Online Small Business Funding
Just two years ago, in 2014, online lenders earned 7 times more than they did a mere four years earlier. Further, these technologically-based lenders offered their clients over $12 billion in credit. However, this industry is doing more than just growing – it is rapidly changing in ways that seek to make lending easier, faster, more diverse and more affordable for small business owners.
More Data Integration
Data is the cornerstone of online lending, and, arguably, it’s the reason these lenders can offer business loans with greater frequency than traditional banks. However, the amount of data that online lenders can leverage is growing by the day. Using an automated process that is backed by complicated algorithms, lenders look at a range of information related to applicants. This information includes anything and everything, from PayPal deposits to average daily bank balances to reviews on social media sites or comments on Etsy.
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