You are on the cusp of something big—but a lack of money is slowing your momentum. Now is the best time to secure commercial funding. To better gauge the landscape, check out these commercial funding statistics and insights from the Cornerstone Capital Lending team.
What’s encouraging a positive lending outlook?
- The robust U.S. economy
- A low unemployment rate (about 4%)
- Rising interest rates granting better deals to banks, which approve loans at a higher rate
Additionally, optimism among business owners has made now an even more opportune time for entrepreneurs to seek funding. Approximately 50% of small business owners believe tax reform will help the national economy and the health of their business.
Trends we’ve seen so far
Here are the most prominent trends we’ve seen in 2018:
- Customers are prioritizing expediency
- Quicker transactions and instant payments
- Account management through apps
- More tech-driven operations
- Faster and more digitized services replacing human-run operations
- Integrating lending platforms and cryptocurrency
- An increase in e-commerce
- People favoring online marketplaces
- Industrial and warehouse buildings replacing standard retail structures
- In 2017, there were nearly 7,000 store closure announcements
Recent SBA and commercial lending stats
- The U.S. was home to 30.2 small businesses in 2015
- 5.7 million loans (about $82.6 billion) were offered by U.S. lending institutions in 2016
- From 2016 to 2017, the number of U.S. banks decreased
- The U.S. Chamber of Commerce Small Business Index score increased for the sixth consecutive quarter
Characteristics of funding recipients
- Longevity is key
- 75% of businesses that had been in operation for 20 years or more were granted the full loan amount
- For relatively new businesses, 51% were able to get full funding
- Female business owners still receive funding at a lesser rate than male business owners
- In 2017, there were 11.6 million firms owned by women and their businesses made $1.7 trillion in sales
- But women receive only seven percent of venture capital funding
- Women are 15–20% less likely to have their loan request approved
- That being said, women-led businesses that do secure funding most often do so through SBA loans.
- A tremendous increase in funding of minority-owned businesses
- In the U.S., the number of African American small business owners increased by 400% from 2016 to 2017
- Last year it was reported that women of color owned 5.4 million firms in the U.S.
Understanding and navigating the commercial lending landscape can be confusing at times, but the experts at Cornerstone Capital Lending are dedicated to providing you with the support you need to transform your business through our transparent and speedy funding process. Don’t put your business goals on hold; contact us today to see what we can do for you.