Online Lending

School Worker Scammed by Predatory Lender

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DETROIT, MI (September 24, 2018) - A financially strained school cafeteria worker was led to believe she had qualified for a $4,000 loan and saw it deposited in her bank account, only to discover that the check was fake and that she owed her bank $4,800 after spending the scam loan money.

"The number one message that is important for people to understand is that just because the check has cleared doesn't mean it's good," said Nessa Feddis, senior vice president of consumer protection and payments for the American Bankers Association.

Predatory lender con artists send phony loan checks, gift cards or Western Union transfers and need victims to spend quickly, before the bank realizes the check is a fake.

Read the article here.


New York State Investigates Online Lending Industry

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NEW YORK, NY (August 3, 2018) - The New York Department of Financial Services submitted recommendations for regulating predatory online lenders this week, now being reviewed for legislation by the governor and state legislature.

The DFS promotes better protections for borrowers and the expansion of usury laws and licensing requirements for all online lenders, who have previously been exempt from standard lending regulations.  

Read the entire article here.

Ohio Passes Bill Protecting Consumers from Predatory Lenders

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COLUMBUS, OH (July 27, 2018) - A new bipartisan bill passed in Ohio prohibits loan interest rates and fees from exceeding 60 percent of the original loan, as well as ensuring that monthly payments do not surpass seven percent of monthly income.  

Ohioans pay some of the highest rates for payday loans, with average interest rates over 500 percent.

“HB 123 provides a fix to a loophole that has allowed predatory lenders to rig the system against working Ohioans,” said state Representative Michael Ashford, one of the bill’s sponsors. “These protections put money back into the pockets of consumers and gives them a chance to get a fair deal for an opportunity to get ahead.”

Read here for more information.

Protecting Business Owners Against Predatory Lenders

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CHESAPEAKE BEACH, MD (May 16, 2018) excerpt via BLACK ENTERPRISE - Eighty-seven percent of small business owners support measures that would protect against predatory lenders and boost the availability of traditional loans, according to a new study by Small Business Majority.

Predatory lending costs Americans an incredible $25 billion each year. The lack of transparency and integrity among online lenders is a major concern: three out of four small business owners support the Consumer Financial Protection Bureau, which works to regulate lenders and financial service providers.

“Online lenders are largely unregulated and can take advantage of small businesses that are desperate for capital,” said Sharon Levy, owner of Taking Tea InStyle in Princeton, New Jersey. “Small business owners simply don’t have enough good lending options, which is why we need better policies in place to give small businesses a level playing field and a safer environment in which to conduct business.”

Research shows that small business owners prefer to secure financing from trustworthy, traditional sources over predatory online lenders. 77% of small business owners desire a policy to increase the amount of small business loans from credit unions, and 62% support policies that require banks to invest in low-income communities.

“Far too many entrepreneurs have difficulty obtaining the capital they need to start and expand their business,” Small Business Majority CEO John Arensmeyer said. “When they are able to get financing, they need that capital to be safely and responsibly administered. As these poll results show, small business owners are strongly supportive of policies and institutions that increase the availability of small business loans from traditional sources like small banks and credit unions, while also shielding them from predatory lending practices.”

Click here to read the entire article.


SourceFunding.org makes it easy for small business owners to match with and apply to trustworthy community lenders. Our unprecedented national network of 14,000 community banks and credit unions ensures that you can find the best transparent, low-cost financing for your unique business. Create your free Funding Navigator profile here.

Exposing Online Lenders: Hidden Interest Rates & Fees Can Bankrupt Businesses

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NEW YORK, NY (April 12, 2018) excerpt via ENTREPRENEUROnline lenders are facing increased scrutiny as lawsuits and investigations uncover the sky-high interest rates, hidden fees and unsustainable repayment plans that can devastate small businesses.

Mark Abell reports in Entrepreneur that online lender Kabbage Inc. is being sued for allegedly partnering with a bank to offer interest rates that surpass the legal limit.

The state of New York may begin regulating online lenders after a Federal Reserve study determined that there was “significant potential for unscrupulous online lenders to exploit consumers through predatory practices such as unusually high interest rates, lack of disclosure of hidden fees, and unclear loan terms.”

Read the entire article here.


SourceFunding.org offers business owners a better option: the Responsible Finance Network provides access to all 14,000 community banks, credit unions and community development financial institutions in the United States. Our innovative matchmaking technology and first-ever universal application make it simple to find out what the best financing option is for your unique business and apply easily. Our mission: Financial inclusion. For a limited time, entrepreneurs can create a free Funding Profile to submit their business and find matches. Get started with the Funding Navigator here.

