Online small business lender Lendio announced on Thursday it has helped facilitate nearly $120 million in growth capital through more than 5,0000 to small businesses in the state of California. The lending platform has reportedly funded more loans in California than in any other state and the funding milestone comes just after a 169% increase in loans originated through Lendio’s platform in California during the last fiscal year.
“According to lending data from the Lendio platform, demand for small business loans in California increased 80 percent year-over-year from 2017 to 2018. The average loan size among Lendio’s small business customers in California increased 91 percent year-over-year from to $23,391 in 2017 to $44,602 in 2018. The top five California industries funded on Lendio’s marketplace include construction, retail, restaurants, healthcare and wholesale.”
Lendio also reported that according to a Federal Reserve Bank of Cleveland report, nearly half of small businesses need additional funding each year; however, since 2008, it’s been a challenge for small business owners to access financial capital. The lender noted that continued growth and innovation in online lending platforms is transforming the funding landscape. Lendio helps California small businesses get loans fast, with 70 percent of businesses getting loan offers within three days of submitting an application. Brock Blake, CEO and founder of Lendio, stated:
“Most business owners are not going to raise angel or investor capital, and unfortunately many of them don’t meet banks’ criteria for loans either. Lendio is pleased to be part of filling a critical financing gap for small business owners in California so they can continue to strengthen the state’s economy and create jobs.”