To fill this void, a wave of online lenders has emerged.
Seizing on an opportunity overlooked by bank lenders, online lenders are using technology to make small-business lending more efficient and profitable. They provide simplicity and convenience in applying, a quick decision on loan approval, and speedy delivery of capital.
In 2011, Krista Morgan was living in the United Kingdom. She watched how peer-to-peer lending was changing how loans were financed and made. She and her father began discussing whether this model could be applied to asset-based lending in which a loan is secured by inventory and/or account receivables. They thought it could and Morgan moved to Denver, where her father was living.
Many small business online lending products target loans under $250,000. Rates are high for these products. Companies generating $1 — $15 million in revenue seek more affordable financing. However, some are growing quickly but not making enough profit to qualify for a bank loan: large banks turned down 34% of these companies that applied for loans and small banks turned down 21%, according to theOn the business side, “getting referrals has been hardest,” said Morgan.
“We just closed our fifth year of lending,” said Morgan. “We’ve advanced $1 billion to growing businesses. With a sub 2% annualized default rate and the ability to collect on 50% of defaulted loans because we are an asset based lender, we have developed a strong track record for investors.”
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Tracy Morgan Back in Repaired Bugatti After CrashTracy Morgan's busted Bugatti is back on the street in tip-top shape.
Leer más »
This new business from Amazon represents a '$100 billion opportunity,' Morgan Stanley saysAmazon is expanding its empire and Morgan Stanley believes Bezos' ambitious satellite internet plan could become very lucrative.
Leer más »
Titans Linebacker Derrick Morgan Retires From NFL And Launches Opportunity Zone FundDerek Morgan earned $44 million during his nine-year NFL career. His next act merges his passions for impact investing and real estate with a new Opportunity Zone fund.
Leer más »
Titans Linebacker Derrick Morgan Retires From NFL And Launches $200 Million Opportunity Zone FundDerek Morgan earned $44 million during his nine-year NFL career. His next act merges his passions for impact investing and real estate with a new Opportunity Zone fund.
Leer más »
Bagel Boss Guy Chris Morgan Signs Deal to Fight Other Viral CelebsThe angry Bagel Boss guy is gonna try blowing off some steam in a boxing ring this year.
Leer más »
JP Morgan Chase is set to report second-quarter earnings – here's what the Street expectsBank stocks have rebounded in recent months as strong results from lenders' retail businesses helped drive firms including J.P. Morgan to record profits.
Leer más »