An acronym for “On-Line Business,” OLB Group is a merchant account provider that sells e-commerce payment processing and retail point-of-sale solutions. The company was founded in 1993 to help merchants build online stores. In mid-2018, it dramatically expanded its operations by acquiring Excel Corporation, CrowdPay.us, and Omnisoft.
Excel Corporation Acquisition
OLB Group’s April 2018 acquisition of Excel Corporation included the full assets of eVance Processing, Chyp, and Securus Payments. According to the June 2018 SEC filing cited above, “in order to finance the Asset Acquisition, the Company executed a term loan agreement with GACP [Great American Capital Partners – ed.], for $12,500,000.” According to the same SEC filing, the net tangible assets acquired in this deal totaled $2,968,589, while the remaining $9,875,576 borrowed by OLB represented “[g]oodwill and other intangibles.” Two other passages from the SEC filing are of interest:
[…] as of June 30, 2018, [OLB Group] had a cash balance of $164,410 And a working capital deficit of $2,779,777 […]
The Company has borrowed $1,000,000 from a private investor in order to make its first scheduled payments on the Loan and Security Agreement (entered into on April 9, 2018) and is currently in the process of a capital raise of up to $5,000,000. If the full $5,000,000 is raised, the Company will have enough liquidly for the next several years. This, along with the additional acquisitions of CrowdPay.US, Inc, and Omnisoft, Inc. should provide the company with the assets and operations it requires to continue as a going concern. However, there are no assurances that we will be able to consummate the above capital raise and meet its required interest and principle payments on the loan. These factors among others, raise substantial doubt about the company’s ability to continue as a going concern.
In other words, OLB Group purchased Excel Corporation while in a state of deficit and took on two multi-million dollar loans in order to fund Excel Corporation’s acquisition and ongoing operations. This is significant because Excel Corporation is the parent company of eVance Processing, Chyp, and Securus Payments, three providers that rate poorly on CPO due to deceptive sales tactics and expensive contract terms. If OLB Group intends to eventually break even on its acquisition of Excel Corporation, then it will need to see significant annual returns from Excel Corporation’s merchant portfolio. Given Chyp’s known business model, this may result in even more aggressive sales tactics and unfavorable contract terms intended to generate rapid profits.
OLB Group Location and Ownership
OLB Group is headquartered at 200 Park Ave #1700, New York, New York 10166, but a press release states that the operations of Excel Corporation will be based in Alpharetta, Georgia. Excel Corporation’s subsidiary companies include registered ISOs/MSPs of Wells Fargo Bank, N.A., Walnut Creek, California; Elavon, Inc., Atlanta, Georgia; BMO Harris Bank N.A., Chicago, Illinois; and Merrick Bank, South Jordan, Utah. Ronny Yakov is the CEO of OLB Group.
OLB Group Review Table of Contents
- Costs & Contract: OLB Group offers variable contract terms that may come down to the individual agent selling the account.
- Complaints & Service: OLB Group has received fewer than 10 public complaints.
- BBB Rating: OLB Group currently has no rating with the Better Business Bureau and has received 0 complaints in the last 3 years.
- Sales & Marketing: OLB Group appears to hire independent sales agents and its subsidiaries have received numerous complaints about their sales practices.
- Rates & Fees: How Merchants Got The Best Rates With OLB Group