FundKite was recently featured in a Bankless Times article on Why Small Businesses Are Turning To Alternative Forms Of Funding, written as an op-ed by Alex Shvarts, CTO of FundKite.
“Alternative lending has been raising eyebrows in the finance industry lately as a rising underdog for sources of working capital for small businesses.
What was thought to be another fad-funding trend has proven over the past ten years that this new grubstake is here to help small businesses and here to stay.
According to a 2017 study by Forbes, out of 29.6 million businesses in the U.S., all but 19,000 are small. Small businesses make up a major percentage of the economy and yet have always had a hard time getting the extra working capital they need to grow. In the early 2000s, banks dominated the lending scene, doling out loans to any merchant, even if it over leveraged them because the banks were so bloated with funders and investors. When the recession hit in 2008, many business owners were badly hurt or entirely shut down from the banks’ irresponsibility. Alternative lending emerged as a way to provide much-needed funding to companies that didn’t qualify for strictly regulated bank loans, and the industry continues to grow as it is fresher and leaner than big banks…”
Shvarts continues to emphasize the ways in which banks can no longer meet the developing needs of small business owners, and how the structure of alternative funding is better suited for both the digital age and increasing number of small businesses. Read the rest of the article on Bankless Times by clicking this link.