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You might remember how iTunes killed the record store. Or how Netflix (NASDAQ:NFLX) sent Blockbuster into bankruptcy.
And you’re probably aware that print is wheezing on its deathbed right now, while online news aggregators – like Drudge and Huffington Post – are thriving.
The common thread here is the impact of internet-enabled technology on old school businesses that didn’t adapt. And there’s still a whole host of traditional, common businesses that the internet is just getting around to killing.
Lots of old-fashioned, brick and mortar businesses just can’t compete with the reach, cost advantages and technological superiority that their online counterparts offer.
The latest sector to get the internet treatment might be the biggest and most significant. I’m talking about the banking industry.
That’s because many of the big banks have changed so little, for so long. And they’re incredibly unpopular among many consumers – not to mention un-attentive to many customers needs.
Today, a new crop of online banking competitors offers significant benefits to consumers, not to mention opportunities for would-be investors. One of these new banking sources is micro-ticket financing. Micro-ticket financing is typically used for small business items costing between $1,000 and $10,000.
The potential market is relatively small, but it fills a very specific and important need that the big banks don’t cater to. Any startup or fairly new business, with no or little credit or business history, may be eligible for a micro-ticket lease.
Even for businesses that have exhausted their business credit line with the banks, micro-ticket leasing may provide an avenue to keep the business alive.
I like to think of this type of loan as the logical result of a corporatized banking system that no longer serves so many small businesses and everyday Americans. Without big banks acting as lenders and stewards of these smaller “less significant” loans, small companies that make micro-ticket loans can pick up the slack.
Micro-ticket financing is increasingly utilized by small and start-up businesses to acquire equipment on lease. Reports indicate that up to 80 percent of US businesses lease their equipment. And since small businesses are the true backbone of the U.S. economy, micro-ticket lenders have a tremendous market opportunity. This is a niche industry, currently estimated to be around $6 billion – but it’s growing as the economy improves and small businesses expand.
And micro-ticket lending is just one example of “new” alternatives. Crowdfunding is another. In an era where many financial institutions have become too big to cater to the needs of everyday Americans and small businesses, small, internet-enabled lending solutions are seizing the reins.
This trend is just beginning. As the economy continues to improve, expect to see more alternative lending institutions join the march.
My colleagues – Ian Wyatt and Steve Mauzy – have just completed a detailed report on this opportunity. Specifically, they’ve found a way for individual investors to capture an annual yield of 6 – 12% per year by cutting out the bank. If you’re interested in getting all the details on The Bankers Secret, just click here now.