Small Businesses Turn to Alternative Lenders

Small businesses, still frustrated by banks’ tight lending policies more than three years after the Great Recession ended, are turning to a new crop of alternative lenders that are upending banks’ conservative standards and automating loan approvals. Instead of stringently relying on collateral and credit scores, these cash-flow lenders are using software that reviews online sales, banking transactions and comments on social-media sites, among hundreds of other criteria, to make loan decisions within minutes instead of weeks or months.

They’re providing short-term loans of up to as much as $50,000 to $150,000 to tens of thousands of small businesses

Related Content