Highlighted in this report is the most important issue facing nonbank online lenders – the cost of capital. The report outlines historical, current, and projected cost of capital and where the capital is being sourced.
Key findings include:
Larger companies are increasingly looking to securitization to lower financing costs
Third party backup services provide huge cost savings between 4 and 8 basis points for small and large online lenders, respectively
Capital structure/capital mix review and impact of scale