NEW YORK--(BUSINESS WIRE)--Fundera, the online marketplace for small business loans, today released its report on the State of Online Small Business Lending, furthering its dedication to transparency in the alternative lending sector. The report was created to help small business owners better understand their loan eligibility by providing data on product trends in the online lending space.
Having facilitated more than 1,500 loans since the company launch in February 2014, Fundera has amassed a wealth of data and is sharing this information to empower its customers to make more educated decisions in an otherwise complicated process. Fundera’s initial report contains data from February 2014 through Q3 2015, and going forward, the company plans to release quarterly report updates in order to track changes in online small business lending and their impact on business owners.
Fundera’s report is an aggregate analysis of the $63 million in customer financing secured on its platform between the company’s launch and the end of Q3 2015. The report includes information on annual percentage rates (APR), loan amounts, time to funding, revenue, and credit profiles by product type. Revealing this data gives small business owners a clear picture of the eligibility requirements for different types of loans, including SBA loans, medium term loans, short term loans, and lines of credit.
Small business owners in search of capital are often forced to work with predatory lenders and brokers who charge exorbitant fees. As a result, many small business owners end up taking out loans they neither understand nor can reasonably repay. Fundera has acted as an impartial advocate for borrower protection and provided affordable access to capital through its buyer’s-choice marketplace model. Small business owners who obtained short-term financing through Fundera have reported annual percentage rates 15 percent below available industry averages.
“While there has been an increase in alternative lending resources, it’s still extremely difficult for small business owners to know who to trust and what to expect,” said Jared Hecht, CEO and co-founder of Fundera. “The purpose of this report is to help business owners make the best financing decisions by offering a resource for true apples-to-apples product and cost comparisons.”
As a co-founding member of the Small Business Borrowers’ Bill of Rights, Fundera has always worked to eliminate predatory lending practices. Fundera’s new quarterly report is another step in the direction of fair, transparent, and accountable capital access for small business owners.
Fundera is the most trusted online marketplace that connects small business owners with the best funding providers for their businesses. Fundera was co-founded in 2013 by GroupMe co-founder Jared Hecht and successful software entrepreneur Rohan Deshpande to bring transparency, accountability, and fairness to the online lending industry. The company has raised $15 million from Susquehanna Growth Equity, QED Investors, Khosla Ventures, First Round Capital, Lerer Ventures, SV Angel, Box Group and angel investors Aaron Levie, Scott Belsky, Strauss Zelnick, and David Rosenblatt, and is based in New York City.
To learn more or get started on a loan application, please visit www.fundera.com.