The tighter lending standards reflect in part a less favorable or more uncertain outlook for commercial real estate prices.
Elevate Credit loans money "to the vast and underserved segment of 170 million non-prime consumers in the U.S. and U.K."
Moody's says credit risk is rising at a time when the average dollar amount of negative equity at trade-in is at record levels.
The online lender's revenue fell 33% as it struggled to obtain loan funding from investors.
The layoffs are another sign of upheaval in the online lending sector as investors have turned negative on funding firms.
Alternative lenders made $15.9 billion in U.S. loans in 2014, with California transactions increasing by 936% since 2010.
Kabbage's venture with ING Groep in Spain aims to get capital to every small business "that needs it and can handle it.”
The Cincinnati bank was accused of waiting too long to report that more than 1,400 mortgage loans were defective, resulting in federal insurance losses.
