Big Banks Are Scared of Competing with Online Lenders

Wells Fargo has done the unprecedented and implemented the first ever, online small business loan venture – something that has never been attempted by any major bank until now. Large banking institutions have been notoriously uninvolved in the online small business loan market, and to say this is a monumental moment in the loan industry would be an understatement. Easy business financing for small businesses has never been a priority for big banks, so the obvious question is why now?

Speculation might lead to the conclusion that big banks are starting to notice that online small business loan companies have become not just a viable option, but the preferred option for small business owners. Why? Put simply, online business loan companies have always promised easy business financing in terms of merchant cash advances, asset based lending and easy term loans and credit scores are not treated as an eliminating factor as compared to big banks.

Online small business loan professionals took the market originally because big banks did not want to risk financing small business. Now that companies like Fast and Easy Funds have proven that these loans are viable, big banks are attempting to take the market. It will take a long time before the market changes completely, but there’s one thing for certain: banks have seen that providing easy business financing for small businesses online is not just an option, but the new standard for lending services.