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Line of Credit Depot Eases Credit Requirements Amid Tightening Lending Landscape

Line of Credit Depot (LOCD) has revealed intentions to relax their credit requirements, for business loan products.

Matthew Elling

April 24, 2024

Line of Credit Depot (LOCD) has revealed intentions to relax their credit requirements, for business loan products. This decision follows the findings of the Federal Reserve Bank of Kansas Citys Survey on Small Business Lending, which painted a concerning picture of tightening credit standards

The survey highlighted that 22% of participants reported reduced loan requests in Q4 2023 marking the quarter of declining demand for loans. Approval rates also saw a decrease with major banks experiencing a drop from 52% to 49% and sized banks decreasing from 68% to 66%.

"These figures highlight the obstacles entrepreneurs encounter in obtaining funding " noted Matthew Elling CEO and Founder of LOCD. "Through our credit criteria we aim to counter this trend and provide assistance to small businesses that have been hindered by stringent requirements."

Interestingly the primary reason cited by 67% of respondents for loan denials was the borrowers situation. Nonetheless LOCD intends to give weight to data points such as revenue trends cash flow forecasts and business performance indicators.


Elling further stated, "We believe that entrepreneurial success is not solely dependent, on a credit score. Our comprehensive approach assesses a businesss potential enabling entrepreneurs to succeed."The recent survey, by the Federal Reserve also showed that roughly a quarter of participants adjusted their credit criteria during the quarter of 2023 pointing to uncertainties in the economy challenges within industries and a decreased willingness to take risks as primary reasons. This represents the quarter of stricter standards.

LOCD is making it easier for customers to access a range of services, such as working capital loans, SBA loans, equipment financing, revenue based financing, term loans and lines of credit.

In a climate where small businesses are facing difficulties in obtaining loans LOCD’s new approach could serve as a needed support system by offering solutions and simplifying processes in line with their commitment to being an ally, for growth.

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