FundX: As Banks Fail on SMEs, There Lies a $240-Billion Opportunity for Investors

Bank aversion to unsecured SME loans and an inability to accurately price business risk has lead to a $240 billion yearly opportunity for investors to enter the SME debt market via peer-to-peer and marketplace mechanisms, according to online marketplace invoice lender, FundX.

FundX believes this opportunity is likely to increase as banks tighten their lending amid global stock market volatility and pressure from APRA, opening the door for peer-to-peer and marketplace lenders with more sophisticated credit assessment technology to rapidly scoop up market share.

Assessing and pricing risk in the SME debt market can be highly challenging as business owners often struggle to demonstrate evidence of cash flow, credit history, or financial status and behavior, ...

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