The significance of online credit platforms for SMEs: digital third-party financing still a niche product

Digitalisation doesn’t stop when it comes to corporate financing meaning it is now possible to gain finance via the online credit platforms of digital providers. The KfW SME Panel shows: Third-party financing via online credit platforms remains the exception among SMEs. In 2018 and 2019, around 77,000 SMEs used this financing alternative to an amount of EUR 3.4 billion. On the whole only comparatively small financing volumes are involved. There is, however, a (very) small group of businesses that use credit platforms to a greater extent. Rapid financing approvals and simple application procedures speak for the credit platforms. Only moderate growth is expected in the short term. However, the coronavirus pandemic could increase acceptance of digital financial services and boost online credit platforms in the long term.

The significance of online credit platforms for SMEs: digital third-party financing still a niche product(PDF, 317 KB, non-accessible)