Small Business Lending Predictions for 2016
As 2016 approaches, many small businesses are searching for small business loans to start the New Year out with their best foot forward. Now, small businesses have more lending options available, which will continue to expand into 2016. Various industry experts have recently created small business lending predictions for 2016 to help business owners determine the best route to receive the funds they need.
Online Lending will Increase
After the financial crash of 2008, many traditional banks cut the amount of lending for small businesses, creating a high demand for online alternative lending, such as those offered through Business Loans Direct. In 2014, one in five small business borrowers chose to seek financing through online lenders according to the Federal Reserve, with online lending in 2015 increasing significantly with 86 percent of small businesses seeking online loans first. According to lending predictions, that number will dramatically increase in 2016 as business owners become more comfortable with online lending.
Online Loans will Become More Transparent
The growth of online small business lending will cause online lending to become more transparent in 2016, allowing room for lower interest rates and payments. The new framework will make the terms of online loans easier for business owners to understand, further fueling the growth of online lending.
SBA Loans will still be Popular
Despite the growth of online lending, Small Business Administration loans will remain a popular choice. However, online lending will become more popular for those who don’t qualify for SBA loans or need smaller loan amounts. Since many small businesses don’t meet the strict requirements for SBA loan approval, online lending will be the solution to their funding needs.
As 2016 approaches, Business Loans Direct is here to help business owners start the year off right with the funds they need to keep their businesses thriving in 2016. Whether you need extra capital for repairs, inventory, company expansion, or other business matters, we’re here to help you receive the funds you need quickly and easily.
Contact Business Loans Direct today to learn more about our online lending programs.