Loan Approval Rates Have Hit New Highs – The Time to Apply Is Now

Loan Approval Rates Have Hit New Highs – The Time to Apply Is Now
Ronis Gracie
on May 18, 2017
Read in 1 min

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
Ronis Gracie Finance Journalist

A serial entrepreneur experienced with building several small companies from the ground up and consulting for many others, Ronis understands the finer points of small business financing. He’s passionate about small business & is committed to simplifying small business lending for others.

Headway Capital

Important Disclosures. Please Read Carefully.

Persons facing serious financial difficulties should consider other alternatives or should seek out professional financial advice. This website is not an offer to lend. is not a lender or lending partner and does not make loan or credit decisions. connects interested persons with a lender or lending partner from its network of approved lenders and lending partners. does not control and is not responsible for the actions or inactions of any lender or lending partner, is not an agent, representative or broker of any lender or lending partner, and does not endorse any lender or lending partner. receives compensation from its lenders and lending partners, often based on a ping-tree model similar to Google AdWords where the highest available bidder is connected to the consumer. Regardless,’s service is always free to you. This service is not available in all states. If you request to connect with a lender or lending partner in a particular state where such loans are prohibited, or in a location where does not have an available lender or lending partner, you will not be connected to a lender or lending partner. You are urged to read and understand the terms of any loan offered by any lender or lending partner, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you. By submitting your information via this website, you are authorizing and/or lenders and lending partners in its network or other intermediaries to do a credit check, which may include verifying your social security number, driver license number or other identification, and a review of your creditworthiness. Credit checks are usually performed by one of the major credit bureaus such as Experian, Equifax and Trans Union, but also may include alternative credit bureaus such as Teletrack, DP Bureau or others. You also authorize to share your information and credit history with its network of approved lenders and lending partners. For qualified consumers, our lenders offer loans with an Annual Percentage Rate (APR) of 35.99% and below. For qualified consumers, the maximum APR (including the interest rates plus fees and other costs) is 35.99%. All loans are subject to the lender’s approval based on its own unique underwriting criteria. Example: Loan Amount: $4,300.00, Annual Percentage Rate: 35.99%. Number of Monthly Payments: 30. Monthly Payment Amount: $219.36. Total Amount Payable: $6,581.78 Loans include a minimum repayment plan of 12 months and a maximum repayment plan of 30 months. In some cases, you may be given the option of obtaining a loan from a tribal lender. Tribal lenders are subject to tribal and certain federal laws while being immune from state law including usury caps. If you are connected to a tribal lender, please understand that the tribal lender’s rates and fees may be higher than state-licensed lenders. Additionally, tribal lenders may require you to agree to resolve any disputes in a tribal jurisdiction. You are urged to read and understand the terms of any loan offered by any lender, whether tribal or state-licensed, and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

Lender’s or Lending Partner’s Disclosure of Terms.

The lenders and lending partners you are connected to will provide documents that contain all fees and rate information pertaining to the loan being offered, including any potential fees for late-payments and the rules under which you may be allowed (if permitted by applicable law) to refinance, renew or rollover your loan. Loan fees and interest rates are determined solely by the lender or lending partner based on the lender’s or lending partner’s internal policies, underwriting criteria and applicable law. has no knowledge of or control over the loan terms offered by a lender and lending partner. You are urged to read and understand the terms of any loan offered by any lenders and lending partners and to reject any particular loan offer that you cannot afford to repay or that includes terms that are not acceptable to you.

Late Payments Hurt Your Credit Score

Please be aware that missing a payment or making a late payment can negatively impact your credit score. To protect yourself and your credit history, make sure you only accept loan terms that you can afford to repay. If you cannot make a payment on time, you should contact your lenders and lending partners immediately and discuss how to handle late payments.