Insights into the world of small business lending and development
Online Lending Associations Strive For Consumer Protections
Alternative lending arose from the financial crisis of 2008, in part, as a solution for business owners that were constantly getting turned down for capital. Some would say the industry has done a great job of helping small business owners, like mom-and-pop-shops, keep their doors open, while others remain a bit skeptical of online alternative lenders.
Fast forward to mid-2016 and you’ll find stories just about every week announcing increased scrutiny of the industry and federal regulators, such as The Consumer Financial Protection Bureau (CFPB), calling for improved oversight. Thanks to the huge push by the CFPB, four separate groups have recently emerged to help improve transparency and consumer safety for small businesses, including:
- The Responsible Business Lending Coalition (RBLC)
- The Coalition for Responsible Business Finance (CRBF)
- The Marketplace Lending Association (MLA)
- The Innovative Lending Platform Association (ILPA)