SME Credit Availability — How Blockchain will solve the Credit Gap

Fintech solutions addressing SME credit not based on Blockchain

Over the past decade, Fintech startups have established a number of business models to address the credit needs of SMEs. The platforms can generally be categorized in three different areas:

  • P2P Lending platforms, such as Lending Club, where capital providers can select specific credit opportunities sought by companies
  • SME Balance Sheet Lending, such as Kabbage, where companies can obtain term loans, and other forms of financing
  • Invoice financing, such as Aprila and Lydia, where companies can sell or finance invoices

Blockchain enabled solutions targeting credit needs

Blockchain and Distributed Ledger Technology, introduce trust and the ability to share data, information, proofs of many things, in a secure and reliable manner. This means that entities, which do not trust each other, can trust a shared ledger, which is immutable and contains information that can not be manipulated.

Building the Future Tech Stack for SME Lending

The future stack for SME lending will require the combination of fintech innovation over the last decade and the newly emerging Blockchain technologies.

Financial innovation will be needed — Blockchain is not enough

Despite my conviction that the described combination of fintech innovation with blockchain enabled “proof of [anything]” will result in real innovation in lending to SMEs, technology alone will not impact the persistent problem that little of the liquidity pumped into capital markets is reaching SMEs.



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Entrepreneurs. Invested. Involved. | Investing in early stage startups. Ecosystem: CV Summit, CV Competition, CV Incubation, CV Maps & Advisory.