Lendio Announces Support for SMART Box Initiative Focused on Enhancing Online Lending Disclosures
Lendio (www.lendio.com), the nation’s leading marketplace for small business loans, announced today that it will join industry leaders as an early engagement participant in supporting the model small business lending disclosure called the SMART (Straightforward Metrics Around Rate and Total cost) Box, developed by members of the Innovative Lending Platform Association (ILPA).
The SMART Box is a voluntary initiative to promote transparency through standardized pricing comparison tools and explanations, including both various total dollar cost and annual percentage rate (APR) metrics to further empower a small business to assess and compare financing options.
“To build industry transparency and maturity, market leaders need to help small business owners clearly understand the total costs associated with their loan,” said Brock Blake, CEO, Lendio. “This is the first initiative focused on creating a specific business loan disclosure that will provide an easily understandable format for presenting pricing metrics. A stand alone metric is just not as effective as it needs to be for the small business borrower.”
Lendio is committed to helping small business owners find the best capital solutions available for their needs. According to a recent survey of small business owners sponsored by Lendio, results showed capital providers and marketplaces have an important role to play in helping borrowers find and evaluate loan products that fit their unique needs.
Beginning this month, Lendio will join other key stakeholders who have also signed on to the SMART Box initiative to provide feedback on best practices during the 90-day national engagement period. Lendio will also encourage its marketplace of lenders to voluntarily support and adopt the SMART Box.
“Our goal is to make sure that the flow of capital to Main Street continues and expands responsibly,” Blake added. “It will be exciting to collaborate with key industry leaders around the SMART Box methodology to provide business owners with the best and most complete information surrounding the cost of capital associated with a business loan.”
Lendio is a free online service that helps business owners find the right small business loans within minutes. The center of small business lending, our passion is fueling the American Dream by uniting the small business loan industry and bringing all options together in one place, from short-term specialty financing to long-term low-interest traditional loans. Our technology makes small business lending simple, decreasing the amount of time and effort it takes to secure funding. More information about Lendio is available at www.lendio.com.