Small Business Lending Innovators
As banks loan less to small businesses, others are filling the gap
Is small business bank lending in decline?
The percentage of total bank business loans that go to small businesses has steadily declined, from over 50% in 1995 to under 30% in 2012(1)
These firms help identify and connect firms with both traditional and nontraditional lenders.
How good is a 700 personal credit score?
The majority of the adult US population has a credit score above 700 but, only 18% have credit scores above 800. (2)
Credit Score Monitors
A good personal and business credit score is key to getting loans.
Creditera Credit Karma
How Big Is The Bank Of Mom & Dad?
Friends and family members provide financing for about 36% of new companies. Typically, family and friends provide about $23,000 in funds. (3)
Family & Friend Loans
These firms provide legal documents and help keep track of payments minimizing family friction.
Are there better alternatives to using credit cards for personal loans?
When comparing rates on P2P loans to credit cards for similar credit score borrowers, the 3 year P2P loans offered 2% lower rates. (4)
Personal Loans For Business Purposes
These P2P companies enable you to borrow based on your personal credit.
Lending Club Prosper
How big is the eBay?
In 2013, eBay marketplaces had $30.4 billion in gross in the United States. (5)
Short-term Financing For Online Merchants
These firms give credit primarily based on your history selling online sites, like EBay and Etsy.
Kabbage PayPal Working Capital
How long does it take average invoice to get paid
In 2012, private companies received invoices 29.2 days after issuing an invoice. (6)
Get cash right away based on outstanding invoices or receivables, primarily for B2B companies.
How much alternative business lending is happening?
OnDeck, a pioneer in short-term business loans, crossed the $1 billion dollar mark in March 2014. (7)
Short-Term Working Capital Financing
Short-term loans for typically less than two years for established businesses.
Medium Term Loans For Small Business
Loans from 2 to 5 years with a fixed interest rate.
SBA Guaranteed Loans
The loans government guaranteed loans offer super-low interest rates.