Harvard Business Review just came out with a new study on the state of small business lending in the USA. It is a 142 page document which can be found at the bottom of this article if you want to read the whole thing.
What I found interesting about the study:
- The politicians had their heyday with the financial crash decreasing the number of banks from 8,500 at the end of 2007 to 5,900 at the end of 2016
- They did a study from 1990 to March 2017 on the level of difficulty of small business getting funding, currently at 3% (March 2017) from a high of 16% in 2010
- The growth of the new online lenders and their nose bleed pricing.
- The satisfaction level with different types of lenders: large banks, online lenders, CDFI, Credit Unions and Small Banks.
The following is a series of graphs representing the satisfaction levels for each of the lenders based on if the borrowers were 1) satisfied, 2) neutral –had no comment either way or 3) dissatisfied.
If you are thinking of financing, now might be a very good time to talk to your banker about it.
Have a great week
Business Growth Coach