Fintech Lenders Gear Up for Tariff Impacts on Small and Medium Businesses
With the recent changes in the U.S. tariff policy, fintech lenders that serve small and medium-sized businesses (SMBs) are once again bracing for the impact. The U.S. is a significant market for many fintech lenders, including the Irish firm Wayflyer, which primarily services consumer brands. The firm has been grappling with the effects of American tariff policy since the “Liberation Day” announcements in April last year.
Aidan Corbett, CEO of Wayflyer, told American Banker, “We definitely knew it was going to have a huge impact on our business.”
Recent Changes in U.S. Tariff Policy
The Supreme Court recently ruled in a 6-3 decision that the International Emergency Economic Powers Act “does not authorize the President to impose tariffs.” Despite this, President Trump signed an executive order imposing a global 10% tariff with some exceptions. The tariff, which took effect on February 24, is set to expire after 150 days. The Tax Foundation estimated that the new global tariff would apply to $1.2 trillion worth (34%) of annual imports. [source]
Impact on Lending and Business Cash Flow
Ben Johnston, Chief Operating Officer for SMB lending fintech Kapitus, explained that the tariff volatility makes it challenging for lenders to evaluate a business’s future cash flow. Consequently, lenders might have to lend more conservatively, reducing the overall offer size and increasing price to compensate for the increased risk associated with the uncertainty in the cost of goods and demand.
A recent report by Pitchbook indicated that the ongoing uncertainty around U.S. tariff policy is affecting the broader transaction ecosystem that underpins primary loan issuance. The report noted that loan prices fell by 19 basis points to their lowest levels since April 2025. [source]
Consistent Application of Tariffs May Lead to Less Volatility
Despite the initial concerns, Corbett is less worried about this round of tariffs due to their consistent application. He believes that the new tariff policy could be less volatile because it removes the risk of one country experiencing a significant spike in a tariff.
Following the April 2025 tariffs, Wayflyer saw a decline in the number of originated loans for several months. Corbett explained, “There were a lot fewer requests for funding because businesses couldn’t, at the time, predict how much an order would end up costing them when it arrived at the port.”
However, many of Wayflyer’s business customers were able to negotiate successfully with suppliers and adjust their margins to accommodate tariff costs. Corbett added, “We were impressed with the way our customer base rallied through it.”
Real-Life Impacts and Adaptations
Crew Supply Co., an Ohio-based veteran-owned restaurant supply store that sources most of its manufacturing from China, has had to absorb most of its tariff costs directly over the last year due to long-term pricing agreements with large hospitality groups. The company’s CEO, Marshall Sterling, shared their experience working with Wayflyer during these challenging times, highlighting the lender’s agility and responsiveness in adjusting production schedules and working capital needs in response to shifting tariff policies.
Sterling said, “In real time we’re chatting with someone at Wayflyer, revising an offer and executing something new in a very nimble way. That’s not always the case with more conventional loan products.”
In conclusion, while the new tariff policies pose challenges, fintech lenders like Wayflyer and businesses alike are finding ways to navigate and adapt, suggesting a less volatile future. As Corbett aptly put it, “Removing that volatility allows people to plan more. What’s good for the borrower is good for us as well.”
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