P2P Lenders Muscling Into Small Business Funding Vacuum

Peer-to-peer lenders such as Prosper and Lending Club are expanding beyond individual loans and into small business lending, but it is not yet clear what the long-term impact of that shift might be and whether the loan terms will retain long-term attractiveness, according to two recent reports. Bank...

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Bibliographic Details
Published inTotal Securitization
Main Author Scully, Matt
Format Trade Publication Article
LanguageEnglish
Published New York Euromoney Institutional Investor PLC 03.02.2014
Subjects
Banks
Financing
Interest rates
Lending
Peer to peer computing
Small business loans
United States > US
Online AccessGet full text
ISSN1938-7504

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Summary:Peer-to-peer lenders such as Prosper and Lending Club are expanding beyond individual loans and into small business lending, but it is not yet clear what the long-term impact of that shift might be and whether the loan terms will retain long-term attractiveness, according to two recent reports. Banks are slowly easing credit standards for small business loans, according to the Federal Reserve. The Fed's latest survey from senior loan officers at nearly 100 US bank branches indicates a rise in demand for business-purpose loans over the past three months. Smaller banks received more business loan applications than large banks, according to the January survey on bank lending practices. But lending conditions are still well above pre-recessionary levels, and P2P lenders are taking advantage of those tight credit requirements to move beyond personal lending and into business financing.
ISSN:1938-7504