Collaboration as Competitive Advantage

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WASHINGTON DC (September 22, 2017) As noted by the Washington Post, “Bankers are worried, and rightly so. In a letter to shareholders of JP Morgan Chase, America’s largest bank, chief executive Jamie Dimon warned investors that “Silicon Valley is coming.” Goldman Sachs, according to Inc., “estimates that upstarts could steal up to $4.7 trillion in annual revenue” from incumbent banks, a potential payday that is driving venture investors to pour nearly $25 billion annually into the sector.”

According to Accenture, “over the past five years, global financial technology (fintech) financing has grown rapidly, but the share of fintech investment directed at companies looking to compete against the financial services sector has remained relatively stable at 62 percent.”

In New York City, however, Accenture notes that explosive FinTech growth is “coinciding with a dramatic shift toward collaboration. As a result, NYC is quickly becoming the global center of a new kind of fintech innovation.”

NYC-based SourceFunding.org, recognized for socially responsible FinTech Innovation, is quietly positioning itself as the transparent, trusted, & low-cost alternative to the many predatory online lenders. Developed with university and foundation partners and highlighted at the Obama White House in late 2016, the platform is unique because it benefits all sides of the financing transaction. Unlike many in the FinTech sector, SourceFunding.org aims to strengthen the nation’s responsible, trusted, & low-cost community lenders by providing high quality deal flow and cutting down on customer acquisition costs. At SourceFunding.org, collaboration is our competitive advantage.

Our mission: Financial inclusion. Create a Funding Navigator profile now. 

Is AI a Threat to Fair Lending?

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NEW YORK, NY (September 14, 2017) excerpt via AMERICAN BANKER - "There are all sorts of legal and technical issues about how lending rules apply to the new breed of online lenders, but here’s a more fundamental one: How sure are they their automated technology is colorblind?

Even if a company has the best intentions of following fair-lending principles, it’s debatable whether the artificial intelligence engines that online lenders typically use —and that banks are just starting to deploy — are capable of making credit decisions without inadvertently lending in affluent sections and not in minority neighborhoods."

To read the entire article, read here.

Read about our Responsible Finance Network. Our mission: Financial inclusion. Create a Funding Navigator profile now. 

‘Fintech’ Loans: A Sometimes Costly Lifeline for Small Business

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RICHMOND, CA (September 12, 2017) excerpt via KQED News - Che Al-Barri remembers feeling like he was drowning in debt last year. He had taken out a $70,000 loan for his small cleaning company, but was struggling to repay it.

The lender, a financial technology — or fintech — company, automatically collected $331 from his bank account daily, Monday through Friday. The frequent hits depleted his income and took a toll on his business, he said.

“If you get hit every single day you have no time to breathe,” said Al-Barri, 45, who grew up in Richmond. “It put me up against the wall. There was many times I pulled the covers over my head and just laid there like, ‘Oh my gosh, what am I going to do?'”

To read the entire article, click here.

Learn more about SourceFunding.org's Responsible Finance Network. Our mission: Financial inclusion. Create a Funding Navigator profile now. 

Fintech Helps Banks Disburse More Loans

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NEW YORK, NY (September 4, 2017) excerpt via The Economic Times - "Two years of fin tech driven reach has helped banks grow about 15 to 20 per cent indicating that banks’ dependence on `feet-on-street’ to campaign for loans may recede in a few years. Bankers said nearly a third of their customers below 30 years were on-boarded through the digital platform. 

Banks are using FinTech players to qualify good customers faster and give on the fly credit. Significant reduction in time used for taking better credit decisions have led to higher conversion in disbursal of loans."

To read the entire article, click here.

Connect with lenders in our Responsible Finance Network. Our mission: Financial inclusion. Create a Funding Navigator profile now. 

Lending as a Service (LaaS) and Why it Matters

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NEW YORK, NY (August 23, 2017) excerpt via CIO - Traditional financial services providers have tightened their lending requirements, leaving many small business owners with few channels to uncover the capital they need.

The financial crisis of 2008 caused global shockwaves, wrecking businesses and wiping away thousands of dollars’ worth of individuals’ savings. World markets are still recovering to this day, and governments have enacted strong reforms to prevent a repeat occurrence. These new, stricter regulations have deeply changed the financial world. Along with shifts in consumer preferences, banks and lenders are now faced with a vastly different financing landscape.

To read the entire article, click here.

SourceFunding.org is leveling the playing field for all entrepreneurs, businesses and nonprofits. Our mission: Financial inclusion. Create a Funding Navigator profile now. 

