Statistics show that contributing to small businesses failure rate is lack of capital. What’s more, 8 out of 10 small businesses that apply for loans are denied loans from their local banks, withÂ 15% of small businesses in 2010 not even applying for a loan because they felt they would not succeed, according to Harborcove Financial.
Now global retailer Staples is entering the financial arena and taking on the challenge of closing the capital access gap for its small business customers through a partnership initiative withÂ Lendio, the leading small business marketplace lender in the USÂ -Â calledÂ Staples Small Business Financing Powered by Lendio. This new partnership will allow all Staples small business customers to access Lendio’s alternative lending platform that provides access to aÂ full-suite of non-traditional and peer-to-peer loan products from marketplace lenders.
Borrowers can choose from more than twenty different funding options for loans ranging from $2,500 to $1 million. Lendio, unlike other marketplace lenders such as Prosper, LendingClub and OnDeck,Â gives business owners an all-in-one solution, showing them all of their loan options in one place, allowing them to know within minutes if they’ve been approved for a business loan, according to a statement released by Staples.
“At Staples, we’re committed to helping small business owners by providing everything they need to make more happen in their business — including funding,â€ noted Frank P. Bifulco Jr., executive vice president, global marketing, Staples. “We’re excited to team up with Lendio to launch Staples Business Loans, which makes it easy for small businesses to get funding that is right for their business.â€
Staples evaluated more than 30 financial services firms before teaming up with Lendio. According to Brock Blake, CEO and founder, Lendio has already helped nearly a half million small business owners. More than 100,000 small businesses are financedÂ each yearÂ through Lendio. The current funding process for a small business is time consuming, complex and often does not result in the small business actually getting a loan. Small businesses contact at least 3 different financial institutions for help and spend an average of 33 hours applying for credit, according to the Spring 2014 Federal Reserve Bank of New York Small Business Credit Survey.
Other features of the new Staples Business loans include personal attention from a loan advisor to guide small businesses through the entire process; impartial advice to help understand the pros and cons of each option so small businesses choose what is right for their needs; and fast funding within days.
Along with its recently launched More Account, for purchases at Staples, providing loans is another example of how Staples is helping its small business customers manage their cash flow and financing needs, noted Alison Corcoran, senior vice president, North American stores and online marketing, Staples.