Press Release May 21, 2013
New York (May 21, 2013) “ Capital One Co-Founder Nigel Morris was named Vice Chairman of Capital Access Network (CAN), the largest and most-experienced small business finance specialist. Additionally, Daniel DeMeo was promoted to Chief Executive Officer after serving as the company’s Chief Financial Officer since 2010. Under this powerhouse duo’s leadership, and with a credit facility recently expanded to almost $500 million, CAN will continue to build on its dominant market leadership position, providing small businesses greater access to the working capital they need to grow.
Capital Access Network plans to step up its pace in market expansion and the diversification of its product offerings, distribution, and digital presence in order to keep small businesses healthy with access to growth capital.
In the early 1990s, Morris disrupted the banking industry by applying a data based marketing and underwriting strategy that successfully expanded the market for consumer lending. During his tenure, he helped turn Capital One into an industry powerhouse. It became a member of the Fortune 500 with a net income after taxes (NIAT) compound annual growth rate of more than 32 percent during his tenure.
For small businesses, access to working capital is a major issue. Looking across many different companies and small and mid-size business solutions, it’s clear that Capital Access Network is not only the premier company in its sector, but also a world class innovator, said Morris. CAN has several key advantages “ its innovative technologies and proprietary tools for evaluating small business risk, its ability to predict small business performance, and its robust business model and profitability. I am excited to be in a leadership position and part of the Board.
Capital Access Network has developed an award-winning technology platform and proprietary algorithms that are proven to be highly predictive of actual small business risk and performance. Its risk models evaluate a multitude of business performance variables by integrating daily data from firmographic, banking and credit card processing sources. Capital Access Network’s proprietary technology and underwriting techniques were developed in tandem with CAN’s invention of daily cycle collection (daily remittance). This approach, and its experience across the spectrum of industry categories, gives Capital Access Network deep insights into the inner workings of small businesses and enables it to provide access to capital based on business performance rather than the personal credit scores of the business owners.
Over the past 15 years, CAN has applied this approach to understanding merchant behavior and small business performance over three economic cycles. This experience, which enables small businesses to hear yes more often, creates a virtuous cycle of learning which, when coupled with CAN’s proprietary technology, data and models, enables a higher approval rate and broader range of customized products and offers that can be matched to the business’ profile.
CAN offers small businesses access to multiple finance choices, including small business loans and flexible funding products. This powerful combination of big data analytics and multiple product offerings allows the company to help small businesses in need of $150,000 or less, including those turned off from traditional bank loans due to cumbersome application processes and lengthy cycle times.
Traditional bank loans rely on slower processes and less reliable tools to evaluate small business performance, new Capital Access Network CEO Daniel DeMeo said. Particularly for requests under $150,000, CAN fulfills small businesses’ needs for fast and flexible access to funding.
DeMeo is a veteran of the financial services industry with C-level experience at JP Morgan Chase and GE Capital. Earlier in his career, DeMeo rose through the ranks at Citibank in various finance and marketing positions. Capital Access Network has a proven track record for success and strong business fundamentals. We have been able to invest consistently in best-in-class technology and innovation, leading to long-term profitable growth, DeMeo said. Our highest priorities are to help small businesses get access to the capital they need, and continue to bring innovative solutions to the marketplace. I’m very excited to work with Nigel, the entire board of directors, and an experienced management team as we lead this company through its next phase of growth.
Capital Access Network, Inc. (CAN) is the largest and most-experienced small business finance specialist for small businesses. CAN’s Daily Remittance Platform and proprietary risk models enable it to evaluate businesses based on their performance, resulting in increased access to capital. Through its subsidiaries, NewLogic Business Loans, Inc. and AdvanceMe, Inc., CAN has given small businesses access to more than $3 billion in working capital over the past 15 years. All business loans obtained through NewLogic are made by WebBank, a Utah-chartered Industrial Bank, Member FDIC. Learn more at cancapital.com. ‹