Lendio Launches Lender Turndown Program
By Julie Muhn for Finovate
Small business loan marketplace Lendio is helping lenders turn a negative response into a positive one through the unveiling of its Lender Turndown program this week.
With the new program, Lendio’s network of lending partners can offer a loan alternative, instead of an absolute rejection, to small businesses that do not fit their risk profile. Through their partnership with Lendio, lending partners will offer small business borrowers access to Lendio’s marketplace, where more than 75 lenders can offer an alternative source of funding. The program, which has already provided more than $60 million in funding to small businesses, has 20 lending partners, with new partners being added every month.
“We are excited about the rapid growth of this program,” said Jim Granat, President of Lendio. “We are seeing an increase of lending partners joining the turndown platform because it allows them to turn an application decision from a ‘no’ into a ‘yes.’ Working closely with our trusted lending partners to provide additional funding options shows their commitment to customer satisfaction; it’s a great way for us to partner in helping main street get much-needed access to capital.”
Lendio showcased its marketplace at FinovateSpring 2011. The company’s average loan size is just under $27,000 and Lendio reports that 70% of businesses received the funds they requested within five days of submitting an application. The top business categories funded on Lendio’s marketplace include construction, restaurants, retail, healthcare, and manufacturing.
Last summer, the company surpassed the milestone of matching small business borrowers with more than $500 million in loans on its platform. For every loan it facilitates, Lendio donates a percentage of the funds to low-income entrepreneurs through Lendio Gives, an employee contribution and employer matching program.