The past three years have been an exciting. I’ve witnessed the rise of the alternative lender, also known as the marketplace lender. In any industry where there is a void, there is an entrepreneur with an idea to fill it. This happened in the last eight years in small business lending. As traditional banks contracted their offerings to small businesses for various reasons, the marketplace lender stepped into this opportunity.
I read an older article last night that annoyed me. The article was “Why Small Businesses Have Trouble Getting Credit.” Of course, I was interested in the subject and always seek to understand the dynamics of small business lending. As a faculty member of LSU’s Graduate School of Banking, I teach Small Business Lending. These types of articles are an important part of my personal growth. But, this article didn’t enhance my understanding of credit, it annoyed me.