By Dana Sanchez
Shopify, a Canadian e-commerce company and platform for online stores and retail point-of-sale systems, is expanding its loan services to include new customers who might otherwise be ignored by banks.
The fintech company has launched starter loans for U.S. businesses that are just getting started.
With an initial loan of $200 dollars, Shopify says eligible merchants can use the money to build their brand, add inventory, or experiment with marketing to grow their business.
By reaching small business owners at an early stage, Shopify can deepen its relationships with clients, Bank Innovation reported.
There’s a lot of competition out there, but it’s not coming from banks.
The global financial crisis of 2008 coupled with regulation and capital costs have made it difficult for small and medium-sized enterprises to secure financing.
“For traditional banks, extending credit to small businesses is often unprofitable once risk profiles are taken into consideration,” Finextra reported.
Other e-commerce platforms that lend money include Amazon, eBay, Square and PayPal. Digital lenders such as OnDeck, Kabbage, Bluevine and SellersFunding also hope to reach business Click here to read entire article