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Publicação
The real effects of FinTech lending on SMEs: Evidence from loan applications
Orientador(es)
Resumo(s)
We examine the effects of FinTech lending on firm policies using proprietary data on loan applications and loans granted from a peer-to-business platform. We find that FinTech serves high quality and creditworthy small businesses who already have access to bank credit. Firms access FinTech to obtain long-term unsecured loans and reduce their exposure to banks with less liquid assets, stable funds, and capital. We find that firms with access to FinTech loans significantly increase investment, employment, and sales growth relative to firms that get their loan application rejected. We identify these effects by exploiting the number of banks in each municipality as a source of exogenous variation in the probability of obtaining a FinTech loan. Our findings suggest that FinTech allows firms to improve their financial flexibility and reduce bank dependence.
Descrição
Palavras-chave
FinTech SMEs Small business lending Lending relationships Firm growth Investment Leverage Debt structure
Contexto Educativo
Citação
Eça, Afonso, Ferreira, Miguel A., Prado, Melissa Porras, Rizzo, Antonino Emanuele. The real effects of FinTech lending on SMEs: Evidence from loan applications (March 2022) Nova SBE Working Paper Series No. 649
Editora
Nova School of Business and Economics