Lendio Raises $55M in Latest Funding Round

small business loan
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Lendio, one of the largest marketplaces for small business loans in the US, secured $55 million in funding in its Series E funding round.

The funding included $31 million in equity led by Mercato Partners’ Traverse Fund as well as a $24 million debt facility from Signature Bank.

The U.S.-based online lending platform uses algorithms to match customers with lenders and secure loans. The machine learning helps small and medium-sized business owners secure loans and claims to streamline the entire process, including comparing lenders and juggling things like credit scores, collateral, and fees.

Since it’s inception in 2011, it has facilitated more than 100,000 loans totalling $2 billion through a combination of leading technology, data science, and personalized expert guidance.

The latest investment will allow the company to expand its online bookkeeping platform, Sunrise by Lendio as well as introduce lender service functions.

Lendio CEO Brock Blake said of the funding round: “With these funds, we are strongly positioned to grow our existing platform as a trusted loan facilitator that supports both lenders and borrowers while building out a range of new integrated lending services that get the right loans into the right hands at the right time.”

Growth in Small Business Loans Market

The small business loan market has been experiencing strong growth in the US over the last few years. According to Fundera, the average small business bank loan amount is $633,000, but only 48% of small businesses overall have their financing needs met. This is despite the fact that at 66%, the approval rate is highest for institutional lenders than for any other type of lending entity.

Online applications have skyrocketed, with lending decisions now being made at record speeds, thanks to machine learning and advanced data analysis.

The most recent round of funding is testimony to the high-value investors are placing in the small business loans market. Lendio has total funding of $108.5 Million with major expansion plans set for 2020.

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Jacob Maslow is a writer and marketing specialist who began his career as a payroll manager. The same affinity for numbers that originally led him to an early career in accounting now comes in handy when it comes to understanding and working with marketing analytics. A native of New York, Maslow is now based in the Middle East, where he lives with his wife and five children and provides high-quality services to clients in a variety of industries, including the legal, medical and financial sectors.