Small Business Loan Approvals at Alternative Lenders Rose in November
Dec 12, 2023
1 min read
In November 2023, Big banks' loan approval rates for small businesses stagnated at 13%, a continuation since June of the same year, according to the most recent Biz2Credit Small Business Lending Index™. This stagnation contrasted with the growth seen in small banks and alternative lenders, with approval rates at small banks rising slightly to 19.7% and alternative lenders reaching a significant milestone of 30%.
These changes in lending patterns reflect a dynamic financial environment where small and alternative financial institutions are increasingly pivotal in supporting small businesses. This shift is not just a financial statistic but a signal of changing strategies in business financing during challenging economic times.
“The last time loan approvals rates from alternative lenders reached 30% was in March 2020, the month before all approval percentages were cut in half due to the COVID pandemic,” CEO of Biz2Credit Rohit Arora said. “This should be a good sign for small business owners.”
For a full understanding, you can read the article on Yahoo Finance: Small Business Loan Approvals Stalled at Big Banks, Rose at Small Banks and Alternative Lenders in November 2023.
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In an earlier article from Yahoo, research from Biz2Credit showed that in 2022 Accommodation & Food Services and Healthcare & Social Assistance had the highest approval rate for all financing applications at 37%. After that, it was Manufacturing (32%), Wholesale Trade (31%), and IT (30%).
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