A flurry of investment in lending to tech startups and a handful of mammoth IPOs have taken the value of the alternative lending sector up to $1 trillion.
So far this year, 17 VC deals have been reported with an average investment of $23m apiece, according to TechCrunch. Meanwhile, P2P lenders Lending Club is now valued at $9 billion and OnDeck at $1.3 billion.
It is thought that the rapid growth is spurred by a desire for increased transparency among lenders, especially in the more cautious business environment that followed the crash, coupled with a need for greater access to loans among businesses struggling to secure finance from banks.
“The reason these alternative lending platforms are coming up is that platform lending is simply more efficient for both the borrower and the lender,” said Stuart Ellman, managing partner at RRE.
“The borrower is able to find loans that they otherwise weren’t able to get — either from the banking crisis or from banks tightening up their lending process — and lenders have the ability to do their diligence, see the risk and the interest rates, and make the loans they want to on an a la carte basis.”
Cash-flow based metrics now feature prominently alongside traditional revenue measures of business performance in the key figures or financial summary pages of any public company.
GTNews asks Pugsley about what advice she would give to treasurers dealing with mergers and acquisitions, what the key challenges for her year ahead will be and how she is selecting a treasury management system (TMS).
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
Tim de Knegt, strategic finance and treasury manager for the Port of Rotterdam, discusses how he is using blockchain, the challenges he will face in his role of treasury over the next 12 months and the advice he would give to someone starting out their career in treasury.