Founded in 2010 by industry veterans David Nayor and Mike Rozman, NY’s BoeFly is one of several startups aiming to offer a solution for commercial lending. Focused primarily on franchisees seeking small business loans, BoeFly has partnered with more than 1,000 banks and other lenders. To seek a loan, a potential borrower fills out an application on the site and lenders that view the loan as a good fit compete for it, Crain’s New York Business explains. Expected to become profitable in 2012, the site is generating nearly $150,000 in revenue a month and has raised $4 million from private investors.
Banks not making much money on smaller loans, “want to make loans without the heavy burden of the cost of acquisition,” Nayor told Crain’s. BoeFly’s objective is to reduce a hindrance that the founders believe prevents banks from lending to small business: the time-consuming and costly legwork it takes to check out small, would-be borrowers, Crain’s notes.
Despite a seemingly auspicious year, Crain’s indicates that the company faces competition from other sites with the same objective, such as On Deck and Biz2Credit. Another potential for BoeFly is its inability to eliminate the cumbersome paperwork intrinsic to getting a small business loan today. “There is no such thing as a no-doc or limited-doc loan anymore,” Mr. Rozman told Crain’s.
Local Business? Join the Marketplace
Pingback: business loans lenders | Simple Advance