How a Nonprofit Hopes to Eat Subprime Small Business Lenders' Lunch

In the years following the financial crisis, Marco Lucioni noticed the rise of a new kind of small business loan. It offered merchants fast access to high-interest-rate financing that the lender recouped by collecting a percentage of the business owner’s daily receipts. Lucioni liked the repayment model, which made short-term loans less risky for the lender, but not the interest rates, which sometimes exceeded 100 percent on an annualized basis.

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