The global online financing platform for SMBs market to grow at a CAGR of 53.06% during the period 2016-2020.
The report covers the present scenario and the growth prospects of the global online financing platform for SMBs market for 2016-2020. To calculate the market size, the report considers the revenue generated from the online financing platform for SMBs in the Americas, APAC, and EMEA.
Online financing is a method of debt financing where different individuals can lend and borrow money using an online platform. Such systems eliminate any involvement of middlemen or banking institutions. The loans provided by the lender help the lender to generate income in the form of interest. On the other hand, the borrowers have easy access to financing, which might be difficult for them to procure if they approach a standard financial intermediary.
One of latest trends in the market is rise in growth of SMBs financing. We expect more online lending and crowd funding with government support, which would help investors to make small investments in private companies. The European Commission is evaluating soft-law measures that could help promote online lending and crowdfunding across Europe.
The commission is assessing the means to align government funding with online lending and crowdfunding platforms in addition to the investment opportunities during the forecast period. The main driving factors are regulatory changes that include the elimination of capital gains tax and the relaxation of rules that limit foreign investments. This has helped in more capital inflows for the start-up businesses. The companies have been in an advantageous position; wherein they are able to meet the day to day operational expenses especially during the starting phase.