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That’s a great point. Do you think a platform where businesses are explicitly asked to declare other outstanding loans could reduce this problem, at least enoug
by akrai 7y ago
That’s a great point. Do you think a platform where businesses are explicitly asked to declare other outstanding loans could reduce this problem, at least enough to reduce risk for online lenders to a more comfortable level?
- jonahbenton 7y agoNo, the businesses that you need to worry about generally won't track or share this information. Lenders need to see bank accounts and transaction histories (last 6 months, at least). With transaction records, along with accounting records, it's a fairly straightforward data science task to determine a) whether you are seeing the entire cash picture and b) whether the business has other loans. One should also get tax returns; with those and accounting data one can make a good guess at whether c) the business is just making up numbers when it comes to their operations.
- akrai 7y agoThanks for the input. That’s very helpful!