According to Biz2Credit, an online lending marketplace which analyzed more than 1,000 small business loan applications, 2017 saw record high approval rates from financial institutions including small, mid-sized, and large banks.
Small regional banks approved around 49% of small business funding requests while big banks approved 25% of small business loans during the same time. Small community banks fielded such high numbers “due to the continued support of guarantees from the Small Business Administration, where smaller banks are most active.” In addition to historical highs in approval rates from large banks, pension funds ended 2017 with an “approval rate of more than 64 percent — another historical high.”
While institutions saw a rise in approvals, alternative fintech options declined slightly for the year. For small businesses, lending is at an unusually high point with many options to choose from. If you’re looking to win financing for your business there is no doubt an option for you. With interest rates set to increase, there may be a decrease in approval rates so small businesses interested in external lending should submit their applications soon.