While capital markets for Wall Street have exploded in liquidity, sources of financing for Main Street assets have dried up in the wake of commercial banking regulations and failures. A new crop of Fintech startups, neobanks, hard asset platforms and other types of partnerships or “Emerging Originators” are filling this banking gap with creative financing options to provide liquidity to overlooked pockets of consumers and Main Street businesses.
These Niche Asset-Based Lending (ABL) markets offer unique collateral given their short-tenure, self-liquidating source of repayment and contracted cash-flow streams. However, due to significant barriers to entry for investment capital, niche markets and originators lack the credit access they need to finance asset-based loan growth.