Online lending companies like Kabbage, Lending Club, and BlueVine may see massive amounts of regulation decrease with the Federal US government announcing plans “to allow online lenders to apply for banking charters.”  Currently online lending companies are required to adhere to laws based on state regulation.  With a federal mandate in place, fintech companies will be allowed to lend to small businesses within the US much easier, following one rule set instead of 50 separate rules.

Alternative lending options can be expensive, but “when these deals make business sense – a deposit for a real estate lease, a purchase of equipment, a quick inventory buy – even the added costs of these loans are still much less than the benefits received, so much so that the alternative lending industry has grown to more than $35bn according to a 2017 research report.”