The Harvard Business Review shares several innovative player that use technology to solve problems that have made small business lending costly for traditional banks.
In the past decades, banks around the country relied heavily on FICO scores to make quick decisions on millions of uncollateralized small business loans, which led to disastrous results. Start-ups in small business lending use data to look into more factors than what the FICO score analyzed to assess the credit of small business owners that can use information as anecdotal as a Tweet or a Yelp review.