PayPal Loans Worth 20 Points Due 12/12

Assignment: Read the case/article below and answer the Critical Thinking questions below.

Business & Technology: PayPal Makes Small Business Loans

As loans to large companies continue to increase, filling the gap for small business loans are a number of technology companies, including PayPal, a well-known electronic payments company. With transaction data from small business customers, and part of a strategy to expand its service offerings, PayPal Working Capital is providing more than $2 million daily in loans to its customers who run small businesses.

Questions for Critical Thinking

1. From a strategy standpoint, do you think it is smart for PayPal not to perform credit checks on possible borrowers? Why or why not?
2. Is this approach a good alternative to small business lending from traditional banks? Discuss the pros and cons of alternative lenders like PayPal.

Provide your Answer here: One paragraph for each numbered bullet point. Support your answer with details (explain)(150words Minimum). Rubric: Earn up to 20 points for your write up, Provide a thorough and complete answer to justify your stance. Proofread carefully and include good grammar and syntax usage. Avoid contractions in business writing (don't = do not, please spell out).