“We’re impressed with Lendio’s progressive business model, which provides a solution to the challenges small businesses face in securing loans in this new economic environment,” said Kendall Fugate, director of Mountain Northwest at Square 1 Bank. “We’re pleased to help grow a business that shares a creative approach valued by Square 1.”
This financing comes off the heels of raising $6 million, which was announced in February.
“The completion of this debt financing is an excellent compliment to our recent round we closed with Highway12 Ventures and GSA Partners,” said Mike Henderson, Lendio’s chief financial officer. “We have been fortunate to find a great partner in Square 1 Bank.”
This financing will continue to accelerate the launch of Lendio’s new online service that matches qualified small business owners to banks, credit unions, and other lending sources. The service is like a Match.com for business owners and business loans. Based on credit, industry, revenue, and other parameters, Lendio members are instantly matched to the loan type and lender that best fits their situation. Lendio is currently aligned with 3,500 lenders with access to more than 13,000 different lending options.
In just over 2 months, nearly 10,000 business owners have signed up for Lendio’s matching services and have requested just under $1 billion in business funding. It’s still early with many of these clients, but loan approval rates through Lendio’s system are five to seven times the national approval rate, which hovers around 10 percent, according to the Small Business Administration.
“We are excited about the opportunity to leverage this financing into continued growth for the company,” said Brock Blake, Lendio CEO, “and we are especially excited about the momentum we are seeing from banks and credit unions across the country.”
About Square 1 Bank
Square 1 Bank is a full service commercial bank dedicated exclusively to serving the financial needs of the venture capital community and entrepreneurs in all stages of growth and expansion. Square 1’s expertise, focus and strong capital base provide solid support for its clients’ needs. The bank offers tailored products and solutions aided by the latest in technological innovations. To serve its relationships, Square 1 has offices coast to coast in Austin, Boston, Boulder, Durham, McLean, New York, San Diego, Santa Monica, Seattle, and Silicon Valley.
Lendio makes small business loans simple by matching qualified small business owners with active banks, credit unions, and other lending sources. Through a proprietary matching technology, Lendio assists a business owner to identify the business loan category and specific lenders that offer the highest probability for that business owner to prepare for and secure a business loan approval. Lendio formerly operated as FundingUniverse.com. For more information, contact Lendio at press(at)lendio(dot)com.