
All Business Lending & Fintech
Can the $2 trillion funding gap for small businesses be fixed by a chatbot?
Small businesses are the backbone of the economy, yet traditional lenders often evaluate them using personal credit scores rather than actual business performance, leaving a massive $2 trillion gap in small business finance. In this video, we dive deep into how cutting-edge technology is rewriting the rules of small business capital.
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Inside Parafin’s Push to Close Small Business Finance’s $2 Trillion Gap
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“He immediately said he’d take it because he trusts them,” Poddar recalled in an interview with Future Nexus. “They have known his business for several years. They obviously want to continue having his payment business, so they would never put a product in front of him that would be against his best interests.”
That conversation took place seven years ago. Since then, Parafin has grown to fund close to 50,000 businesses and has secured partnerships with Amazon, DoorDash, Gusto, TikTok Shop and Walmart. The company counts Ribbit Capital, Thrive Capital, GIC, Notable Capital, and Redpoint Ventures among its investors.
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