Alternative lender Merchant Cash and Capital, also known as MCC, has reportedly had a good quarter. The company announced Monday (July 20) that it has originated more than $115 million in business financing in Q2 2015 alone, a 79 percent increase from the same quarter a year prior, the company said.
According to MCC, the spike can be attributed to the launch of Bizfi, MCC’s online marketplace that uses technology to match small businesses to potential new investors. The service makes it easier for business owners to compare financing options and offers and includes investors from OnDeck, Funding Circle, CAN Capital, Fundation and other alternative lenders.
“Since the launch of Bizfi in April, we have experienced an overwhelmingly positive response from small business owners to the wide range of financing options we offer,” said Bizfi and MCC Founder Stephen Sheinbaum in a statement. “Our ability to provide more capital to business owners is a result of improved technology, shortened approval process and faster funding times.”
MCC offered more details about its record quarter in its announcement, too. According to the company, the top markets accessing business financing through the portal are construction, retail, restaurants and travel. New industries began to gain traction in Q2 as well, including airlines, architecture and engineering and information retrieval.
Altogether, businesses secured an average of $40,000 for each transaction through MCC.
While direct investment in SMEs by alternative lenders is on the decline, the use of alternative lending platforms by institutional investors is actually on the rise. Industry experts predict that the alternative lending market will reach a valuation of $1 trillion by the end of the decade, and a significant jump has emerged in institutional investors’ interest in using alternative lending platforms like Bizfi to find small businesses in which to invest.