Response to the US Treasury Request for “Public Input on Expanding Access to Credit Through Online Marketplace Lending”
Beginning July 20th, the US Treasury Department posted a Notice and Request for Information for public input on marketplace lending. As online alternative lending practices are gaining traction in business lending, the US Treasury is asking for experts to share their knowledge of the lending practices in order to be better informed in developing financial and regulatory policy on these new ‘alternative’ lending practices.
As a marketplace for lending, Connect Lending, LLC has thousands of lenders offering over 40 different funding types supporting different types of access to capital. Our platform provides business owners, advisors and lenders a marketplace find the right funding solution to suit a business needs. Our vested interest in the lending marketplace is to connect borrowers with the right lender to secure funds to support their business. Unfortunately, due to the differences in lending underwriting, a lack of common vocabulary and uninformed business owners, we see business owners attempting to secure funding for a loan they are obviously not qualified for.
We would like to see policy developed to help create consistency in lending practices, terminology, and fair representation of products on market ensuring business owners can make an informed choice about a loan product.