As almost all spheres of human life are changing, so is small business financing. There are many changes in lending and funding. There have been new laws and improved business practices that have been put into place, as well as new ventures that have come up.
Here are some of the noteworthy small business financing trends in 2019:
While lenders have been making funds available to businesses and individuals through online channels with some limitations, it is expected that in 2019, lenders will make the lending process completely online. The main reason behind this is that people are becoming more comfortable with doing business digitally. The adoption of online lending is the result of huge efforts in online marketing, which shows businesses how the Internet has infinite opportunities.
Increased demand for traditional bank loans
The past few years have witnessed a great increase in the popularity of alternative lenders. However, it is expected that in 2019 business owners will demand more from and even rely more on traditional bank loans than they did last year. One reason that explains this trend is that small loans that are backed by the government has adopted stronger and pushier lending policies. Local banks will aim to extend loans with the least restrictions possible, and at the same time, they will increase the speed of delivery.
Businesses can enjoy great benefits from traditional bank loans, and all they need is a good credit score. Among the perks that come with traditional bank loans are low-interest rates, assistance in building business credit, and the possibility to foster a good relationship with a personal banker. Such a relationship can come in handy in various circumstances.
But what if you do not have a good credit score? Well, it may seem like the situation is hopeless. However, you could not be farther from truth. The good news is that you can improve your credit score to allow you to qualify for small bank loans and enjoy other benefits. There are different ways of rebuilding a poor score, but a fast and reliable method is to engage an expert in credit score repair using trade lines. You can check out such experts at Boostcredit101, and you can rest assured that your score will be improved in record time.
Leveraging on technology such as AI
With the increase in demand for finances for small businesses, the use of more sophisticated technology will be employed in the whole of the small business lending process. The past few years have seen alternative and online lenders begin this pattern, and it is rightly expected that it will gain momentum and be taken up in a bigger way. The greater adoption and increased speed will occur through leveraging artificial intelligence, machine learning, and other technologies.
An expert in small business lending cites the reasons for the greater adoption of these technologies as being increased inefficiencies, high use of manual data entry, and many error incidents in traditional methods. It is expected that the alternative, as well as online lenders, will greatly welcome and adopt the innovations, thereby making big changes to the small financing scene.
The small business lending scene will register several trends in 2019 due to the changes in laws, the proliferation of technology, and expansion of new businesses. Some of the expected trends include increased online lending, higher reliance, and demand for traditional bank loans, and greater leveraging on innovations like artificial intelligence.