Anxious about your loan approval? Don’t be.
If you are a small business owner in need of cash, you have many options in today’s lending market.
Because the small business lending climate is constantly changing, it’s in your best interest to keep an eye on what’s hot.
At the moment, loan approval rates are on FIRE.
It’s the perfect time to look into getting a small business loan.
Why are small business loan approval rates traditionally low?
In the past, big banks were the only source of loans for businesses, but smaller businesses were often left out of the party.
Since small businesses need to borrow so little, banks didn’t see much profit.
And with small business loan approval rates so low, aspiring entrepreneurs had few options.
It’s only natural that the financial environment adjusted to give micro-businesses the financial support they need.
In particular, SBA loans supported by the Small Business Administration have become very popular.
Credit unions and small local banks also entered the game in a big way. Recently, alternative lenders started doing business online, giving small businesses a way to access financing.
The grab for small business loans ensues.
Believe it or not, the big banks (with more than $10 billion in assets) are even beginning to slowly improve their small business loan approval rates.
Over a one-month period, they approved two-tenths of a percent more loans than they had the previous month.
Meanwhile, small banks were down by that same small two-tenths of a percent over the same month.
Small banks still continued to dispense more loans overall and their slight dip may only be temporary.
Credit unions, once a stalwart source of loans, continue to fade as new players innovate in the small business lending game.
It remains to be seen whether the willingness of large financial entities to lend to entrepreneurs will spell the end of alternative lending as we know it.
At the very least, decision-makers in the industry may look long and hard at lowering the prohibitively high interest rates that small business owners have been forced to swallow in the past.
The future of small business loan approval looks bright.
As it stands, institutional lenders such as banks, insurance, and mortgage companies, that lend money with interest and are regulated by the government are doing well.
They continue to serve as the foundation of a somewhat turbulent lending industry.
These institutions want to take advantage of the increasing number of promising start ups that need funding; even their international counterparts are jumping in!
As a small business owner, this should all sound like good news – and it is.
Your options are many, and each has its advantages.
With loan approval rates at an all-time high, you are almost sure to get the financial backing to grow and sustain your enterprise.See Business Lenders