Small Business Lending is King to Institutional Investors

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2015 survey

“Despite the original predominance of consumer lending sites, the responses to the survey show the potential for greater future growth in small business lending.”

Richards Kibbe & Orbe LLP and Wharton FinTech polled more than 300 institutional investors to gauge their thoughts on marketplace lending. They published their findings in a recently released report.

The surveyors seemed surprised that institutional investors indicated their interest in small business loans was greater than that of consumer, real estate, education, and everything else.

most target loan types

Securitizations ranked lowest on the list of investments worth pursuing and buying whole loans was second only to “multiple strategies.”

worth pursuing

Regulatory risk and uncertainty was low on the list of concerns while borrower quality was the most concerning factor. Curiously, competition was the least concerning of all.

concern levels

Speaking to the liquidity issues of the assets, institutional investors indicated that the development of a mature secondary trading market was more likely than anything else to lessen their concerns about marketplace lending.


Do any of these results surprise you?

who took part?

Download the Key Findings report

Last modified: June 2, 2015
Sean Murray

Category: Business Lending, merchant cash advance, p2p lending

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