Lendio

Lendio

Lendio

United States small business loan company (e. 2011)

Utah-based Lendio[2] (formerly Funding Universe),[3] founded in 2011 by Brock Blake and Trent Miskin, is a free online loan marketplace in the U.S. targeting small business owners.[4]

Quick Facts Industry, Predecessor ...

History

Founded in 2006 as FundingUtah, ,[4] it became FundingUniverse and, by 2011, Lendio.[5] CEO Blake[6][1] has served in that role to each.

Lending platform

Lendio's platform reviews metrics including the business's financial projections, use of funds, industry, and monthly revenue to find loans option for borrowers. The platform uses a series of questions to predict which loan type will most likely match a business owner's qualifications. Each borrower is also assigned a funding manager to answer questions through the entire process. Lendio's online application process takes an average of 15 minutes to complete, compared to an average of 25 hours filling out traditional lending applications.[7]

Small business owners are offered financing options including credit cards, lines of credit, short-term specialty loans and long-term traditional loans.[7]

Loan types

Lendio offers a variety of loans[8] for small business owners, including:

Company growth

Founded in 2011, Lendio facilitated its first loan in Q4 2013. In 2014, it coordinated $12.4 million in funding to more than 400 small business owners. By 2015, the company had expanded to $128 million in financing,[10] helping more than 5,100 small business owners in all 50 states.

In October 2016, Lendio raised $20 million[11] in funding from Comcast Ventures and Stereo Capital with participation from existing investors Napier Park, Blumberg Capital, Tribeca Venture Partners, and North Hill Ventures. By 2016, it had delivered over $250 million in total funding[12] to more than 10,000 small businesses.

In Q2 2018, Lendio reported[13] 90% year-over-year revenue growth. In October 2018, Lendio announced it had serviced $1B of total loans to over 51,000 small businesses across the country, providing $3.8B in economic output.

In Q1 2020, Lendio announced it had secured $55M in a Series E Funding Round.[14] In the first month of the Paycheck Protection Program during the COVID-19 pandemic, Lendio onboarded hundreds of lenders to help facilitate what would eventually amount to $8 billion in loan approvals for over 100,000 businesses.[15]

Awards

  • Glassdoor’s Best Places to Work, U.S. Small and Medium Companies, 2021[16]
  • EY Entrepreneur Of The Year Utah Region Award winner, 2020[17]
  • Entrepreneur’s Franchise 500®[18]
  • Utah Business Fast 50, 2017, 2018, 2019, 2020[19]
  • The Fintech 250: The Top Fintech Companies Of 2020[20]

Lendio Local and Sunrise

Launched[21] in early 2017, the Lendio Franchising program is the world's first franchised online lending marketplace; it has since grown to 100 franchise territories nationwide, and facilitated $430 million to over 7,000 small businesses[22] across the U.S.

In 2019, Lendio acquired Billy, renamed to Sunrise, a freemium bookkeeping software program for small businesses that allows them to manage and track cashflow, send invoices and collect payments.[23] An integration with Gusto, allows business owners to complete and track payroll expenses as well.

Partnerships

In April 2018, Lendio announced[24] its lender turndown program, which allows lending partners to offer Lendio's marketplace of loan options to small business owners that do not fit the lender's credit box.

Lendio also works with the following organizations to better serve the small business community:

Funding Universe

Lendio's predecessor, Funding Universe (FundingUniverse)[3][26] was a pay-to-pitch[27] on Inc.'s list of 'the fastest-growing privately held companies.'[3] They stopped charging "amid the criticism."[28]

The name FundingUniverse was an outgrowth of the FundingUtah that Blake and Miskin began in 2006.[4]

References

  1. [1]
    "Small-Business Relief Effort 'a Mess'". The New York Times. April 2, 2020.
  2. [2]
    Darren Dahl (October 26, 2011). "When Should a Small Business Hire a Finance Chief?". The New York Times.
  3. [3]
    Helen Coster (February 25, 2011). "Funding Universe Matches Entrepreneurs With Loans. Is The Advice Worth The Price?". Forbes.
  4. [4]
    Gabrielle Olya (May 17, 2019). "This Lendio CEO Started a Billion-Dollar Business That Helps Other Entrepreneurs Get Their Start".
  5. [5]
    "Lendio Scores $2 Million More To Assist Business Owners In Securing Loans". TechCrunch. June 2, 2011.
  6. [6]
    "Small Businesses Seek a Crisis Lifeline Beyond Loans". The New York Times. March 23, 2020.
  7. [7]
    Karen Gordon Mills; Brayden McCarthy (2016-11-29). "The State of Small Business Lending: Innovation and Technology and the Implications for Regulation" (PDF). Harvard Business School. Retrieved 2018-11-02.
  8. [8]
    "Business Loans". Lendio. 26 July 2017. Retrieved 2018-11-02.
  9. [9]
    David McCabe; Nathaniel Popper (April 9, 2020). "Enlisted Late, Online Lenders Still Must Wait to Help Speed Up Stimulus". The New York Times.
  10. [10]
    "Lendio Momentum Soars in 2015 with Record Revenue and Customer Growth". prweb.com. Retrieved 2018-11-02.
  11. [11]
    Pymnts (2016-10-26). "Lendio's Latest Round Led By Comcast". PYMNTS.com. Retrieved 2019-03-27.
  12. [12]
    "Lendio Tops $250 Million in Funding to 10,000-plus Small Businesses". prweb.com. Retrieved 2018-11-02.
  13. [13]
    GmbH, finanzen net. "Lendio Reports Q2 Results: 90% Year-Over-Year Revenue Growth - Markets Insider". markets.businessinsider.com.
  14. [14]
    "Lendio Closes $55M Series e Funding Round Led by Mercato Partners". 27 February 2020.
  15. [15]
    "Lendio's Network of Lenders Secure PPP Loan Approvals". 19 August 2020.
  16. [16]
    "Best Places to Work".
  17. [17]
    "Lendio Co-Founders Brock Blake and Trent Miskin Named as EY Entrepreneur of the Year® 2020 Utah Region Award Winners". 7 October 2020.
  18. [18]
    "Financial Services Franchises - Page 1".
  19. [19]
    "These are Utah's fastest growing companies". 3 September 2020.
  20. [20]
    "The Fintech 250: The Top Fintech Companies of 2020".
  21. [21]
    "Lendio Unveils New Marketplace Lending Franchise Program". Crowdfund Insider. 1 March 2017.
  22. [22]
    Starr, Rob (6 October 2018). "Lendio Offers Franchise Opportunities to Serve the Small Business Financing Market".
  23. [23]
    "Lendio Acquires Billy, Unveils Small Business Accounting Platform". 23 July 2019.
  24. [24]
    Stone, Todd. "Lendio's New Turndown Program Grows".
  25. [25]
    Lendio. "Lendio Partners with Ocrolus to Automate Bank Statement Analysis". www.prnewswire.com.
  26. [26]
    Daniel Hausmann (January 10, 2008). "Web Sites Help Bring Together Entrepreneurs and Investors". Wall Street Journal (wsj.com). $375,000 in angel investor backing .. through FundingUniverse
  27. [27]
    Ty McMahan (August 16, 2010). "Free Pitches? Entrepreneurs and Big Investors Push Back Against Pay to Pitch". Wall Street Journal. While a few companies succeed in securing a check, most go home empty-handed.
  28. [28]
    "Services Let Start-Ups Pitch to Angels, for Free". Wall Street Journal (wsj.com). June 17, 2010. amid the criticism. ... FundingUniverse LLC stopped charging
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