PYMNTS-MonitorEdge-May-2024

CAN Capital Announces Another Leadership Change With New CEO

Alternative small business (SMB) lending platform CAN Capital announced on Wednesday (Jan. 9) that Edward J. Siciliano has been appointed as the new chief executive officer. CAN Capital added Siciliano from commercial financing company Marlin Business Services, where he served in a variety of roles, including CEO and chief operating officer.

“Ed is a proven leader with deep industry knowledge, and a strategist who is skilled at driving business growth,” said CAN Capital Executive Chairman Gary Johnson in a statement. “Throughout his career, he has served the needs of small businesses, while building loyal teams that deliver innovative products and a great customer experience. These skills will be invaluable as CAN Capital finds new ways to deliver on its mission of helping small businesses succeed.”

CAN Capital has endured highs and lows throughout its years of operation. In 2016, the company placed its then-CEO Daniel DeMeo on a leave of absence. Reports at the time said the company had looked to overhaul its management team after difficulties in shifting with a new model of how it collected payments from borrowers.

That move followed the announcement that the company hit a milestone of providing more than $6 billion in working capital to small business borrowers. However, in 2017, CAN Capital hit another speed bump when analysts pointed to the company’s aggressive growth plans as the likely culprit to some of its struggles, The Wall Street Journal reported at the time.

Recent years have proven challenging for the broader alternative small business finance market overall, with rising competition, scrutiny over loan agreements and costs, and a lack of awareness among borrowers all adding headwinds to the market.

The challenges are not isolated to the U.S., either.

In Australia, for instance, alternative lender Prospa suddenly nixed its initial public offering (IPO) last year after regulators criticized the company’s contractual agreements with small business borrowers. Earlier this week, the company announced that it joined industry players OnDeck, Capify and others in adhering to the Code of Lending Practice, vowing to offer fair terms and protect customers.

PYMNTS-MonitorEdge-May-2024