Lendio

Utah-based Lendio[2] (formerly Funding Universe),[3] founded in 2011[4] by Brock Blake and Trent Miskin, is a small business loan marketplace in the U.S. Small business owners utilize Lendio's free online service to find financing by browsing multiple loan products from a network of lenders.

Lendio
IndustrySmall business loans
PredecessorFundingUniverse
Founded2011
FounderBrock Blake, CEO[1]
Trent Miskin, CGO
Brett Child, EVP Sales
Key people
Chad Iverson, COO
Jennifer Hamelin, Chief of Staff
Ben Davis, Chief Revenue Officer
Websitewww.raxco.com

In October 2018, Lendio announced[5] it had serviced over $1B in total loans to small businesses across the country, generating an estimated $3.8B in gross economic output.

Lendio is a member[6] of the Innovative Lending Platform Association,[7] a trade organization that supports online lending and service companies assisting small businesses.

History

Founded in 2006 as FundingUtah, ,[4] it became FundingUniverse and, by 2011, Lendio.[8] CEO Blake[9][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 with an average 25 hours filling out traditional lending applications.[10]

The Lendio platform includes loan options from Bank of America, American Express, Kabbage, OnDeck, and Headway Capital, among others. Small business owners are offered financing options including credit cards, lines of credit, short-term specialty loans and long-term traditional loans.

Loan types

Lendio offers a variety of loans[11] 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,[13] helping more than 5,100 small business owners in all 50 states.

In October 2016, Lendio raised $20 million[14] 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[15] to more than 10,000 small businesses.

In Q2 2018, Lendio reported[16] 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.

Franchising

Launched[17] in early 2017, the Lendio Franchising program is the world's first franchised online lending marketplace; it has since grown to 29 franchise territories nationwide, and facilitated $16 million to over 500 small businesses[18] across the U.S.

Partnerships

In April 2018, Lendio announced[19] 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][22] was a pay-to-pitch[23] on Inc.'s list of 'the fastest-growing privately held companies.'[3] They stopped charging "amid the criticism."[24]

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

References
  1. "Small-Business Relief Effort 'a Mess'". The New York Times. April 2, 2020.
  2. Darren Dahl (October 26, 2011). "When Should a Small Business Hire a Finance Chief?". The New York Times.
  3. Helen Coster (February 25, 2011). "Funding Universe Matches Entrepreneurs With Loans. Is The Advice Worth The Price?". Forbes.
  4. Gabrielle Olya (May 17, 2019). "This Lendio CEO Started a Billion-Dollar Business That Helps Other Entrepreneurs Get Their Start".
  5. "Lendio Milestone: Tops $1 Billion in Business Loans Facilitated Through Online Marketplace". Crowdfund Insider. 15 October 2018.
  6. Zerucha, Tony (21 October 2017). "Lendio joins ILPA". Bankless Times.
  7. "innovativelending". innovativelending.org. Retrieved 2018-11-02.
  8. "Lendio Scores $2 Million More To Assist Business Owners In Securing Loans". TechCrunch. June 2, 2011.
  9. "Small Businesses Seek a Crisis Lifeline Beyond Loans". The New York Times. March 23, 2020.
  10. 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.
  11. "Business Loans". Lendio. Retrieved 2018-11-02.
  12. David McCabe; Nathaniel Popper (April 9, 2020). "Enlisted Late, Online Lenders Still Must Wait to Help Speed Up Stimulus". The New York Times.
  13. "Lendio Momentum Soars in 2015 with Record Revenue and Customer Growth". prweb.com. Retrieved 2018-11-02.
  14. By Pymnts (2016-10-26). "Lendio's Latest Round Led By Comcast". PYMNTS.com. Retrieved 2019-03-27.
  15. "Lendio Tops $250 Million in Funding to 10,000-plus Small Businesses". prweb.com. Retrieved 2018-11-02.
  16. GmbH, finanzen net. "Lendio Reports Q2 Results: 90% Year-Over-Year Revenue Growth - Markets Insider". markets.businessinsider.com.
  17. "Lendio Unveils New Marketplace Lending Franchise Program". Crowdfund Insider. 1 March 2017.
  18. Starr, Rob (6 October 2018). "Lendio Offers Franchise Opportunities to Serve the Small Business Financing Market".
  19. Stone, Todd. "Lendio's New Turndown Program Grows".
  20. By Pymnts (2017-06-13). "Lendio And Comcast Pair On SMB Lending". PYMNTS.com. Retrieved 2019-03-27.
  21. Lendio. "Lendio Partners with Ocrolus to Automate Bank Statement Analysis". www.prnewswire.com.
  22. 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
  23. 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.
  24. "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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