Middle market lending on the net

The internet may provide banks with a profitable way to lend to SMEs.

Middle market lending lending to small and medium sized enterprises, or SMEs has long been the forbidden fruit of banks. While there is a significant need for capital amongst SMEs in most global markets, banks have not yet developed a profitable lending model for SME customers for two primary reasons. First, the sheer number of borrowing relationships to be managed by a large SME lender could be in the hundreds of thousands. Second, the diverse SME risk profiles create significant uncertainty in assessing credit risk and determining appropriate pricing.

The first wave of net-based business models, such as US-based LiveCapital.com and BizBuyer.com, provide borrowers with the ability to auction...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222