Published By Janet Gershen-Siegel at August 4th, 2020
Yellowstone Capital no longer exists! They are now Fundry Capital. We reviewed Fundry Capital, which had been one of several lenders in the online space. They are an ISO (independent sales organization), and appear to solely be focused on recruiting other ISOs.
We look at the specifics and drill down into the details. This review was updated on December 22, 2021.
Fundry Capital is located online here: https://fundrycap.com. Their physical address is in Jersey City, NJ. The firm’s location is nowhere on their website. And it was a chore to find it on LinkedIn.
You can call them at: (877) 237-2297. Also, you can contact them at: [email protected].
Their About page is simply a part of their home page – and it is none too informative.
In 2015, their predecessor Yellowstone Capital had and hand in a $1.5 million deal which, at the time, was their largest ever deal.
Fundry is also related to Green Capital Credit. See: https://greencapitalcredit.com. There’s not a lot of information on the Green Capital site, and their blog stopped being updated in September. Of which year? It is impossible to tell from that website.
Fundry had offered loans for what is called B-F credit. These appeared to be sub-prime loans. Appeared? It is frustratingly tough to find specifics on Fundry Capital’s offerings.
These are types of alternative, or non-conforming, loans, often for borrowers with poor credit.
Non-conforming loans are more risky than conforming ones and are alphabetically classified as according to risk. So non-conforming C loans are less risky than D loans, for example.
This causes interest rates to be higher. Also, most lenders view these borrowers as being riskier and more desperate.
That perception also, understandably, pushes up the interest rates.
Sometimes alternative loans can be seen as predatory. Borrowers in such a situation should always be careful that there are no significant prepayment penalties. Those are common with non-conforming loans, and they can prevent you from refinancing.
This online lender offers merchant cash advances – if you dig deeply into their LinkedIn profile. MCAs are not mentioned anywhere on the Fundry Capital website. They will handle high-risk borrowers. You can get same-day funding for approved merchant cash advances.
Fundry’s fees are nowhere to be found, either on their website or LinkedIn. In addition, the origination fee and APR are not known. This is because their website is not highly informative.
Advantages included fast approvals and acceptance of high-risk borrowers. The company boasted that:
We fund thousands of deals for companies with B-F credit. Found a deal that others say is unfundable? Fundry will get it done.
Disadvantages include a lack of transparency regarding fees, or really anything else. Their website has extraordinarily little information. However, a high-risk borrower may have few other options. Also, any borrowers in these categorizes should know the interest rates will be high.
And this is by definition. So don’t blame Fundry for that.
Any business owner should always be wary of funding sources which are not transparent with their fees. Maybe Fundry Capital online lending reveals all to the ISOs. But why should any business owner have to wait?
Companies which will work best with Fundry were high-risk borrowers. This is because they may have few other options for any loans or other funding.
However, other borrowers should press for more transparency. Or they should be ready to look elsewhere if Fundry is not forthcoming.
Because this should always be basic and easy to find information. No prospective borrower should ever have to glean through a ton of LinkedIn profiles to find the tiniest nugget of information.
And finally, as with every lender, always read the fine print and do the math. Go over the details with care. Better yet, work with a financial professional with no affiliation with the lender. Decide if this option will be good for you and your company.
In addition, consider alternative financing options that go beyond lending. These are options such as building business credit.
However, only you can best decide how to get the money you need to help your business grow.