Online Small Business Lending Platforms Helped to Fuel Economic Growth

When banks pulled back from lending to any small business perceived as risky in the wake of the financial crisis there was a new group of non-bank lenders who stepped in; online small business lending platforms like Kabbage, OnDeck, Square and PayPal have all helped to provide badly needed capital to small businesses; the target market for these fintech firms is small businesses in need of $250K or less of capital in most cases; these lenders have helped fuel economic growth since the financial crisis and now banks have started to partner with these firms to get their own piece of the action; the big unknown for the platforms is how will they perform in a downturn, something we have not seen in a big way since the financial crisis; the fintechs are able to be more nimble than banks and all have said their underwriting is top of the line, with signs of a downturn starting we might soon know the answer. Source.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments