posted at 18:50
Author Name: Eugene Kim
After 96 Loan Rejections, This Guy Built A $750 Million Marketplace For Business Loans
That's when he realized the US banking system was broken for small business owners. Although his business was profitable and he had a healthy credit score, Hodges just couldn't get the loan he needed to expand his business. "There's a big gaping hole, and that gap has gotten worse over the last five or six years," Hodges told Business Insider. So Hodges launched an online marketplace called Emergence Lending Network. His peer-to-peer lending network, which last year merged with the UK-based Funding Circle, provides a marketplace where small business owners could borrow money directly from individual or institutional investors. Funding Circle is part of a larger group of online lending platforms, and the whole sector has been growing rapidly. All three of these companies were mentioned in a recent report by Karen Mills, former Administrator of the US Small Business Administration, for using technology to help businesses gain better access to capital. "Emerging online players are filling the technology void left by many banks, and pushing innovation within the banking sector in the same ways in which other online upstarts such as Amazon.com changed retail and Square has changed the small business payments business," she wrote.

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