Small business loan approvals have recently hit new heights in the US. Are you trying to get approved for business funding to grow your company? What’s the easiest way to get approved for low and high risk business financing? Where to find the most affordable rates and fees for small business financing? Just read below and you’ll discover.
Business Funding in the US
After the crash of Lehman Brothers and the start of the Great Recession, approval rates for small business loan requests at big banks fell to the single digit range during the ensuing credit crunch.
The past decade brought changes to the market. Technology gave birth to lots of advantages for FinTech companies and they started benefiting from these advantages. They started offering loans online.
Small business owners who needed access to working capital started using the Internet to find lenders who’s like to work with them. The Internet eliminated borders among countries. Non-bank lenders started offering online application for business financing. Banks’ market share decreased.
Today, applying for business financing online is no more a surprise. In fact, alternative online lenders have brought a real revolution in the field. Only, you should find a reputable business funding provider that offers the lowest possible rates in the industry.
Also, look for a respectable alternative online lender that works with merchants of any type and seize. Pay attention to whether the provider offers you the right business financing solutions for your own specific business needs.
Small Business Loan Approvals Are on the Rise
According to one of the leading business financing provider’s lending index, the loan approval rate across all lending categories is on the rise. Both banks and institutional lenders witnessed new highs in June 2018.
Specifically, small business loan approval percentage for big banks ($10 billion+ assets) was 26.1%, which went on rising and hit a new height in June 2018. This rise represented 2/10 of a percent from May’s figure, which was 25.9%, as the mentioned provider’s monthly report states.
Particularly, such growth in approval rates have been registered at regional and community banks. They granted 49.4% of the funding requests received in May 2018. This has been the highest figure since May 2015. By the way, many of these borrowers represent the manufacturing, transportation, and construction industries.
As for small banks, they saw growth in approval rates as well. It made up 49.6%. The figure has been the highest point since April 2015. As to institutional lenders, the rise represented only 1/10 of a percent to 64.8%. Alternative lenders witnessed the same growth reaching up to 56.5% in June 2018.
When it comes to credit unions, the situation was the same as with small and big banks increasing 2/10 of a percent to 40.3% in June 2018.
The CEO of the financing provider mentioned above notes that the continued strength of the economy and optimism that small business owners have play an important role in these results. Entrepreneurs feel confident and are making investments in their companies’ growth. The markets show good performance, unemployment is just 3.8%, and the small business optimism is extremely high.
Author Bio: As an account executive, Michael Hollis has funded millions by using alternative funding (or business funding) solutions. His experience and extensive knowledge of the industry has made him a finance expert at First American Merchant.