Source: PYMNTS
Borrower protection initiatives have taken aim at predatory lenders, both online and brick-and-mortar, with legislators at the state and federal levels addressing concerns that include a lack of transparency and sky-high fees and interest rates.
But only recently have these efforts begun to gradually turn toward small business borrowers, too.
Last month, reports in The Wall Street Journal, citing Federal Reserve data, found that nearly one-third of U.S. small businesses had sought a loan online, compared to just 19 percent that did so in 2017. As online lending platforms proliferate among the SMB borrowing community, however, experts warn that a lack of regulation means these companies rarely publicly reveal interest rates and fees.
As the publication noted, Opportunity Fund recently dug into the numbers and found that the average interest rate among 150 online small business loan contracts is 94 percent, with one rate topping 358 percent.
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January 30, 2020 | admin
Source: U.S. News
Small business loans are typically used to start a business, purchase inventory or equipment, purchase real estate, or expand an existing business. According to a report from the National Small Business Association, about three-quarters of small businesses were able to access adequate financing at the end of 2017, including through loans, credit cards, venture capital and crowdfunding.
The NSBA report indicates small business loans are a key component of economic growth for small businesses and their employees. There is a direct correlation between small business financing access and the ability to hire employees., small business bank loans totaled nearly $600 billion in 2015. At the same time, lending from alternative sources such as finance companies and peer-to-peer, or P2P, marketplace lenders amounted to $593 billion.
While small business loans can be difficult to obtain, there are options. In this guide, you’ll learn how small business loans work and how you can find the best loan to start or expand your small business.
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June 11, 2019 | admin
Source: FINSMES
Pirs Capital, a NYC-based fintech alternative lender specializing in Merchant Cash Advances, secured an increase to $15M of their existing credit facility.
The funding was provided by an institution specializing in providing working capital to high growth companies
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April 1, 2019 | admin
Source: Forbes
America’s largest banks have been shrinking their branch networks for the past several years, mostly by cutting back in relatively poor neighborhoods, according to a report in the LA Times. The report said that consumer advocates are warning that the closings risk widening the wealth gap by leaving scores of low-income areas with less competition for banking services such as personal checking and small-business lending.
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March 23, 2019 | admin
Source: AP
ATLANTA (AP) — Lending for small businesses is at an all-time high in Georgia.
A recent report released by the Georgia Small Business Administration shows that $1.41 billion was loaned in the state last year.
In the last two quarters ending March 31, $650 million in loans were disbursed to small businesses statewide.
“The lending environment is much better than it was 10 years ago,” said Drew Tonsmeire of the UGA Small Business Development Center at Kennesaw State University, says the lending environment is much better than it was 10 years ago.
He said businesses are able to access different sources of funding aside from banks, such as SBA loans and lines of credit from online lenders.
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June 1, 2018 | admin
Source: ABL Advisor
Finitive LLC, a financial technology platform providing institutional investors with direct access to alternative lending investments, announced the launch of its zero-fee platform.
Finitive, which commenced operations in August 2017, has received commitments for transactions with an aggregate capacity of $1.3 billion. Several asset managers and banks have committed capital for transactions in the consumer, renewable energy and commercial real estate lending sectors.
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May 22, 2018 | admin
