Lend Academy Network Forum

General Category => General P2P Lending Discussion => Topic started by: Rude Dude on November 17, 2016, 06:45:17 PM

Title: Dealstruck closing down
Post by: Rude Dude on November 17, 2016, 06:45:17 PM
SMB online lender shutting down. I'm sure most of you have already seen this, but here's the crowdfund insider article:
http://www.crowdfundinsider.com/2016/11/92633-report-dealstruck-shuts-operations/

Does anyone know if the company has actually ceased operations and let all staff go? Wondering if a skeleton staff will continue to service the loans.
Title: Re: Dealstruck closing down
Post by: Fred93 on November 17, 2016, 06:57:16 PM
They told me loan servicing continues.
Title: Re: Dealstruck closing down
Post by: nonattender on November 18, 2016, 01:38:47 PM
Anyone know name of bank that pulled out of acq at last minute?
Title: Re: Dealstruck closing down
Post by: Fred93 on November 18, 2016, 03:48:17 PM
Anyone know name of bank that pulled out of acq at last minute?

TAB Bank
Title: Re: Dealstruck closing down
Post by: Rude Dude on November 18, 2016, 04:53:39 PM
Pretty sobering when you consider that DS announced a raise of $58MM ($50MM facility + $8M equity) only 18 months ago:
http://www.crowdfundinsider.com/2015/04/65705-direct-lender-dealstruck-raises-58-million-to-fund-smes/

Perhaps only part of the facility was tapped, but still...loan performance had to be iffy.

Title: Re: Dealstruck closing down
Post by: Rude Dude on November 18, 2016, 04:55:35 PM
They told me loan servicing continues.

Thanks - good to know. Hopefully BK isn't on the horizon
Title: Re: Dealstruck closing down
Post by: nonattender on November 21, 2016, 10:15:14 AM
Anyone know name of bank that pulled out of acq at last minute?

TAB Bank

Thanks - you know how I like to keep tabs on the industry...  *zing*
Title: Re: Dealstruck closing down
Post by: LonghornSF on November 21, 2016, 01:15:51 PM
Wow too bad. I met Ethan and thought he was a good guy, though he seemed a bit scatterbrained. My impression was his dad (former VC guy) was at least partially funding the company, so they must have really doubted the viability of the model if they decided to pull the plug. The marketplace model is really difficult to apply to SME loans, wonder if Funding Circle is next.