Seeking Lenders, Small Businesses Turn To Matchmaker
Written by Ken Gaebler
Company announces early success in matching capital lenders with small business borrowers.
In the three months since its launch, online business Lendio has processed almost $1 billion in requests for small business loans, according to a company press release issued today. Furthermore, the approval rate for loans set up through Lendio is five to seven times better than the average rate nationally.
Lendio describes itself as a matchmaker between small businesses looking for capital and lenders who are likely to approve loans to them.
The company was founded to address the continuing difficulty small businesses have faced in obtaining loans since the financial crisis. A recent report by the U.S. Small Business Administration showed that bank lending to small businesses was down $15 billion in the first quarter of 2011.
In addition to the success of services like Lendio, there are other indications capital might begin flowing to small businesses more steadily. The U.S. Treasury has begun selling off the 31 SBA 7(a) securities it bought last year to stimulate lending to small businesses. Also, Bloomberg News reported on June 9 that 12 Wall Street firms are arranging $1.38 billion is stock offerings in order to raise funds for investment in companies with less than $500 million in annual revenue.
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