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Post by arfankj4 on Mar 9, 2024 23:46:38 GMT -5
Lending Club Prosper Funding Circle and Fundation are using a peer to peer P P model. Backed by individual investors these companies make loan decisions based on proprietary credit models and typically target mid prime or near prime borrowers. Interest rates range from to percent for loans of up to that can stretch for three years. Q platforms offer amortizing loans with fixed interest rates and Poland Mobile Number List three to five year maturities. A third emerging online player in small business lending are lender agnostic marketplaces which create their own market where small business borrowers can comparison shop among a range of products from a variety of lenders including community and regional banks online balance sheet lenders and others. Some of the most prominent of these players include. Biz Credit Lendio and Fundera. One of the more interesting factors of these marketplaces is that they mitigate one of the biggest problems borrowers and lenders face search costs. revenue by charging a small fee on top of the loan if the borrower gets funded and accepts the terms of a loan from its platform. Disruptive Force Clearly new online entrants present a challenge to established players in the small business lending marketplace. They have been on the scene since but momentum has increased significantly in the last to months.
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