and Southeast Acquirers Association

New York, NY — David Rubin, CEO of eProdigy, a fintech holding company in the alternative finance industry, is attending four industry conferences in the upcoming month:The ETA Conference – Transact 15 from March 31-April 2 in San Francisco

Mr. Rubin will be available to journalists to discuss key developments and issues currently affecting the industry, including avoiding underwriting pitfalls when machine decisions play an increasingly large role in the lending process, improving the alternative lending processing rails for more timely settlements, and for the industry as a whole, how to run a sustainable merchant cash advance business in an environment where there is an expectation of geometric growth.

TRANSACT 15 brings together all the players in the payments industry – technology, venture capital and payments providers. The event serves as an incubator for innovation and deal making, where capital invests in what’s next, growing companies build influence, global media builds brand awareness, and startups find launch success.

LendIt USA is the world’s largest annual gathering of the online lending community. The 2015 conference will host an expected 1,500 attendees with every major platform represented.

PAYMENTS 2015 will bring together thousands of stakeholders in the payments value chain, from business end-users to fintech services organizations, those who are driving and those who are adopting innovative payments solutions and practices, to share information about the most pressing industry issues and to set the future agenda.

The Southeast Acquirers’ Association (SEAA) annual seminar will focus on education about the industry and providing up-to-date information on current issues that concern agents in the electronic payments industry.

To arrange an interview with David Rubin, please contact:

Meir Kahtan Public Relations, LLC
+1 212.575.8188
mkahtan@rcn.com

About eProdigy

eProdigy provides a suite of services to the alternative finance industry through proprietary online platforms. We work with funders, ISOs, syndicates and brokers to provide comprehensive servicing tools that allow our partners to manage their deals seamlessly. eProdigy is redefining the way small and midsized businesses access working capital with technology that offers merchants a five minute decision and same day funding. Our companies include: Capital Stack, 1Workforce, ACH Capital, eProdigyACH DBA ACHBanking, eProdigy Loans, and DailyFunder.

For more information, please visit http://www.e-prodigy.com.

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