Here’s why so many fintech startups are loaning to small businesses

Startups

Everyone wants to lend to small businesses, as the fintech boom continues to bring constituent players closer together in feature-terms. Thinking broadly, the rising focus on small-business lending amongst B2B fintech and finservices companies feels directionally similar to the rise of consumer-oriented fintech startups adding banking-like features last year.

This week, several stories underscored the growing appetite for lending to small companies, including news that Goldman Sachs is “close to a deal with Amazon to offer loans to the e-commerce giant’s merchants,” according to CNBC. Amazon has a host of data concerning its merchant-partners and Goldman has a pile of money; by combining their powers, they can probably make some money loaning out capital.

The Goldman news is merely an amuse-bouche, however. What we care about are the startups working to loan out money to other concerns. This week, Divvy announced a neat program that brings it into the space, while Kabbage, a Vision Fund-backed venture, made its small business loans even more flexible.

So many loans

Articles You May Like

Apple MacBook Pro 14-inch M2 Max review
Getsafe expands to France starting with home insurance
Welcome to the Jungle grabs $54M for its slick job platform
Netflix’s ‘All Quiet on the Western Front’ is among the most nominated Oscar films
Danish startup Kanpla wants to help canteens cut food waste

Leave a Reply

Your email address will not be published. Required fields are marked *