Biz2Credit has released data from its monthly small business lending index which analyzes 1,000 small business loan applications processed by the multi-lender; the results show that approval rates from banks and institutional lenders continued to increase while approval rates from alternative lenders and credit unions were lower; Biz2Credit's CEO Rohit Arora attributed some of the increases from larger lenders to improvements in technology at banks which is helping them approve a higher percentage of loans with lower default risk. Source
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Avant and Marlette Funding are battling state law in Colorado; the state has a 12% rate cap for consumer loans and both lenders advertise loans that exceed that limit; both partner banks that work with the online lenders have filed lawsuits against Colorado claiming the interest rates they charge are acceptable by federal law because of the charters they hold from their state. Source
Fintech Global provides the top ten deals for the quarter; financing from the top ten deals was $658 million and accounted for 84% of the sector's total financing; Chinese P2P lender Tuandaiwang was the quarter's financing leader obtaining $262.6 million and was the only Asian fintech company in the top ten; Europe reported the majority of top ten financings with five funding deals. Source