WASHINGTON, Sept. 17, 2018 /PRNewswire/ -- The Innovative Lending Platform Association (ILPA), consisting of the nation's leading online small business lending platforms, today announced the addition of 6th Avenue Capital, BlueVine and Fundbox as new members to support fair, responsible and transparent lending practices for small businesses. 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 6th Avenue 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."
"6th Avenue Capital is excited to join industry leaders committed to delivering responsible alternative financing to drive small business growth," said 6th Avenue Capital CEO, Christine Chang. "As a provider of rapid, short-term bridge financing for small businesses, we believe in a high touch, high tech approach with the highest operating standards and transparency. 6th Avenue Capital looks forward to working with other thought leaders to share best practices and insights into the changing alternative financing landscape."
"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."
"Our mission at Fundbox is to simplify and improve the way businesses pay and are paid," said Fundbox CEO and founder, Eyal Shinar. "By joining ILPA, we can work together to educate policymakers on how new financial technologies and products are unlocking opportunities for small businesses and the customers they serve. In addition, our membership in ILPA reinforces Fundbox's commitment to transparency and best practices related to small business credit and payments."
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.
About the ILPA
The Innovative Lending Platform Association (ILPA) is the leading trade organization representing online lending and service companies serving small businesses. United by a shared commitment to the success of small businesses in America, the ILPA advances best practices and standards that support responsible innovation and access to capital for small businesses. In 2016, the ILPA, in partnership with the Association for Enterprise Opportunity, introduced the SMART Box™, which stands for "Straightforward Metrics around Rate and Total cost," in 2016. The SMART Box is a first-of-its-kind model pricing disclosure and comparison tool focused on empowering small businesses to better assess and compare finance options. The SMART Box is available for broader adoption by lending platforms. Additional information about the ILPA and the SMART Box initiative is available at: www.innovativelending.org
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SOURCE Innovative Lending Platform Association