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Capify Newsletter: Edition 11

What’s been going on over the past month? Well, spring is in the air, flowers are blooming and allergies are kicking in. But that’s not all.

All us to fill you in…

First: Get Smart With Capify

Fintech’s 38 billion opportunity

According to CB Insights, investments in Fintech startups doubled between 2014 and 2015, to 4 billion. Yowzas. But there’s still a golden opportunity that many of these firms aren’t taking advantage of.

Small Businesses Keep a Close Eye on the Election

Yes, small business owners care about the election, too. While 27 percent of small business owners say that growing their business is their biggest concern, their second biggest concern is who is going to be in the White House next year.

Venmo’s Legal Woes, Walmart Pay on iOS, Goldman Goes Digital

Venmo in trouble with the FTC? Walmart creating their own payment system? Goldman doing Goldman things? It’s all in here in this payments roundup. Payments, so hot right now.

What’s the Big Idea?

Credit scores. Ew. 

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For years, credit scores have been the be-all, end-all in regards to getting financing. If a business owner ever wanted a loan from a bank, it was basically impossible unless that credit score was 700 or above or the person had some serious collateral to put up.

But is all that changing?

On a recent episode of “Last Week Tonight,” John Oliver did the Lord’s work and took aim at the credit rating agencies that decide our credit scores. In the segment, Oliver rips into the three big U.S. credit bureaus (Equifax, TransUnion and Experian) while pointing out that their credit reports are often filled with errors. In fact, according to a 2013 report from the Federal Trade Commission, 1 in 4 people had an error on their credit report.

Yeah…1 in 4. So, that’s 25% of people who have an error on their credit report for all those scoring at home.

So What?

Small business owners are forced to rely on these credit scores and these mistakes can have serious ramifications on whether or not they’re approved for financing from a bank. Is that fair? Uh, no. definitely not.

Look, we all know that banks have been decreasing their lending to small businesses steadily over the last few years for a variety of reasons, and low credit scores aren’t the only barrier that stands between a small business and a bank loan. But it certainly doesn’t help. This whole “credit crunch” thing has directly influenced the rise of alternative lending because companies like us decided long ago to look beyond credit scores.

Basically: Low credit scores are one of the many factors why small businesses have moved away from banks and more towards alternative financing.

We predict: Credit scores may become obsolete one day, but until then we don’t really expect these agencies to clean up their act. Thankfully, alternative lenders like us are here to pick up the pieces and get small businesses the financing they need.

In Other News…

New York Times: ‘Whole Foods Effect': When Small Food Makers Get the Call to Go Big 

Fortune: Uber Gets Hit with Two More Lawsuits Over Driver Wages 

Forbes: When I Put My Political Views on Social Media I Lost My Biggest Accounts 

The Capify Team