Par Funding
Par Funding (Complete Business Solutions Group, Inc.) was a Philadelphia-based merchant cash advance lender that raised $550 million from over 1,600 investors between 2011 and 2020 through what courts ruled a Ponzi scheme; the entity is now in SEC receivership.
- Company typePrivate
- Founded2011
- HeadquartersPhiladelphia, United States
- Headcount51–100
- GTM typeB2B
- OfferingServices
What Par Funding does
Par Funding, formally Complete Business Solutions Group, Inc., was a Philadelphia-headquartered (operating across the Southeast U.S.) merchant cash advance (MCA) and small business lending company that purported to provide short-term working capital to small businesses in exchange for a percentage of daily credit card sales. Founded in 2013 (operating since 2011), the entity also operated through wholly-owned subsidiaries Full Spectrum Processing, Inc. and ABetterFinancialPlan.com LLC d/b/a A Better Financial Plan. The company had no proprietary technology platform and originated advances through sales agents and intermediaries rather than conventional marketing channels; pricing was opaque with no publicly disclosed schedules, consistent with the high-cost, short-duration MCA product format. The enterprise employed 51-100 staff at its peak and positioned itself as offering investors high-yield returns by pooling capital for MCA originations.
The underlying business model, however, was never legitimate as represented. Between 2011 and 2020, the company raised approximately $550 million from more than 1,600 investors under representations that the SEC and federal courts subsequently determined to be false, with the entity declared a Ponzi scheme. The portfolio itself exhibited extreme concentration risk: a $91 million MCA default revealed that 54% of deployed capital was concentrated in the top 10 deals totaling $228 million, illustrating catastrophic risk management failures alongside the fraudulent investor structure.
Following the SEC's Complaint filed on July 24, 2020 in the Southern District of Florida (Case No. 20-cv-81205-RAR), the Court appointed Ryan K. Stumphauzer as Receiver on July 27, 2020, effectively terminating Par Funding as a going concern. Founder Joseph LaForte was sentenced to 15½ years in prison in 2022, and his wife Lisa McElhone received a sentence of one day in prison plus 60 days house arrest in 2025 for failure to pay approximately $1.6 million in related taxes. A court-approved claims process was established on December 23, 2022, and by 2025 a distribution plan returned nearly all invested capital to the 1,600+ victims. The entity is no longer operating and is in active liquidation under the Receivership.
Par Funding firmographics
Firmographics- Name
- Par Funding
- Legal name
- Complete Business Solutions Group, Inc.
- Website
- https://parfunding.com
- Company type
- Private
- Founded year
- 2011
- Operating status
- Closed
- Headcount range
- 51–100 employees
- Short description
- Par Funding (Complete Business Solutions Group, Inc.) was a Philadelphia-based merchant cash advance lender that raised $550 million from over 1,600 investors between 2011 and 2020 through what courts ruled a Ponzi scheme; the entity is now in SEC receivership.
- Ownership category
- akta.pro rank
Par Funding industry classification
Industry- Product category
- Merchant Cash Advance Services
- NAICS
- Other Nondepository Credit Intermediation (52229)
- SIC
- Short-Term Business Credit Institutions (6153)
- akta.pro primary industry
- Merchant Cash Advance (MCA) & Revenue-Based Financing (FSAKAGAD)
Keywords
Where Par Funding is headquartered
LocationHeadquarters
- HQ city
- Philadelphia
- HQ country
- United States
- HQ region
- North America
Markets served
Par Funding business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Operations, Marketing or Sales, Personnel
Par Funding product offering
Product offeringCore offering
Par Funding (Complete Business Solutions Group, Inc.) provided short-term financing to small businesses through merchant cash advances, offering upfront capital in exchange for daily repayments from a percentage of future credit card sales. The company also raised capital from investors to fund these advances; the SEC and court later determined that the underlying merchant cash advance operations served as the cover for a $500–550 million Ponzi scheme that defrauded more than 1,600 investors from 2011 until the SEC enforcement action in July 2020.
Product overview
Par Funding operated as a merchant cash advance and small business lending company, operating under Complete Business Solutions Group, Inc. The company offered short-term financing to businesses through merchant cash advances, where it provided upfront capital in exchange for daily repayments from credit card sales. Associated entities included Full Spectrum Processing, Inc. and ABetterFinancialPlan.com LLC (A Better Financial Plan). The company was later revealed to be operating a Ponzi scheme that defrauded investors of hundreds of millions of dollars since 2011.
