P2P lending: Platforms like LendingClub or Prosper directly connect borrowers with individual lenders, bypassing traditional banking systems. Borrowers can obtain loans for various purposes, such as debt consolidation, home improvements, or small business funding.
Online personal and business loans: Companies like SoFi and Kabbage respectively offer personal and business loans. They use digital platforms to streamline the application process, often resulting in faster approval and funding compared to traditional banks.
Microfinance and microloans: Financial technology companies like Kiva provide small loans to entrepreneurs in developing countries where traditional banking services are limited. These loans are crucial for starting or expanding small businesses.
Invoice financing: Platforms like Fundbox offer businesses an option to borrow based on their outstanding customer invoices, helping improve cash flow while waiting for invoice payments.
Buy now, pay later (BNPL) services: Financial technology companies like Afterpay and Klarna allow consumers to purchase goods and services and pay for them in installments, usually without interest. This is becoming increasingly popular in online retail.
Mobile lending apps: Apps like MoneyLion and Dave provide small, short-term loans, typically designed to help users cover expenses until their next paycheck.
Crowdfunding: Platforms like GoFundMe or Kickstarter, while not providing loans, offer individuals and businesses a way to raise funds from a large crowd, often through the internet.