The Federal Reserve has released a report titled "Small Business Credit Survey Report on Startup Firms" with findings based on the 2016 Small Business Credit Survey which surveyed companies less than five years old with more than one and fewer than 500 employees; findings show that these companies face greater funding challenges than mature companies; report compares financing statistics of startups and mature companies; also reports on sources of funds noting that medium to high credit risk startups were more likely to apply for loans from online lenders and only 11% of low credit risk startups sought online loan financing. Source
The Federal Reserve Bank of New York released its 2016 small business credit survey yesterday and the data shows some bad news for online lenders; big banks, small banks and credit unions all scored higher on the survey than online lenders when it comes to access to capital; one of the more telling pieces of data from the report was that online lenders scored lower than banks on transparency; fintechs did score higher on speed of application and ease of process; not all bad news but still points out the advantage that banks have when it comes to cost of capital. Source