ILPA member companies have provided more than $18 billion in capital to some 500,000 small businesses while providing clear and transparent lending disclosures to inform financing decisions.
A recent report by NDP Analytics found that every $1.00 issued by online small business lenders results in $3.79 of gross output for the American economy. The addition of the new members to the ILPA signifies the commitment of the organization to fostering an online lending environment where creditworthy small businesses can access needed capital to build their companies, create jobs and propel economic growth.
“The ILPA is dedicated to providing small businesses easy-to-understand lending information that’s relatable and informs the way they finance their business,” said Scott Stewart, chief executive officer of the ILPA. “The addition of 6thAvenue Capital, BlueVine and Fundbox to the association drives our mission forward as we endeavor to help small businesses everywhere make more meaningful and confident borrowing decisions.”
“We’re excited to join the ILPA and to be part of the effort to ensure that every small business owner has access to transparent, fair and comprehensive financing,” said BlueVine CEO and Founder, Eyal Lifshitz. “We started BlueVine with a mission to provide access to capital to more small businesses while delivering a superior customer experience. We believe that fostering a lending environment based on trust and clarity is critical for the success of small businesses, and it is aligned with our values as a company.”
In 2016, the ILPA introduced the SMART Box, which set forth best practice lending disclosures that include an annualized percentage rate (APR), the Total Cost of Capital (TCC), average monthly costs and the cents-on-the-dollar amount in order to give business borrowers the true out-of-pocket cost for funding. These set of familiar terms simplify comparisons of lending products regardless of whether it is a traditional annualized loan or a modern product with a tailored repayment structure.
A recent study conducted by the Board of Governors of the Federal Reserve System revealed small businesses are in favor of the SMART Box for its clear framework and easy-to-understand cost breakdown.
The Innovative Lending Platform Association (ILPA) is the leading trade organization representing online lending and service companies serving small businesses.