

Able – Small Business Lending - ankurpatel
https://www.hiable.com/

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nlh
I love the problem they're attacking. I agree completely that early-
stage/small business lending is one of the great challenges in
entrepreneurship today. "Banks lend money to people who don't need it" rings
very true.

BUT --

"How do we do this? First, we examine data from a business’s customers through
the collection of reviews, check-ins, and connections that have already been
generated across social media."

I strongly disagree that this is the right solution. This is essentially
taking the underwriting process and shifting it from banks to...social media
users? Honestly, as much as I have distaste for the small business divisions
of most banks, it pales in comparison to the distaste I have for the collected
"wisdom" of (most) Yelp reviewers and Foursquare Checker-Inners. "The food was
outstanding but the server made one mistake -- 1-STAR!!!"

So now, what they're saying, is that not only does a bad review have the
potential to hurt your ability to gain new customers, now it can hurt a
business' ability to get credit and financing.

I genuinely think they're onto something here - and I think they're working on
a critical problem - but I think using social media reviews (in their current
form) as a credit signal is a mistake and the wrong approach.

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ankurpatel
Maybe Able might have the same outcome as Outbox which closed recently.

There are many unanswered questions here as to what happens if a small
business does bankruptcy.

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seanmccann
Well that's a giant 180.

