A recent survey conducted by direct lender Balboa Capital revealed that 65% of small business owners obtained a business line of credit from a non-bank lender in the past 12 months. Applicants cited easier application processes and faster funding decisions as the main factors in their choice of lender.
Balboa Capital’s online survey was sent to a sample of small business owners in a wide variety of industries nationwide to gauge their knowledge of business lines of credit, and to assess the demand for this business funding option.
“Small business owners who need quick access to short-term capital to improve cash flow, or to cover the costs of inventory, payroll and unexpected expenses, are looking to non-bank lenders for business lines of credit,” said Matthew Lent, manager of Ancillary Products/Working Capital at Balboa Capital. “Based on the results of our survey, over six in ten small business owners said they obtained a line of credit from a non-bank lender.”
Lent believes this is the result of small business owners wanting an easier borrowing process. “Small business owners are often strapped for time and need capital right away, and non-bank lenders like Balboa Capital present them with a fast and straightforward way to get a business line of credit.”
Key findings of Balboa Capital’s business line of credit survey include:
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