Co-executive Chairman Harlan Peltz joins Cheddar live, a news video network, addressing private lending and its increasingly vital role in the economic ecosystem. “The pool of the unbanked has grown dramatically. And private lending, which has always taken on a big role in the economy, has taken on a much bigger role now and a much more public role,” Peltz said.
Since the 2008 financial crisis tightened credit and capital markets, borrowers are increasingly challenged to access lending. When the economy began to recover, banks were unwilling to make the same loans they had been before the collapse. This popularized the private lending arena, giving lenders the ability to take on a larger and more intriguing role over the past few years as an option to address the gap between the borrowers’ demand and the banks’ inability to lend funds.
Peltz also gave insight into the current lending environment, as well as why a more cautious approach is warranted. He explains the risks of unsecured versus secured private loans, and the differences between the two, which may not be fully understood by investors.
Launched in early 2016 by former BuzzFeed President Jon Steinberg, Cheddar is a new video news network focused on covering innovative products, technologies and services. Geared towards the business industry, Cheddar streams one to two hours of live content every day from the New York Stock Exchange trading floor, interviewing some of the industry’s top companies and executives.