Authored By: Sarah
11 Jul 2024

 Online Financing Platform for SMBs Market Size to grow by USD 14340.59 million between 2024-2028

According to a research report “ Online Financing Platform for SMBs Market” by Application (Equity financing, Debt financing) Geography (North America, Europe, APAC, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 14340.59 million, at a CAGR of  16.64% during the forecast period. In the post-financial crisis era, regulatory capital adequacy requirements have compelled banks and financial institutions to de-risk their off-balance sheet items. Consequently, the availability of traditional loan funding for Small and Medium-sized Enterprises (SMBs) and individual borrowers has diminished due to perceived risk. However, technological advancements have given rise to innovative online financing methods such as marketplace loans, online balance sheets, peer-to-peer platforms, merchant and e-commerce finance, invoice financing, supply chain financing, and trade financing. These solutions have effectively addressed the significant demand for working capital among SMBs, providing them with easier access to financing options that were previously unattainable. Despite the nuanced differences between these services, they represent essential products for small business financing in the digital age.

Browse market data tables, figures, and in-depth TOC on “Online Financing Platform for SMBs Market” by Application (Equity financing, Debt financing) Geography (North America, Europe, APAC, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample

 

By Application, the Equity financing segment is projected to dominate the market size in 2024

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By Geography, North America  segment is expected to hold the largest market size for the year 2024

In the online financing market for Small and Medium-sized Businesses (SMBs), equity financing held the largest market share in 2023, projected to continue dominating the landscape throughout the forecast period. Equity financing involves selling an ownership stake in a business in exchange for capital. Securing equity financing presents a significant challenge, as identifying investors prepared to invest in the business is a primary hurdle. The amount of equity financing a borrower accepts necessitates sharing management control with the investor, potentially impacting the business owner's autonomy and decision-making authority. The extent of ownership sold may influence the investor's motivation, with a substantial stake potentially leading to short-term investment unless the borrower retains a controlling interest and the ability to dictate future business sales.

North America is forecasted to hold the largest market size by region in 2024

The burgeoning trend towards financial inclusivity, particularly for those excluded from conventional financing avenues, has fueled the increasing demand for online financial services in North America. This demand is driven by the rising need for business loans, expanding Internet penetration, and technological advancements. Notably, the emergence of online financing platforms is a significant factor propelling the growth of this market in North America. Furthermore, the proliferation of microcredit and microloans has gained considerable traction to support small businesses and economically disadvantaged individuals in the region. Concurrently, the substantial growth in the number of small and medium-sized businesses (SMBs) in North America further underscores the market's potential.

The Online Financing Platform for SMBs Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • American Express Co.
  • Biz2Credit Inc.
  • Enova International Inc.
  • Fidelity National Information Services Inc.
  • Finastra
  • Fintech OS Srl
  • Funding Circle Holdings plc
  • Kaleidofin
  • LendingClub Corp.
  • Lendingkart Finance Ltd.
  • Niyogin Fintech Ltd.
  • Novac Technology Solutions
  • Numerated Growth Technologies Inc.
  • Prosper Funding LLC
  • RupeeCircle
  • SoFi Technologies Inc.
  • Sopra Steria Group SA
  • Stripe Inc.
  • UAB HES Europe
  • Versara Lending LLC
.

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Research Analysis Overview

Title: Revolutionizing SMB Financing: Online Platforms Bridging the Gap in Working Capital for Inventory Systems and Green Construction Online financing platforms are transforming the Small and Medium Business (SMB) landscape by providing accessible credit solutions for inventory systems and green construction projects. These platforms offer lines of credit and term loans, catering to sectors requiring working capital, from manufacturing to retail. Vendor analysis and digital fabrication technologies, such as CNC machining and CLT (Cross-Laminated Timber), enable precision, construction efficiency, and carbon-neutral properties. Environmental responsibility is a priority, with materials' environmental benefits and energy-efficient homes becoming increasingly important. Institutional investors and individuals alike are turning to alternative lending platforms for their lending needs. Technology, automated processes, and data analytics streamline the lending experience, making it more versatile in design and structural properties. Public sector investment in these platforms is on the rise, recognizing their potential to bridge the gap in credit access for SMBs. As we move towards a more sustainable future, online financing platforms are at the forefront, enabling businesses to thrive while minimizing their carbon footprint.

Market Research Overview

Title: Online Financing Platform: Revolutionizing Working Capital for SMBs in Construction and Real Estate Online financing platforms have become a game-changer for Small and Medium-sized Businesses (SMBs) in the construction and real estate industry. These platforms offer credit access for working capital needs, providing solutions for inventory systems, vendor analysis, and more. In the realm of physical spaces, these platforms cater to commercial and residential projects, including educational institutes and buildings. Versatility in design, structural integrity, and aesthetic appeal are key considerations. Sustainability credentials, such as carbon sink properties, energy-efficient homes, and renewable resources like timber, steel, and concrete, are increasingly important. For construction projects, project completion times, construction processes, and customization through digital fabrication techniques are crucial. Safety, adherence to building codes, and fire-resistance properties are essential safety features. In the financing sector, these platforms offer debt financing, equity financing, micro-loans, and various application types for startups and established players. Reliability, transaction security, and fraud detection are ensured through blockchain technologies and strict criteria. The application scope extends to sectors like infrastructure, with competitive interest rates, faster approvals, and limited collateral requirements. These platforms streamline operations, promote digitalization, and contribute to the digital economy. In the construction industry, emerging companies and borrowers benefit from these platforms, which cater to various sectors and offer versatility, strength, and sustainability.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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