Small-business owners who need quick access to capital have a burgeoning industry eager to fund them. Business lending through online platforms has grown significantly in the past two years. The tight credit environment in US is also fueling demand.
While the online market is in the earliest stages of transformation, it is clear that the traditional small business bank lending model has left gaps that, with the help of technology, challengers are finding promising and profitable. Clearly new online entrants present a challenge to established players in the small business lending marketplace. Things started changing in 2007 but grew at slow pace. After the financial crisis, when banks became stricter in lending, alternative lending models started growing at a rapid pace. Small entrepreneurs, who were having a hard time in getting loans from banks, started drifting to online platforms for fast cash.
The online small business lending market is in its infancy. Online platforms in the US have issued loans worth $530 million in 2012, $861 million in 2013 and $2.3 billion in 2014. By 2016, online small business lending in US will reach $5.2 billion.
“U.S. Platform based Alternative Lending Market Report 2015” answers the following questions:
1. Why is business lending through platforms disruptive in nature? How will it impact the traditional banking system?
2. How big is the addressable market for business lending through platforms in the U.S.?
3. Who are the players dominating the industry? Is there any room for new players?
4. When should we expect the inflection point in business lending through platforms?
5. How will use of Cloud, Analytics and Mobility in business lending through platforms change the industry