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08-05-2018, 11:21 AM #1Karen37aGuest
Why Institutional Investors are Dominating Small Business Lending
"Institutional investors are becoming a bigger part of the market, which can be seen by recent changes in business models from several large online balance sheet lenders"
There is a bit of irony that large institutional investors are becoming a force in lending to the little guys. However, it is a smart move as the availability of vast amounts of data that online platforms can collect is now used to mitigate risk. Thus, default rates are lower. In earlier times, family funds, insurance companies, hedge funds, and mutual funds might not have been bothered in small loan amounts, but things have changed." Quoted from an article
numerous ones feel the same way
Also
Pay pal
Debanked Article
https://debanked.com/2018/07/90-of-p...rming-on-pace/
Square Capital funding 130 mil a month
Debanked Article
https://debanked.com/2018/08/square-...llion-a-month/
Shopify
https://debanked.com/2018/07/shopify...usiness-grows/
Today Shopify released its Q2 2018 earnings report, revealing that Shopify Capital issued $68.5 million in merchant cash advances in the second quarter of 2018, an increase of 84% compared to the $37.2 million issued in the second quarter of last year. Shopify Capital has advanced nearly $300 million to merchants since they launched in April 2016, $80 million of which was
Cnbc. Square to partner with Ebay
https://www.cnbc.com/2018/07/24/squa...s-lending.html
Square partners with eBay to expand lending for 'underserved' small businesses
Square and eBay are teaming up to offer small loans to the e-commerce site's online merchants.
Square Capital, the lending arm of the payment start-up, launched in 2014 and focuses on businesses that have been historically underserved when seeking funding from traditional banks.
Small-business lending has been an increasingly competitive area in fintech with PayPal and Amazon offering their own programs.
* this list can go on for miles*Last edited by Karen37a; 08-05-2018 at 01:24 PM. Reason: Funding 130 mil a month
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08-05-2018, 11:29 AM #2Karen37aGuest
https://www.cnbc.com/2018/06/13/bove...mpetitors.html
The nature of loans being sold is important here. This is because consumer loans are handled primarily by computers. They are the essence of hi-tech banking. Business loans are handled by people. They require hi-touch service.
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08-05-2018, 11:42 AM #3Karen37aGuest
Heading into this year, small businesses reported stronger revenue growth and profitability but still struggled to get loans to pay operating expenses and wages, according to 2017 Small Business Credit Survey. As many as 70 percent of merchants didn't receive the funding they wanted last year, the report said.
Happy Hunting!
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