Historically, small business lending has been dominated by local community
banks, who often have a long and tedious process for approving loans with less than favorable terms to the business owner.
Launching this week out of our Summer 2015 class, Drip Capital is building an online solution to offer timely and founder-friendly small business loans
Drip Capital evaluates its loans by looking at the orders that small businesses have yet to fulfill, and providing the money needed to fulfill them. As an example: When one upstart potato chip manufacturer got a big break by landing placement in Whole Foods, Drip provided the capital to help the manufacturer deliver on the order.
"Drip Capital’s two founders Pushkar Mukewar and Neil Kothari, have experience in both the tech and financial worlds after managing debt portfolios at Capital One, Goldman Sachs and BlackRock. They met at Wharton.Read the full story on TechCrunch here.
Drip evaluates small businesses based on their live working orders from customers. They’re focused on the 5 million business-to-business focused companies in the United States, and are giving loans that they expect to be repaid in 1 to 4 months.
'Banks have an almost one-size-fits-all product,' said co-founder Neil Kothari. 'But there’s a pretty substantial difference in how banks cater to larger clients versus smaller clients.'"