Brokers Get Big Commissions for Selling Entrepreneurs Costly Loans

Photograph by DorianGray/Vetta/Getty Images

Alternative lenders that cater to small businesses are a booming industry. Companies such as OnDeck and CAN Capital have attracted hundreds of millions of dollars in venture capital and doled out billions to Main Street merchants. With the help of Silicon Valley backers such as Google Ventures and Accel Partners, they’ve built reputations as technology-driven firms whose vaunted algorithms use social media profiles and other unconventional data to get money to small business owners that banks consider too risky.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.