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A Snapshot of Alternative Lending with SnapCap

SNAPSHOT With the strict requirements, larger average size and extended application process of traditional bank loans, small businesses are increasingly turning to alternative online lenders for their business finance needs. *ALTERNATIVE LENDING ►WHO'S APPLYING? WHILE PREDOMINATELY GEN X & Y APPLICANTS SPAN ALL AGE GROUPS GENERATION Y • GENERATION X 18-32 YRS. OLD 33-48 YRS. OLD 20.9% 45.0% BABY BOOMERS MATURES 49-67 YRS. OLD 68+ YRS. OLD 30.4% 3.8% BRICKS VS. PIXELS TYPE OF BUSINESS HOME-BASED HAS BUSINESS LOCATION *45.5% 54.5% CLEANING SERVICES RESTAURANTS *Often don't qualify for traditional loans Trend: the Internet is fueling business growth. Operations are leaner with less overhead, no physical location and more contract employees. MANUFACTURING AGE OF BUSINESS CLOTHING STORES 22.45% 8.28% 7.09% STARTUP 1-5 MONTHS 5-11 MONTHS *ONLINE RETAILER TRUCKING 13.80% 19.37% 28.98% 1 TO 2 YEARS 2 TO 5 YEARS 5+ YEARS Trend: Mature businesses are turning to alternative lending. Nearly half of applicants would likely meet minimum time in business requirements for a bank loan. AUTOMOTIVE REPAIR HOME REMODELING BUSINESS REVENUE 22.64% 18.68% $50.001-$100,000 BELOW $50,000 COMPUTER/ IT TRAINING COMMERCIAL CONTRACTOR 10.73% $250,001- $500,000 17.73% $0, NO REVENUE *Often don't qualify for traditional loans 12.77% OVER $500,000 17.44% $100,001-$250,00 *Nearly 60% of applicants don't have enough revenue to qualify for a bank loan. - WHERE ARE THEY FROM? 1. CA NY 2. TX PA 3. FL 4. NY 5. GA 6. IL 7. NC OH IL VA CA NC GA 8. OH TX 9. PA 10. VA WHAT ARE THEY BORROWING? $. AVERAGE LOAN SIZE AVERAGE LOAN TERM $68,000 11 MONTHS -WHY ARE THEY BORROWING? $. EQUIPMENT PURCHASE WORKING EXPANSION INVENTORY CAPITAL RENEWAL RATES 40% THAT ARE ELIGIBLE (MAKING PAYMENTS, INCREASING CASHFLOW) OF BORROWERS TAKE A SECOND (THIRD, FOURTH) LOAN Alternative lenders are serving an underserved market of highly-qualified borrowers and making it more efficient than ever to apply for and obtain a business loan. Learn more about how online lending is different at www.snapcap.com. Data is based on a sample of nearly 14,000 applications from January through June 2015 from leading alternative lender SnapCap. snapcap A better way to borrow."

A Snapshot of Alternative Lending with SnapCap

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Business loans have increasingly become more difficult to obtain for small business owners. In fact, about half of all new establishments survive five years or more and about one-third survive 10 year...

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SnapCap

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SnapCap

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Business
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