jaris, SpotOn Offer $350M in SMB Loans 

Private label lender jaris says its partnership with payments software company SpotOn has extended more than $350 million in loan offers to small business clients. 

“Small businesses account for 99.9% of all U.S. firms and about 44% of the total private-sector output of the economy,” jaris said in a news release Tuesday (Oct. 19). 

“Yet, more than half of small businesses report their credit needs are unmet. Moreover, traditional access to capital for small businesses remains an outdated and inefficient system with complex barriers and regulations.” 

The loans stem from SpotOn Capital, a project launched by jaris and SpotOn earlier this year that gives small- to medium-sized business (SMB) owners access to loans with a fixed fee and repay-as-you-earn system. 

Since launching in January, the program’s monthly loan origination has grown 20 times. The companies say the program has been effective for clients of SpotOn who have a loan renewal of more than 80% as they look to grow their business. 

“Small businesses suffered significantly more during the pandemic,” said Chris Aristides, founder and CEO of jaris. 

“Our ability to integrate quickly with SpotOn in a matter of just months meant SpotOn’s small business clients were able to access capital quickly when they needed it most. We look forward to continuing our partnership with SpotOn to facilitate creative financial solutions geared toward small businesses,” he said.

The jaris platform gives SpotOn a simple solution for offering a complete infrastructure and branded financial services, reaching many merchants and providing funds as soon as the next business day. 

“SpotOn Capital enables our clients to solve short-term cash flow gaps, grow their business and invest to meet changing customer needs,” said RJ Horsley, Chief Operating Officer at SpotOn. “For some clients, this capital has meant they were able to hire more staff, increase inventory, buy new equipment and launch marketing campaigns.” 

Read more: PYMNTS’ Merchant Index Finds Main Street SMBs Taking Different Paths to Recovery 

PYMNTS recently examined the state of small businesses dealing with the pandemic and found that while SMBs were hit harder than almost any other type of business, they also managed to recover faster.