Part 7/11:
The trend of expanding credit access outside traditional banking is particularly evident in the United States. Companies like PayPal, Square, and Amazon have become key sources of loans for small businesses. Despite typically higher interest rates—around 18% annually—these alternative lenders have seen loan portfolios grow by as much as 30% year over year, highlighting the demand for accessible, quick, and less cumbersome financing options.
From the consumer’s perspective, this ease of access is appealing. The process is generally less demanding, requiring fewer extensive background checks, credit histories, or detailed documentation, making it a preferred choice for many individuals and small entrepreneurs.