A most significant barrier to growth for many small businesses in America is lack of access to capital, despite their significant potential for growth. This barrier is largely due to the rigid underwriting practices of traditional banks, which often make it difficult or impossible to obtain funding for an underserved small business. As a result, there is a lack of lenders available leaving countless entrepreneurs without access to the financial resources needed to grow their business. The founder of Avanza Capital Holdings witnessed this void while working on Wall Street, and it inspired him to fill the gap and realize the tremendous potential of so many small businesses that were struggling to obtain the support needed.

To meet the challenges of this sector, Avanza Capital Holdings was established with a flexible, innovative lending approach that is entirely different from what exists today. Although Avanza began as a retail lender, it is now an established lender in the mid-market, with a singular objective: To help small businesses thrive. Funding for those businesses is primarily through fast, dependable merchant cash advances (MCAs). As part of the strategic process of lending, Avanza has created a robust set of streamlined internal processes and risk analysis methodologies, both of which provide small business clients with a comprehensive and supportive experience, and position Avanza as a primary advocate for small business development throughout the United States.

Core Services of Avanza Capital Holdings

Avanza Capital Holdings is unique in that it focuses solely on providing capital to small businesses that may not be able to qualify or could otherwise benefit from traditional bank loans due to inflexible lending guidelines and excessive paperwork. This has enabled Avanza Capital Holdings to establish itself as a trusted partner and advocate for small business applicants seeking capital. As a result, Avanza Capital Holdings has developed a comprehensive range of services that allow small business clients to easily apply for funding.

Avanza Capital Holdings chose to specialize in Merchant Cash Advance (MCA) for small businesses. This decision allowed Avanza Capital Holdings to streamline its funding process and provide the fastest, simplest way for small-business owners to access cash when needed. Avanza's lending is not collateralized. Given that it is a high-risk lending partner, terms are determined by the borrower's position in the file. This often results in holdback rates set at 50%, with the potential for higher rates on larger transactions.

Risk Management and Data Analysis

Avanza Capital Holdings has developed their underwriting process to include not only the effects of borrower performance and other loan performance data, but also the anticipated impact of many different external conditions on the underlying performance of the loan. By developing a more structured approach to underwriting that incorporates rigorous, accurate analysis of loan repayment data including loan performance and associated metrics, Avanza Capital Holdings provides its clients with a more comprehensive view of loan performance. In doing so, they have developed underwriting guidelines that are flexible enough to accommodate borrowers in different locations and types of industries.

Avanza demonstrates a significant emphasis on technology being an integral component of their risk mitigation plans. For example, they utilize advanced analytic capabilities to analyze large amounts of data in order to assess trends and make educated lending decisions. Adopting a data-driven process, Avanza is able to not only strengthen its underwriting processes but also provide its accredited lenders with clear, actionable insights into their performance metrics.

Efficiency through Custom Software Solutions

Avanza software aids in digitizing and simplifying compliance reporting, removing time that returns compliance documents normally requires clients to prepare manually. Avanza’s in-house software allows it to have visibility into compliance and risk metrics across all lending partners at one central location, thus reducing the operational costs associated with compliance and improving the management of risk issues through early identification.

Using this custom software greatly improves customer experience through its ease of use. Clients can manage their financial relationships quickly, easily, and without having to deal with confusing documents or waiting for approvals. Streamlining this process saves time for small business owners, and it also creates a strong sense of confidence and trust between the client and Avanza Capital Holdings. Avanza differentiates itself by ensuring fairness and maintaining strong relationships, specifically by not stealing from its ISO firms and ensuring commission is paid every week. To support this growth, the company has strategically hired several key employees and customer service representatives to enhance file acquisition from brokerage firms, a strategy that has proven successful.

Real-time Financial Calculators

Avanza Capital Holdings understands that small business owners sometimes find it challenging to plan for their finances; therefore, they have created an array of financial calculators for users to use conveniently and intuitively. Clients can use their financial data in an engaging manner and see what options exist for financing and how they fit into their business aspirations. This way, clients become active partners in their development and evolution rather than just recipients of funds.

When businesses are provided with the tools necessary to understand their financial obligations and make informed decisions regarding their financial futures, trust and clarity will develop between Avanza Capital Holdings and the bank in each transaction. As clients are able to gain valuable insights into their financial picture, they can be better equipped to take advantage of available resources to address challenges and achieve repayment on favorable terms and, ultimately, operate their businesses more efficiently within a sustainable and holistic financial model. Avanza Capital Holdings is committed to educating and empowering small business owners to help achieve their goals.

Future Innovations

The main thrust of Avanza Capital Holdings' business strategy over the next 2-3 years will be to expand geographically by opening new offices in southern U.S. states such as Tennessee (TN) and Texas (TX). Due to a highly competitive labor force in NYC that makes it increasingly difficult to find qualified employees, Avanza has decided to expand its footprint down South. Conversely, Avanza's currently operating offices located in North Carolina (NC) and Florida (FL) are performing above expectations; therefore, Avanza expects to duplicate this level of success within the new Southern markets for the purpose of establishing talent acquisition and regional growth as primary goals.

In addition to taking advantage of technological advancements, Avanza Capital Holdings focuses on creating needs-based systems to improve the process of lending to small businesses. Through continuous investment in research and development, Avanza will continue to explore future innovations that will further streamline funding and enhance our position within the competitive lending marketplace. One aspect of this focus will be a more integrated CRM system, as well as the implementation of sophisticated analytics based on machine-learning algorithms to predict market trends and borrower behaviors.

Frank Scarso | CEO of Avanza Capital Holdings

Frank Scarso is the Chief Executive Officer of Avanza Capital Holdings. With 30 years of financial experience combined with a strong work ethic stemming from his experience overcoming obstacles, Mr. Scarso is creating and defining the culture of Avanza Capital Holdings through transparency and commitment to customer service. He shares his personal journey in his upcoming book titled "The Hard Way Home," scheduled to be released in January.

“Avanza Capital Holdings believes in the U.S small business and have pledged to assist good companies that have proven themselves along the way and may need a little help to get to the next stage of growth.”

“Avanza Capital Holdings create and manage a diverse portfolio of capital allocations tailored for accredited lenders who aim to safeguard their capital while earning a steady income.”