Online Small Business Lenders?:  As Transparent as a Black Hole….

online small business lendersI 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!