Quote 2 Fund announced that it has become a signatory to the Small Business Borrower’s Bill of Rights, a public commitment to ensure small business owners have access to funding that is both transparent and fair. By signing, Quote 2 Fund joins a coalition of industry leaders committed to promoting responsible practice in the small business lending sector.
“Small business borrowers have the right to see the cost and terms of any financing that they are offered in writing and in a form that is clear, complete, and easy to compare with other options,” Quote 2 Fund founder Jules Dalsey commented. “Quote 2 Fund was founded on these principles, and we encourage lenders, platforms, and marketplaces to commit to the guidelines presented in the Bill of Rights as well.”
The Small Business Borrowers’ Bill of Rights (SBBOR) is composed of lenders, credit marketplaces, and nonprofits—including Accion, Funding Circle, Lending Club, Opportunity Fund, Dealstruck and others—who have become increasingly concerned by the high cost, lack of transparency and debt stacking that have become common among certain online lenders.
As online marketplaces provide faster and easier ways for businesses to borrow, the SBBOR works to ensure that lending processes put the rights of borrowers first by adopting the following guidelines:
- Transparent Rates – Discloses an annualized interest rate or APR (when applicable)
- No Hidden Fees – Discloses all upfront and scheduled charges
- Plain-English Terms – Describes key terms in an easy-to-understand manner, including the loan amount, payment amount and frequency, collateral requirements, and the cost of prepayment
- Clear Comparisons – Presents pricing and other key terms clearly and prominently, in writing, to the borrower when the loan offer is summarized for the borrower and whenever a term sheet, offer summary, or equivalent is provided
Earlier this year Quote 2 Fund launched Quolify, an app that allows borrower to compare business financing quotes within a nationwide network of banks and lenders.