This is another example in a continuing trend for non-bank lending alternatives through fintech platforms. It is generally true that SME’s have been somewhat underserved by banks over time especially the numerous smaller-end businesses that this platform targets. The 80-20 rule has its’ place, and SME’s are riskier propositions than larger companies. But there is also the additional impact of Basel III balance sheet pressures for banks, which drives them to “safer” assets. In similar fashion, startup IT firms have gone where the money is in order to build scale and gain additional investment. The JustBuyLive model is an interesting one because of the combination of distribution and credit, saving small business owners at least one and probably two major steps in acquiring and financing inventory. This is helping traditional commerce using fintech, not necessearly enabling e-commerce, in the mode of Aibaba, although that would be a logical step as well.
Overview by Steve Murphy, Director, Commercial and Enterprise Payments Advisory Service at Mercator Advisory Group
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