Although P2P network is still only a small part of the global banking landscape, a number of convergent trends are powering its growth as an industry.
- The youth are increasingly eager to transact online round the clock.
- The ‘Big Data’ has removed banks’ information advantage and the need for expensive infrastructure.
- Current low interest rates have raised alternate investment profile.
- P2P providers are able to provide better services as compared to conventional banks.
P2P seems to represent real competition in what has been a closed market for a very long time. For investors, P2P providers can offer better returns than conventional banks, but do carry more risk. The platform itself carries no risk, so capital requirements are much lower.
Below are some of the top companies engaged in providing small business loans to entrepreneurs and small business owners worldwide:
Kabbage
The diversity of companies operating within the small business industry has prompted the creation of several types of small business loans. Kabbage’s small business loans support all aspects of small businesses from marketing expenses to new equipment purchases and more. At Kabbage, they provide small business funding that is designed to help small businesses grow on their terms as having access to small business financing can give the freedom to focus on other aspects of running business. Kabbage empowers small businesses through straightforward, flexible access to capital. They have extended more than $6.5 billion directly to small business owners and powered automated funding for other organizations all over the globe.
Ondeck Capital
OnDeck is the largest online small business lender in the US. Since 2007, they have issued over $8 billion in loans for many business needs including inventory purchase, equipment acquisition, hiring, and general corporate purposes. Serving more than 700 industries throughout the country, OnDeck has been trusted by over 80,000 small businesses by providing them with a term loan or line of credit to help them build a growing and thriving enterprise. Created to support and empower small businesses, OnDeck is 100% committed to serving our customers with the smartest financing solutions and world-class service. OnDeck is the secure financing service that business owners everywhere can truly rely on.
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Fundbox
Started in 2013, Fundbox has two products for small businesses: one is invoice financing offering and second is a line of credit that requires only a bank connection to get a credit decision. For both products, with a single click funds show up in a customer’s bank account as soon as the next business day. Fundbox has raised over $100 million in capital from leading Silicon Valley investors such as Khosla Ventures, General Catalyst Partners, and Spark Capital. They have also partnered with industry influencers and trusted leading products including Intuit QuickBooks, Freshbooks, Xero, Harvest, and Zoho.
Bluevine
Founded in 2013, BlueVine has issued over $1 billion in loans to over 10,000 small business owners. BlueVine’s clients work with some of the world’s leading brands like LinkedIn, Urban Outfitters, Holiday Inn, Sephora, Groupon, Wallgreens, TJX, Office Depot, Best Buy and Verizon.
Lending Club
Since 2007, Lending Club have been bringing borrowers and investors together, transforming the way people access credit. Over the last 10 years, they have helped millions of people take control of their debt, grow their small businesses, and invest for the future. It is a technology company built on the belief that innovative, creative solutions deliver more value and a better experience. Lending Club has issued over $42 billion in loans to over 2,500,000 small business owners.
[box type=”note” align=”” class=”” width=””]The writer is a Karachi based freelance columnist and is a banker by profession. He could be reached on Twitter @ReluctantAhsan[/box]