Category: Lenders

Digital SMB Lenders

Lending to small- and mid-sized businesses (SMB) 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. Fundera TEST

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
Clearco logoCLEARCO3682015$682MApplyToronto260000
Fundera Logo

Fundera

121201318.9ApplyNYC11 May 20219600,000018.95528600966284.8Lead gen
NavNav1802012$92ApplyUtah11 May 20217850000099
KabbageKabbage42420082500ApplyAtlanta11 May 202113600000250046005302300050066434.883034.9
Capchase-logo-squareCapchase2412020$470ApplyNYC12000
BlueVineBlueVine2122013$767ApplySF11 May 202125200007569379239031213904.694.6
OnDeckOnDeck1832007$1,200ApplyNYC11 May 20215100,000012005481190058724054.9102.3
Pipe-logo-squarePipe1782019$316ApplyMiami, FL110,000
FundboxFundbox1492013$554ApplySF31 Mar 2020101800000434378737720277174057814.9
Can CapitalCan Capital1291998$1,002ApplyAtlanta11 May 2021812000010029221102006954.5
LendioLendio1002011$109ApplyUtah11 May 20214400,00001091001160035022924.9
Bix2CreditBiz2Credit872007$387ApplyNYC18 May 20216200,0000387
NuulaNuula672021$120ApplyToronto9 Sep 20213,600
Camino FinancialCamino Financial582014$20.4ApplyLA11 May 202111280000020.46722103281.8
Lighter CapitalLighter Capital632010$116ApplySeattle12 May 20211381,00016
Fund that FlipFund that Flip312014$33.2ApplyNYC11 May 202115100,000013.28373041
SmartBizSmartBiz162009$37ApplySF11 May 2021385,0000371210157110154.8
BizfiBizfi132005$160ApplyNYC11 May 2021141,200016020758901814394.4Acquired by WBL in 2017
SMB XSMBX122016$15.2ApplySF11 May 20212126,0002.51.2317316184.7Small Business Bonds Marketplace
Snapcap logoSnapCap (LendingTree)102012UnknownApplyCharleston, SC65000
LendistryLendistry920151.5ApplyLA (Brea)11 May 20211243000$1.50
IOU FinancialIOU Financial92011$32.3ApplyAtlanta11 May 20212543,0002.13031310504084.6
Honeycomb CreditHoneycomb Credit82017$3.2ApplyPittsburgh, PA12 May 20211722,0001.81.3
CredibilyCredibly82010$77ApplyDetroit11 May 20211612,000077458701554284.5
Patch of LandPatch of Land72013$54.9ApplyLA11 May 2021224,100024.9345100036154.4
ForwardLineForwardLine72003$120ApplySF11 May 2021237,7000120
SalaryoSalaryo42017$12.1ApplyNYC11 May 2021181,7005.86.31510
B2B InvestorP2B Investor22012$33.3ApplyDenver11 May 2021241,400033.325272014
Rapid-Finance-logo-squareRapid Finance22005UnknownApplyWash DC (Bethesda)60,000
LendvoLendvo12015$1.3ApplyWash DC11 May 2021264,20001.3
Channel-logo-squareChannel Partners12009$50MApplyMinneapolis, MN1,400
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.jpg264NYC2016$136
http://fintechlabs.com/wp-content/uploads/2021/12/Northone-logo-square.jpg56NYC2016$23
http://fintechlabs.com/wp-content/uploads/2021/12/Relay-logo-square.jpg33Toronto2018$19
http://fintechlabs.com/wp-content/uploads/2021/12/Loli-logo-square.jpg57NYC2018$80
See Full List
FAB Score*FoundedFunding $M
Clearco logo3682015$682MToronto
Fundera Logo121201318.9NYC
Nav1802012$92Utah
Kabbage42420082500Atlanta
Capchase-logo-square2412020$470NYC
See Full List
Last Updated: August 2021
CompanyFAB Score*FoundedFunding ($M)
Ramp8002019$1,360NYC
Divvy1742016$418Utah
Rho_Logo_Standard_RGB_Abyss1122018$205NYC
Brex6492017$1,457SF
Expensify4602008$401SF
See Full List
Updated June 2021
FAB Score*FoundedFunding ($M)
2302016$881SF
1222017$520SF
802017$306Wash DC
632005$0London
392015$142SF
See Full List
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