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Global Online Financing Platform for SMBs Market 2016-2020

  • Executive summary
    • Highlights
  • Scope of the report
    • Market overview
    • Countries covered
      • Table Countries covered for market analysis
    • Top-vendor offerings
      • Table Product offerings
  • Market research methodology
    • Research methodology
    • Economic indicators
  • Introduction
    • Key market highlights
    • Online financing platform for SMBs
      • Table Advantages of online financing for the borrowers
      • Table Advantages of financing for the lenders
      • Table Steps involved in an online financing platform in US
      • Table Risks associated with financing for investors
      • Table Three emerging models in online lending to small businesses
      • Table Upstart: Key takeaways
  • Market landscape
    • Market overview
      • Table Key takeaways 2015-2020
      • Table SMBs financing plans through technological innovations
    • Market size and forecast
      • Table Global online financing platform for SMBs market 2016-2020 ($ million)
      • Table Product features
      • Table Technology investment focus areas in 2020 (%)
      • Table Kabbage loan amount
    • Five forces analysis
      • Table Five forces analysis
  • Geographical segmentation
    • Table Geographical segmentation
    • Americas
      • Table Online financing platform for SMBs Market in Americas 2016-2020 ($ million)
      • Table Online financing platforms in Americas
    • EMEA
      • Table Online financing platform for SMBs Market in EMEA 2016-2020 ($ million)
      • Table Strategies to rebuild the ROE
      • Table Examples of lending platforms that are open to non-resident investors
      • Table Online financing platforms in EMEA
    • APAC
      • Table Online financing platform for SMBs Market in APAC 2016-2020 ($ million)
      • Table Examples of online financing platform in APAC
  • Market drivers
    • Increase in lending of SMBs
      • Table Financial structure infrastructure 2015
    • Borrowers having quicker access to credit
      • Table Examples of companies that provide faster access to credit
    • Proper management of inventory system and working capital
      • Table Advantages of business supporting large corporates and SMBs
      • Table SMBs financing plans through technology innovations
  • Impact of drivers
    • Table Impact of drivers
  • Market challenges
    • Increasing governing and regulatory risks
      • Table Rules for banks and non-bank credit providers by the Federal laws
    • Difficulty in assessing long-term viability due to rising competition from banks and other lenders
    • Unbalanced global economic recovery
  • Impact of drivers and challenges
    • Table Impact of drivers and challenges
  • Market trends
    • Rise in growth of SMBs financing
      • Table Examples of online SMB financing
    • Big data and artificial intelligence
    • Associations with different financial and banking institutions
      • Table Example of associations with different financial and banking institutions
  • Vendor landscape
    • Competitive landscape
      • Table Few examples of online SMB lenders
      • Table Advantages of successful implementation of ERP in microenterprises
    • Other prominent vendors
      • Table Borrowers First 2015
      • Table Daric 2015
      • Table Funding Circle 2015
      • Table Pave 2015
      • Table SoFi 2015
  • Key vendor analysis
    • CircleBack Lending
      • Table Product portfolio
      • Table Recent developments
      • Table CircleBack Lending: Key takeaways
    • Kabbage
    • Lending Club
      • Table Product portfolio
      • Table Recent developments
      • Table Lending Club: Key takeaways
    • Ondeck
      • Table Product portfolio
    • Peerform
      • Table Product portfolio
      • Table Peerform: Key takeaways
    • Prosper
      • Table Product portfolio
      • Table Recent developments
      • Table Prosper: Key takeaways
  • Appendix
    • List of abbreviations
  • Explore Technavio

Global Online Financing Platform for SMBs Market 2016-2020

About Online Financing Platform

Online financing is a method of debt financing where different individuals can lend and borrow money using an online platform. Such systems eliminate any involvement of middlemen or banking institutions. The loans provided by the lender help the lender to generate income in the form of interest. On the other hand, the borrowers have easy access to financing, which might be difficult for them to procure if they approach a standard financial intermediary. The amount of interest charged on the loans is comparatively lower than traditional prime loans, which are offered to compensate lenders for bearing the risk of non-payment from the borrowers. Investors fund only a portion of the loan and spread the amount of the loan across many buyers. The investors receive steady, attractive returns while spreading the risk across multiple borrowers. For example, the largest lending platform is in the US; Lending Club went public in December 2014 with a successful Initial Public Offering (IPO).

