1851

Along with co-founder Trent Miskin, <a href="https://www.lendio.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=lendio-ceo-brock-blake-on-franchisee-loan-options-during-the-coronavirus-crisis-2712661" target="_blank" rel="nofollow">Lendio</a> CEO Brock Blake started the nation’s largest small-business loan marketplace nearly a decade ago, when the young entrepreneurs were fresh out of college. Blake and Miskin carved out a niche for Lendio by providing small-dollar loans for small business owners who don’t always qualify for loans at traditional banks. Today, the company they founded offers loan options from a variety of online lenders, banks and industry-specialty lenders and has lent more than $2 billion in capital to small businesses.We spoke to Blake to learn how franchisees should be thinking about their loan options during the ongoing COVID-19 outbreak that has sent the franchising world into a tailspin.1851 Franchise: What makes this crisis different or more dangerous than previous economic downturns?Brock Blake: From a lending perspective, it’s unchartered territory. Fintech lenders were born out of the last financial crisis in this country. There’s no solid data on whether non-traditional lenders’ unit economics can hold up when their credit boxes and underwriting have never experienced recession-like conditions before.&nbsp;While Lendio isn’t immune to the effects of a downturn — no one can make that kind of guarantee in such a fast-moving economy — we are remaining extremely positive. Our marketplace model does have more flexibility to deal with adversity. And with multiple lenders on our platform, we’re able to maneuver better to help as many small businesses as possible to weather this crisis.1851: Are there lessons from the 2008 financial crisis that small businesses can learn from today?Blake: I think every small business owner must be truthful about the business’s vulnerabilities. Those that were unable to ride out the previous financial crisis will attest to this. As part of this, small businesses shouldn’t be afraid to ask for help when they’re in crisis mode. We hear a lot of talk about bailouts for big businesses, but there are a lot of organizations looking to help small business owners through this difficult time. There are community relief funds in some areas and local grant options are also popping up. You can stay up to date on these opportunities by setting a Google alert for terms like “coronavirus and grants” so the latest information can be delivered to your inbox.1851: How is Lendio working with its clients to weather this crisis?Blake: Lenders are changing their credit boxes nearly every hour based on the current environment. Many are not lending in certain states or industries. Lendio is navigating through these ever-changing credit requirements so that small business borrowers don’t have to go at it alone. We are doing the hard work on the back end so that borrowers, who already have too much on their plates, can have a trusted advisor guiding them to the exact lender that will give them a loan at this time.1851: Are there loan options that might be particularly helpful for franchisees at this time?Blake: I always recommend having a line of credit or credit cards available to access capital. Even if you don’t feel like you need capital right away, consider getting a loan as a financial safety net. Whether you apply with a traditional bank or an online lender, make sure all your financials — including bank statements, business plan and taxes — are in order before you seek out a loan.I would also add that right now, what we really need to see is the Small Business Administration expanding guarantees of capital through non-bank lenders, not just community banks. Non-bank lenders and online marketplaces already see thousands of inquiries every day from small businesses in need of capital, and that number is skyrocketing under the current circumstances. Enabling these lenders to continue lending to these businesses would be the most efficient use of stimulus funds at this time.1851: Are there loan options that you would caution franchisees to avoid right now?Blake: I’ve always advised small business owners to be strategic about debt. Running a simple ROI analysis will help you ensure your projected cash flow can handle the payments of a loan. If you’ve been preparing cash flow projections each year, you’re better able to understand your financial needs, especially in a crisis situation.1851: What other steps can franchisees take to survive this crisis?Blake: If your doors are still open now, look at what kind of financial safety net, if any, you have in place. Consider a loan or line of credit if you haven’t already. If you’re already past that point, can you lean on your community for help? Are there grants available to you? Additionally, tap into alternative revenue streams, perhaps sub-leasing a portion of your retail space if you have one. Implementing cost-saving measures sooner rather than later is also critical. Trim some of the fat in platforms you’re not using, maybe reevaluate a supplier or distributor, or cut down on supplies.1851: Are there ways that consumers can help support their local franchisees?Blake: It’s important for those of us who have disposable income right now to spend it supporting local small businesses. If a local restaurant is still offering takeout or delivery, place an order and tip generously. If an event center or other affected business near you has gift card options, take advantage of those. This will help in the short-term by getting capital into their hands today. Lendio and [small-business-funding company]&nbsp;<a href="https://www.kabbage.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=lendio-ceo-brock-blake-on-franchisee-loan-options-during-the-coronavirus-crisis-2712661" target="_blank" rel="nofollow">Kabbage</a> have partnered to create a <a href="https://www.kabbage.com/helpsmallbusiness?utm_source=1851franchise.com&utm_medium=article&utm_campaign=lendio-ceo-brock-blake-on-franchisee-loan-options-during-the-coronavirus-crisis-2712661" target="_blank" rel="nofollow">website dedicated to supporting local entrepreneurs</a> through gift certificate purchases that anyone can take advantage of.

