Technology-driven finance companies are dedicated to meeting the demands of American small businesses that need access to capital. Our institutions, unlike consumer loans or credit cards, give entrepreneurs access to financing when and where they need it – like hiring new employees on short notice, purchasing inventory, upgrading or expanding facilities and equipment and other time sensitive actions.
Our platforms use technologies – such as sophisticated algorithms and advanced analytics – to create customized products for specific businesses. As a result we can deliver funding faster with a more precise focus on need along with terms that reflect the nature of these commercial loans. This is fundamentally different than consumer facing financing and should not be compared when evaluating how each work.
How We Help
We are proud of the role we play in helping to grow our nation’s economy. It would be wonderful if every business in America could have its own angel investor but that is wishful thinking. Main Street Capital Partnership members work with everyone, that’s our job and we take it very seriously.
The reason is clear: a recent PayNet report found that for every dollar invested in small business generated $2.72 in economic growth. A similar survey of customers by marketplace lender OnDeck was even more dramatic – for every dollar in financing provided OnDeck’s clients generated $3.62 of economic output. At the same time, according to the Electronic Transaction Association a significant number of those that used this type of financing liked the speed of funding, ease of application and the affordability of total loan costs.
What We AREN’T
Funding businesses isn’t like consumer lending. Our products are customized, focused on a specific purpose directly related to operations and usually short-term. Most of all, we work with owners and entrepreneurs – people who understand what they want and need for a given situation. Any public policy conversation needs to recognize this and consider it carefully before actions create negative unintended consequences for America’s small business job creators.