Insights into the world of small business lending and development
Pricey 'fintech' lenders put the squeeze on cash-strapped small businesses
Mark Newman needed some fast cash last October to keep his small Studio City wine-importing business afloat. He went to his main bank but was rejected for a loan because of his relatively low sales. So Newman, 61, turned instead to an online lending company called OnDeck. After submitting a handful of bank statements, he was quickly approved for a $65,000 loan, which allowed Newman to cover his wine shipments and keep his business running. All good, right? Wrong, says Newman.