Middle market lending on the net

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.