1.
ARE YOU AN
ECOMMERCE PLATFORM
OR A SMB LENDER?
the future of finance when everyone is a lender

2.
FUNDING FOR LENDING STARTUPS EXPLODING

3.
WHY?

4.
NEW COMPETITION FROM OUTSIDE TRADITIONAL FINANCE

5.
LOTS OF MONEY AND OPPORTUNITY UP FOR GRABS

6.
BUT SMBS
AREN’T
BORROWING
JUST FROM
BANKS
they’re borrowing from a new
class of lenders

7.
ECOMMERCE LENDING
TRANSACTIONS AND FINANCING

8.
AMAZON LENDING
➤ Invite only, began in 2012
➤ 90 - 180 day loans of $1k to
$600k
➤ 6% - 14% interest rates
➤ Since inception, offered
hundreds of millions of dollars
worth of loans
➤ Announced Summer 2015,
program is expanding to
Canada, France, Germany,
India, Italy, Spain and the UK
Source: Business Insider

9.
PAYPAL
➤ Fall 2015 announced it had
surpassed $1 billion in SMB loans
after 2 years
➤ 60,000 merchants have used
PayPal’s Worlking Capital
➤ now lending $3 million/day
➤ Sizes and effective APR depend
on sales volume merchants do
using PayPal
➤ Recently expanded credit limits
to $85,000 from $65,000, and
simultaneously upped the
amount a borrower could take on
to 15% of sales (from 8%)
Source: Forbes

10.
LENDERS TARGET SHOPIFY MERCHANTS
➤ Kabbage provides loans to
Shopify merchants
➤ Affirm, Max Levchin’s new
online lender, allows Shopify
merchants to provide
financing options to
customers

11.
THE CHINESE
ECOMMERCE/BANKING
EXPERIMENT

12.
TENCENT/WEBANK
➤ Tencent, one of top Internet
companies in China, launched
January 2015 first private online
bank in China, called WeBank
➤ Tencent’s WeChat is one of
most popular messaging apps in
Asia, already offers personal
loans in minutes (without
guarantee/collateral)
➤ Seeking to raise $1 billion in
fresh funds
➤ WeBank’s first loan was 35,000
RMB($5600)to a truck driver
Source: TechCrunch, WSJ

13.
ALIBABA/MYBANK
➤ Alibaba bank affiliate, Ant
Financial launched MYbank
Summer of 2015
➤ Registered capital of 4 billion
yuan ($644M)
➤ Issue loans of under 5 million
yuan to SMBs
➤ Clouded by regulatory
concerns
Source: WSJ

14.
BAIDU
➤ China’s Google has partnered
with Citic Bank to launch an
online bank
➤ Baidu has 640 million users
and Citic Bank is China’s 6th
largest bank with 4 trillion
RMB ($626 billion)
Source: CNBC

15.
UNSECURED
LENDING
getting better at assessing risk
with additional ecommerce data

16.
KABBAGE
➤ Recently raised $135M + credit facility of $900M
➤ Funded over $1 billion to 100,000+ small businesses
➤ Loan approvals require link to business apps (Checking
accounts, Intuit Quickbooks)
➤ Loans $5M to SMBs
➤ Plans to expand into Europe, Latin America, India, and
Canada
Source: Fast Company, TechCrunch

17.
Both balance sheet lenders (OnDeck) and marketplace lenders (Funding Circle and
Lending Club) are going after the SMB market

18.
SECURED
LENDING
Securing collateral behind
online lending

19.
BORRO
➤ loans of up to $10,000,000
secured against luxury assets
such as fine art, antiques,
jewelry, luxury watches,
prestige & classic cars, fine
wine
➤ Raised over $170M in equity +
lending facility
➤ Borro will usually get a loan to
someone in 24 hours, with the
average loan size at £70,000
and term of five months
Source: Crunchbase, CityAM

20.
FACTORING/
INVOICE
FINANCE
Providing financing for
specific purchases

21.
EXAMPLES (BEHALF, BLUEVINE, C2FO, FUNDBOX )
➤ 82% of business failures are
due to poor cash management
➤ In the United States, these
invoices represent a $72
trillion market, according to
Fundbox Chief Executive Eyal
Shinar
Source: Forbes

22.
KICKFURTHER
➤ SMBs finance inventory to the crowd at a consigned rate. If
funding goal is met, Kickfurther buys the inventory and gives
to SMB. The business sells it, returning a % to backers each
month, depending on volumes sold
➤ Backers earn equity-like returns in just a few months
Source: MarketWatch

23.
“People have long thought that the Internet is
overhyped. But when you realize that it now has
the power to reinvent the multi- trillion
banking industry – I argue that it still hasn’t
been hyped enough.
-Charles Moldow, Foundation Capital

24.
www.tradestreaming.com