Small businesses are projected to boom in 2018 and so will their interest in borrowing. A quarterly survey of small businesses released by Pepperdine University’s Graziadio School of Business and Management and Dun & Bradstreet Corp finds small companies are increasingly interested in borrowing, but many are still finding it hard to get loans from banks.
This survey revealed small business owners who once shied away from the risks associated with borrowing (especially since the 2016 presidential election) are beginning to feel more secure about taking on debt. But many banks are still nervous and wary about lending to small companies.
Fortunately, 44% of small businesses appear to be seeking financing so they can grow or acquire additional businesses. We wrote last month the outlook for small business lending is looking good and anticipate that more and more lenders will see the benefits of working with these small, growing businesses.
Forbes shares our sentiment:
“Businesses seeking SBA loans this month [December] and in the coming year have a number of reasons to be positive about their chances of securing funding. The strong economy and resulting optimism, changes in the Small Business Administration (SBA) equity requirements, and changes in the Trump Administration policies have combined to create an atmosphere ripe for small business lending.”
The markets are performing well and at the beginning of December the Dow Jones surpassed 24,000 for the first time in history. Consumers are spending which is good news for small business owners and lenders alike. If this trend continues, and this survey proves to be correct, 2018 is looking like a great year for small businesses.
More About This Survey
The survey conducted from October 31-mid November surveyed 1,341 companies from the Dun & Bradstreet Corp database. These companies have revenue up to $100 million.