FundKite was recently featured in a MoneyInc article on The Top Industries Utilizing Alternative Financing, written as an op-ed by Alex Shvarts, CTO of FundKite.
“With 2018 marking the tenth anniversary of America’s economy being crippled by the Great Recession, there’s been a lot of talk this year about the strength and projected health of small businesses. The alternative lending industry, which emerged after the 2008 recession forced banks to shut out small businesses that didn’t meet their strict revenue and credit score requirements, has proven to be a key source of working capital for businesses.
After ten years of evolving with the digital age, we can now analyze the alternative lending industry’s impact on small business owners. Hundreds of thousands of businesses have utilized this new source of funding to facilitate growth, but who seems to be benefiting the most from this financial industry?
As alternative business funding establishes itself as a trusted source of cash flow, more funding companies are popping up to meet the demands of small business owners in need of working capital. The arrival of more funding companies works in the business owner’s favor as they have more options to choose from and meet the qualifications at.
Each funding company has its own box. In the funding industry, a box refers to the guidelines a company follows when funding a business. Each company looks for certain variables such as monthly and yearly revenue, time in business, negative days, low daily balances. Some businesses are riskier to fund than others, and each funding company has their own box of what they will fund. The majority of funding companies look at top industries in two ways: highest quantity of deals and highest amount funded per deal.”