Guest Post :: Loan trends have changed among small business owners.
At the beginning of the year, I wrote extensively about some important questions to ask when seeking a loan.
Now that you have a better idea of what your capital needs might be throughout the rest of the year, I wanted to share some additional data from SurePayroll based on survey research we’ve done of small business owners.
On one hand, getting a loan through traditional routes has become more difficult, while at the same time technology has made it much easier to get cash quickly online.
You’ll see in the infographic below that business owners have begun moving away from banks. When seeking loans, they’re moving more towards alternative lenders like Biz2Credit, which has partnered with Paychex to create a small business loan center, helping small businesses find the best loans possible.
Amazingly, small business owners are about 15% less likely to seek a loan from a bank today than they were two years ago. Find out more about the lending landscape in the charts below.
By looking at the data presented here, you would see how small businesses have changed the way they loan over the years. More and more businesses go to banks rather than use other sources like family and friends, personal credit cards, or even non-bank alternatives. One reason is because banks tend to be more secure than other alternatives available. If you were to choose, what source would you use to secure capital for your business?
Andy Roe is the General Manager of SurePayroll, Inc., a Paychex Company. SurePayroll is the trusted provider of easy online payroll services to small businesses nationwide. SurePayroll compiles data from small businesses nationwide through its Small Business Scorecard optimism survey, and exclusively reflects the trends affecting the nation’s “micro businesses” — those with1-10 employees. You can follow Andy on Twitter @AndrewSRoe.