Direct lender Balboa Capital released findings from its new survey that was conducted to gauge small business owners’ understanding of unsecured business loans, and to ascertain where small business owners obtained unsecured business loans during the first six months of 2019.
The survey results reveal that 75% of small business owners are familiar with unsecured business loans, and 60% acquired their loans from non-bank lenders.
“Unsecured business loans are becoming an increasingly attractive choice for small business owners who are looking for a loan with easy qualification requirements and a fast turnaround time,” said Matthew Lent, manager of Ancillary Products/Working Capital at Balboa Capital.
“Our survey results show that most small business owners are familiar with unsecured loans, and a sizeable number of them are using this loan option to cover the costs of inventory, equipment, and everyday business expenses. Additionally, six in ten small business owners said they obtained an unsecured loan from a non-bank lender during the first half of 2019. This indicates that non-bank lenders like Balboa Capital are becoming more mainstream providers of unsecured loans to small businesses.”
An unsecured loan offers business owners a convenient way to obtain funding online, without the need for any type of collateral. The application is typically shorter than that of a traditional business loan, and the terms and interest rates of unsecured loans are contingent on the borrower’s credit score.
“As more and more business owners see value in using an unsecured loan for their company’s cash flow and investment needs, the interest in this loan option will remain strong,” said Lent.
Other key findings from the Balboa survey included:
Balboa Capital’s online survey was sent to a sample of small business owners in a wide variety of industries nationwide during the first week of August, 2019.
Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!