April 9, 2015
After successfully releasing two individual leaderboard analyses on the Fraud and Authentication and the International Remittance sectors of the payment industry, Let’s Talk Payments announces its third LTP9 leaderboard analysis on another important and increasingly popular category in the payments domain – TECHNOLOGY BASED ALTERNATIVE BUSINESS LENDING.
This leaderboard represents the most promising 9 companies in this category.
Alternative business lending companies have recently emerged in the lending space, leveraging state-of-the-art technologies to help non-profit organisations, small businesses, high-tech startups and up-and-running companies with their needs for loans, grants, equity-sharing arrangements, etc. These past 2-3 years have witnessed more than 100 players looking to be part of the alternative lending industry. Such companies include those that already offer term loans or cash advances but want to integrate new technologies in their service offerings as well.
Traditional lenders generally focus on both the small business owner’s personal credit history and key metrics about the borrower’s business, such as industry-specific trends and number of employees. Emerging online alternative lenders use these indicators but also use predictive modeling, data aggregation, and electronic payment technology to assess the health and performance of a business. These emerging lenders have devised techniques to use the data from PayPal, eBay, Amazon, social networking sites, shopping carts, shipping, and accounting programs to understand the merchant's performance and assess the risk comprehensively.
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 the US is fueling the need for alternatives and the ...