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Aliloan: Small Businesses’ “Credit Card”

What advantages does Alibaba have over traditional offline credit lenders?

Financing difficulties for SMEs are particularly prominent in China. However, under the influence of internet technology, this problem is being taken up as a new business idea by a number of internet companies. Alibaba began as an electronics supplier, but in 2010 and 2011, established two small loans firms. Aimed at SMEs and individual sellers within Alibaba’s electronics supply chain, loans were offered without collateral to firms in need of credit. Step by step, how did Alibaba develop a small loans model as an online service? What advantages has Alibaba had over traditional credit lenders? What challenges does Aliloans face going forward?

Case advisor: 
Chen Long
Case writer: 
Yang Guchuan
Keywords: 
SMEs, internet technology, credit