Small Business Owners Depend On Access To Capital But Struggle To Find The Right Solution, Research Finds.

LEHI, Utah–July 25, 2024–Today, Lendio released its first SMB Lending Report. In a survey of over 1000 small business owners, 68% of small businesses said that getting funding was the most important factor in their business growth. Although the respondents expressed confidence in their ability to get the money, they said the amount of the loan and the term was generally less than they expected.

According to Lendio's data, small business owners typically seek loans of $50,000, but traditional lenders with better rates and terms find small loan rates more expensive to write. A number of online lenders have sprung up to fill the gap, but those loans often have high rates.

SMBs also feel isolated from current lending options as 67% of small businesses do not choose a particular type of lender and 50% do not know what financial solutions their banks offer.

“Many banks have chosen not to offer or market their SMB loan products to investors because despite existing relationships and a wealth of data available; they strive to write SMB loans in the most cost-effective way,” said Philip Taliaferro, SVP of SaaS at Lendio. “Right now the depositors are not interested in the lender and that creates a new risk that the bank will lose those deposits if the business turns to a foreign bank for financing.”

SMBs also want a quick, easy loan approval process. 85% of small business owners say loan approval speed is important when choosing a lender, and 77% prefer to apply for a loan online or through a mobile app.

“The current system is not designed for small businesses, so there is a huge market demand that is waiting to be taken,” said Brock Blake, CEO of Lendio. “The solution is not to pit banks against other people who lend money or to switch completely to a bank as a-service. Each of these providers has a contribution to make in an ecosystem that fully supports small business owners, whether it is the bank they currently invest in or the retailer that sells them the goods.”

Read the full report here.

About Lendio

Lendio is revolutionizing small business lending by connecting small businesses, lenders, and small business service providers through one integrated technology platform. Lendio offers purpose-built software that automates small business loan decisions and underwriting for both banks and digital lenders, uses AI to match small businesses with financing offers that best meet their needs, and embeds the full small business loan marketplace directly within the small business service. supplier platforms.

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