Will Peer-to-Peer Lending Burn the Alternative Business Lending Market?
For months I’ve been saying that peer-to-peer lenders will be companies to look out for, the latest being on December 29th. Lending Club fully intends to make the leap from consumer lending to business lending which may possibly pit them against the world of merchant cash advance.
In this video, a Bloomberg reporter asks OnDeck Capital’s CEO if his company will get burned by peer-to-peer lending.
If you watched the whole thing, you might also hear the insinuation that OnDeck’s product is similar to factoring since Breslow explains his loan program much like a merchant cash advance account rep would. “You simply pay x cents on the dollar”
I think there is room for both Lending Club and OnDeck. It’s the little funders of the world that will eventually feel a squeeze.Last modified: January 12, 2014
Sean Murray is the President and Chief Editor of deBanked and the founder of the Broker Fair Conference. Connect with me on LinkedIn or follow me on twitter. You can view all future deBanked events here.