Small Business in the News: May 21-27, 2016

We know there is too much to keep up with when you’re a busy entrepreneur, so we compile small business news highlights each week for you to read only what matters most. Here is a summary of the top stories for May 21-27, 2016.

Banks to Cut Back on Online Lending Risk

In the wake of the crisis at LendingClub, banks are making plans to cut exposure to online consumer loans if the market continues to deteriorate. An unidentified source stated that banks want to put plans in place if they later decide to cut back, and Wall Street lenders are looking to avoid similar mistakes made during the subprime crisis. Read more…

New Study Shows Small Businesses Trapped by Predatory Loans

A new report released by Opportunity Fund, a nonprofit microfinance provider, found that some online lenders offering short-term loans could be causing more harm than good. According to the report, the average alternative loan in their dataset came with an APR of 94%, while the average monthly loan payment was nearly double the net income of the business owner. Read more…

Gender Gap for NYC’s Women in Business Narrowing

New study by Biz2Credit found that a gender gap still exists. The study examined more than 2,500 local companies in the New York metro area and found that women-owned firms had lower annual revenues, credit scores, and loan approval rates than their male counterparts. Progress is being made, however, as revenue figures were 55% higher for women-owned companies than the previous 12 months. Read more…

Online Lenders Evaluate Creditworthiness Differently

Dozens of online lenders look at different data points and resources in order to determine your credit worthiness. This is done to help approve more loans by looking outside personal credit scores and business numbers. These new fintech companies may look at your business website, company shipping history, business reviews, and social media accounts. Read more…

Online Lender Raises Rates for Risky Borrowers

Prosper Marketplace, an online lender, announced they are increasing rates to their riskiest borrowers in an attempt to make loans more appealing to investors. Prospers Chief Risk Officer claims the increase of 0.29 percentage points is necessary to continue providing “a compelling fixed-income product relative to the many alternatives available to our investor community.” Read more…

 

Recommended Posts:

Small Tech Companies See A Bright Future

Andrew Raab

As technological advancements occur every day, it’s no surprise the tech...

Small Business in the News: March 11-17, 2017

Hunter Stunzi

We know there is too much to keep up with when you’re a busy entrepreneur, so we...

Small Business in the News: March 4-10, 2017

Hunter Stunzi

We know there is too much to keep up with when you’re a busy entrepreneur, so we...