Technavio’s analysts forecast the global online financing platform for SMBs market to grow at a CAGR of 53.06% during the period 2016-2020.

Covered in this report

The report covers the present scenario and the growth prospects of the global online financing platform for SMBs market for 2016-2020. To calculate the market size, the report considers the revenue generated from the online financing platform for SMBs in the Americas, APAC, and EMEA.

The market is divided into the following segments based on geography:

  • Americas
  • APAC
  • EMEA
Technavio's report, Global Online Financing Platform for SMBs Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.

Key vendors
  • CircleBack Lending
  • Kabbage
  • Lending Club
  • Ondeck
  • Peerform
  • Prosper
Other prominent vendors
  • Borrowers First
  • Daric
  • Funding Circle
  • Pave
  • SoFi
Market driver
  • Proper management of inventory system and working capital.
  • For a full, detailed list, view our report
Market challenge
  • Difficulty in assessing long-term viability due to rising competition from banks and other lenders.
  • For a full, detailed list, view our report
Market trend
  • Associations with different financial and banking institutions.
  • For a full, detailed list, view our report
Key questions answered in this report
  • What will the market size be in 2020 and what will the growth rate be?
  • What are the key market trends?
  • What is driving this market?
  • What are the challenges to market growth?
  • Who are the key vendors in this market space?
  • What are the market opportunities and threats faced by the key vendors?
  • What are the strengths and weaknesses of the key vendors?


Press Release

Technavio Announces the Publication of its Research Report – Global Online Financing Platform for SMBs Market 2016-2020

Technavio recognizes the following companies as the key players in the global online financing platform for smbs market: CircleBack Lending, Kabbage, Lending Club, Ondeck, Peerform, and Prosper.

Other prominent vendors in the market are: Borrowers First, Daric, Funding Circle, Pave, and SoFi.

Commenting on the report, an analyst from Technavio’s team said: “One of latest trends in the market is rise in growth of SMBs financing. We expect more online lending and crowd funding with government support, which would help investors to make small investments in private companies. The European Commission is evaluating soft-law measures that could help promote online lending and crowdfunding across Europe. The commission is assessing the means to align government funding with online lending and crowdfunding platforms in addition to the investment opportunities during the forecast period. The main driving factors are regulatory changes that include the elimination of capital gains tax and the relaxation of rules that limit foreign investments. This has helped in more capital inflows for the start-up businesses. The companies have been in an advantageous position; wherein they are able to meet the day to day operational expenses especially during the starting phase.”

According to the report, one of the primary drivers in the market is increase in lending of SMBs. In the aftermath of the financial crisis, banking, and financial institutions are trying to deleverage the off-balance sheet items to meet the penal capital adequacy requirements. This has led to the reduction of loan finance for SMBs and individual borrowers as they are considered to be risky. The emerging models of the online lending sector (that includes an online balance sheet, marketplaces, and P2P platforms) has successfully filled a massive unmet need. The innovations in technology have expanded the ease of access to working capital for SMBs. The boundaries of technological services are sometimes fluid, but there are five key products required for funding small businesses. These include marketplace lending, merchant and e-commerce finance, invoice financing, supply chain financing, and trade financing. These trends create an impression that technology may create more such products in the future.

Further, the report states that one major challenge in the market is increasing governing and regulatory risks. If we look at the present market, the online lending platforms are subject to regulations that are for certain consumer banking and other financial institutions. The consumer credit that is provided by the banking and financial institutions are subjected to a number of laws. These laws regulate the credit life-cycle that includes underwriting, payment terms, agreements and disclosures, advertisements and solicitations, and debt collection practices. There are also other laws like privacy and data security and anti-money laundering laws that regulate the relationship between the customers or borrowers and the banking and financial institutions. Due to complex regulations, non-bank creditors are forging partnerships with the banking and financial institutions as the banks have powers to regulate interest rates and host compliance infrastructure. However, bank partnerships with non-bank consumer lenders have drawn scrutiny from banking regulators on their lending practices and compliance with laws.



Companies Mentioned

CircleBack Lending, Kabbage, Lending Club, Ondeck, Peerform, Prosper, Borrowers First, Daric, Funding Circle, Pave, SoFi.

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