PayPal Hits $10B SMB Lending Milestone
0Source: PYMNTS.com
Businesses of a certain size — and in industries as varied as construction and restaurants — know the pain of wondering if they will have enough capital to fund operations, inventory, expansion and other mission-critical business activities. They know the uncertainty of going to traditional financial institutions (FIs), even those rooted in their communities, that might not want to take on the risks or economics of extending smaller lines of credit to small businesses (SMBs), with fortunes that may change and which may find repayment challenging.
So, it’s within that context that PayPal announced new numbers today (May 29) on the impact of its lending business on the small business sector. To date, PayPal has issued more than $10 billion to SMBs through its various PayPal business financing options — a mark that underscores not only the demand for such capital, but how the proper deployment of digital technology can help with underwriting and loan origination for this significant sector of the U.S. and global economy. In a new PYMNTS interview, Karen Webster spoke with PayPal’s VP and Commercial Officer, Global Credit Darrell Esch about the story behind that $10 billion mark, and what’s coming next.