Lendio SMB Lending Index

The small business lending market improves slightly in Q3 2024.

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64

Lendio SMB Lending Index Score

Q3 2024
Q1 2024 score: 62

Lendio is seeing an initial loosening of credit criteria with less stringent credit score requirements for small businesses to qualify for a loan in Q3 of 2024. The looser criteria increased Lendio’s SMB Lending Index from 62 in Q1 2024 to 64 in Q3 2024, indicating an increase in overall access to capital. Based on the feedback we heard from lenders in this survey, we anticipate this loosening of criteria to continue in Q4 and early 2025.

What does the index score mean?

Lendio’s SMB Lending Index measures how accessible business financing is to small business owners with a higher score indicating greater accessibility. The score is based on the business profiles of the 14,000+ small businesses offered financing in Lendio’s marketplace in a quarter. The report’s methodology section provides a full breakdown of how the score is calculated.

Credit Box

Percentage change in business profile of borrowers who received a loan offer in Q3 2024 vs. Q1 2024
2.51%
Credit score
1.64%
Revenue
0.71%
Time in Business

Lender sentiment

In September 2024, Lendio surveyed 24 small business lenders about their perceptions of the current small business lending market and their optimism for the future.

Lender sentiment

What is your perception of an SMB’s ability to access capital in the current market?

Lender sentiment

Expectations of loan volume in the next six months.

Lender sentiment

Expectations of credit criteria in the next six months.
“Banks are tighter and focused on deposits, leaving the alternative lending space to fill the gap.”
Ryan McMahon
Executive Director of Quantum
Financial Technologies

2024 State of SMB Lending Report

Lendio surveyed 1000+ small business owners to understand better the role financing plays in the success of their business, their experience with the current lending environment, and their expectations for the future. Key findings from the survey are explored below.

Key Insights

50%

85% of small business owners say speed to loan approval is important when selecting a lender.

86%

50% of small business owners say they don’t know if the bank they use for checking has the right loan options for them.

77%

77% of small business owners prefer to apply for a loan online or via mobile app.

Previous editions

Q1 2024 Edition

Read the full Lendio SMB Lending Index

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2024 Edition

Read the Lendio State of SMB Lending Report

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