Differentiator
Problem solved
Functional benefit
Products and services
- Merchant Cash Advances Short-term financing product providing businesses with upfront capital in exchange for a percentage of future daily credit card sales, typically at high interest rates. Targeted at small businesses seeking working capital.
- Small Business Lending Lending services targeted at small businesses seeking capital, providing access to working capital outside of traditional bank lending channels.
Companies that use Par Funding
Customer profileSegments1 record
Ideal customer profiles2 records
Par Funding technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Par Funding partnerships and signals
Strategic signalScale indicators3 records
Recent moves6 records
Expansion highlights1 record
Par Funding competitors and assessment
Company assessmentDirect peers
- OnDeck Capital: OnDeck is a direct peer in online small business lending, providing working capital and term loans to SMBs. Acquired by Envestnet in 2020, it served the same small business customer segment that Par Funding targeted with similar short-term funding products.
- Kabbage: Kabbage was a direct peer providing working capital to small businesses through automated underwriting, including MCA-style products. Acquired by American Express in 2020, it competed in the same SMB funding space with similar revenue-based financing structures.
- CAN Capital: CAN Capital is a direct peer in the merchant cash advance space, providing working capital to small businesses through MCA and small business loan products. It served a similar customer segment with similar financing structures and repayment mechanics.
- Rapid Finance: Rapid Finance is a direct peer providing merchant cash advances and small business lending products. It targets similar SMB customers with similar short-term working capital solutions and daily repayment structures.
- Forward Financing: Forward Financing is a direct peer in the revenue-based financing and merchant cash advance space, providing capital to small businesses in exchange for a percentage of future sales. It competes with the same product mechanics Par Funding used as a cover for its scheme.
- BlueVine: BlueVine is a direct peer providing working capital to small businesses, including lines of credit and invoice factoring. It competes in the same SMB funding space with technology-enabled underwriting and similar target customers.
- Fundbox: Fundbox is a direct peer providing working capital to small businesses through revenue-based financing and lines of credit. It targets similar SMB customers with similar short-term funding products and automated decisioning.
- Credibly: Credibly is a direct peer in the merchant cash advance and small business lending space, providing working capital solutions to SMBs. It serves a similar customer segment with similar product structures and underwriting approach.
- National Funding: National Funding is a direct peer providing small business loans and merchant cash advances to SMBs. It competes in the same short-term business funding space with similar product offerings and customer profiles.
- Accion: Accion is a direct peer in small business lending, providing working capital and loans to underserved small businesses. It serves a similar SMB customer base with similar financing products and mission-oriented positioning.
Market position
Weaknesses4 records
Competitive moat1 record
Key risks6 records
Customer concentration
Par Funding social profiles
Digital presencePar Funding financial estimates
Financial estimateRevenue estimate
Valuation estimate
Par Funding leadership team
Management profileNumber of profiles
Profiles1 record
Par Funding subsidiaries and ownership
Company hierarchySubsidiaries2 records
Par Funding funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Par Funding M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Par Funding
What does Par Funding do?
Par Funding (Complete Business Solutions Group, Inc.) provided short-term financing to small businesses through merchant cash advances, offering upfront capital in exchange for daily repayments from a percentage of future credit card sales. The company also raised capital from investors to fund these advances; the SEC and court later determined that the underlying merchant cash advance operations served as the cover for a $500–550 million Ponzi scheme that defrauded more than 1,600 investors from 2011 until the SEC enforcement action in July 2020.
Is Par Funding a public or private company?
Par Funding is a private company. It is classified as founder individual operated bootstrapped and is currently closed.
When was Par Funding founded?
Par Funding was founded in 2011. It employs 51 to 100 people.
Where is Par Funding based?
Par Funding is headquartered in Philadelphia, United States, in the North America region.
Who are Par Funding's main competitors?
Direct peers on record are OnDeck Capital, Kabbage, CAN Capital, Rapid Finance, Forward Financing, BlueVine, Fundbox, Credibly, National Funding and Accion.
Does Par Funding have an API?
No public API is recorded for Par Funding.
What industry is Par Funding in?
Par Funding's product category is Merchant Cash Advance Services. Its primary akta.pro industry code is FSAKAGAD, Merchant Cash Advance (MCA) & Revenue-Based Financing. Its NAICS code is 52229 and its SIC code is 6153.