Source: Digital Journal - 11/28/2023

The lifeblood of the American economy, small businesses, often find themselves at a crossroads when it comes to securing the necessary financial resources for growth. Accessible financing is vital for enterprise survival; they need to be able to expand, hire, and contribute to the economy.

Nevertheless, this lifeline is often harder to grasp for some demographics. Women, minority, and veteran-owned ventures face an uphill battle in the world of traditional small business financing, encountering challenges simply due to the complexity of small business lending in general.

These types of businesses typically require smaller loans, which can be challenging to get through traditional lenders like banks or credit unions. This is mainly due to the complexity and cost of processing a business loan — especially when compared to the relative simplicity of a typical consumer loan.

These banks and credit unions often need to focus on larger, more profitable loan sizes, leaving smaller enterprises struggling to secure the capital they need. And in many cases, SBEs are left with two options: don’t get funded or turn to a higher-cost-of-funds solution.

The answer to this issue is obvious — democratization of financing by applying technology. It’s a progressive approach that can level the playing field for good and give underrepresented business owners a fair shot at success.

Still, getting there is easier said than done. Few have managed to take considerable strides toward this type of democratization.  Many have failed along the way, while others have yet to come up with an impactful solution. That said, one company has emerged with a powerful solution that embodies this progressive ethos.

With an unshakeable commitment to providing low-cost or “right-fit” financing options to underserved social groups and communities, iBusiness Funding, a loan software and lending service provider, has found a way to revolutionize the lending industry landscape.

Led by founder and CEO Justin Levy, iBusiness Funding’s innovative business model has allowed the enterprise to extend much-needed financial support to businesses that would otherwise get swept away, struggling to secure funds from potential lenders.

As Levy points out, the inability of small businesses to get the right capital, designed for their specific use of proceeds, impedes overall economic growth and expansion. By hindering the potential of these ventures, innovation, and opportunities may irretrievably be suppressed.

This is precisely why iBusiness Funding has stepped up to the plate, helping smaller ventures take down the high towers that have kept funds out of reach. With an approach grounded in inclusivity, Levy reveals that an astounding 75% of all loans iBusiness Funding handles are granted to women, veterans, and minorities.

Yet, this is no mere statistic. For Levy’s team, it’s a bold way to change the game and set new rules.

One of the critical strategies that iBusiness Funding has adopted in its mission to democratize finance is its exceptional use of technology. The company has developed world-class tools and services, including its flagship AI-powered product, LenderAI. This platform has streamlined the lending process, becoming a significant ally for small banks and lenders in helping them sift through applicant data and documentation.

The software’s role in assisting small and medium-sized businesses has been indispensable. Lender AI has minimized the time, uncertainty, and complexity associated with securing loans. It does this by providing the necessary support in predicting things such as future relevant documentation and any possible hiccups that may arise further down the loan process.

“Smaller businesses that may qualify for smaller loans don’t receive enough attention from banks because they lack the manpower to review their applications thoroughly,” Levy says. “We figured if we could streamline processes on this end, without compromising on quality, lenders could process applications more efficiently, and businesses could secure the funding they deserve more quickly.”

Moreover, iBusiness Funding offers a broad range of financial solutions thanks to its strategic specialization in SBA 7(a) loans, supporting loans as small as $5,000. Their vision to provide affordable and reliable capital through their lending partners ensures that businesses of all sizes have the chance to scale their businesses as far as they desire.

As companies like iBusiness Funding continue to prioritize inclusivity and accessibility in lending, we can anticipate a ripple effect that will touch all corners of the US economy. The empowerment of small businesses could spur an era of unprecedented entrepreneurial growth and lead to the creation of wealth for those historically disadvantaged.

This can stimulate local economies, generate jobs, and contribute to overall economic health. It paves the way for a just and equitable society. As Levy reiterates, “By ensuring equitable financial opportunities, we’re not just funding businesses. We’re investing in dreams, uplifting communities, and building a brighter future for all.”