According to a survey by the Pepperdine Private Capital Access Index, small businesses are planning to expand this year. The survey found that 83% of respondents said they believe their small business will expand in 2016. Many added that they expect their total annual revenue to increase by an average of nine percent over the year. Owners of businesses that made $5 million or less were more confident about the growth of their business than those who owned bigger companies, showing that the small business sector is booming.
Small businesses need financing to grow, but securing that capital is often difficult. The U.S. Small Business Administration estimates that only twenty percent of all small business loan applications received in 2015 were approved.
However, many lenders are looking to increase this figure. Alabama Credit Union chief lending officer, Benson Bolling, said that small business loans are, "a good performing book of business," indicating that the lender is looking to grow their portfolio.
Another lender, Redwood Credit Union located in Santa Rosa, California, has already begun doing just that. Since June, it has added 20% to its small business loan portfolio.
According to the Pepperdine survey, about 27% of those who responded are currently planning to apply for a loan during the next six months. However, these business owners added that they will first seek funds from banks before looking at credit unions, marketplace lenders, and credit cards.
If you are interested in a personal loan for your business, visit our curated list of top lenders.