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AVANZA GROUP, LLC/ DBA AVANZA CAPITAL (WWW. AVANZA. NYC) has quickly established a significant presence within the non-conventional lending arena since its establishment in 2017. With four physical locations, the company is rapidly becoming known for bringing "Action Capital" to the small business sector, stemming from its commitment to speed, customer support, and common-sense financing.
How Winners Are Chosen: The Bottom Line for Growth
For Avanza Capital, nothing measures success and impact like "increase in the top line" for its clients. This unique approach reflects the driving force behind their mission: to help small businesses rise to the next level. While the options for funding are varied and, in many instances, complicated, Avanza makes it simple by directly stating its purpose and its success as a reflection of the on-the-ground growth of its businesses. This clarity of purpose helps support their mission to create prosperity for their clients.
A Strict Legal Order: Capital Protection
A press release emphasized Avanza's "strict legal framework," a bedrock of its policy to preserve capital for lending partners. The company has worked under precise instructions: "We don't take any steps without the approval of our lawyers." Their steadfast faith in their legal advisors is exemplified by Anthony Varbero, who is "one of the best lawyers in this space." He's got the final word – "if he says no, it's no." This high level of legal oversight acts as a strong safety net, and causes every single loan to be presented with care, that risk is as small as it can be and that the price paid for the security of that project is as low as possible for the partners of Avanza.
Scaling Operations: The Human Element
Operating across states proved to be challenging for Avanza. The company said the most significant barrier was "finding the right help." To scale a scaling business, you need that scaling talent, and finding folks that fit with Avanza's high velocity and culture was not easy. Nonetheless, their approach to future expansion geographically or beyond the product is relatively sober: "We will add more employees as we need them, no point jumping too fast." This conservative, grow-as-needed philosophy mirrors a hands-on, lead-from-the-front mentality, where you "work and do whatever it takes to help out," said Cronquist.
Balancing Act: Yield for Lenders vs. Affordability for Businesses
There's a fine line to toe in providing a high average annualized yield for lenders and competitive, financially viable funding options for small business owners. Avanza is well aware of the tension in this system: "There's not a path of moderation. Unfortunately, you can't please everyone." This admission highlights one of the tough challenges in financial markets: matching the best return for investors with making funds available to borrowers. Avanza gets around this with a clear articulation of its offering and its value proposition to buyers on either side of the equation.
Focus: The Secret to Perfecting The Merchant Cash Advance
We have focused on the principle "do one single thing and do it well" in Avanza's strategy and management by CEO Frank Scarso. Vision Our Approach Unlike many other funders who spread themselves thin and into multiple products, like credit card machines, lines of credit, or rebate programs, Avanza Capital has one product and focus, our Merchant Cash Advance. "All we do is help small businesses get the capital they need, and get it fast," they emphasize. By focusing all its attention on this single product, Avanza aspires to be the best and far more efficient than competitors who offer a wider array of services, which could lead to watered-down expertise.
The Role of Deep Market Insights And Why Pivoting Matters
The market for lending to small businesses will always be "turbulent" and will require "deep market intelligence" and the ability to "constantly pivot." Avanza illustrates that this agility and the ability to adapt policy to keep pace with market conditions are possible by rapidly altering its underwriting guidelines. For example, at the time of the auto strike, they had the "foresight to stop funding automotive across the board." They also track the weather to gauge how it affects business in the region, pulling back lending for real estate when they see interest rates rising. This proactive, data-driven risk management enables Avanza to weather challenging market cycles adroitly. Instilling a culture of "relentless execution" requires that employees "get ahead of the curve since change is constant" and that the entire team listens to market shifts.
Underwriting: Meticulous and Human
Avanza fulfills its "handpicked loan tailored to you" promise for lenders through a thorough underwriting process. The process begins with a thoroughgoing "scrub… through the courts" and a check of the business to certify that it generates the necessary revenues. The most crucial factor for getting approved is "having receivables coming in," which is a fancy way of saying a steady revenue stream. Compiling when an offer is conditionally accepted comes with an extensive credit and background check. Importantly, Avanza says they're strict about: "We didn't want to fund any sex offenders with other types of felonies.
When evaluating companies that traditional banks may have said no to, Avanza "takes a human approach." They know that "life happens and files aren't all perfect." Rather than abiding strictly by traditional bank guidelines, they "endeavor to look at the whole of the file before making a decision one way or the other," which can leave room for judgment.
Technology and the Human Factor: Finding the Right Mix
Avanza uses technology, including an "AI platform to break down the statements for us." But they passionately believe in the inimitable worth of human judgment. "We need that human touch and out-of-the-box thinking if required at the end of the day". This balanced assimilation allows efficiency, data-based insights, and the flexibility and empathy needed to evaluate individual business circumstances.
Social Impact: Serving All Communities
Avanza Capital is explicit about its social mission: "We serve any community, creed and religion." The inclusive strategy is to allow their "Action Capital" to be as widely available as possible. As Avanza does not originate files internally ("all files come from our outside ISO partners"), it indicates a joint collaborative model to connect to a broad range of small businesses.
Final Thoughts
Avanza Capital Holdings has become a powerhouse in small business financing by emphasizing rapidity, unparalleled service and a simple product. This rigorous legal foundation, paired with agile market intelligence and a nuanced fusion of technology and human judgment, enables it to continue to scale and make a difference, always working to help small businesses achieve their next level of revenue and success.
