Online Small Business Lenders?: As Transparent as a Black Hole….
I recently heard Dory Rand, president of Woodstock Institute, speak during the opening plenary of OFN’s recent Small Business Finance Forum in Chicago. The Woodstock Institute published an analysis of non-bank small business online lenders. As you might expect, the results, albeit from a small sample, are not good. For starters, the report cites a lack of transparency, “junk fees,” and pre-payment penalties. Other than get riled up about this, data like this continue to support the case for CDFIs. Print this out, share it with your board and staff. Create a couple of talking points around it to use for your elevator pitch!