Market sentiment is bullish for "online money loans" stocks as institutional investors shift capital into high-yield fintech assets amidst declining bond yields. Outstanding loans from universal and commercial banks to businesses and individual consumers, net of reverse repurchase agreements, expanded by 11.2% year on year to P13.62 trillion in August, slower than the 11.8% growth in July, preliminary BSP data showed. Business owners can leverage unpaid invoices or future credit and debit card transactions to secure credit lines and cash advances. Such collateral indicates to lenders that the business will have sufficient assets to repay its debts, even if it currently has a lower credit score. Price-to-earnings ratios for major "online money loans" players are still below sector averages, giving investors potential undervaluation opportunities.
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