Category: Lenders

Digital SMB Lenders

Lending to small- and mid-sized businesses (SMB/SME) is further along than many fintech services. While there were a few players in the early 2000s (just 4 remain), the market exploded after the 2007/2008 financial crisis with 10 companies founded from 2007 to 2011 and another 13 from 2012 to 2015. The pace slowed with about 1 new company per year since then. 

Businesses constantly need capital and smaller businesses have fewer options. So most digital fintech lenders are so-called alt-lenders, meaning they are an alternative to traditional financial institutions.

By using different underwriting techniques alt-lenders are able to lend to a much more diverse segment of businesses. This generally comes at substantially higher interest rates. But the comparison to legacy banks is meaningless. All that matters to the business is they make an acceptable risk-adjusted return on the borrowed funds. And to survive, alt-lenders make sure they only lend on terms that borrowers can make a profit on. 

Small Business Lender of the Month

 

Here are the biggest digital SMB lenders in the United States:

The FAB Score Ranking (Fintech Attention Barometer) is a proxy for the size of a private fintech company.

Learn MoreFAB Score*FoundedFunding $M
National_Funding_logo National FundingAd1999105ApplySan Diego
Clearco logoCLEARCO
3642015682ApplyToronto260000
NavNav2302012$92ApplyUtah11 May 20217850000099
Fundera Logo

Fundera

93201318.9ApplyNYC11 May 20219600,000018.95528600966284.8Lead gen
Capchase-logo-squareCapchase4812020$945ApplyNYC12000
SMB Lenders: Kabbage Continues to Cook Under American Express OwnershipKabbage42820082500ApplyAtlanta11 May 202113600000250046005302300050066434.883034.9
Pipe-logo-squarePipe3492019$566ApplyMiami, FL110,000
BlueVineBlueVine2282013$768ApplySF11 May 202125200007569379239031213904.694.6
OnDeckOnDeck1912007$1,200ApplyNYC11 May 20215100,000012005481190058724054.9102.3
Camino FinancialCamino Financial1772014$20.4ApplyLA11 May 202111280000020.46722103281.8
FundboxFundbox1392013$554ApplySF31 Mar 2020101800000434378737720277174057814.9
Can CapitalCan Capital1281998$1,002ApplyAtlanta11 May 2021812000010029221102006954.5
Bix2CreditBiz2Credit892007$387ApplyNYC18 May 20216200,0000387
LendioLendio822011$109ApplyUtah11 May 20214400,00001091001160035022924.9
NuulaNuula762021$120ApplyToronto9 Sep 20213,600
Lighter CapitalLighter Capital642010$116ApplySeattle12 May 20211381,00016
Fund that FlipFund that Flip412014$33ApplyNYC11 May 202115100,000013.28373041
IOU FinancialIOU Financial352011$132ApplyAtlanta11 May 20212543,0002.13031310504084.6
SmartBizSmartBiz152009$37ApplySF11 May 2021385,0000371210157110154.8
CredibilyCredibly152010$77ApplyDetroit11 May 20211612,000077458701554284.5
BizfiBizfi132005$160ApplyNYC11 May 2021141,200016020758901814394.4Acquired by WBL in 2017
SMB XSMBX102016$15ApplySF11 May 20212126,0002.51.2317316184.7Small Business Bonds Marketplace
LendistryLendistry1020151.5ApplyLA (Brea)11 May 20211243000$1.50
Patch of LandPatch Lending72013$55ApplyLA11 May 2021224,100024.9345100036154.4
ForwardLineForwardLine72003$120ApplySF11 May 2021237,7000120
Honeycomb CreditHoneycomb Credit62017$3.2ApplyPittsburgh, PA12 May 20211722,0001.81.3
SalaryoSalaryo42017$12ApplyNYC11 May 2021181,7005.86.31510
B2B InvestorP2B Investor22012$33ApplyDenver11 May 2021241,400033.325272014
Snapcap logoSnapCap (LendingTree)22012UnknownApplyCharleston, SC65000
Channel-logo-squareChannel Partners22009$50ApplyMinneapolis, MN1,400
LendvoLendvo12015$1.3ApplyWash DC11 May 2021264,20001.3
Rapid-Finance-logo-squareRapid Finance02005UnknownApplyWash DC (Bethesda)60,000
LendrLendr02011$25ApplyChicago11 May 2021291,200025161339
LendineroLendinero02014$0.03ApplyMiami11 May 20212850000.0399602874.3

Source: FintechLabs, 3 Feb 2022 from Crunchbase, SimilarWeb, SEMrush and other news sources

*FAB SCORE:  The FAB score, Fintech Attention Barometer, is a proxy for the overall size of a private company since they typically do not release traditional metrics (# customers, deposits, AUM, etc). The score is based on VC funding, website traffic, mobile downloads, and the number of employees. It's a work in progress, so expect changes in the formula.

Definition: To qualify, challengers don't need to originate loans themselves or be regulated as a financial institution. Startups must focus on small-business credit/debt (eliminates Paypal, Amazon, Square) delivered digitally (rules out Wells Fargo, BofA, and the majority of traditional banks). We will include divisions of traditional FIs if they operate under a separate autonomous brand, such as American Express's Kabbage unit.  

FAB Score*FoundedFunding $M
http://fintechlabs.com/wp-content/uploads/2021/12/Murcury-logo-square.jpg307SF2017$152
http://fintechlabs.com/wp-content/uploads/2022/01/Novo-logo-square.jpg297NYC2016$136
http://fintechlabs.com/wp-content/uploads/2021/12/Found-logo-square.jpg185San Francisco2019$75
http://fintechlabs.com/wp-content/uploads/2021/12/Relay-logo-square.jpg57Toronto2018$19
http://fintechlabs.com/wp-content/uploads/2021/12/Northone-logo-square.jpg44NYC2016$23
See Full List
FAB Score*FoundedFunding $M
National_Funding_logoAd1999105San Diego
Clearco logo3642015682Toronto
Nav2302012$92Utah
Fundera Logo93201318.9NYC
Capchase-logo-square4812020$945NYC
See Full List
Last Updated: August 2021
CompanyFAB Score*FoundedFunding ($M)
Ramp8642019$1,360NYC
Divvy1802016$418Utah
Brex6492017$1,457SF
Expensify5202008$401SF
Jeeves-Logo2142019$368NYC
See Full List
Updated June 2021
FAB Score*FoundedFunding ($M)
2302016$881SF
1222017$520SF
802017$306Wash DC
632005$0London
392015$142SF
See Full List
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