Small business lending (SBL) has emerged as a meaningful asset class within structured finance, driven by alternative capital sources, fintech innovation, and shifting borrower demand. Over the past decade, KBRA has rated more than $14 billion in small business ABS in the United States.
This report provides an overview of the changing SBL landscape, with a focus on term loans, lines of credit (LoC), and merchant cash advances (MCA). Further, we examine origination channels and practices that shape borrower acquisition and their implications for ABS structures. It also explores the role of guarantees, security interests, and regulatory factors in influencing credit performance.
Key Takeaways
- Nonbank and fintech lenders have become vital sources of working capital for small businesses, using data-driven underwriting to fill the gap left by traditional banks…
Log in or Subscribe to KBRA Premium to view this report.