Last Week in Lending

Most of your newsfeeds have probably been filled with banking sector news, so I thought I’d share some of the most interesting fintech news I’ve come across this week – specifically in the B2B lending sector!

Growing demand for short-term finance among UK SMEs

Funding Circle UK ’s latest research report not only shares some great stats about Funding Circle’s contribution to the UK’s GDP - ￡6.9 billion! - but it also highlights how the demand for #SME financing continues to grow. Over half of SMEs in the UK stated they would need additional finance in 2023 – with most needing access to fast options to meet their short-term cash flow needs. Considering this, lenders focused on SMEs this year might want to explore flexible products that leverage instant credit decisioning.

Learn more about the UK’s SME lending needs in 2023

Small businesses: A major untapped credit market in the US

Codat has released a report on the small business #credit landscape in the US. According to Codat, small business lending is a $13.7 billion opportunity, with over 20% of small businesses surveyed stating they tried to access credit last year but couldn’t. This inability to access finance was causing businesses to worry going into 2023, and that was before the recent banking crisis. Lenders have a real opportunity to serve this segment if they can enhance their underwriting capabilities to create more inclusive offerings – perhaps by leveraging #OpenFinance.

Dive into the US small business credit market?

Notable funding announcement: Parker, a corporate credit card start-up powering e-commerce providers

Interesting to see Parker, a #fintech offering corporate credit cards to e-commerce businesses, emerge from stealth this week. They’ve created an underwriting process that assesses affordability based on e-commerce cash flows. Plus, they operate on daily (or weekly) credit card statements – freeing up significant cash flow for their customers. It’s great to see more fintechs harnessing the power of #alternativedata to carve out new product offerings in underserved segments.?

Read more about how Parker has differentiated its offering

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P.S. - I often share articles, tips, and learnings about the fintech industry on my LinkedIn channel. Let's connect!