In just three short years, Money 20/20 has quickly become one of the major events of the financial services and fintech industries. With over 10,000 (!!!) attendees from 3,000 different companies, the event can be as hectic and overwhelming as it is engaging and informative.
To help you navigate your way through the show like a pro, today we’re launching the first in a series of posts highlighting the trends and associated companies to watch for while at Money 20/20, leading up to the big event on October 25th.
Today’s Topic: Lending
Lending has had a breakout year, with the successful IPOs of Lending Club and OnDeck Capital both occurring since the last Money 20/20 was held. This year, lending continues to be a hive of activity.
Without further ado, here are our trends to watch for in lending:
- Alternative small business lending gets big, and more alternative – Today, small businesses have access to more financing solutions than ever before, and these solutions will be on full display at Money 20/20. Many of these are tailored and customized for specific needs based on the lifecycle of the business. Some of the companies in this alt SMB lending space are built to support the existing banking system while others are trying to eat the banking industry’s lunch.
Companies to watch:
- Fundbox offers affordable short term loans to help small businesses overcome gaps in their cash flow. With lending based on outstanding invoices, the SMB doesn’t have to wait on the money they’re owed, and they pay back the loan as they get paid.
- Quick Bridge Funding works through sales partners to offer working capital loans to SMBs, relying on a proprietary cash flow and credit formula for evaluating risk. This allows Quick Bridge to consider lending to companies that may have trouble getting funding through traditional bank channels.
- Bad credit? No credit? No problem! – There will be several companies on display at Money 20/20 focusing on helping those with poor credit or no credit secure financing and build or rebuild their credit profile. From marketplaces to direct lending, these companies are adding transparency and options to a segment of the lending world where predatory practices are all too common.
Companies to watch:
- SelfLender is an interesting service that offers “credit-builder loans” through a bank partnership. These loans help those without a credit history establish one while also teaching the borrower about how credit scores work, tips for managing their finances, and more.
- LendUp also helps build credit by providing short term installment loans to those with poor credit. They are transparent with their fee structure and extend larger, longer term loans to their borrowers as they repay their existing loans on-time and without incident.
- LoanNow is also a payday lending alternative that offers multiple repayment options while building the borrower’s credit score, similar to LendUp. To reduce risk and the rate for the borrower, LoanNow takes the interesting approach of allowing co-signers to vouch for the borrower while not committing to cover the entire loan amount in case of default.
- Betting the house on, well, a house – Property financing of all stripes has traditionally been a somewhat complicated and painful process. There are a few companies at Money 20/20 that are trying to change that for the borrowers and the lenders.
Companies to watch:
- GROUNDFLOOR bills themselves as “only real estate crowdlending community open to non-accredited and accredited investors.” They provide borrowers with commercial loans for residential property, and offer investors the ability to fund those loans for higher returns.
- Dwell Finance offers loans for rental property investors, with loans for individual property purchases or to consolidate an entire portfolio under a single loan. And interestingly enough, their individual property loans are based on the property cash flow, not the borrower’s individual income.
That’s it for our “Trends for Money 20/20: Lending.” Look for our next installment, “Trends for Money 20/20: Payments,” coming soon!
Interested in discussing these or any other financial services or marketing topics in person at Money 20/20? Contact me to set up a time. See you there!