CHARLOTTE, N.C., June 24, 2015 /PRNewswire/
-- LendingTree®, the nation's leading online loan
marketplace, recently conducted a survey on small U.S. business
owners who applied for a small business loan within the past year.
Data from LendingTree's survey showed 58% of the 170 small U.S.
business owners did not comparison shop business loans online
during their loan application process. Within that same sample of
business owners, 61% stated they referred directly to a bank or
credit union to research financing and funding options for their
small business, suggesting that small businesses could be missing
out on more opportunities and potentially substantial savings.
Interestingly, despite the fact that many small businesses today
are struggling to obtain financing, according to the LendingTree
study only about 1 in 4 (24%) small business owners even went
online to research financing and funding options for their loans.
According to The Business Backer CEO, Jim Salters, getting a loan or funding is
probably actually the easiest it's ever been, "There is just a
tremendous amount of investment and innovation in serving this sort
of non-bank or sort of beyond the traditional credit models, and
business models, and capital structures that existed in the past.
So we're seeing a lot of non-bank companies that are seeing
increasing amounts of investment from venture capital, private
equity, and lending capital funds. This investment and innovation
is increasing available funding supply."
Business owners may not realize the relative ease of applying
for loans online and its availability from new online lenders.
Because lenders offer very different loans from one another,
shopping online for small business loans aggregates available
options without a time-intensive search. Borrowers can quickly and
easily compare loan requirements and the lenders' estimated time to
fund, creating a more personalized loan shopping
experience.
Additionally, business owners may be simply missing out on
potential savings by simply not shopping around for the best
interest rate and comparing lenders.
"Many assume that the bank or lender they work with will always
give them the best rate, and while that may be the case sometimes,
it doesn't hurt to see what options are available. Lenders compete
with one another to earn trust and earn market share by offering
better rates, terms and service just like any other business," said
Doug Lebda, CEO of LendingTree. "The
LendingTree loan marketplace offers a way for business owners to
compare loans from multiple banks and lenders, including
alternative lenders, with only one application, for less time than
it would take to go the bank."
Methodology
The 2015 Small Businesses Survey was conducted online within
the United States by SurveyMonkey
on behalf of LendingTree between February 25
and March 18, 2015 among a nationally representative sample
of 170 U.S. small business owners whom applied for a small business
loan within the past twelve months.
- 61% refer directly to a bank or credit union either online
or in-person to research financing and funding options for their
small business.
- 58% did not comparison shop business loans online during
their application process
- Top 3 struggles of obtaining a small business loan
- 22% - Gathering required documentation
- 20% - Long application process
- 16% - Speed of approval
- Primary decision factors when choosing a business loan
lender
- 51% Established trust with the lender
- But only 9% value brand recognition/reputation of the
lender
- 30% Ease/Convenience of application
- 27% Interest rate and costs
What Do Small Business Owners Borrow?
- Borrowing Amount
- 18% of borrowers were seeking loans of less than
$10,000
- 36% were seeking loans between $10,000 and $50,000
- 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
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online loan
marketplace, empowering consumers as they comparison-shop across a
full suite of loan and credit-based offerings. LendingTree
provides an online marketplace which connects consumers with
multiple lenders that compete for their business, as well as an
array of online tools and information to help consumers find the
best loan. Since inception, LendingTree has facilitated more than
35 million loan requests. LendingTree provides access to lenders
offering home loans, personal loans, student loans, personal loans,
business loans, home equity loans/lines of credit, auto loans and
more. LendingTree, LLC is a subsidiary of LendingTree, Inc. For
more information go to www.lendingtree.com, dial 800-555-TREE, like
our Facebook page and/or follow us on Twitter @LendingTree.
MEDIA CONTACT:
Megan Greuling
(704) 943-8208
Megan.Greuling@tree.com
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SOURCE LendingTree