Why Small Businesses Are Turning To Online Lenders – Yahoo Finance

One in five credit-seeking small businesses surveyed in 2013 applied to an online lende r, a Federal Reserve Bank of New York survey reveals. And former Small Business Administration head Karen Mills (now a senior fellow at Harvard Business School) reports that online lending is the fastest-growing segment of the small-business-lending market. The explosion in online lending to small companies has many financiers, regulators, pundits and policymakers wondering: Why are so small business owners turning to this funding source? The answer is convenience. Small business owners arent turning to online lenders to save money. Loans from Internet-based sources of credit are generally pricier than credit from banks and other traditional brick-and-mortar lenders. The cost of the typical online loan, it turns out, is closer to the cost of the median credit-card loan than price of a typical term loan or line of credit from a bank. One study by economists at the Federal Reserve Board of Governors calculated that the average interest rate charged on an online loan is approximately twice that on a traditional bank loan. Those running their own small companies arent moving to online lenders because their odds of getting funding are better with them than with banks. While online lenders loan-decision algorithms incorporate a wider range of information than most traditional small business creditors, allowing them to lend to borrowers with lesser credit scores, Internet-based lenders are actually less likely than banks to approve the loan applications submitted to them. A 2014 survey of small business owners conducted by the Federal Reserve Bank of New York found that online lenders had loan-approval rates of 39 percent , versus 59 percent for community banks and small regional banks, and 45 percent for large regional banks.
Read more.. visit http://finance.yahoo.com/news/why-small-businesses-turning-online-144500343.html

How You Can Take Advantage of the Online Video Trend – Yahoo Finance

If you lock in a yearlong contract now, you could be a real genius in six months. ProTip: If you have any budget at all, spend the money to bring in an experienced ad production team. Buying ad time to show bad, cheaply made ads is like buying cut-rate gas for your expensive Italian sports car. 2. Produce video. For the more ambitious and/or those with PR experts who can coordinate the project, the online video marketing trend can be a goldmine for those able toproduce video. If your startup or established business features a legitimate expert, rather than pitching this person to reporters for a comment on breaking news, consider recording a well-produced 20- or 30-second video comment and pitching that to online editors. Or, if you have clients or partners with high-impact, emotional stories, consider getting them on camera to tell those stories. Imagine the earned PR and visibility your business could score by striking a video-content deal with a major trade publication.A good PR firm can not only help your company do the shooting, editing and placing, itcan help youidentify opportunities,too.
Read more.. visit http://finance.yahoo.com/news/online-video-back-133000023.html

Leave a Reply