Small Business Loans: What Entrepreneurs Forget to Do
Looking for a loan to grow your small business? Nearly 60 percent of U.S. small business owners that need a loan fail to take the most basic step.
Indeed, they fail to comparison shop loan rates and terms online during the application process. Moreover, only 24 percent of small business owners went online to research financing and funding options for their loans, according to a mid-2015 LendingTree survey.
Among the other survey findings:
- Top 3 struggles of obtaining a small business loan
- 22% – Gathering required documentation
- 20% – Long application process
- 16% – Speed of approval
- Borrowing Amount
- 18% of borrowers were seeking loans of less than $10,000
- 36% were seeking loans between $10,000 and $50,000
- 46% seek $50,000 or more.
- Specific Business Need
- 22% of applications were for a new business
- 33% for working capital (cash-flow, day-to-day ops, payroll, etc)
- 20% to purchase or lease equipment
- 17% for debt consolidation/Relieve existing debt
To repeat the survey’s key finding and recommendation: Need a loan or financing? Shop around — and check our Channel E2E Funding Database, too.