Yes Lender recently announced the acquisition of FinTech startup Edge Funder. The alternative finance lender said the deal would give it an edge in funding small businesses. However, the transaction is also a reflection of the consolidation in the merchant cash advance (MCA) marketplace.
Whether Yes Lender will be able to capitalize on Edge Funder’s direct-to-merchant portal remains to be seen. The impact of the transaction on the MCA marketplace is also unclear at this juncture. In the meantime, if your business needs assistance with reconciling a merchant cash advance, talk to an experienced debt relief specialist.
Yes Lender’s Acquisition of Edge Funder
In a news release, Yes Lender said the acquisition gives the company‘s customers access to Edge Funding’s direct-to-merchant portal and strengthens its position in the merchant cash advance sector.
“Powered by artificial intelligence and proprietary software, the portal presents multiple funding options to merchants within 60 seconds,” the release said.
Yes Lender will also be able to tap Edge Funder’s broad marketing expertise in web visibility and generating quality leads of merchants seeking working capital. Yes Lender CEO Glenn Foreman reportedly said Edge Funder’s lead generation and direct-to-merchant platform complement the funder’s sales funnel, while AI will enhance its underwriting.
The merger is intended to “create an ecosystem that benefits our small business customers, our business partners, our employees, and our investors, and to do so in a highly ethical way,” Edge co-founder and CEO Amoz Segal said in a statement.
The acquisition comes at a time when small business lending is increasingly being driven by innovation, with emerging opportunities to access data across multiple service providers. Many observers agree that data transparency will be a critical component to accelerating small to midsized business financing efforts going forward.
Yes Lender’s acquisition of Edge Funder highlights the further expansion of artificial intelligence in the FinServ space. Merchants are likely to see aggressive data[-driven organic and paid web marketing and direct-email campaigns
Though small businesses are still only beginning to recover from the pandemic, there is plenty of capital on the sidelines, much of which will be pipelined through merchant cash advances and other alternative funding products via AI and other tech-based outreach efforts. The best way to protect your small business during these unprecedented and evolving times is to consult with the experienced debt relief specialists and MCA attorneys at ReconcileMyMCA.com