Online financing is a method of debt financing where different individuals can lend and borrow money using an online platform. Such systems eliminate any involvement of middlemen or banking institutions. The loans provided by the lender help the lender to generate income in the form of interest. On the other hand, the borrowers have easy access to financing, which might be difficult for them to procure if they approach a standard financial intermediary. The amount of interest charged on the loans is comparatively lower than traditional prime loans, which are offered to compensate lenders for bearing the risk of non-payment from the borrowers. Investors fund only a portion of the loan and spread the amount of the loan across many buyers. The investors receive steady, attractive returns while spreading the risk across multiple borrowers. For example, the largest lending platform is in the US; Lending Club went public in December 2014 with a successful Initial Public Offering (IPO).
Technavio’s analysts forecast the global online financing platform for SMBs market to grow at a CAGR of 53.06% during the period 2016-2020.
Covered in this report The report covers the present scenario and the growth prospects of the global online financing platform for SMBs market for 2016-2020. To calculate the market size, the report considers the revenue generated from the online financing platform for SMBs in the Americas, APAC, and EMEA.
The market is divided into the following segments based on geography: - Americas - APAC - EMEA
Technavio's report, Global Online Financing Platform for SMBs Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
Other prominent vendors - Borrowers First - Daric - Funding Circle - Pave - SoFi
Market driver - Proper management of inventory system and working capital. - For a full, detailed list, view our report
Market challenge - Difficulty in assessing long-term viability due to rising competition from banks and other lenders. - For a full, detailed list, view our report
Market trend - Associations with different financial and banking institutions. - For a full, detailed list, view our report
Key questions answered in this report - What will the market size be in 2020 and what will the growth rate be? - What are the key market trends? - What is driving this market? - What are the challenges to market growth? - Who are the key vendors in this market space? - What are the market opportunities and threats faced by the key vendors? - What are the strengths and weaknesses of the key vendors?
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