Will the Wild West of alternative lending stay that way?November 24, 2015 | By: Sean Murray
Comments on the regulatory future of alternative lending were included in a joint report prepared by Lendio and Dealstruck:
Blake hopes that governing agencies will offer reasonable policies that will encourage best-in-class business practices (to weed out the bad actors) without damaging the innovation and growth in the industry. Furthermore, Lendio highly recommends that any new or additional regulations come from the Federal level, rather than through a state-by-state patchwork of laws that will impose inconsistent and costly regulations on the online lenders.
– Brock Blake, Lendio CEO
Thoughtful regulation to ensure operators are performing with honesty and transparency is a good thing. And good players are stepping up to the plate to take a proactive stance regarding fair and transparent lending practices, executed ethically and with integrity. Fortunately for the small business lending market, the key lenders and marketplaces in the industry have used a blueprint of best practices that were established and implemented in the consumer lending space. It’s fascinating to think about how much room they have left to grow.
– Ethan Sentura, Dealstruck CEO
The report compiles other interesting pieces of data such as OnDeck’s share of the entire business loan market, which stood at less than a quarter of 1% just 1 year ago.
You can view Lendio and Dealstruck’s full report here.Last modified: November 24, 2015
Sean Murray is the founder of deBanked, a 10-year veteran of the merchant cash advance industry, a casual Lending Club and Prosper investor, the co-founder of Daily Funder, an alternative lending speaker, consultant, writer, and enthusiast. Connect with me on LinkedIn or follow me on twitter.