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Another U.S. peer-to-peer lender raises USD20 million, Lendio Raises $20 Million to Help Connect Lenders, Borrowers – Venture Capital Dispatch – WSJ.

Peer-to-peer lending of course sounds great, the fundamentals are there, if you dis-intermediate the investor should make more and possibly the borrower pay less.

Lendio has another clever way to use technology to better match those investors and borrowers, and possibly improve the credit assessment.  All good stuff, however, when it comes to SME finance something seems to be missing from peer-to-peer thinking.

Yes, SME finance is getting harder, but shouldn’t the question be asked, why?  If the debt lending model doesn’t work so well with SMEs (which can be the only conclusion as to why banks are withdrawing from the market internationally) then better investor/borrower matching and credit assessment are not going to make much difference.  Default rates will still be high.

Elcano Capital creates funding models to work for specific SME sub-sectors, because the old shotgun method clearly does not work.

By the way we are always willing to talk about further capital to assist us accelerate development and distribution.

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