Financial technology tends to conjure up payments technology such as Paypal or Stripe or perhaps investing platforms such as Betterment or Robinhood. The category also encompasses less sexy areas such as accounting, but it’s these areas that often show the most promise in sustained long term growth. As we all know, all business regardless of sector at some point will need to employ either an accountant or accounting software or both. So when Lendio, a leading online small business lender announced it was acquiring Billy, an accounting software platform, it made all the sense in the world.
Lendio is an online service that helps businesses find the right small business loan within minutes. The company makes small business loans simple by matching qualified small business owners with active banks, credit unions, and other lending sources. By October 2018, Lendio had serviced over $1 billion in total loans to small businesses across the country, generating an estimated $3.8B in gross economic output. The typical loan size granted through the company’s marketplace is $35,000. The industries best represented include retail, restaurants, and construction.
With a growing platform that attracts thousands of small businesses to seek out financing, it made perfect sense to begin cross selling other solutions, and what better than accounting software. Lendio will incorporate Billy into its accounting solution and combined it will be offered to the market as “Sunrise”.
The company is bullish about its acquisition, commenting “Small businesses say cash flow is one of the biggest challenges they face this year, according to a recent Lendio survey of 550 small business owners. Additionally, data from the Lendio platform shows that two-thirds of micro businesses are not currently leveraging an online accounting software. Sunrise aims to give business owners more accurate, real-time insight into their business finances. In turn, business owners will be able to better visualize their cash position, better understand their financial health and better predict their future capital needs.”
Brock Blake, CEO and Founder of Lendio, added “We are very excited to announce the acquisition of Billy and the re-brand to Sunrise. The Sunrise platform will bring together previously disparate sources of information for small business owners, such as accounting, loan and credit data. It’s our goal for Sunrise users to feel more confident in making financial decisions that help their businesses grow.”
As to where the accounting product is headed, Lendio states “A Sunrise mobile app is currently in development. Over time, other features will be added to Sunrise including auto categorization, a tie-in to tax software as well as more sophisticated loan integrations.”