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Division of Small Business

New report sheds light on small business lending


A new report from online lending platform Fundera finds that companies in the electronics manufacturing, building materials/home furnishings and retail industries had the greatest success in obtaining a business loan.

Fundera looked at data from more than 6,500 businesses in 58 industries that applied for a loan on Fundera’s platform in the three months ended March 31.

Electronics manufacturers obtained on average $53,714 in loans, compared with an average of $46,348 among companies in all 58 industries.

The average loan amount for building materials/home furnishing companies was $26,454. The average for retailers was $51,767.

Several factors played the greatest role in whether a company received a loan, according to Fundera: the company’s annual revenue, whether the company is applying for short-term rather than longer-term financing, the owner’s personal credit score and the business’s credit history.

Here’s how the businesses seeking a loan planned to use the money:

  • Working capital: 60.4 percent
  • Expansion: 15.37 percent
  • Purchasing or leasing new equipment: 10.4 percent
  • Debt refinancing and consolidation: 8.7 percent
  • Marketing, advertising or other reasons: 5.14 percent.

Click here to read the Fundera report.

Fundera is also holding a contest to award a $2,500 small business grant. Click here for more information.

The Division of Small Business wants to help you start and grow your business in Delaware.

Contact us to see how we can help you.

 

 

 

 


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