The difficulties facing online lenders are another example of the dysfunction and disorganization that have slowed down the flow of loans to small businesses, even as President Trump has insisted that the program is going well, with only a few small glitches. Financial technology companies like PayPal and Square, and smaller companies that focus on small-business lending, like Kabbage and OnDeck, have specialized in giving loans to the businesses that are the focus of the government program -- those with fewer than 500 employees -- and doing it more quickly than banks. Many of the lenders have expressed frustration that they have been shut out when they feel they could be the most useful. "Every five minutes I've been refreshing the Treasury page like a maniac," said Sam Taussig, the head of global policy at Kabbage, one of the largest online lenders for small businesses. "The businesses that we serve on Main Street, they only have about 10 to 12 days of cash on hand, and we are well past that in many places."
An upheaval in the online lending business in recent months has triggered job losses and company closures. But for one early entrepreneur in the industry, such woes came years ago, and helped guide his next endeavor. Vishal Garg co-founded an early online lender, MyRichUncle, over a decade ago. In 2009, the company ran aground for some of the same reasons that online lenders are struggling today--lack of investors to buy the loans it...
It's on the lender to do the right thing by the car buyer, either approving or denying a lease or loan, or deciding on a prime or non-prime rate. It's all about risk analysis, but that can become lost in the mix, both early on or deep into a career. It's the age-old saying: "money is power." In auto finance, it's the lenders – banks and analysts – that have all the power. Analyst training is meant to be ongoing, not just a one-time event.
The nation's top consumer financial watchdog on Thursday issued tough nationwide regulations on payday loans and other short-term loans, aiming to prevent lenders from taking advantage of cash-strapped Americans. The long-awaited rules from the Consumer Financial Protection Bureau would require lenders in most cases to assess whether a consumer can repay the loan. "The CFPB's new rule puts a stop to the payday debt traps that have plagued communities across the country," said Richard Cordray, the bureau's director. "Too often, borrowers who need quick cash end up trapped in loans they can't afford. The rule's common sense ability-to-repay protections prevent lenders from succeeding by setting up borrowers to fail."