In August, small business loans hit record numbers for the 3rd consecutive month. Although the numbers are from our neighbours to the South, the news is encouraging for Canadian Small Businesses as trends from the US typically creep into Canada a few months later. What’s most interesting are the loan approval rates by various lenders. Although data like this isn’t available in Canada (or maybe it is – I couldn’t find it) one can safely assume it’s relative.
Small Business Loan approval rates by lender
The US data also has a category called “small banks” (approved 50%) but we don’t have those in Canada.
Alternative lenders have popped up everywhere since the 2008 world wide banking crisis. Crowd funding, peer to peer funding, factoring and merchant cash advances are a few of the new “alternative lenders.”
It’s interesting that a small business owner is 3 times more likely to get financing from an alternative lender than he or she is from the bank.
Read the full article here from Small Business Trends