CAN Capital has mandated Guggenheim Securities to manage a $191 million securitization of merchant cash advances (MCAs) and loans made to U.S. small businesses to fund working capital needs.
The deal is the only the third securitization of this type of asset. In early April Guggenheim led the inaugural deal in the space, a $270 million deal for Kabbage, an online provider of working capital for small businesses. Later that month Deutsche Bank managed a $175-million deal backed by small business loans for OnDeck Capital. Ronald Borod, counsel for DLA Piper, who spoke at last week’s ABS East securitization conference, said that time that there were at least three more transactions in the works.