Venture capital levels are a telling sign of the health of an industry. This year, headlines have been awash with concerns and skepticism of the alternative lending space, and that’s largely spooked investors. Just this week, Biz2Credit concluded that, as traditional bank lending to SMEs among large and small FIs surges, alternative lending approval rates for small business borrowers continues to slump. Just look at CAN Capital, said Biz2Credit CEO Rohit Arora in a statement. “CAN Capital, one of the largest and oldest players in alternative lending, has stopped lending money and replaced CEO Dan DeMeo,” he said. “Alternative lenders have lost favor because of the high rates they charge. Meanwhile, they lost much of their competitive advantage of the speed of their decision-making as other types of lenders continue to invest in technology to expedite the loan approval process.” Read more: pymnts.com
