SILICON TRACKS, Utah, November 20, 2019 /PRNewswire/ — Lendio, the nation’s largest business lending marketplace, today released a new report on small business lending in the Northeast. According to the report, business owners in the North East have the highest business loan approval rates in the country. The results are based on small business loan application data submitted through Lendio’s online platform in the third quarter of 2019.
Of the nine northeastern states, seven rank in the top ten states for business loan approvals, including Vermont (#1), Massachusetts (#2), Connecticut (#3), New York (Number 6), New Hampshire (#8), Pennsylvania (#9) and New Jersey (No. 10).
The high approval ratings could be attributed to the fact that the region is home to some of the most mature small businesses with some of the highest annual revenues in the country. Loan approval rates are high despite the region struggling with average credit scores, which are collectively among the lowest in the country.
The main findings of the report show:
- Most small businesses in the Northeast have been in business two years longer than the national average.
- The average annual income of small businesses in the North East is $816,591. It’s above average ($766,960) for businesses in other regions.
- In the third quarter, the average annual revenue of small businesses in the Northeast increased by 9% compared to the average of the previous three quarters.
- Maine, New Hampshire and Vermont have some of the lowest average small business owner credit scores in the nation, each ranking in the bottom 10 states.
Women-owned businesses in the North East have particularly high success rates when it comes to obtaining loans. Although they represent only 2 out of 10 small business borrowers, they have the highest loan approval rates in the country.
Such a business owner, Cindy ImperatoreOwner of Authoritative Bridle in Greenwich, Connecticut, recently secured a business loan to expand her business. When Imperatore, which sells high-end equestrian equipment, initially wanted to expand its product line, it ran into difficulties with limited capital.
“What I wanted to do was get into other brands, which we did slowly,” Imperatore said. “But I found that for most brands there was a minimum purchase of at least $2500 or as high as $8000, depending on the brand or product. For a small business, that’s a lot of money to spend when you’re talking about bringing in two or three brands at once.”
The small business loan she received allowed her to expand her offerings and capture a larger market share. According to the report, small business owners in the North East most often seek working capital loans, followed by equipment loans, accounts receivable financing and commercial real estate loans.
“The North East has one of the most established economies in the country, so it’s no surprise that its small businesses are doing very well in acquiring the capital they need to continue to grow,” said Brock Blake, CEO and Founder of Lendio. “Small businesses are the heart of any economy, and the strength and longevity of the North East’s small business sector is a testament to that.”
*States included in the Northeast study include Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont.
About SMB Economic Insights:
The Economic overview of SMEs The report is based on data provided by more than 8,500 small business owners who submitted requests through Lendio’s marketplace between October 1, 2018 and September 30, 2019. Data collected includes total amount financed, average loan size, industry, age, gender, credit score, number of bankruptcies and more.
About Lendio
Lendio is a free online service that helps business owners find the right small business loans in minutes. With a network of over 75 lenders offering multiple loan products, Lendio Marketplace is the hub for small business loans. Certified for three consecutive years as a Great Place to Work by independent analysts at Great Place to Work®Lendio ranks on Fortune’s Best Workplaces in Financial Services and Insurance and Inc. Best Workplaces. For every new loan facilitated on Lendio’s marketplace platform, Lendio Gives, an employee contribution and employer matching program, offers a microcredit to a low-income entrepreneur around the world through Kiva.org. More information about Lendio is available at www.lendio.com. Information on Lendio franchise opportunities can be found at www.lendio.com/franchise.
SOURCE Lendio
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