Change in Seasons for Small Business Credit
The market is ripe for consolidation and win-win partnerships to drive sustainable scaling while reducing moral hazard.
It has been summer time in the small business credit market. After a harsh winter triggered by the financial crisis and economic downturn, seeds of innovation were sown, and spring bore a new generation of credit providers fertilized by venture capital. Summer is now tapering after bringing strong growth. Originations have continued their upward trajectory but not the number of companies, which has started to slip. Fall, a time of harvesting and planning, is just around the corner. Then winter will come.