A handful of direct marketing powerhouses will dominate the lower end of the small-business loan market by the year 2000, an Advisory Board consultant predicted.

By applying aggressive direct marketing strategies, refined data-base management, and credit-scoring technology in wide geographic markets, a group of 11 institutions will control 60% of the market for loans of $25,000 or less, said Vikram Capoor, practice manager of the Business Banking Board, a unit of the Advisory Board Co., a Washington-based research firm that follows the financial services, health care, and human resources industries.

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