80% of Small Businesses Search Loans Online

80% of small businesses now search for their loan needs online reports Benjamin Pimental in his report on November 13, 2015, “Small Business Lending: Three Key Trends for 2016.”  Where are they increasingly finding success?  The booming number of small business online lenders.

In fact, as we report small business loans under $100k are down for community banks  $4.5 Billion, but online lenders are up $10 Billion.  A main reason is that 40% of business loans are under $50k.  Because of the large number of small businesses, this market is $29 Billion but the average size is only $12k, which is not a profitable transaction size for community bank with historical processes. 

But digital lending technology now available to community banks can make existing loans and renewals more efficient with sound underwriting, and drive growth in revenue in serving this large market.  Most community bank business checking account holders love their deposit relationship with the bank, but hold loans elsewhere.  You can learn more about penetrating this new opportunity by downloading The Small Business Digital Lending Strategy Book for Community Banks, or check out the site used by community banks as shown below.