Business
LegalZoom Partners with BusinessLoans.com to Offer Small Businesses Greater Access to Capital
A promising solution for small businesses, empowering them with the capital needed to succeed MOUNTAIN VIEW, Calif., June 25, 2024 (GLOBE NEWSWIRE) --
About this update from Legalzoom.com, Inc.
[{"type":"text","content":"A promising solution for small businesses, empowering them with the capital needed to succeed\nMOUNTAIN VIEW, Calif., June 25, 2024 (GLOBE NEWSWIRE) -- LegalZoom.com, Inc. (Nasdaq: LZ), the No. 1 choice in online small business formations, is announcing its newest partnership with BusinessLoans.com to provide more streamlined access to capital for small business owners. “Customers consistently say that getting a business loan is critical to making their dreams a reality,” said Kathy Tsitovich, Chief Corporate Development and Partnerships Officer of LegalZoom. “By partnering with BusinessLoans.com, we’re eager to see how customers respond to this new addition within the LegalZoom ecosystem and how that early access to additional funding can make a difference in their journey.” According to Forbes Small Businesses Statistics of 2024, “Data shows that 38% of [small] businesses fail due to exhausting their cash reserves or the inability to secure additional capital.” LegalZoom empowers businesses to instantly access trusted funding services that can help accelerate business growth, solving a significant problem for many small businesses. Based on LegalZoom’s customer research, access to capital is the second most common active need for existing LegalZoom customers after business formation and structuring. For many customers, access to funding early on in their business journey is difficult with traditional banking requirements - some of which require at least 12 months of operation before eligibility applies. Additionally, certain traditional banks’ requirements for obtaining loans - such as established credit scores, business plans, collateral, and revenue - are too high of an entry point for many customers and require them to look elsewhere for financial support. In fact, only 35% of small business owners obtained either a business loan or credit card for their business within the first year of operation to support improvement, expansion, and marketing. However, many more entrepreneurs seek out capital but most have limited knowledge of how to access this necessary financial support. BusinessLoans.com, positioned as a marketplace across lenders, provides small businesses with options such as secured loans, business credit cards, and credit-building products tailored to their stage, all within the LegalZoom platform. By focusing on...