Lendio CEO Brock Blake on Franchisee Loan Options During the Coronavirus Crisis

1851 Franchise

The small-business-lending expert says we are in “uncharted territory.”

lendio-ceo-brock-blake-on-franchisee-loan-options-during-the-coronavirus-crisis

Home Halo

Home Halo’s 160-Step Launch Process: Setting Franchisees Up for Success

home-halo-franchise-launch-process

VA Reimbursement: A Unique Opportunity for Home Halo Franchisees

va-reimbursement-a-unique-opportunity-for-home-halo-franchisees

Home Halo’s "Frank" Method: Coaching Franchisees to Greatness

home-halos-frank-method-coaching-franchisees-to-greatness

home-halo-dan-deak-personal-journey-headshot

Dan Deak's Personal Journey: From Caring Son to Home Halo CEO

dan-deaks-personal-journey-from-caring-son-to-home-halo-ceo

10 Reasons Why You Should Invest in a Home Halo Franchise

10-reasons-why-you-should-invest-in-a-home-halo-franchise

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Dave’s Hot Chicken Sold to Roark Capital in $1 Billion Deal to Fuel Global Expansion

daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises - 1851 Franchise

Homebuyers Keep Buying — And That’s Good News for Home Service Franchises

homebuyers-keep-buying-and-thats-good-news-for-home-service-franchises

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers - 1851 Franchise

AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers

ai-unemployment-impact-white-collar-job-loss

How To Sell Just One Franchise: What You’ll Learn at FranCamp NJ 2025

how-to-sell-just-one-franchise-what-youll-learn-at-francamp-nj-2025

House Passes Tax Relief Package With Key Benefits for Small Businesses and Franchises

house-passes-small-business-tax-relief-bill-2025

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

The Ultimate Guide To Selling Franchises: How to Leverage Franchise Expos

how-franchisors-can-leverage-franchise-expos-to-drive-success

How Franchise Brands Can Prepare for the Rise of AI-Driven Advertising

how-franchise-brands-can-prepare-for-the-rise-of-ai-driven-advertising

The Ultimate Guide to Selling Franchises: How to Position Your Value Proposition

The Ultimate Guide to Selling Franchises: How to Position Your Value Proposition — Point of Differentiation

how-to-position-your-value-proposition-with-a-point-of-differentiation

How Car Sales Taught Buddy's Home Furnishings’ Mitchell Lee the Secrets of Franchise Development

how-car-sales-taught-buddys-home-furnishings-mitchell-lee-the-secrets-of-franchise-development

What You Need To Know About Low-Cost Franchise Opportunities

what-you-need-to-know-about-low-cost-franchise-opportunities

Sola Salons Franchisee Grows Salon Freedom Into a Multi-State Powerhouse 

sola-salons-franchisee-grows-salon-freedom-into-a-multi-state-powerhouse

Dan Yangas Brings Family Flooring Legacy Full Circle With Footprints Floors Franchise in Naperville 

Dan Yangas Brings Family Flooring Legacy Full Circle With Footprints Floors Franchise in Naperville, Illinois

dan-yangas-brings-family-flooring-legacy-full-circle-with-footprints-floors-franchise-in-naperville-illinois

Franchisee spotlight graphic with photo of Sean Phelan & Caring Transitions logo

From Tech to Transitions: Why This Caring Transitions Franchisee Left the Corporate World To Help Families Navigate Life’s Hardest Moves

sean-phelan-caring-transitions-franchise-austin

Lendio CEO Brock Blake on Franchisee Loan Options During the Coronavirus Crisis

MORE STORIES LIKE THIS