New York, NY (PRWEB) January 17, 2013
Biz2Credit, the #1 online credit resource for small businesses, and Accion East and Online today announced that the microlender has become the first nonprofit microfinance organization to become fully integrated on the Biz2Credit platform.
Microfinance organizations such as Accion and other non-bank lenders have become increasingly important in small business finance. These so-called "alternative lenders" approve nearly two-thirds of funding requests, according to the recent Biz2Credit Small Business Lending Index, a monthly report on small business loan approvals. Meanwhile, big banks ($10B+ in assets) typically reject eight out of ten funding requests. It is particularly difficult for women- and minority-owned businesses and startups in economically disadvantaged areas to secure capital in the credit market.
“Small companies are often denied loans by big banks because they typically require two to three years' worth of financial information. Thus startups encounter difficulty obtaining funding for their businesses. Women- and minority-owned firms, in particular, rely on institutions such as Accion for the startup capital they need,” said Rohit Arora, co-founder and CEO of Biz2Credit.
“Through this integration, Accion is streamlining its credit decision-making process by fully automated its loan application process. This will save women and minority entrepreneurs time and frustration that they otherwise might encounter in seeking funding to start and expand their operations.”
Nonprofit microfinance organizations such as Accion work worldwide to provide opportunity to small entrepreneurs who cannot access bank loans. Microloans are typically much smaller than bank loans, and are generally made to small business owners with fewer than five employees.
“Accion partnered with Biz2Credit because we believe that small business owners will increasingly seek online funding solutions in the future,” said Paul Quintero, Chief Executive Officer at Accion East and Online, which has helped more than 21,000small business owners secure funding in the U.S. since 1991.“By partnering with Biz2Credit, we hope to not only increase our lending mission by serving more entrepreneurs, but we also look to improve the service experience by increasing the access, convenience and speed of funding.”
About Accion East and Online
Accion East and Online is a nonprofit microlender that provides lending and financial education to entrepreneurs nationwide. By sparking ideas and empowering self-starters, Accion helps local businesses and communities grow by driving job creation and retention with each microloan. Since opening its doors in 1991, Accion has provided over $132 million in capital to entrepreneurs, creating and saving over 73,500 jobs within local communities.
Founded in 2007, Biz2Credit is a leading credit marketplace connecting small- and medium-sized businesses with lenders, service providers, and complementary business tools. The company matches borrowers to financial institutions based on each business’s unique profile -- completed in less than four minutes -- in a safe, efficient, price-transparent environment. Biz2Credit’s network consists of 1.6 million users, 1,100+ lenders, credit rating agencies such as D&B and Equifax, and small business service providers including CPAs and lawyers. Having arranged $800 million in funding throughout the U.S., Biz2Credit is widely recognized as the #1 online credit resource for small business loans, lines of credit, equipment loans, working capital and other funding options.