Startups Still Struggle Finding Funds (Fueling Online Lending’s Growth)

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NEW YORK, NY (August 10, 2017) excerpt via PYMNTS - "While startups and small business are often (rightly) hailed as the engines that power growth in the American economy, when it comes time to secure funds — the situation gets tricky. Stated simply, ten years out of the financial crisis and small business lending remains a chronically sluggish and difficult to work in environment.

According to a report by the country’s 12 regional Federal Reserve banks, over half of all startups report difficulty in securing loans and 81 percent report having had to dip into their personal funds to cover gaps in their corporate cash flow. Startups, as defined by the new report, are firms that are less than two years old and employing less than 500 workers.

“Given the importance of startups for the economy, the question of startup capital is of central importance,” according to the 2016 Small Business Credit Survey Report on Startup Firms. “While funding is the lifeblood of every company, capital is especially critical for startups. To reach scale, startups need to be able to secure expansion capital.”

To read the entire article, click here.

Our mission: Financial inclusion. Create a Funding Navigator profile now. 

Online Lending Has Reached a Tipping Point

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NEW YORK, NY (May 1, 2017) excerpt from Business Insider - "Online lenders have been facing an uphill battle recently as investors question whether they are truly getting the loan transparency they need to confidently invest in this young industry. Investors, credit providers and ratings agencies are worried about loan data integrity as well as collateral and ownership rights behind the loans."

To read the entire article, click here.

Find quality, low-cost and transparent financing with SourceFunding.org. Our mission: Financial inclusion. Create a Funding Navigator profile now. 

Small Business Lending: Finding, Fitting, Financing

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NEW YORK, NY (January 5, 2017) - Access to capital is consistently raised as a pressure point for small businesses. However, simply saying it’s challenging to obtain capital isn’t all that helpful without getting to the crux of the issue. We recently gathered a group of Goldman Sachs 10,000 Small Businesses alumni to probe more deeply into their experiences getting capital. One result of our discussion was a breakdown of their capital search into a series of definable steps:

  • Finding - identifying the available sources of capital
  • Fitting - deciding which source is the best fit for you and your business
  • Financing - determining what are the most important components of the deal

To read the entire article, click here.

SourceFunding.org matches you with responsible, low-cost community lenders who are the best fit for you. Our mission: Financial inclusion. Create a Funding Navigator profile now. 

With Credit Tight, More Small Businesses Turn to Online Lenders

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ASHEVILLE, NC (July 21, 2015) - Jason Curtis just got tired of being told no.

Over three years, the Hendersonville man estimates he went to six banks and a handful of credit unions. He hoped for approval for a $25,000 loan — money he needed to buy inventory like bedding and mattresses to grow his furniture business.

Curtis can't remember how many times he sat across from a banker and shared his story, his credit history and his business plan.

But he can't forget all the times he was told no.

Read the entire article here

Learn more about SourceFunding.org's Responsible Lender Network. Our mission: Financial inclusion. Create a Funding Navigator profile now. 

Small Business Loans: Three Tips to Bouncing Back From Rejection

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NEW YORK, NY (March 31, 2015) - Many very successful business owners have experienced a small business loan application rejection. In fact, some statistics suggest that less than 50 percent of business owners are able to get approved for a small business loan. How well you’re able to bounce back from rejection today will greatly impact whether or not you’ll be successful tomorrow.

Here are three suggestions that will help you regroup, reapply, and reap the rewards of a successful loan application.

Read the entire article here

8,000 creditworthy small businesses & entrepreneurs are declined for funding in the United States everyday. These businesses would've been approved if they applied to the funder that's the best match for them. Accessing a network of the nation's 20,000+ responisible, trusted, and low cost community lenders, SourceFunding.org helps you apply for the right funding from the right source. Our mission: Financial inclusion. Create a Funding Navigator profile now. 

Alternative Lenders Peddle Pricey Commercial Loans

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With Credit for Businesses Tight, Nonbank Lenders Offer Financing at a Price.

PHILADELPHIA, PA (January 7, 2014) - When Khien Nguyen needed $180,000 to open his 13th nail salon near Philadelphia in November, he didn't go to a bank. Mr. Nguyen's credit score had dropped during the recession, so he figured a bank would put him through weeks of aggravation, then reject him.

Read the entire article here

Providing the first viable alternative to predatory online lendersSourceFunding.org works exclusively with high quality traditional lenders: Community Banks, Credit Unions, CDFIs, and State and Local Economic Development Finance Initiatives. Learn about our Responsible Finance Network here. Our mission: Financial inclusion. Create a Funding Navigator profile now.