Business Funding: Competition Heating Up

Posted on 24/08/2018Posted in business opportunities

Borrowers got an unprecedented number of approvals for small business loans in the US recently. The number hit a peak. Are you a merchant interested in business funding? What’s the easiest and the most reliable way to get financing for your business? Just keep on reading this post and you’ll know.

Competition for Business Funding Approval

According to Biz2Credit research, big traditional banks are becoming more active in lending money to SMBs. Based on a separate analysis, these FIs are yielding their place to their smaller competitors in the small business finance race.

The latest index for May 2018 of the National Federation of Independent Business (NFIB) shows that small business optimism has reached its highest since July 1983. Moreover, it’s been the 2nd highest in 45 years.

The recent PACE or Performance Against Customer Expectations report by FIS has revealed some interesting things. For example, SMBs are becoming more and more unhappy with the options they’re offered at large FIs. As a result, they start thinking of switching providers.

Are you on the lookout for a reliable, affordable and secure business financing provider? If yes, turn to a reputable alternative online lender in the field to get business funding at the lowest possible rates and the best terms for your own business needs.

Large FIs, Small Banks, Alternative Lenders, and SMBs

Let’s see what the latest statistics show concerning small business lending

  • Big banks approved 30{38c6b9c688d12b9a3d4fb1075ddc859713309f8bc24012d52c0288d36154f782} of small business loan applications in May, as Biz2Credit’s recent Small Business Lending Index showed.
  • Large FIs are losing ground to smaller competitors, according to the latest reports by CNBC.
  • 20{38c6b9c688d12b9a3d4fb1075ddc859713309f8bc24012d52c0288d36154f782} of small business lending is expected to get facilitated by mobile devices by 2019, as one of the leading alternative lenders predicts.
  • FIS’ PACE study (a financial services technology leader) has highlighted the key “missing points” in the performance of larger US and UK banks in terms of serving the needs of small-midsized businesses.

So, the most widespread reasons for switching banks are associated with the following: uncompetitive fees, dissatisfaction with services and products, bank processes that aren’t up-to-date, as well as declines for loans or credit.

  • SMBs both in the US and UK are more and more often turning to digital banking and payment tools to complete various financial transactions and activities.
  • The number of transactions completed digitally by SMBs over the last year has grown by nearly 60{38c6b9c688d12b9a3d4fb1075ddc859713309f8bc24012d52c0288d36154f782} both in the US and UK.
  • SMBs both in the US and UK have completed over 40{38c6b9c688d12b9a3d4fb1075ddc859713309f8bc24012d52c0288d36154f782} of financial transactions digitally.
  • Acceptance of online, mobile app and person-to-person payments has grown 38{38c6b9c688d12b9a3d4fb1075ddc859713309f8bc24012d52c0288d36154f782} over the past year for SMBs in the US.
  • As 28{38c6b9c688d12b9a3d4fb1075ddc859713309f8bc24012d52c0288d36154f782} of respondents in an SMB survey held in the UK and 23{38c6b9c688d12b9a3d4fb1075ddc859713309f8bc24012d52c0288d36154f782} in the US report, their companies offer mobile wallet services to complete financial transactions.

As you see, the latest research in the field shows that larger banks are falling behind in meeting the growing digital needs of their important SMB customers. Go for the right business funding provider and start growing your business with ease.

 

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.