Traditional Banks Vs Alternative Lending: The Funding Battlefield for Start- Ups

Traditional Banks Vs Alternative Lending: The Funding Battlefield for Start- Ups

Shreya Jain,

Guide: Dr. Geeti Sharma,

Department – Finance,

Jain (Deemed to be) University, CMS Business School

Abstract

The startup ecosystem thrives on innovation, with access to vital financial resources being crucial for growth. Traditional reliance on bank loans is being challenged by the emergence of alternative lending platforms, disrupting the funding landscape. This study explores the evolving "funding battlefield" by examining startup preferences between traditional banks and alternative lenders. Through a comprehensive survey, key factors influencing startup financing decisions are identified, including interest rates and fees, flexibility, and risk tolerance. The research aims to provide insights into the changing dynamics of startup funding choices and the implications for the financial industry.

Keywords: Startup financing, Traditional banks, Alternative lending platforms, Funding preferences, Interest rates, Flexibility, Risk tolerance, Financial industry, Innovation, Survey research.