NOTNew data published in the annual FinTech Lending Study published by Smarter Loans has revealed that 40% of business loan seekers are comparing more than six options.
Although this study focused on the Canadian market, it may partly explain a finding in the United States that more and more small business owners looking for capital are looking for a cash advance as a potential option. (A Federal Reserve study said 10% of SMEs seeking capital were seeking a merchant cash advance in 2021). This would make sense if business owners were obsessively applying to multiple sources in an effort to make more comparisons.
But even when they shop, they are not always satisfied with what they learn, nor with the result. Smarter Loans reported that only 60% of business loan seekers felt informed about their options, while 40% of business owners who took out a business loan were unhappy with their loan provider.
Looking at both the business loan and consumer loan market, Smarter Loans indicates that loan applicants are more likely to receive their funds the same day they apply than ever before. (53% of respondents received funds within 24 hours of application.)
Click here to view the full 2022 FinTech Loans study published by Smarter Loans.
Last modification : April 25, 2022
Category: Business Loans, Canada