SoFi’s Small Business Loan Product Details

SoFi is moving beyond its roots in student and personal lending to become a direct small business lender. While they previously operated a marketplace that referred business owners to other lenders, they are now funding these loans themselves. For retail and service-based business owners, this adds a major player to the competitive landscape of commercial financing. The move signals that SoFi wants to own the entire relationship with their customers, from their personal checking account to their store's working capital needs. For operators, this could mean more streamlined access to capital if you already use SoFi for personal banking or student loan refinancing. Direct lenders typically offer more cohesive digital experiences than marketplaces. As SoFi scales this product, expect them to target small businesses that need quick approvals and automated underwriting. However, because they are a bank-chartered institution, their credit requirements might be more stringent than high-interest alternative lenders. This is a positive development for established business owners looking for a reputable, tech-forward partner to fund expansion, payroll, or inventory purchases without the friction of traditional big-box banks.

Source: deBanked

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