Anticipated growth may spur small business lending

first_imgNew research shows the majority of small businesses are planning for growth, which they anticipate funding through lines of credit and business loans. According to the Raddon Research Insights: Winning Small Business Customers study, 79 percent of small businesses plan to grow over the long term, which could create lending opportunities for financial institutions.“When looking for a loan small businesses tend to look to their primary financial institution, so attracting small business deposit accounts can serve as the entry point for future loan business,” says Bill Handel, VP/research at Raddon, Lombard, Ill., a Fiserv, company. “Financial institutions can win small business customers by demonstrating that they understand business owners’ challenges, have the expertise these customers need, and can deliver the technology and service to help small businesses grow.”Small Business Growth Creates Lending OpportunitiesOf the 79 percent of small businesses planning for growth, about a third (38 percent) said they plan to use a business line of credit for funding, whereas 22 percent said they plan to use a business loan. These percentages rise to 50 percent for a business line of credit and 26 percent for a business loan among larger small businesses with $2 million to $10 million in annual sales. 30SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr continue reading »last_img read more

Read More »