FINTECH firms in the US have helped support almost $10bn (£7.5bn) of lending between 2015 and 2017, research shows.
A report on small business lending in the US, by research firm NDP Analytics, revealed fintech firms have helped generate $37.7bn in gross output, 358,911 jobs and $12.6bn in wages in US communities.
According to Nam Pham, report author and managing partner at NDP, for every $1 lent to small businesses, sales of small business borrowers increased by $2.31, creating $3.79 in gross output in local communities across the country.
“The economic benefits of online lending are far reaching and extend beyond the funding used by small businesses to maintain or expand their operations,” Pham said.
“As these businesses succeed, so do the communities around them. Small businesses are increasingly turning to online lenders to help cover inventory, payroll for employees, and other expenses at critical junctures in their growth. The loan impacts not just the borrower, but those who work and engage with that business.”
The study also found that nearly one third of online small business borrowers are located in lower-income communities.
A quarter of borrowers were micro-businesses with less than $100,000 in annual sales and two-thirds have less than $500,000 in annual sales.
Almost 42 per cent of small businesses borrowed between $10,000 and $50,000 from online lenders, with the average amount being $55,498.