Jan 28, 2020

Lendio’s Economic Insights Report Shows Small Business Revenues on the Rise

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The Q4 2019 report reveals small business owners’ reported revenues are climbing and they’re taking on more expansion loans as a result

SILICON SLOPES, Utah – January 28, 2020 – Lendio, the nation’s largest marketplace for small business loans, today released its SMB Economic Insights report for Q4 2019. The report shows an 11% increase in reported business revenues and a 29% increase in the number of expansion loans funded over the previous three-quarter average.

Expansion remains the second most common use of funds for small business owners, behind general working capital. However, the recent increase points to growing optimism among small business owners and their ability to scale. In addition to higher reported revenues, business owners’ average personal income increased slightly (by 2%) and the average credit score held relatively steady. Meanwhile, the average number of bankruptcies and cash negative days both decreased in Q4.

The SMB Economic Insights report, released following the close of each business quarter, provides a state-by-state summary of the impact of lending on small business health. Findings are based on information provided by more than 10,000 funded borrowers through the Lendio platform in the last quarter.

Additional key findings from the Q4 report (based on growth over the previous three-quarter average):

  • The total amount funded to businesses across the U.S. increased by 27%.
  • The average loan amount among small business borrowers grew by 4%.
  • The number of small business loan inquiries went up in all 50 states. The total number of loans funded increased in 44 states and the total amount funded increased in 42 states.
  • The number of business owners reporting expansion as the main use of funds grew by 29%. Other uses of funds saw notable increases including working capital (up 28%), funding payroll (up 2%) and equipment loans (up 21%).
  • The average credit score of U.S. business owners held relatively steady in Q4, coming in at 667.5. Business owners in Montana, Wyoming, Oregon and Utah claim the highest average credit scores in the nation.
  • The top small business industries funded are construction (with an average loan size of $17,701) retail (with an average loan size of $18,271) and restaurants (with an average loan size of $18,821).

“As a small business loan marketplace, we see businesses of all shapes and sizes coming to us for a wide range of capital needs,” said Brock Blake, CEO and founder of Lendio. “The need for expansion funds increased every quarter in 2019. This points to continued optimism among small business owners about their ability to grow. As small business revenues and access to capital continue to increase, we can expect local economies to thrive as a result.”

Trent Schneiter, owner of Poke Austin, which opened in March 2018, is among the business owners who are set to expand their operations in the coming year.

“With the restaurant performing well we decided it was time to grow and are now working on a second location in downtown Austin,” says Schneiter, who attributes the success and ability to expand to careful financial planning. “Having many years of experience with finance in many different industries has provided a great level of confidence to deal with the issues that come up, whatever they may be. Things that are just a little off can become a big problem if not addressed, so keep on top of it,” he advises.

Finding capital and managing cash flow are consistently top concerns for small business owners. Lendio’s SMB Economic Insights report not only provides business owners with insight into how their financial health stacks up against other businesses in their industries and states, but it also shines a light on the trends currently shaping small business lending.

To view and download a full report for all 50 states and the District of Columbia, visit www.lendio.com/quarterly-reports/.

About Lendio

Lendio is a free online service that helps business owners find the right small business loans within minutes. With a network of over 75 lenders offering multiple loan products, Lendio’s marketplace is the center of small business lending. Certified for three years running as a great workplace by the independent analysts at Great Place to Work®, Lendio ranks on Fortune’s Best Workplaces in Financial Services & Insurance and Inc.’s Best Workplaces. For every new loan facilitated on Lendio’s marketplace platform, Lendio Gives, an employee contribution and employer matching program, provides a microloan to a low-income entrepreneur around the world through Kiva.org. More information about Lendio is available at www.lendio.com. Information about Lendio franchising opportunities can be found at www.lendiofranchise.com.

About the Author

Spencer Anopol

Spencer Anopol

Spencer has spent the last ten years in the throes of all things marketing and communications. In the past, he has written for companies and clients spanning restaurants to SAAS companies, and entertainment guilds to yoga studios. Spencer has a B.S. in Communications from the University of Utah. When not writing or working, he can be found in the mountains on a hike, in a movie theater with a tub of popcorn, or on stage at a local theater.

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