Best of Both Worlds: The Composite Lending Business Model

By Sergey Vasin on 22nd February 2016

Alternative lending has become an important part of the financial landscape. Two major lending business models in this industry are marketplace and balance sheet lending, which differ mainly in the distribution of risk and the amount of return. Composite lending bridges those models and brings the benefits of marketplace lending to balance sheet loan originators.

In the world of alternative lending, two prominent lending business models are marketplace lending and balance sheet lending.

Marketplace lending for lower risk

In the marketplace lending model, lending companies sell loan portfolios to third party investors in exchange for collection of […] Read more