Small business lending technology company Lenderfit has rolled out its services in beta, connecting financial institutions to solutions to facilitate small business lending.
Reports in Insider Louisville said the Louisville-based startup launched in beta this week, according to CEO David Taliaferro. He told the publication that Lenderfit began as a way to address the small business lending challenges of nonprofit investment firm Access Ventures.
The company is now expanding its solution designed for Access Ventures to other banks, community development financial institutions (CDFIs) and other lenders that work with small to medium-sized businesses (SMBs). The firm digitizes the process to initiate and complete a small business loan while maintaining communication with the borrower so everyone can gain visibility into progress made.
While the company targets lenders as its clients, Taliaferro told reporters the solution can also provide a better experience for small business borrowers, who can quickly become frustrated by the lengthy, cumbersome process of pursuing a loan. Lenderfit provides a Personal Financial Statement that allows lenders to create an FAQ-type direction for each item of an application, which can be particularly useful for first-time borrowers.
Because the company is launching in beta, he noted that lenders can access the subscription service at a discounted rate, "because we want to see how you use the product and be aware if there are any issues."
Right now, the company can support micro-loans of up to $35,000, and has so far facilitated $750,000 in small business loans as the company spreads from Kentucky to neighboring states.
Recent research from the U.S. Federal Reserve found an increase in small business capital demand in 2018 compared to 2017. The Fed's Small Business Credit Survey revealed 43 percent of SMBs had applied for financing in the last 12 months, and nearly one-third sought financing online, an increase from 24 percent that said the same in 2017.