Loan Approval Rates at Record High: Get a Business Cash Advance
Small business loan approval rates are at record high.Do you need access to working capital to meet your business needs? Do you need to get a business cash advance easily? Just read this post and you’ll know all that you need.
Need to Get a Business Cash Advance or Another Type of Funding?
The approval rates for small business loans from big bank are on the rise. The result wasanother new high in June 2018. This is according to the analysis by one of the leading funding providers in the field. The study included over 1.000 credit applications from small businesses.
Based on the mentioned analysis, banks and institutional lenders had record highs of loan approval in May 2018. The approval rate from big banks has reached 25.9%, 2/10 of a percent from April 2018.Institutional lendershave had a higher approval rate by 1/10 of a percent to 64.7%.
Small businesses that aren’t eligible for traditional loans because of issues like poor credit scores, etc. can turn to non-bank lenders for business funding. Alternative online lenders get small businesses approved without major challenges and have become a highly popular source of funding in recent years.
Alternative lenders had the same approval rate as in April: 56.4%. As for credit unions, the rate dropped by 1/10 of a percent to 40.1%.
So, if you need to get a business cash advance or other type of business funding, just work with a reputable alternative online lender or business funding provider that offers exceptional approval rates. This is how you can get the best deal for your business easily. By the way, a merchant cash advance (MCA)is ideal for those who need a sizeable amount of money in a short period of time.
Small Business Loan Approval Rates Now and in the Past
During the situation brought about by the Great Recession, the interest rates get lowered by the central bank to reach almost zero. Borrowers got an opportunity to enjoy low-digit interest rates for about a whole decade. However, the last few years witnessed growth in interest rates.
Small business lending was strong in 2017. The latest statistics in the field show that the trend continues this year as well. According to the CEO of the financing company mentioned above, the growth of the economy and the optimism among small business owners play an important role in creatinghigher approval rates. Entrepreneurs feel confident and are investing in the growth of their companies.
Based on the National Federation of Independent Business’ monthlysurvey, the markets are showing good performance, unemployment accounts for 3.8%, and the small business optimism is immensely high.
In fact, small banks give approval to almost half of the loan applications they receive. For example, a small business lending platform reports that the demand for small business funding in California grew 80% year-over-year (YoY) during 2017 – 2018.
So, small business lending has been witnessing record highs from banks and institutional lenders. However, small businesses aren’t always able to get funding from traditional lenders. That’s the reason why there’s growth of independent lenders that’re now filling the gap with a record number of loans.
Author Bio: As an account executive, Michael Hollis has funded millions by using alternative funding solutions. His experience and extensive knowledge of the industry has made him a finance expert at First American Merchant.