Small Businesses Rank Online Lenders More Transparent Than Big Banks
When it comes to business loans, small businesses say online lenders are more transparent than big banks.
Specifically, 15% of respondents to a Federal Reserve survey reported challenges with transparency experienced at big banks versus only 12% with online lenders. Small businesses also ranked big banks worse on credit decision wait times, application process difficulty, and other unspecified challenges.
The Federal Reserve survey examined small businesses with less than 500 employees.
Small banks fared the best on transparency, payment terms, and interest rates.April 22, 2019