PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Alternative Lenders Leverage Technology to Refine Risk Assessment Capabilities For Small Business

By Patricia McGinnis
October 31, 2012
in Mercator Insights
0
0
SHARES
0
VIEWS
Share on LinkedIn

Most banking commercial lenders are stillbeing very wary about increasing the level of lending activity tosmall businesses. At Money2020 last week, Jim Bruene of Netbankerhappened upon a panel discussion featuring three innovators insmall business commercial lending. Glen Goldman, CEO of CapitalAccess Network; Kathryn Petralia, Co-founder & COO, Kabbage;and Noah Breslow, CEO of On Deck Capital all agreed theirbusinesses are booming.

According to Bruene:

“Like most disrupters, the three are gainingtraction in a narrow niche that legacy players have largelyavoided, sub-$250k non-asset-backed commercial lending. In total,the three are on track to do roughly $2 billion in total lendingnext year. While impressive, that’s not the big story. Thedisruptive piece is the technology the three use to underwrite theloans.”
Each is using one or more streams of daily data, which might begenerated by a merchant-accepting application or an online bankingapplication, to monitor borrower cash flows daily, and thus adjustlending levels (and take partial loan repayments) more frequentlythan the usual monthly schedule. In some instances, theirdata-driven view of a business enables them to provide support toonline businesses and e-commerce ventures which have little in theway of physical assets, but are successfully leveraging digitalassets.

Let’s face it: monthly loan repayment schedules are a vestigialtrait of the pre-automation commercial loan products that featuredmanual monthly calculation of interest due and manual posting ofinterest and payments. Bankers take heed: these firms (and otherslike them) are making money from credits which have, in most cases,already been declined by commercial banks. They will change thegame in small business lending.

Click here to read more fromNetBanker.

0
SHARES
0
VIEWS
Share on LinkedIn
Tags: Banking ChannelsCompliance and RegulationCreditDebitEMVFraud Risk and AnalyticsMerchant AcquiringMobile PaymentsPoint of SalePrepaidSelf Service and ConvenienceSocial Media

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    BNPL, BNPL for everyday expenses

    Hard Times, Easy Money: BNPL Now Finances Rent and Utilities

    August 21, 2026
    faster payments fraud prevention

    Beyond Compliance: Rewiring Fraud Prevention for Faster Payments

    August 20, 2026
    embedded finance for banks, instant payments

    Embedded Finance: Banks’ New Growth Channel

    August 19, 2026
    digital gift card experience

    How Leading Brands Are Building Better Digital Gift Card Experiences

    August 18, 2026
    AI fraud prevention for credit unions

    When AI Changes Fraud, Trust Becomes Everything

    August 17, 2026
    fednow

    How the Evolving Role of the CFO Is Changing Payments Strategy

    August 14, 2026
    real-time payment fraud prevention, alternative payment fraud liability

    How Innovation Is Transforming Payment Fraud Prevention

    August 13, 2026
    phygital payments

    Why People Still Want Physical Things in a Digital World

    August 12, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result