A number of startups turn to online lenders for their financing needs, which are often modest, yet they are the least satisfied with borrowing from these types of lenders, according to a report released Tuesday by the Federal Reserve Bank of New York.

And in weighing financing options, startups also tend to sort themselves by credit risk profile. Those with low credit risk had the most success applying to small banks for credit (78%), while medium- and high-credit-risk startups found the most success with online lenders (45%).

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.