Small Business Borrowers’ Bill Of Rights: Why It’s Important

You have plenty of options when it comes to small-business loans as more alternative lenders extend credit to businesses considered too risky for banks. The myriad choices can get confusing, and some borrowers are making bad selections because they misunderstood the loan’s terms, or were misled about them. Moreover, there is little regulation of the online lending industry. Now a group of lenders, brokers and nonprofits are working to ensure small-business borrowers have a fair and transparent lending experience. The Responsible Business Lending Coalition, which includes lenders such as Funding Circle, Lending Club and Opportunity Fund, released Thursday the Small Business Borrowers’ Bill of Rights identifying six rights for small-business borrowers. NerdWallet breaks down what each right could mean for small businesses: 1.