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The online financing platform for SMBs market size is estimated to grow at a CAGR of 16.64% between 2023 and 2028. The market size is forecast to increase by USD 14,340.59 million. The growth of the market depends on several factors such as an increase in lending to SMBs, borrowers faster credit access, and proper management of inventory system and working capital.
This online financing platform for SMBs market report extensively covers market segmentation by application (equity financing and debt financing) and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Borrowers with faster credit access is the key factor driving market growth. In the online financing platform for small to medium-sized businesses (SMBs) market, online lending platforms provide loans to underserved borrowers such as SMBs, who are incapable of getting money from established banks and financial institutions. SMBs are connected with higher risks since they lack high-quality collateral and extended credit histories.
Furthermore, through consistency, automation, and openness, this realistic pricing procedure for goods and solutions will aid in the management of individual portfolios and the avoidance of firm-wide threats. Such factors are expected to drive the growth of the market during the forecast period.
The rise in growth of SMBs is the primary trend shaping market growth. SMBs are important in most economies, particularly in developing nations. SMBs make up the extensive majority of enterprises across the globe, and they play an important role in employment creation and global economic development. They account for around 90% of enterprises and more than 50% of global employment.
Moreover, SMBs produce the majority of formal jobs in developing countries, accounting for seven out of every ten jobs created. Thus, the growing importance of SMBs and their role in improving economies and employment is expected to positively impact the growth of the market in focus during the forecast period.
Privacy and security concerns is a challenge that affects market growth. In many developing nations, the concept of online payment is at its nascent stage. Mass-market customers are unaware of the benefits of using such technologies, which is hindering online financing platform for small to medium-sized businesses (SMBs) market growth. In addition, payment service providers gather personal data and information about customers to customize target key audiences and advertising messages. However, the indiscriminate use of this data can infringe on user privacy.
Furthermore, location-based services also result in privacy issues as such services operate on the basis of real-time, geo-based information. The data gets collected, processed, and stored by online financing platform for small to medium-sized businesses (SMBs) market players, which thus remains open to privacy infringement. Thus, such risks make consumers adverse to online transactions and may impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Online Financing Platform for SMBs Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The equity financing segment is estimated to witness significant growth during the forecast period. Equity financing is marketing an ownership interest in a business in exchange for capital. The most basic hurdle in obtaining equity financing is finding investors ready to buy the business. The share of equity financing that a borrower takes has to share management control with the investor appeal of the business. By selling equity interests in the business, the borrower sacrifices some of his autonomy and management rights.
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The equity financing segment was the largest segment and was valued at USD 4,403.29 million in 2018. The effect of selling a big percentage of the ownership interest of the business may lead to short-term investment unless the borrower retains a majority interest in the business and control over the future sale of the business. Many small business operators are not interested in maintaining their business indefinitely, and their personal motives for pursuing a small business will determine the value position upon business ownership. Thus, it is expected to grow at a moderate rate during the forecast period.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The rising awareness to make a more financially inclusive system, particularly for those who may not have access to traditional mediums, has improved the demand for online financial services in the region. Moreover, the increasing demand for loans for a business, growing Internet penetration, and technological advancements have improved the demand for online financing platforms, and the presence of prominent market players are the key factors driving the growth of online financing platforms for small to medium-sized businesses (SMBs) market in North America during the forecast period.
The outbreak of COVID-19 in 2020 had a negative impact on the online financing platform for SMBs market in North America. However, the adoption of digital modes of borrowing and lending funds is expected to boost online financing platforms. Furthermore, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. This is further accelerating the demand for microcredit and microloans in the region, which will drive the growth of the online financing platform for small to medium-sized businesses (SMBs) market during the forecast period.
The online financing platform for SMBs market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Online Financing Platform For SMBs Market Scope |
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Report Coverage |
Details |
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Page number |
145 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 16.64% |
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Market growth 2024-2028 |
USD 14,340.59 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
15.95 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 41% |
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Key countries |
US, China, Japan, UK, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
American Express Co., Biz2Credit Inc., Enova International Inc., Fidelity National Information Services Inc., Finastra, Fintech OS Srl, Funding Circle Holdings plc, Kaleidofin, LendingClub Corp., Lendingkart Finance Ltd., Niyogin Fintech Ltd., Novac Technology Solutions, Numerated Growth Technologies Inc., Prosper Funding LLC, RupeeCircle, SoFi Technologies Inc., Sopra Steria Group SA, Stripe Inc., UAB HES Europe, and Versara Lending LLC |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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