Module 2 – July 2019
NONBANK LENDERS TO THE SME SECTOR
Beginning post-financial crisis, nonbank lenders such as Kabbage, Lending Loop, Blue Vine and Credijusto began to pick off niches in retail banking, including small business lending. Some of the early entrants into this market were driven by the insight that SME owners often fund the business from their own pockets for the first few years, and often on a personal credit card. One nonbank lender estimates that 20 to 30 percent of credit card outstandings in the US are for small businesses. In a trillion dollar market, that 200 to 300 billion up for grabs.
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