SoFi: We Think We Can Take Significant SMB Lending Marketshare

SoFi is making a massive push into the small business lending space, backed by a new $3 billion partnership with BasePoint Capital. While SoFi is traditionally known for personal loans and student debt, this move signals their intent to become a primary capital provider for business owners. For retailers and service providers, this means a new heavy-hitter is entering the market to compete with traditional banks and fintech lenders like Square or Shopify Capital. If you are an operator looking for working capital to renovate your storefront or expand your inventory, SoFi’s entry likely means more competitive rates and streamlined digital applications. The company is leaning on its existing technology stack to offer faster approvals than legacy banks. They are specifically targeting the 'prime' segment of small businesses, meaning well-established shops will likely see the best offers. This influx of $3 billion in lending capacity suggests that despite a tightening economy, capital is still available for merchants who have a strong track record. Keep an eye on SoFi as a potential partner for your next expansion phase or as a way to refinance more expensive merchant cash advances.

Source: deBanked

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