The percentage of loans extended to small and medium sized businesses in the US is typically measured by the proportion of commercial and industrial loans under 12bn in any given month. Since 2009 that measure has dropped from being 34% of new lending to just 21%. A new breed of primarily on-line lenders have stepped in to fill that gap, led by names such as Lending Club, On Deck, Biz2Credit, Kabbage has stepped in to fill the gap raising $$1 million of investments last year, with one in five smaller firms stating that they had applied for funding via an on-line lender.
The percentage of loans extended to small and medium sized businesses in the US is typically measured by the proportion of commercial and industrial loans under $1 million in any given month. Since 2009 that measure has dropped from being 34% of new lending to just 21%. A new breed of primarily on-line lenders have stepped in to fill that gap, led by names such as Lending Club, On Deck, Biz2Credit, Kabbage has stepped in to fill the gap raising $12bn of investments last year, with one in five smaller firms stating that they had applied for funding via an on-line lender.